Excellent news on Saudi Arabia’s new free trade zone, the Special Economic Zone, Integrated Logistics Bonded Zone (ILBZ) located near the international airport in Riyadh.
The new SEZ – ILBZ will help attract foreign investment in KSA and add to the desirability of foreign enterprises, organisations and businesses locating to and operating in kingdom, simultaneously allowing risk mitigation, reduced bureaucracy and enhanced autonomy and control.
This complements other KSA plans to promote business, such as new business, visas and employment opportunities, as well as opening up the kingdom to tourism.
Similar to the UAE FTZ’s, benefits include:
- 100 percent foreign ownership
- 100 percent suspension of customs and import restrictions
- No restrictions on capital repatriation
- A 50 year tax holiday to include VAT suspension while under customs suspension
- Zero corporate, income and withholding tax on certain payments
Internally, such moves will help KSA deliver her Vision 2030, reduction on oil dependency and diversification of the economy.
The new SEZ – ILBZ also paves the way potentially for more such zones in places such as Riyadh, Jeddah and other major cities.
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