Business Setup In Special Economic Zone
Falcons International SBS offers end-to-end support for establishing your business within Saudi Arabia’s Special Economic Zones (SEZs). These zones offer exceptional incentives, regulatory benefits, and world-class infrastructure designed to attract high-impact investments.
About Special Economic Zones (SEZs) in Saudi Arabia
Saudi Arabia has introduced five world-class Special Economic Zones (SEZs) as part of its drive toward economic diversification and global competitiveness. These SEZs offer unparalleled benefits, including significant tax incentives, streamlined foreign ownership regulations, and exemption from operational fees for employees and their families.
Designed to attract international investors and foster innovation, the SEZs provide a business-friendly environment aligned with OECD principles, ensuring protection against double taxation. Falcons International SBS stands ready to guide you in leveraging these opportunities to establish and grow your presence in Saudi Arabia’s dynamic economy.
Benefits of Setting Up Company in Saudi Special Economic Zones
Reduced Corporate Tax Rate
Companies operating in SEZs enjoy a reduced 5% corporate tax, significantly lower than the national standard 20%.
Zero Withholding Tax
Foreign investors can repatriate profits without incurring any withholding tax, enhancing financial efficiency.
Customs Duty Exemption
Capital equipment and production inputs imported into SEZs are fully exempt from customs duties, reducing costs.
Start Your Company in SEZ With Falcons SBS
The Special Economic Zones (SEZs) in Saudi Arabia
Saudi Arabia has established five strategically located Special Economic Zones (SEZs), each designed to promote targeted industries, attract international investment, and support the Kingdom’s Vision 2030 objectives. These zones offer world-class infrastructure, business-friendly regulations, and direct access to global markets.
1. West Region – King Abdullah Economic City
Region: Makkah
Zone Size: 60 km² (Largest SEZ in Saudi Arabia)
- Located along the Red Sea, providing direct access to African and European markets
- Integrated with King Abdullah Port, KAUST University, and connected to Madinah Airport
- Designed as a hub for industrial and technological innovation
- Information & Communication Technology (ICT)
- Electronic light manufacturing
- Pharmaceuticals
- Health and life sciences
- Automotive supply chain and assembly
- Consumer goods
- Aerospace
2. Southwest Region – Jazan Economic City
Region: Jazan
Zone Size: 24.6 km²
- Strategically located on the Red Sea near the Yemeni border, with access to East African markets
- Promotes the use of renewable energy (solar and wind)
- Features a multimodal logistics network including seaport, airport, and rail connectivity.
- Agro-industry
- Metal production
- Automotive manufacturing
- Renewable energy
- Food security
- Minerals and raw materials
3. Central Region – Cloud Computing at KACST
Region: Riyadh
- Based in the Innovation Tower at King Abdulaziz City for Science and Technology (KACST)
- The leading cloud computing and innovation center in the Middle East
- Provides a flexible regulatory environment for testing and launching emerging technologies
- Information technology
- Cloud consulting and infrastructure
- Data center development
- Cybersecurity solutions
- Artificial intelligence (AI)
- Research & development
4. Central Region – Special Integrated Logistics Zone (SILZ)
Region: Riyadh (Adjacent to King Khalid International Airport)
Zone Size: 3.0 km²
- Offers direct access to global air cargo routes
- Equipped with modern, temperature-controlled warehousing and value-added services
- Designed for global logistics and distribution companies, with integrated residential and commercial zones
- Consumer goods
- Perishables and cold-chain logistics
- E-commerce and fulfillment
- Pharmaceuticals
- Jewelry and luxury goods
- Global logistics and distribution
Frequently Asked Questions
If you don’t find the answer you’re looking for here, please don’t hesitate to reach out to us. We’re happy to assist you.
1. Can a foreigner start a business in a Saudi SEZ?
2. Are businesses in SEZs exempt from income tax?
A reduced corporate tax rate of 5%
0% withholding tax on repatriated profits
0% customs duties on capital equipment and raw materials
3. Is it complicated to set up a business in a Saudi SEZ?
4. What are the Special Economic Zones (SEZs) in Saudi Arabia?
King Abdullah Economic City (KAEC) – Western Region
Jazan Economic City (JEC) – Southwest
Ras Al Khair SEZ – Northeast
Cloud Computing SEZ at KACST – Central (Riyadh)
Special Integrated Logistics Zone (SILZ) – Central (Riyadh)
