Special Economic Zones in Saudi Arabia
Wondering how Special Economic Zones in Saudi Arabia can give a competitive edge to your business? Let Gryffin Capitalist help you understand the benefits and setup your company in Saudi Arabia.
The Kingdom of Saudi Arabia (KSA), which is rapidly transforming into a centre for trade, is attracting investors and entrepreneurs from across the globe. In the first quarter (Q1) of 2025 alone, the country has registered more than 154,000 new businesses. This reflects a 48 per cent year-on-year increase in business registrations. At the center of this shift are its Special Economic Zones. From tax benefits to strategic locations, these economic zones in Saudi Arabia offer everything you need to grow your business.
Continue reading this article to learn in detail about different economic zones, top industries, and the major benefits of setting up your business there.
What are Special Economic Zones in Saudi Arabia?
Saudi Arabia Special Economic Zones (SEZs), strategically spread across different parts of the country, are dedicated areas established to attract foreign investments. These economic zones offer tax benefits, modern infrastructure, and various industry specific incentives to simplify the process of doing business in Saudi Arabia. The establishment of these zones is also in line with the ‘Saudi Vision 2030’ initiative, which aims to strengthen and diversify the country’s economy. The economy in Saudi Arabia is evolving beyond oil, and SEZs play a crucial role in supporting this agenda. Each Saudi Special Economic Zone focuses on specific industries, building on the particular region’s strengths and resources.
Overview of Key Special Economic Zones in Saudi Arabia
Saudi Arabia has established five SEZs to strengthen its position as a regional and global business hub. Each zone aims to support targeted industry and attract strategic foreign investments in Saudi Arabia. These zones offer a range of operational, infrastructural, and tax benefits.
Here's a brief overview of the five SEZs:
- King Abdullah Economic City (KAEC) SEZ: Spanning around 60km² area, KAEC is strategically located on a key trade route that handles 13 per cent of global maritime traffic. KAEC Saudi, located just 90 minutes from Jeddah Airport, is a gateway for international trade and investment. As one of the leading Special Economic Zones in Saudi Arabia has developed, it offers various benefits including 100 per cent foreign ownership, proximity to major trade hubs, streamlined business and residency permits, and mortgage accessibility across all income levels.
- Jazan SEZ: The Jazan Special Economic Zone, covering 24.6 km², is situated in the southwest of Saudi Arabia, near some of the major Red Sea shipping routes. It mainly focuses on heavy industries, food processing, and logistics sector, benefitting from its proximity to the Jazan Economic City, Jazan Port, and Jazan Refinery Complex. Capitalising on all these advantages, this zone is one of the most cost-efficient and business friendly areas for manufacturers and exporters.
- Ras Al-Khair SEZ: Covering approximately 20km² area, Ras Al-Khair SEZ is designed to cater to the offshore and maritime industries. For investors, the zone offers a wide range of incentives and benefits, including 5 per cent corporate tax in Saudi Arabia for up to 20 years, no value added tax (VAT) for intra-SEZ trade, no customs duties on goods within and between SEZs, and full profit repatriation.
- Cloud Computing SEZ: This zone is strategically situated within the King Abdulaziz City for Science and Technology (KACST) in Riyadh. The Cloud Computing zone is a hub for global cloud service providers, tech innovators, and data-driven enterprises. Foreign investors and entrepreneurs can benefit from no VAT and customs duties for intra-SEZ trade, streamlined digital licensing, and full foreign ownership.
- Riyadh Integrated Special Logistics Zone: The Riyadh Integrated Special Logistics Zone was established to streamline global trade, logistics, and e-commerce operations. The zone, which is located adjacent to King Khalid International Airport in Riyadh, offers direct air cargo connectivity and fast-track customs clearance. It offers various advantages such as 100 per cent foreign ownership, full profit repatriation, and no custom duties and VAT on goods within and between SEZs.
Not sure which one of the Special Economic Zones in Saudi Arabia is most suitable for your business? Do not worry! We at Gryffin Capitalist help you identify the zone that aligns best with your sector, goals, and expansion plans.
Industries Served by Each Special Economic Zones in Saudi Arabia
Are you planning to invest in Saudi Arabia? Choosing the right SEZ can give you a competitive edge in your industry. All the Special Economic Zones in Saudi Arabia cater to a specific industry. Through this, the government aims to drive economic diversification and attract targeted investments in the country. Refer to the following table to understand which industry each economic zone in Saudi Arabia focuses on:
| Special Economic Zones | Location | Industries |
|---|---|---|
| KAEC SEZ | Situated on Saudi’s Red Sea coast, this zone is near the King Abdullah Port. | Logistics, Medical Technology (MedTech), Light manufacturing of electronic equipment , Pharmaceuticals, Consumer goods |
| Ras Al-Khair SEZ | This zone is located on the coast of Arabian Gulf. It benefits from its close location to Ras Al-Khair Port. | Shipbuilding and related Maintenance, Repair, and Overhaul (MRO) , Offshore supply chain and MRO |
| Jazan SEZ | Positioned along the Red Sea in the southwestern region of the Kingdom. | Logistics, Petrochemicals, Food processing, Renewable Energy, Metals conversion |
| Cloud Computing SEZ | This zone is located in the King Abdulaziz City for Science and Technology (KACST). | Cloud Computing, Artificial Intelligence (AI), Cybersecurity |
| Riyadh Integrated Special Logistics Zone | This zone is near Riyadh’s King Khalid International Airport. | Logistics, Supply chain and distribution, Import/export, Storage and Warehousing, Trading |
Benefits of Starting a Business in Saudi Arabia’s SEZ
Special Economic Zones in Saudi Arabia plays a crucial role in the execution of Saudi Vision 2030 initiative. These zones offer several investor-friendly benefits designed to reduce costs and open access to regional and international markets.
Thinking of setting up in a Saudi SEZ? Mentioned below is a quick overview of the key benefits of starting a business in one of the Special Economic Zones in Saudi Arabia:
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How can Gryffin Capitalist Help?
Want to make the most of SEZ incentives and exemptions? We are here to help. Experts at Gryffin Capitalist leverage their deep regional experience to offer end-to-end support for your business setup in one of the Special Economic Zones in Saudi Arabia. From planning and setup to scaling your presence in the zone, we can take care of it all. You can leave all the paperwork, approval, and licensing related work on us.
Our team can simplify the entire process, guiding you through regulations, incentives, and compliance requirements step by step. Whether you are a startup, a small medium enterprise (SME), or a multinational looking for business setup in Saudi Arabia, we are here to turn opportunity into action. Ready to get started? Reach out NOW!
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Frequently Asked Questions (FAQs)
No, in most of the cases, businesses in Saudi Arabia must operate within the scope of their zone. However, some zones allow limited external activity under specific licensing agreements.
SEZs are regulated by the Economic Cities and Special Zones Authority (ECZA), which sets specific regulations and supervises compliance.
Yes. Most SEZs allow 100 per cent foreign ownership without requiring a local partner.
Yes. Special Economic Zones in Saudi Arabia often have streamlined visa processes and exemptions from expat fees during the early years of operation.
Your choice of business will depend on various factors such as industry, supply chain needs, and target markets. All the Special Economic Zones in Saudi Arabia are sector-focused and Gryffin Capitalist can help you assess and decide the right option.
