• Saudi Arabia's King Abdullah Port, on the Red Sea, will anchor the King Abdullah Economic City special economic zone. All photos: Economic Cities and Special Zones Authority
    Saudi Arabia's King Abdullah Port, on the Red Sea, will anchor the King Abdullah Economic City special economic zone. All photos: Economic Cities and Special Zones Authority
  • The special economic zone will focus on advanced manufacturing and logistics
    The special economic zone will focus on advanced manufacturing and logistics
  • The Knowledge Economic City focuses on consumer goods, medical technology and information and communications technology
    The Knowledge Economic City focuses on consumer goods, medical technology and information and communications technology
  • The four new zones will offer companies financial and non-financial incentives such as competitive corporate tax rates
    The four new zones will offer companies financial and non-financial incentives such as competitive corporate tax rates
  • Saudi Arabia is pushing to become one of top 15 global economies by 2030
    Saudi Arabia is pushing to become one of top 15 global economies by 2030

Saudi Arabia's special economic zones 'pivotal' to its future as an investment destination


Deena Kamel
  • English
  • Arabic

Saudi Arabia's new special economic zones are “pivotal” to its present and future as a global investment destination, creating opportunities for sustainable business growth, the kingdom's Minister of Investment said.

These next-generation zones will enable the country to “win and play” in a fast-changing world economy and geopolitical environment, said Khalid Al Falih, who is also chairman of the board of directors of the Economic Cities and Special Zones Authority (ECZA).

“The zones are part of efforts to strengthen our standing as an investment hub and provide businesses with a launch pad for growth to new targeted markets,” he told the Saudi Special Economic Zones Investment Forum in Riyadh on Monday.

The zones will contribute to Saudi Arabia's economic transformation journey, boost the non-oil sector, create value for investors and help the kingdom to attract high-skilled talent, he said.

Saudi Arabia's capital formation to total investments grew by 31 per cent year-on-year to exceed one trillion Saudi riyals ($266.6 billion) in 2022, Mr Al Falih said.

Khalid Al-Falih, Minister of Investment and chairman of the Economic Cities and Special Zones Authority
Khalid Al-Falih, Minister of Investment and chairman of the Economic Cities and Special Zones Authority

Saudi Arabia’s new special economic zones, launched last month, have attracted $12.6 billion from investors across maritime, mining, manufacturing, logistics, and tech sectors. An additional $31 billion in investments is in the progress, it was announced in the forum.

The zones were launched to offer companies financial and non-financial incentives as the kingdom seeks to attract more foreign investment and position itself as a global business centre.

They will focus on the advanced manufacturing, cloud computing, medical technology and maritime sectors, all key growth areas.

The special economic zones are the King Abdullah Economic City, Jazan, Ras Al Khair and Cloud Computing, in the King Abdulaziz City for Science and Technology.

Four new Special Economic Zones (SEZs) have been launched in Saudi Arabia, offering opportunities to capitalize on one of the world’s fastest-growing economies. Photo: FGS Global
Four new Special Economic Zones (SEZs) have been launched in Saudi Arabia, offering opportunities to capitalize on one of the world’s fastest-growing economies. Photo: FGS Global

The zones were officially launched on Monday during the forum, with each being granted licences.

Government officials at the forum made the case for the continued relevance of economic zones globally amid a qualitative shift in FDI flows where investors are becoming more selective, while the trend is towards "friend-shoring".

Friend-shoring refers to manufacturing and sourcing from countries that are allies.

"Given these dynamics, let me ask a rhetorical question: Are SEZs still relevant for high-growth economies? The answer, in my mind, is a resounding 'yes'," Mr Al Falih said.

"Globally, SEZs have gain renewed relevance as part of [a] broader industrial policies comeback trend to attract FDI and supply chains."

Today's special economic zones must go beyond financial incentives and infrastructure to delivering "soft incentives", such as overcoming supply chain bottlenecks through business-enabling regulations, he said.

In October 2022, Saudi Arabia opened the Special Integrated Logistics Zone at King Khalid International Airport in Riyadh as part of plans to boost its cargo capacity, bolster supply chains and become a global logistics centre.

The development of the special zones is part of a broader economic transformation in the country as part of Vision 2030 – an initiative to reduce its reliance on oil, unlock the potential of the private sector to drive growth and put in place sweeping reforms to boost its business competitiveness.

The kingdom, which has a domestic market of more than 30 million people, recorded economic growth of 8.7 per cent in 2022 – one of the fastest among G20 economies.

The country plans to use its strategic location and resources to develop the most promising sectors, from advanced manufacturing to artificial intelligence, for sustainable economic growth in Saudi Arabia and the region, Mr Al Falih said.

About 13 per cent of global trade passes through the Red Sea and the kingdom's strategic location offers access to 70 per cent of the world’s population within eight hours’ flight time.

Saudi Arabia is placing “great emphasis” on putting in place a national special economic zones agenda and developing a network of competitive zones to boost investment in a wide range of industries, said ECZA secretary general Nabil Khojah.

“As the kingdom's economy grows and investors' needs evolve, we plan to expand our network of SEZs in the future,” he said in an introduction to a detailed brochure on the zones.

The existing network offers robust infrastructure and connectivity, supportive regulation, attractive incentives, competitive costs, local talent and an environment that “maximises opportunity while minimising risk for businesses”, he said.

