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Saudi Arabia: Cabinet Approves Regulatory Frameworks for Four Special Economic Zones
Asharq Al-Awsat, 2 January 2026: Saudi Arabia’s Cabinet approved regulatory frameworks for four Special Economic Zones, initiating a major step to bolster the Kingdom’s investment ecosystem.
In a decision on 2 January 2026, the Saudi Cabinet approved new regulations governing the special economic zones (SEZs) in Jazan, Ras Al-Khair, King Abdullah Economic City, and the Cloud Computing & Informatics Zone in Riyadh. The move marked the transition of these SEZs into their operational and legal phase, offering investors a clear roadmap on incentives, licensing regimes, and ownership flexibility.
Minister of Investment confirmed that the regulations will come into force in early April 2026, describing the approval as a major leap in developing the Kingdom’s regulatory ecosystem and enhancing global investment competitiveness in line with Vision 2030.
Each zone targets strategic sectors aligned with its regional strengths:
- Jazan: a hub for food processing, mining, and manufacturing, leveraging its port and links to African markets.
- Ras Al-Khair: a centre for maritime, shipbuilding, offshore rigs, and marine support.
- King Abdullah Economic City: a logistics, high-value manufacturing, and automotive hub.
- Cloud Computing & Informatics Zone (Riyadh): a data-driven economy zone, facilitating local data storage and processing by global tech firms.
The regulations include incentives like flexible licensing, tax and customs exemptions, streamlined operational procedures, foreign ownership rights, multilingual trade naming, and exemptions from select provisions of Saudi Arabia Cabinet Decision No. 678/1443 on the Approval of the Companies Law. Tailored Saudisation frameworks will align workforce policies to each zone’s economic activity, balancing local talent development with investor needs.
The unified governance model will provide clear mandates across government entities, accelerating licensing processes and ensuring a fast, flexible business environment. As a result, firms will have enhanced regulatory clarity and operational agility when entering or scaling within Saudi Arabia’s SEZs
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