Within the framework of the Kingdom of Saudi Arabia's interest in the national economy and its unlimited support for the development of the economy and investment in the Kingdom, Crown Prince and Prime Minister Prince Mohammed bin Salman launched four special economic zones in the Kingdom to open new horizons for investors from all over the world and to contribute to the development and diversification of the Saudi economy. .
These four economic cities aim to enhance the integration of the Saudi economy into the regional and global system and provide an attractive environment for global investments at the regional level. They also aim to attract huge investments that would provide job opportunities that meet the aspirations of Saudi youth.
Okaz, in turn, asked some experts and specialists in the economy about the importance of establishing these cities and their role in developing the Saudi economy.
Economic and financial expert Ahmed Al-Shehri said: “The launch of these special economic zones represents an important stage in the Kingdom’s ambitious plan to transform and diversify the Saudi economy away from the main dependence on oil, and reflects its commitment to developing the economy and achieving the Kingdom’s Vision 2030, which aims at development and economic diversification, and works to enhance Its competitive capabilities in the global market in light of the presence of these regions on the most important seas that link the East with the West in terms of its strategic location and what Saudi Arabia possesses of an advanced banking system and an advanced communications structure in addition to energy, water and logistical services that facilitate doing business in all regions of the Kingdom as well as the special regions with economic preference.
Al-Shehri added that these special economic zones provide great opportunities for developing the local economy, localizing industries, providing job opportunities for Saudi youth, and stimulating foreign direct investment in the Kingdom, while the incentives offered to companies from competitive tax rates and exemptions for imports, productive inputs, machinery and raw materials from customs duties will be It has an impact on attracting qualitative investments, in addition to allowing 100% foreign ownership in these areas, which will enhance the appetite of investors, and at the same time, the ability of the special economic zones to attract the best global human resources, and these economic zones will play an important role in promoting trade and investment and transforming the Kingdom into a center for business. In the Middle East, these regions will also help attract technology and innovation, enhance international and trade cooperation, and thus achieve more growth and prosperity for the Saudi economy.
Al-Shehri concluded by expecting that the Special Economic Zones will contribute to enhancing economic and trade cooperation with other countries, and will also enhance the logistical infrastructure and facilitate the movement of trade and transport in the Kingdom and the region in general.
For his part, the economist Dr. Ali Al-Hazmi said: It is a strategic and important decision and is in line with previous initiatives that the Kingdom has worked on, especially with regard to the industrial sector and logistical services in the Kingdom of Saudi Arabia, and that what distinguishes the launch of the Four Economic Cities initiative is that it included various regions of the Kingdom in the south. And the central region, the east and the west, and thus the Kingdom gives a message that all the cities of the Kingdom are at the same distance and takes advantage of the relative distinction of each region.
He added that this initiative achieves one of the most important pillars of the Kingdom's Vision 2030, which is attracting foreign investments capable of contributing to the gross domestic product by at least 6%. This initiative supports the logistics services and Saudi industries initiative and also supports the private sector to generate cumulative experiences.
Al-Hazmi pointed out that the Crown Prince's announcement of the launch of the economic cities is a qualitative announcement in terms of the advantages that will be granted to companies coming from abroad, foremost of which are customs exemptions and low tax rates, granting companies coming from abroad the right to own 100%, and providing an exceptional investment experience.
He noted that the "Corona" crisis proved to everyone that there is a global crisis with regard to supply chains, and this affected the inflation that some countries suffered from, and we saw how when China was affected economically due to the Corona pandemic, the whole world was affected.
Al-Hazmi concluded by saying: The Kingdom of Saudi Arabia makes an important choice for the world with its strategic location and sends a message to the world that the Kingdom is ready to be part of the system of supply chains and logistics services, with its economic strength and strategic location.
Yazen Nayef (Riyadh) @yazenjh
