Saudi Arabia has introduced four new Special Economic Zones (SEZ), which will offer incentives for companies seeking to expand their business to strategic locations in Saudi Arabia, including Riyadh, Jazan, Ras Al-Khair, and Makkah. The SEZs will improve the overall investment environment by leveraging competitive advantages of each region, including their location, infrastructure and availability of talent, and by offering special regulations to businesses operating in critical industry sectors. An integrated government services platform, called the One Stop Shop, will be established, which is expected to streamline and simplify processes related to the issuance of business licenses and employment of workers (this includes the introduction of standardized employment contracts, exemption from expat levy and the ability to transfer workers from different companies within a SEZ), although exemptions from Saudization requirements are unlikely. Other benefits will include relaxed corporate and other taxes, and an exemption from customs duties on imports and production.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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