Saudi Arabia launches economic zones to diversify growth

Opportunities for local and international investors just got bigger after Saudi Arabia unveiled four new special economic zones on Friday, boosting its plan of becoming a global business hub in line with its Vision 2030 strategy.

In recent years, Riyadh has been stepping up efforts to diversify its economy, which has traditionally been reliant on oil. The zones will help enhance the automobile supply chain, assembly of consumer goods, and processing and distribution of food products, strengthening marine value chains and cloud computing.

Khalid al-Falih, minister of investment and chairman of the Economic Cities and Special Zones Authority, or ECZA, said they were proud of the SEZs that offer opportunities for foreign investors "to have a stake in the world's fastest-growing economy".

Nabil Khojah, secretary-general of Saudi Arabia's ECZA, said the zones "will become engines of growth", increasing the Arab nation's export competitiveness, attracting talent, boosting technology, and improving "our global links".

In a news release issued on Friday, luxury electricity vehicle maker Lucid will produce 150,000 EVs a year from its base at the King Abdullah Economic City SEZ.

The Cloud Computing SEZ, located in the King Abdulaziz City for Science and Technology, will allow investors to establish physical data centers and cloud computing infrastructure across Saudi Arabia.

At the Ras al-Khair SEZ, 42 percent of the zone is already reserved, where opportunities range from shipbuilding and repair to offshore drilling and maritime value chains, while the Jazan SEZ will offer access to the largest port in the region for export of goods and import of materials.

This will help investors benefit from and contribute to large-scale infrastructure projects in Saudi Arabia and around the world.

Deniz Istikbal, an economic researcher at the Foundation for Political, Economic and Social Research in Turkiye, told China Daily that new investments are important for Saudi Arabia's Vision 2030.

"(Saudi Arabia) especially needs countries with strong manufacturing industries to reduce dependence on oil. The four new special economic zones to be built are closely related to this transformation," Istikbal said.

jan@chinadailyapac.com