Saudi Arabia approves regulatory frameworks for special economic zones

Saudi Arabia has approved regulatory frameworks for four special economic zones (SEZs) as part of efforts to boost its appeal as a global investment destination.

The Cabinet decision covers Economic zones in Jazan, Ras Al-Khair, King Abdullah Economic City and a Cloud Computing and Information Technology Zone. The move marks the start of the formal legal and operational phase for the projects, setting out incentives, eligibility rules and regulatory structures for investors.

Minister of Investment Khalid Al-Falih stated that the regulations for economic zones would come into force in April 2026, calling the decision a key milestone in modernising the Kingdom’s investment environment.

He noted that the decision reflects Saudi Arabia’s commitment to creating a business-friendly environment that supports sustainable growth and aligns with the objectives of Vision 2030.

The Jazan Special Economic Zones will focus on food processing, mining and downstream manufacturing, benefiting from its port facilities and proximity to African markets.

Ras Al-Khair is intended to develop into an international hub for maritime and mining industries, including shipbuilding and offshore services.

King Abdullah Economic City will target advanced manufacturing, logistics and the automotive sector, while the Cloud Computing and Information Technology Zone in Riyadh is expected to support data storage, processing and digital services for international technology firms operating in the Kingdom.

Investor incentives and regulatory flexibility

The regulations introduce a package of competitive incentives, including streamlined licensing procedures, flexible ownership structures, and attractive tax and customs frameworks.

Under the new regulations, investors will be offered streamlined licensing procedures, flexible ownership arrangements and competitive tax and customs incentives. Companies operating in the zones will be able to use simplified operational requirements and register in multiple languages.

Certain investments within the zones are also exempt from specific provisions of the traditional Companies Law, giving multinational firms greater flexibility in structuring and managing their operations.

According to the Ministry of Investment, the frameworks form part of a wider governance model intended to improve coordination between government bodies, speed up approvals and reduce administrative delays.