Unlock Opportunities in Special Economic Zones with Massar
Explore seamless business setup in the Special Economic Zone in Saudi Arabia with Massar, your comprehensive service provider. Reach out to us to establish your free zone company in KSA.
Discover SEZs in Saudi Arabia (Free Zones in Saudi Arabia)
Saudi Arabia introduces five Special Economic Zones (SEZs) to catalyze economic diversification. These zones offer exclusive benefits, including tax incentives and foreign-friendly regulations for the initial five years. Aimed at attracting global investments and fostering innovation, SEZs significantly contribute to the nation’s economic prosperity. Within SEZs, employees and their families enjoy exemption from operational fees and special tax treatment adhering to OECD principles, ensuring a conducive business environment.
Benefits of setting up a Saudi’s Special Economic Zones
Reduced Corporate
Tax Rate
Enjoy a significantly lower tax burden with a 5% tax rate, a notable decrease from the standard 20% rate.
Zero Withholding
Tax
Experience seamless profit repatriation as there is no withholding tax applied on profits sent from SEZs to foreign countries.
Customs Duty Exemption
Maximize cost savings with exemptions on customs duties for capital equipment and inputs utilized within SEZs, facilitating smoother operations.
There are five Special Economic Zones (SEZs) in
Saudi Arabia
The five Special Economic Zones (SEZs) of Saudi Arabia are sector-specific and geographically dispersed. The following are the five SEZs:
King Abdullah Economic City (KAEC) offers a modern, integrated business environment for global investment and growth.
- King Abdullah Economic City (KAEC) in the west
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Fundamental Attributes
- Locality: Makkah
- 60 square kilometres in area; the most expansive SEZ in Saudi Arabia.
- Constructed with world-class amenities, including Madinah Airport, King Abdullah Port, and KAUST University.
- Strategically located in close proximity to both African and European markets, on the shores of the Red Sea.
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Emphasis on Sectors
- (ICT): Electronic light manufacturing
- Pharmaceutical substances
- Life and health sciences
- Automotive assembly and supply chain
- Purchase of goods
- The aerospace industry
- In the southwestern region lies Jazan Economic City (JEC).
By virtue of its strategic location near the Yemeni border on the Red Sea, JEC has easy access to markets in East Africa.
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Fundamental attributes
- Geographical Area: Jazan
- Area of Zone: 24.6 km2
- Investigating potential applications for solar and wind energy to supply the SEZ with energy.
- For regional connectivity, the development of a multimodal logistics zone incorporating air, sea, and rail transportation is emphasised.
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Emphasis sectors
- The agro-industrial
- Metal Manufacturing
- Automobile Production
- Sustainable Energy
- Food assurance
- Minerals distribution
- Cloud Computing at the King Abdulaziz City for Science and Technology (KACST), located in Central Riyadh.
Situated within the Innovation Tower of King Abdulaziz City for Science and Technology (KACST), this Special Economic Zone (SEZ) serves as a preeminent hub for government agencies and businesses to innovate in the region with regard to cloud computing.
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Fundamental attributes
- Area: Riyadh
- Size of Zone: Unspecified
- Strategically situated, this location functions as a technological catalyst, fostering collaborations with global leaders in cloud computing to expedite advancements in technology.
- A regulatory environment that is adaptable to the needs of testing and piloting novel technologies.
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Emphasis sectors
- Regarding information technology
- Consulting services for clouds
- Facilities for data centres
- Cybersecurity measures
- Advancements in AI
- Investigation & Development
- Specialised Integrated Logistics Zone (SILZ) in the centre.
The Special Integrated Logistics Zone, adjacent to King Khalid International Airport in the central region, provides access to worldwide air cargo networks.
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Fundamental attributes
- Area: Riyadh
- Size of Zone: 3.0 km2
- Modern distribution and storage facilities that feature value-added services and temperature-controlled environments.
- Offering residential and commercial amenities designed to meet the specific needs of logistics companies and professionals.
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Emphasis sectors
- Purchase of goods
- Perishable products
- E-commerce essentials
- Pharmaceutical substances
- Fine jewellery and luxury goods
- Logistics and provisioning
Consult with our SEZ Expert
We Can Help You Establish Your Business in SEZ
With fifteen years of experience, Massar has developed a specialisation in providing assistance to businesses situated in Special Economic Zones (SEZs). By offering an extensive array of services—including licence registration, company formation, and financial and legal counsel—we ensure that your business can commence operations in these special economic zones of Saudi Arabia smoothly.

