Economic Zones are a Component of the Kingdom’s Vision 2030

Under unique commercial laws, the Kingdom has established an expanding network of economic zones. These zones are meant to support and stimulate economic growth.

Four new special economic zones have been established: Riyadh, King Abdullah Economic City, Ras Al-Khair, and Jazan, according to Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs His Royal Highness Prince Mohammed bin Salman bin Abdulaziz.

Moreover, this announcement fits into the framework of Saudi Arabia’s goals for economic diversification and development, which His Highness is eager to accomplish to improve the investment climate. It also strengthens Saudi Arabia’s standing as a major international location for foreign investment.

What are these economic zones? What benefits do they offer the Kingdom?

Overview of the 2023 Special Economic Zones

By providing multiple competitive advantages in each region, these zones will support important and promising sectors and open up new development opportunities. These four regions are among the most competitive in the world due to their unique business laws and procedures. Besides, through industrial localisation, technology transfer, and job creation, these economic cities present a singular chance to boost the local economy. Additionally, the zones offer an appropriate platform for accomplishing the goals of sector strategies that support Vision 2030.

As integrated logistics and industrial platforms, they provide Saudi businesses with the chance to profit from the value they contribute at every stage of the supply chain. Likewise, with unique laws and benefits offered to businesses and investors, these are special investment zones. Further, they are geographically separate regions with unique customs and tax laws that are not applicable throughout the country.

Often, autonomous and flexible systems govern these domains, which attracts both domestic and foreign investment and facilitates the growth of ambitious projects with substantial profits. These economic zones were established to take advantage of the Kingdom’s strategic location and bolster its standing as a global logistics hub that links three continents.

Read more: Prince Mohammed bin Salman is Reshaping KSA’s Economic & Cultural Identity with Vision 2030

Where These Zones Are & Their Notable Investments

King Abdullah Economic City’s Special Economic Zone

Located north of Jeddah on the Red Sea coast, it is primarily focused on the automotive, light, and advanced industries as well as logistics. It is advantageous that King Abdullah Port, one of the biggest ports in the Middle East, is close by.

According to Majed Matbouli, the head of King Abdullah Economic City’s Industrial Valley and Special Economic Zone, investments totalled SAR 20 billion in 2024. They could rise to SAR 25 billion in the following two years.

Read more: KSA is the EU’s Economic Arena for the Ensuing 10 years

The Special Economic Zone of Riyadh

The digital economy, cloud computing, cybersecurity, and artificial intelligence and its uses are its main areas of interest. Its objective is to make Riyadh a hub for innovation and technology in the region and to entice multinational tech firms to set up regional offices in Saudi Arabia.

Key Features

— There is no corporate income tax.

— The tax exemptions for 50 years.

— Value-added tax breaks.

— Withholding tax exemptions, subject to certain criteria.

— 0% VAT on services, manufacturing, or assembly.

— Free money transfers if certain criteria are met.

— VAT exemptions for goods subject to customs duty suspension.

Read more: The Saudi Logistics Sector Supports Global Supply Chains & Economic Growth

Jazan Special Economic Zone

Situated on the Red Sea in the southern region of the Kingdom, it is the site of heavy industries like mining, petrochemicals, food, and energy. In addition to creating jobs for locals, it aims to encourage development in the southern regions.

In 2024, the Jazan City for Basic and Transformative Industries saw investments totalling about 120.9 billion riyals, with a capacity of 22.4 million tonnes per year.

Read more: Saudi Arabia is the New Millionaires Hotspot for 2025

Ras Al-Khair Special Economic Zone

It focuses on the mining, clean energy, and metals sectors. The existence of significant initiatives like Ma’aden, which aim to localise value chains in the mining industry, is advantageous to it.

According to a statement from the Royal Commission for Ras Al-Khair Mining Industries City’s Acting CEO, Mahmoud Al-Dheeb, “The volume of investments in the city has exceeded 176 billion riyals by 2024.” Ninety-one per cent of these investments come from the private sector. According to Al-Dheeb, the Royal Commission’s investment in Ras Al-Khair Mining Industries City yields a return of up to 12 times for every riyal invested.

The Economic Zones’ Significance: How They Relate to Vision 2030

They are a key component in realising Vision 2030. The most significant of their many strategic goals is the diversification of the economy through the promotion of non-oil industries like manufacturing, technology, logistics, and renewable energy. One important component is their capacity to draw in foreign direct investment by fostering a competitive atmosphere and luring multinational corporations to the Kingdom.

By drawing in multinational corporations that bring cutting-edge work practices and modern technology, they can also impart knowledge and technology. Furthermore, by distributing economic zones throughout the Kingdom and promoting development in outlying cities, they aim to achieve development balance by giving Saudis employment opportunities, especially in the fields of industry and technology, to build national competencies.

To sum up, the Kingdom’s Vision 2030 and its objectives for economic diversification are embodied in the Kingdom’s economic zones. These zones are only the start of a revitalised and diversified Saudi economy, and they are a continuation of the Kingdom’s sustainable development project’s goals. A diversified economy is essential, not optional. Besides, the Kingdom has established a more varied, forward-thinking, and sustainable economic landscape and laid the groundwork for this economy through its fortunate endeavours.

Read more: Saudi Arabia Highlights Its Achievements at the World Economic Forum, 2025