Saudi Arabia launches 4 special economic zones to attract international investors

News Network
April 14, 2023

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Riyadh: Saudi Arabia has launched four special economic zones that will offer companies financial and non-financial incentives as it seeks to attract more foreign investment and position itself as a global business centre.

The aim of the new zones, which will be located in Riyadh, Jazan, Ras Al-Khair and King Abdullah Economic City, is to open up new opportunities for international investors, the Saudi Press Agency reported.

“Saudi Arabia is open for business and welcomes investors from all around the world to see first-hand the historic opportunities we have to offer,” the Crown Prince Mohammed bin Salman said.

“The new special economic zones launched today will significantly impact how business is done in the country, create tens of thousands of jobs, and contribute billions of riyals to our gross domestic product.”

The zones will take advantage of the Kingdom’s strategic location to create new hubs for businesses across key growth sectors so that they can launch and expand companies and technologies that will help shape the future, according to the SPA.

They will support existing national strategies and create new links with international frameworks, building on the competitive advantages of each region of the country to support key sectors such as logistics, advanced manufacturing, technology, and other priority sectors in the Kingdom, it added.

The benefits to companies of operating in the zones will include: competitive corporate tax rates; exemption from customs duties on imports, production inputs, machinery and raw materials; 100 percent foreign ownership of companies; and flexibility to attract and hire the best talent worldwide.

The zones will also provide tremendous opportunities for developing the local economy, generating jobs, and localizing supply chains, officials said. They are said to represent a continuation of long-running initiatives that aim to transform the Kingdom into a global investment destination and a vital hub for global supply chains, by capitalizing on its position at the heart of global trade routes.

Thanks to a detailed program of regulations and incentives, the zones will offer rewarding and attractive benefits to foreign investors, officials said. The program will also allow for the acceleration of reforms required to facilitate business in all parts of the Kingdom, they added.

The new zones build on previous free-zone initiatives in the Kingdom, including the recent launch of an integrated special zone for logistics at King Salman International Airport in Riyadh. Together, they represent the first phase of a major, long-term program designed to encourage foreign direct investment, attract the most talented professionals from around the world, and promote entrepreneurship and economic development within the Kingdom, officials said.

The zones, which will be regulated by the Economic Cities and Special Zones Authority, will provide fresh solutions to the challenges many global businesses face as they attempt to localize and strengthen supply chains, they added, and help the Kingdom take advantage of key macroeconomic shifts to create a truly differentiated business environment, activating new sectors and value chains.

Saudi Minister of Investment Khalid Al-Falih, who is the chairman of the Economic Cities and Special Zones Authority, said: “This is an exciting moment. We are proud to see the launch of these four special economic zones that offer the chance for foreign investors to have a stake in the world’s fastest growing economy.”

The Secretary-General of the authority, Mr. Nabil Khoja, added, “With hugely attractive financial incentives, world-class infrastructure, business-friendly regulations and streamlined procedures for investors, there has never been a better time to be part of Saudi Arabia’s economic success story. The zones will become engines of growth, increasing the Kingdom’s export competitiveness, attracting talent, boosting technology and improving our global links.”

Special economic zones – or SEZs – are geographically defined areas that facilitate specific economic activities, such as investment, trade and employment, by providing competitive advantages and legislative frameworks that differ from the base economy. 

The newly launched zones cover a wide range of industries:

King Abdullah Economic City (KAEC) SEZ

The premier destination for advanced manufacturing and logistics, from automobile supply chain and assembly to consumer goods, ICT to MedTech. Set in a prime location on the Red Sea, less than 90 minutes from Jeddah Airport, this 60km2 site offers unrivaled access to global trade routes through King Abdullah Port, ranked the world’s most efficient by the World Bank in 2022. Anchor investor Lucid, a leader in the global EV industry, will produce 150,000 EVs a year from its base in KAEC SEZ.

Jazan SEZ

An industrial center and key platform for trade with fast-growing markets in Africa and Asia. Jazan SEZ offers access to the largest port in the region for export of goods and import of materials, helping investors benefit from and contribute to large-scale infrastructure projects in Saudi Arabia and around the world, backed by easy access to both natural and industrial resources. Jazan is part of the Kingdom’s fertile southwestern region, providing opportunities for the manufacturing, processing and distribution of food products to cater for growing regional demand and meet food security challenges across the region.

Ras Al-Khair SEZ

A launchpad on the Arabian Gulf for leaders in the maritime industry, Ras Al-Khair SEZ is a fully integrated marine ecosystem, with a rich network of existing investors – 40% of the zone is already reserved – and myriad opportunities across shipbuilding and repair, offshore drilling and maritime value chains.

Cloud Computing SEZ, located in King Abdulaziz City for Science and Technology (KACST)

In King Abdulaziz City for Science and Technology (KACST), a new Cloud Computing SEZ will serve as  a hub for emerging and disruptive technologies. A direct manifestation of the Kingdom’s ‘Cloud First’ policy, the Cloud Computing SEZ underlines the Kingdom’s commitment to digital innovation and the fast-growing tech sector. The Zone is based around an innovative hybrid model that allows investors to establish physical data centers and cloud computing infrastructure in multiple locations within the Kingdom. 

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News Network
October 2,2024

Yemeni Armed Forces have launched a series of attacks on Israeli military positions deep inside the occupied territories, in solidarity with Palestinian and Lebanese people amid the Tel Aviv regime’s ongoing offensives in the Gaza Strip and across Lebanon.

Delivering a televised statement broadcast live from the capital Sana’a on Wednesday morning, Yemen’s military spokesman Brigadier General Yahya Saree said the country’s missile units had fired three domestically-developed Quds-5 cruise missiles at the strategic installations.

