Special economic zones will encourage investment flow to Saudi Arabia 
Crown Prince Mohammed bin Salman has announced the launch of four special economic zones in Riyadh, Jazan, Ras Al-Khair and King Abdullah Economic City, north of Jeddah.
The main goal behind these special economic zones is to encourage the flow of local and foreign investments to the Kingdom, which will provide investors with the support required for vital and promising sectors, such as technology, logistics, and industry.
These cities are expected to support the Saudi government’s efforts to diversify its economy by opening new horizons for investment development, considering the strategic geographical location of Saudi Arabia, which connects three major continents: Europe, Africa and Asia.
The special economic zones will allow investors to enjoy several competitive advantages, such as special regulations that would attract the most important qualitative investments and provide tremendous opportunities for the development of the local economy. Also, it will create thousands of job opportunities for Saudis, allowing for the transfer of know-how and technology and the localization of industries.
Finally, it is believed that the special economic zones will create opportunities for the Saudi business community to grow as the zones are integrated with the Saudi economy and will provide fertile ground for achieving Vision 2030 goals.
The main goal behind these special economic zones is to encourage the flow of local and foreign investments to the Kingdom, which will provide investors with the support required for vital and promising sectors, such as technology, logistics, and industry.
Having said this, what are the benefits that each zone will provide to the Saudi economy?
A special economic zone in Riyadh, which is projected to be among the 10 largest economies in the world, will support the Saudi government’s efforts to make the capital city a global destination economically, industrially and technically. It will also improve the city’s cloud computing and information technology capabilities, strengthening the Kingdom’s position as a regional and global investment destination and supporting the growth of the digital economy.
Jazan’s special economic zone will support government efforts to transform the Kingdom not only into a global destination for investment but also as a vital center that supports global supply chains.
A special economic zone in Ras Al-Khair will contribute to the Kingdom’s efforts to increase the size of industrial investment as the city aims to be the largest shipyard in the world, attracting investments worth $26.67 billion.
Finally, having a special economic zone in King Abdullah Economic City, which boasts one of the world’s fastest-growing ports in the King Abdullah Port, will help the Kingdom re-envision regional trade routes.
I believe that establishing four special economic zones in the Kingdom will encourage direct investment flow with the support of a resilient and integrated business model, including customized legislation that attracts the most advanced and qualitative investments.
• Talat Zaki Hafiz is an economist and financial analyst. Twitter: @TalatHafiz
