Saudi Arabia To Set Up First Special Economic Zone For Integrated Logistics

; posted on
October 25th, 2018

Saudi Arabia announced the establishment of a Special Economic Zone (SEZ). A Royal decree was issued to approve the regulation of the “Integrated Logistics Bonded Zone – ILBZ”. The first zone, to be allocated in King Khalid International Airport and similar zones are expected at other airports, once approved by the Council of Economic and Development.

Business Activities

The preferential treatment within the zone will be available for activities, including warehousing and fulfillment; inventory management, maintenance, and repairs; staging, testing, sorting, and assembly; import, export, and re-export of goods; logistics and after-sales services; and certain recycling activities.

Benefits

The zone aims to attract more multinational companies to the country, through measures including the following:

  • The entities established within the zone will not be subject to restrictions on foreign borrowing, the repatriation of capital or the ability to remit dividends, profits, payment of commissions and other similar payments abroad;
  • There will be no restrictions on the private ownership of assets, including intellectual property rights.

In addition to the measures, the ILBZ also offers direct and indirect tax incentives that are yet to be determined.

Source: Saudi Press Agency

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