He added that the missiles managed to strike the designated targets precisely, despite the Zionist regime’s attempts to conceal the losses it sustained in the aftermath of the missile attack.

Saree also hailed the Islamic Republic of Iran’s retaliatory attack, dubbed Operation True Promise II, against Israel, stressing that Yemeni Armed Forces are prepared to participate in any joint military operation against the Zionist enemy in support of the Palestinian and Lebanese nations, and in response to Israeli atrocities.

“The continued US and British support for the Israeli enemy will put their interests in the region in jeopardy. Yemeni Armed Forces will not hesitate to expand their military operations against the Zionist enemy and its sponsors until the ongoing aggression against Gaza stops, the siege on the coastal territory is completely lifted, and the attacks on Lebanon come to an end,” he pointed out.

Yemenis have declared their open support for Palestine’s struggle against the Israeli occupation since the regime launched a devastating war on Gaza on October 7, 2023, after the territory’s Palestinian resistance movements carried out surprise Operation Al-Aqsa Storm against the occupying entity.

The Yemeni Armed Forces have said they will not stop their attacks until unrelenting Israeli ground and aerial offensives in Gaza end.

So far, Israel has killed at least 41,638 Palestinians, mostly women and children, and injured 96,460 others in Gaza.

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News Network
October 2,2024

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Israel will launch a “significant retaliation” to Iran’s missile attack within days that could target oil production facilities inside Iran, Axios reports citing Israeli officials.

The Israeli military late on Tuesday said Iran launched around 180 missiles at its territory, most of which were intercepted.

Iranian media carried online footage of what they said were missiles being fired, which the Islamic Revolutionary Guard Corps said were targeting “three military bases” around Tel Aviv and other bases.

The Revolutionary Guards said “90 percent” of the missiles “hit their targets” late Tuesday.

Israeli Prime Minister Benjamin Netanyahu has vowed to hit back following the attack.

“Iran made a big mistake tonight - and it will pay for it,” he said at the outset of an emergency political security cabinet meeting late on Tuesday, according to a statement.

Washington said it would work with longtime ally Israel to ensure Iran faced “severe consequences” for Tuesday’s attack.

US Secretary of Defense Lloyd Austin spoke to Israeli Defense Minister Yoav Gallant late on Tuesday and said Washington was “well-postured” to defend its interests in the Middle East, the Pentagon said in a statement.

“The minister and I expressed mutual appreciation for the coordinated defense of Israel against nearly 200 ballistic missiles launched by Iran and committed to remain in close contact,” Austin said separately in a post on X.

US Navy warships fired about a dozen interceptors against Iranian missiles headed toward Israel, the Pentagon said. Britain said its forces played a part “in attempts to prevent further escalation in the Middle East”, without elaborating.

The Pentagon said Tuesday’s airstrikes by Iran were about twice the size of April’s assault by Iran on Israel.

A painful response

Israel activated air defenses against Iran’s bombardment on Tuesday and most missiles were intercepted “by Israel and a defensive coalition led by the United States,” Israeli Rear Admiral Daniel Hagari said in a video on X, adding: “Iran’s attack is a severe and dangerous escalation.”

Iran’s forces on Tuesday used hypersonic Fattah missiles for the first time, and 90 percent of its missiles successfully hit their targets in Israel, the Revolutionary Guards said.

In a statement on state media, the general staff of Iran’s armed forces said any Israeli response would be met with “vast destruction” of the latter’s infrastructure.

It also said it would target the regional assets of any Israeli ally that got involved.

Fears that Iran and the US could be drawn into a regional war have risen with Israel’s growing assault on Lebanon in the past two weeks, including the start of a ground operation there on Monday, while its conflict in the Gaza Strip is a year old.

US President Joe Biden expressed full US support for Israel and described Iran’s attack as “ineffective.” Vice President Kamala Harris, the Democratic presidential candidate, backed Biden’s stance and said the United States would not hesitate to defend its interests against Iran.

“We will act. Iran will soon feel the consequences of their actions. The response will be painful,” Israel’s UN Ambassador Danny Danon told reporters.

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News Network
October 2,2024

Yemeni Armed Forces have launched a series of attacks on Israeli military positions deep inside the occupied territories, in solidarity with Palestinian and Lebanese people amid the Tel Aviv regime’s ongoing offensives in the Gaza Strip and across Lebanon.

Delivering a televised statement broadcast live from the capital Sana’a on Wednesday morning, Yemen’s military spokesman Brigadier General Yahya Saree said the country’s missile units had fired three domestically-developed Quds-5 cruise missiles at the strategic installations.

He added that the missiles managed to strike the designated targets precisely, despite the Zionist regime’s attempts to conceal the losses it sustained in the aftermath of the missile attack.

Saree also hailed the Islamic Republic of Iran’s retaliatory attack, dubbed Operation True Promise II, against Israel, stressing that Yemeni Armed Forces are prepared to participate in any joint military operation against the Zionist enemy in support of the Palestinian and Lebanese nations, and in response to Israeli atrocities.

“The continued US and British support for the Israeli enemy will put their interests in the region in jeopardy. Yemeni Armed Forces will not hesitate to expand their military operations against the Zionist enemy and its sponsors until the ongoing aggression against Gaza stops, the siege on the coastal territory is completely lifted, and the attacks on Lebanon come to an end,” he pointed out.

Yemenis have declared their open support for Palestine’s struggle against the Israeli occupation since the regime launched a devastating war on Gaza on October 7, 2023, after the territory’s Palestinian resistance movements carried out surprise Operation Al-Aqsa Storm against the occupying entity.

The Yemeni Armed Forces have said they will not stop their attacks until unrelenting Israeli ground and aerial offensives in Gaza end.

So far, Israel has killed at least 41,638 Palestinians, mostly women and children, and injured 96,460 others in Gaza.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
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