The kingdom has placed specific "guard rails" to ensure that the special economic zones do not compete with or take away from the main economy's growth, Saudi Finance Minister Mohammed Al Jadaan said during a panel discussion at the forum.

Clear policies have been drawn to ensure that they do not "cannibalise" the base economy or each other, "otherwise it will be a race to the bottom", he said.

Mr Khoja told the forum that each zone has a specific cluster with a sector that either does not exist or has a minimal presence in the main economy, so they represent "enormous opportunities".

The Arab world's biggest economy is pushing to become one of top 15 global economies by 2030.

It is developing a series of projects in critical sectors ranging from tourism to manufacturing, and putting in place reforms to attract investment as part of its Vision 2030 programme.

In October, the kingdom launched the Global Supply Chain Resilience Initiative to support investments worth 40 billion riyals in its first two years.

The project will allocate 10 billion riyals in financial and non-financial incentives for investors as the country seeks to expand its transport sector and become a global logistics centre.

The new special economic zones are designed to hasten the development of key sectors within Saudi Arabia – from medical technology to maritime industries, and attract foreign investors.

“In a challenging and uncertain global economy, we offer unmatched opportunities and a government that is fully committed to doing whatever it takes to help you access these,” Mr Al Falih said in the brochure.

Mr Al Jadaan said the special economic zones were a "very important project" for Saudi Arabia's Vision 2030 as they are expected to attract more foreign direct investment, boost private sector participation and enhance local content.

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Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

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MATCH INFO

Who: France v Italy
When: Friday, 11pm (UAE)
TV: BeIN Sports

COMPANY PROFILE
Name: Akeed

Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

First Person
Richard Flanagan
Chatto & Windus 

MATCH INFO

RB Leipzig 2 (Klostermann 24', Schick 68')

Hertha Berlin 2 (Grujic 9', Piatek 82' pen)

Man of the match Matheus Cunha (Hertha Berlin

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Marathon results

Men:

 1. Titus Ekiru(KEN) 2:06:13 

2. Alphonce Simbu(TAN) 2:07:50 

3. Reuben Kipyego(KEN) 2:08:25 

4. Abel Kirui(KEN) 2:08:46 

5. Felix Kemutai(KEN) 2:10:48  

Women:

1. Judith Korir(KEN) 2:22:30 

2. Eunice Chumba(BHR) 2:26:01 

3. Immaculate Chemutai(UGA) 2:28:30 

4. Abebech Bekele(ETH) 2:29:43 

5. Aleksandra Morozova(RUS) 2:33:01  

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The specs

Engine: 3.8-litre, twin-turbo V8

Transmission: eight-speed automatic

Power: 582bhp

Torque: 730Nm

Price: Dh649,000

On sale: now  

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
Australia tour of Pakistan

March 4-8: First Test, Rawalpindi

March 12-16: Second Test, Karachi

March 21-25: Third Test, Lahore

March 29: First ODI, Rawalpindi

March 31: Second ODI, Rawalpindi

April 2: Third ODI, Rawalpindi

April 5: T20I, Rawalpindi

Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company

The%20specs%3A%202024%20Mercedes%20E200
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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

Results

5pm: Maiden (PA) Dh80,000 (Turf) 1,000mm, Winners: Mumayaza, Fabrice Veron (jockey), Eric Lemartinel (trainer)

5.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m, Winners: Sharkh, Pat Cosgrave, Helal Al Alawi

6pm: The President’s Cup Prep - Conditions (PA) Dh100,000 (T) 2,200m, Winner: Somoud, Richard Mullen, Jean de Roualle

6.30pm: Handicap (PA) Dh90,000 (T) 1,600m, Winner: Harrab, Ryan Curatolo, Jean de Roualle

7pm: Abu Dhabi Equestrian Gold Cup - Prestige (PA) Dh125,000 (T) 1,600m, Winner: Hameem, Adrie de Vries, Abdallah Al Hammadi

7.30pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m, Winner: AF Alwajel, Tadhg O’Shea, Ernst Oertel

8pm: Maiden (TB) Dh80,000 (T) 1,400m, Winner: Nibras Passion, Bernardo Pinheiro, Ismail Mohammed

SPECS
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MATCH INFO

Brescia 1 (Skrinia og, 76)

Inter Milan 2 (Martinez 33, Lukaku 63)

 

The bio

Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district

Was a middle distance state athletics champion in school

Enjoys driving to Fujairah and Ras Al Khaimah with family

His dream is to continue working as a social worker and help people

Has seven diaries in which he has jotted down notes about his work and money he earned

Keeps the diaries in his car to remember his journey in the Emirates

Company Profile:

Name: The Protein Bakeshop

Date of start: 2013

Founders: Rashi Chowdhary and Saad Umerani

Based: Dubai

Size, number of employees: 12

Funding/investors:  $400,000 (2018) 

The specs: 2018 Renault Koleos

Price, base: From Dh77,900
Engine: 2.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 170hp @ 6,000rpm
Torque: 233Nm @ 4,000rpm
Fuel economy, combined: 8.3L / 100km

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Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)

Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
Sarina Wiegman (England)

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

The five new places of worship

Church of South Indian Parish

St Andrew's Church Mussaffah branch

St Andrew's Church Al Ain branch

St John's Baptist Church, Ruwais

Church of the Virgin Mary and St Paul the Apostle, Ruwais

 

Updated: May 29, 2023, 2:30 PM