Opens Special Integrated Logistics Zone to attract foreign investment

On 1 November 2022, the Government of Saudi Arabia unveiled its first Special Integrated Logistics Zone to position itself as the region’s leading logistics hub and attract foreign investment. The zone offers investors a 50-year tax holiday, 100% foreign ownership, and aims to serve a market of 5 billion people within 8 hours flying time in Europe, Asia and Africa. The new Saudi facility can process goods for dispatch to market within only four hours of arrival in the zone, compared to more than 24 hours at other established zones in the region. Additionally, it provides investors with VAT advantages on servicing and assembly, whereas other zones apply VAT charges, making manufacturing and assembly more expensive.

• Type:

  • Entry and establishment (Ownership and control)
  • Promotion and facilitation (Investment facilitation , Investment incentives, Special economic zones)

• Industry:

  • Services (Other service activities)

• Sources:

  • pwc, Saudi Arabia: The new Integrated Logistics Bonded Zone (“ILBZ”) Customs Services Rules have been published - is your business ready?, https://www.pwc.com/m1/en/services/tax/me-tax-legal-news/2022/saudi-arabia-the-new-integrated-logistics-bonded-zone-customs-services-rules.html, 16 Nov 2022
  • bloomberg, Could Saudi Arabia's new Special Economic Zone be a game changing solution?, https://sponsored.bloomberg.com/article/special-integrated-logistics-zone/supply-chain-issues-have-shocked-the-world, 01 Nov 2022
  • newsncr., Saudi Arabia opens financial zone in push for international funding, https://www.newsncr.com/business/saudi-arabia-opens-economic-zone-in-push-for-foreign-investment/, 01 Nov 2022