Saudi Arabia

Saudi Arabia

Launches four special economic zones (SEZ)

13 Apr 2022

On 13 April 2023, the Government of Saudi Arabia announced the launch of four special economic zones (SEZs) across the country with incentives for international companies to operate within the Kingdom. The new SEZs are spread strategically across the country: King Abdullah Economic City (KAEC) - West, Jazan - Southwest, Ras Al Khair - Northeast , Cloud Computing in King Abdulaziz City for Science and Technology (KACT) - Central (Riyadh) They aim to offer competitive incentives including: 5% Corporate Income Tax rate for up to 20 years; 0% withholding tax on repatriation of profits from SEZ into foreign countries; Customs duties deferral for goods inside SEZ or 0% Custom duties on capital equipment and inputs inside SEZ; Flexible and supportive regulations around foreign talent during first 5 years; 0% VAT for all intra-SEZ goods exchanged within and between the SEZs; Special tax treatment in line with OECD principles to avoid double taxation; Competitive rate of utilities notably electricity; Exemption from operational fees for employees and their families within SEZ.

  • UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the Investment Policy Monitors and the UNCTAD-OECD Reports on G20 Measures.

    In 2024, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2012 accordingly.

    The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.

    Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for sustainable development.

  • The UNCTAD's Investment Policy Monitor database include official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting FDI (FDI-specific), as well as general investment measures with a clear impact on foreign investment (FDI-related). The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases). The classification of measures as more or less favourable is based solely on their potential impact on investors.

    Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.

    Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.

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