The Saudi government announced at the end of October the inauguration of a new special economic zone on the outskirts of the capital Riyadh, located in the center of the country. This is Saleh al-Jasser, Minister of Transport and Logisticswho gave the news and inaugurated this space of more than 3 square kilometers exempt from taxes and provided with other incentives for commercial activity.
“The Special Logistics Zone is a key enabler for the logistics sector in Saudi Arabia, as it offers multinationals a unique value proposition based on enhanced tax and regulatory incentives. It will strengthen Saudi Arabia’s position as a major growth market fastest and leading strategic trading nation in the Middle East, and will continue Vision 2030’s mission to connect the Kingdom to the world,” Minister al-Jasser said at the launch of the project.
This new business center is part of the project Vision 2030 of the Kingdom. The intention of the government of Riyadh is to stimulate the transit of goods by road and to make the capital of the Kingdom a mandatory transit point for the delivery of goods throughout the Arabian Peninsula to all other countries. That’s not all, it’s also a hub between Asia and Africa.
According to government sources in Riyadh, the government is negotiating with about 20 large international companies to set up in the new special economic zone. Among those who have already announced their arrival in Riyadh, we find the American technology and communications giant Apple. The Apple brand gives a boost to the Saudi government to carry out its projects thanks to its notoriety and reputation.
Saudi Arabia aims to increase the capacity of its transport infrastructure to 4.5 million tonnes per year, increase the contribution of the transport and logistics sector to the gross domestic product from 6% currently to 10% and to create approximately 30,000 jobs related to the special economic zone. The ultimate goal of these goals is to diversify Saudi Arabia’s income in order to reduce its dependence on the hydrocarbon economy.
The SEZ is located close to Riyadh International Airport and plans are under consideration in conjunction with the Saudi Civil Aviation Authority. It is therefore expected that goods will be transported in the future not only by road, but also by air. “The Saudi Aviation Strategy invests 100 billion dollars in the future of the kingdom, creating a story of unprecedented growth. The Special Integrated Logistics Zone is an opportunity to participate early in Saudi Arabia’s rapid emergence as the preeminent logistics center in the Middle East, and we have put in place the regulatory measures to give maximum flexibility to global companies when they enter the Kingdom,” Minister al-Jasser reported on the role of aviation in the development of Saudi plans.