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Economic Cities and Special Zones Authority (ECZA) Secretary General Nabil Khoja
The Economic Cities and Special Zones Authority (ECZA) aims to increase the volume of investments in special economic zones (SEZs) to more than SAR 116 billion, Secretary General Nabil Khoja told Argaam.
Negotiations are under way with major companies in various sectors to attract them to SEZs, with expectations that there will be more opportunities, the top official said on the sidelines of the Saudi Special Economic Zones Investment Forum held on May 29.
He added that the value of main investments in existing economic zones amounts to SAR 19.6 billion, indicating that they were among the first different sectors attracted to ensure the right environment.
Investments in SEZs, so far, have exceeded SAR 47 billion, he added.
An economic zone is situated away from the basic economy, and has different legislations and incentives. The goal of establishing such zones is to spur operations in certain sectors to achieve the goals of Vision 2030, boost exports and achieve other goals, Khoja stated.
He further indicated that the objectives for establishing SEZs are to focus on the target sectors for development in the Kingdom, whose contribution to the basic economy is almost non-existent or very weak.
Khoja also said that attracting foreign companies to new sectors after providing them with the right conditions will contribute to the development of those sectors. This comes through providing tax and legislative incentives, as each zone has special requirements and capabilities based on its needs to encourage and develop industries targeted in Vision 2030.
Moreover, SEZs seek to bring in entire industries, not only companies, by attracting the entire value-added chain, Khoja noted.
He added that this will contribute to the transfer of knowledge to citizens, to learn new industries and generate jobs through working with foreign competencies.
The top official also pointed out that several companies obtained work licenses in a short period -- since the launch of the four SEZs by Crown Prince Mohammed bin Salman at the end of Ramadan.
Saudi Arabia launched last month the first five SEZs with special commercial regulations, to accelerate the economic diversification and enable investors to conduct their business in the Kingdom.
The zones are titled the King Abdullah Economic City (KAEC) SEZ, Jazan SEZ, Ras Al Khair SEZ, Cloud Computing SEZ and Integrated Logistics SEZ in Riyadh, according to Argaam's data.
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