Unlock Growth Opportunities: Business Setup in Saudi Arabia's Special Economic Zones (SEZs) .
End-to-End Solutions for SEZ Company Setup in Saudi Arabia – From Licensing to Expansion
About SEZ in Saudi Arabia (Free Zone in Saudi Arabia)
Saudi Arabia has introduced five Special Economic Zones (SEZs) to boost economic diversification. These zones offer tax incentives and foreign-friendly regulations for five years, attracting global investors and fostering innovation. Employees and their families benefit from fee exemptions and special tax treatment aligned with OECD principles to prevent double taxation.
Advantages of Business Registration in Saudi Special Economic Zones .
Reduced Rate of Corporate Tax
Companies get a significantly minimized 5% corporate tax rate, compared to the normal rate of 20%, a key incentive for business registration in an SEZ company.
No Withholding Tax
Companies have nil withholding tax for repatriation of profits, and this maintains a trouble-free and tax-neutral capital structure in foreign firm setting up in an SEZ.
Exemption in Customs Duty
Equipment and capital inputs are exempt from customs duty, making operational expenses minimal and ease of doing business great.
SEZ Investment Opportunities
Saudi Special Economic Zones offer a favorable business setting, allowing business setup for Saudi Arabia entrepreneurs aligned with Saudi Vision 2030 and entrepreneurship aims.
Find Saudi Arabia's Special Economic Zones
Saudi Arabia has positioned itself to develop a number of Special Economic Zones (SEZs) in order to attract foreign investments and diversify the economy. Each SEZ company setup offers exclusive sectoral advantages, tax incentives, and streamlined business establishment within a special economic zone, in alignment with Saudi Vision 2030 and entrepreneurship goals.
West – King Abdullah Economic City (KAEC)
Best suited for foreign company setup in SEZ, with strong focus on manufacturing, shipping, and logistics sectors. Provides SEZ trade license registration benefits, including remissions in customs duty and taxation incentives.
Essential features
- Region: Makkah
- Zone Size: 60 square kilometers, Largest SEZ in Saudi Arabia
- Boasts world-class facilities like King Abdullah Port, KAUST University, and Madinah Airport
- Centrally positioned on the Red Sea, in proximity to African and European markets.
Focus sectors
- (ICT) - Electronic light manufacturing
- Pharmaceuticals
- Health and life science
- Automotive supply chain and assembly
- Consumer goods
- Aerospace
Southwest – Jazan Economic City (JEC)
Focused on oil, petrochemicals, and food processing industries, the SEZs offer lucrative investment opportunities in Saudi Arabia. They provide selective tax benefits and investment incentives, making them an attractive choice for global investors at launch.
Essential features
- Region: Jazan
- Zone Size: 24.6 km2
- Exploring opportunities for utilizing solar and wind power to meet the energy needs of the SEZ.
- Focuses on developing a multimodal logistics zone with seaport, airport, and railway transportation for regional connectivity.
Focus sectors
- Agro-industry
- Metal Production
- Automotive Manufacturing
- Renewable Energy
- Food security
- Mineral market
Central (Riyadh) – Cloud Computing at KACST
A hub for tech-driven SEZ business licensing, supporting cloud-based and digital transformation ventures. Investors benefit from tax incentives, including a reduced corporate tax rate, making it an ideal destination for innovation and growth.
Essential features
- Region: Riyadh
- Zone Size: Not Specified
- Located centrally, serving as a technological catalyst collaborating with international cloud computing giants to accelerate technological advancements.
- Offers a flexible regulatory environment for testing and piloting new technologies.
Focus sectors
- Information technology
- Cloud consulting services
- Data centers
- Cyber security
- AI advancements
- Research & Development
Central (Riyadh) – Special Integrated Logistics Zone (SILZ)
Connected to logistics and supply chain management, the SEZs offer business setup opportunities for Saudi entrepreneurs. With streamlined legal conditions, they enhance ease of doing business, attracting foreign investors and fostering growth.
Essential features
- Region: Riyadh
- Zone Size: 3.0 km2
- Has modern warehousing and distribution facilities with temperature-controlled spaces and value-added services.
- Features residential and commercial facilities catering specifically to logistics companies and professionals
Focus sectors
- Consumer goods
- Perishable products
- E-commerce necessities
- Pharmaceuticals
- Jewelry & luxury items
- Logistics & distribution
Schedule a free consultation with our Company Formation Expert
- Consult our SEZ Expert
Start Your Company in SEZ With Us
With 16 years of expertise, Analytix supports businesses in Saudi Arabia’s Special Economic Zones (SEZs). We provide comprehensive services, including license registration, company formation, and financial and legal guidance, ensuring a smooth and efficient business setup process.
Our One-Stop Business Support Services for KSA Companies
- FAQs
FAQs for Business Setup in Special Economic Zone – Analytix
If your question is not addressed here, please feel free to reach out to us. We value your inquiry.
What is a Special Economic Zone (SEZ) in Saudi Arabia?
A Special Economic Zone (SEZ) refers to a special zone with business-friendly policies, offering tax incentives, simplified regulations, and investment incentives to attract foreign and domestic businesses.
What are the benefits of setting up a business in a Saudi SEZ?
Saudi SEZs offer advantages such as 0% withholding tax, reduced corporate tax, customs duty-free, and easy regulatory process, making them ideal for business development.
Who can start a business in a Saudi SEZ?
Both foreign and domestic companies are permitted to start an entity within an SEZ. The procedure is particularly conducive for multinational firms, startups, as well as SMEs in pursuit of tax-efficient operations.
How can I obtain an SEZ Trade License?
Companies have to provide a business plan, legal entity registration, and approvals of compliance to obtain an SEZ Trade License. Analytix can help you with this.
Which industries can establish their company in SEZ?
Industries such as logistics, manufacturing, technology, cloud computing, energy, and healthcare can make use of the tax advantage provided by the Saudi Arabia SEZs.
What are the tax benefits of conducting business in an SEZ?
Saudi SEZs offer tax benefits in terms of zero withholding tax, reduced corporate tax rates, and exemption on import duty on raw materials and capital goods.
How many weeks or months are required to set up a business in an SEZ?
The timeline varies with the business type and approval of documents, but with the assistance of Analytix, the process can be completed hassle-free within weeks.
What are the Saudi legal requirements for an SEZ business?
The businesses must comply with Saudi investment regulations like business registration, licensing, and operational regulations pertinent to the chosen SEZ.
Is 100% foreign ownership of a Saudi SEZ business possible?
Yes, it is possible for foreign businesses to 100% own a business in an SEZ, hence making it an extremely popular place for international companies.
How does Analytix assist in SEZ company setup?
Analytix provides turnkey business setup facilities, including company registration, acquisition of trade licenses, regulatory affairs, and SEZ investor business strategy consulting.
