Saudi Arabia's new special economic zones are “pivotal” to its present and future as a global investment destination, creating opportunities for sustainable business growth, the kingdom's Minister of Investment said.
These next-generation zones will enable the country to “win and play” in a fast-changing world economy and geopolitical environment, said Khalid Al Falih, who is also chairman of the board of directors of the Economic Cities and Special Zones Authority (ECZA).
“The zones are part of efforts to strengthen our standing as an investment hub and provide businesses with a launch pad for growth to new targeted markets,” he told the Saudi Special Economic Zones Investment Forum in Riyadh on Monday.
The zones will contribute to Saudi Arabia's economic transformation journey, boost the non-oil sector, create value for investors and help the kingdom to attract high-skilled talent, he said.
Saudi Arabia's capital formation to total investments grew by 31 per cent year-on-year to exceed one trillion Saudi riyals ($266.6 billion) in 2022, Mr Al Falih said.
Saudi Arabia’s new special economic zones, launched last month, have attracted $12.6 billion from investors across maritime, mining, manufacturing, logistics, and tech sectors. An additional $31 billion in investments is in the progress, it was announced in the forum.
The zones were launched to offer companies financial and non-financial incentives as the kingdom seeks to attract more foreign investment and position itself as a global business centre.
They will focus on the advanced manufacturing, cloud computing, medical technology and maritime sectors, all key growth areas.
The special economic zones are the King Abdullah Economic City, Jazan, Ras Al Khair and Cloud Computing, in the King Abdulaziz City for Science and Technology.
The zones were officially launched on Monday during the forum, with each being granted licences.
Government officials at the forum made the case for the continued relevance of economic zones globally amid a qualitative shift in FDI flows where investors are becoming more selective, while the trend is towards "friend-shoring".
Friend-shoring refers to manufacturing and sourcing from countries that are allies.
"Given these dynamics, let me ask a rhetorical question: Are SEZs still relevant for high-growth economies? The answer, in my mind, is a resounding 'yes'," Mr Al Falih said.
"Globally, SEZs have gain renewed relevance as part of [a] broader industrial policies comeback trend to attract FDI and supply chains."
Today's special economic zones must go beyond financial incentives and infrastructure to delivering "soft incentives", such as overcoming supply chain bottlenecks through business-enabling regulations, he said.
In October 2022, Saudi Arabia opened the Special Integrated Logistics Zone at King Khalid International Airport in Riyadh as part of plans to boost its cargo capacity, bolster supply chains and become a global logistics centre.
The development of the special zones is part of a broader economic transformation in the country as part of Vision 2030 – an initiative to reduce its reliance on oil, unlock the potential of the private sector to drive growth and put in place sweeping reforms to boost its business competitiveness.
The kingdom, which has a domestic market of more than 30 million people, recorded economic growth of 8.7 per cent in 2022 – one of the fastest among G20 economies.
The country plans to use its strategic location and resources to develop the most promising sectors, from advanced manufacturing to artificial intelligence, for sustainable economic growth in Saudi Arabia and the region, Mr Al Falih said.
About 13 per cent of global trade passes through the Red Sea and the kingdom's strategic location offers access to 70 per cent of the world’s population within eight hours’ flight time.
Saudi Arabia is placing “great emphasis” on putting in place a national special economic zones agenda and developing a network of competitive zones to boost investment in a wide range of industries, said ECZA secretary general Nabil Khojah.
“As the kingdom's economy grows and investors' needs evolve, we plan to expand our network of SEZs in the future,” he said in an introduction to a detailed brochure on the zones.
The existing network offers robust infrastructure and connectivity, supportive regulation, attractive incentives, competitive costs, local talent and an environment that “maximises opportunity while minimising risk for businesses”, he said.
The kingdom has placed specific "guard rails" to ensure that the special economic zones do not compete with or take away from the main economy's growth, Saudi Finance Minister Mohammed Al Jadaan said during a panel discussion at the forum.
Clear policies have been drawn to ensure that they do not "cannibalise" the base economy or each other, "otherwise it will be a race to the bottom", he said.
Mr Khoja told the forum that each zone has a specific cluster with a sector that either does not exist or has a minimal presence in the main economy, so they represent "enormous opportunities".
The Arab world's biggest economy is pushing to become one of top 15 global economies by 2030.
It is developing a series of projects in critical sectors ranging from tourism to manufacturing, and putting in place reforms to attract investment as part of its Vision 2030 programme.
In October, the kingdom launched the Global Supply Chain Resilience Initiative to support investments worth 40 billion riyals in its first two years.
The project will allocate 10 billion riyals in financial and non-financial incentives for investors as the country seeks to expand its transport sector and become a global logistics centre.
The new special economic zones are designed to hasten the development of key sectors within Saudi Arabia – from medical technology to maritime industries, and attract foreign investors.
“In a challenging and uncertain global economy, we offer unmatched opportunities and a government that is fully committed to doing whatever it takes to help you access these,” Mr Al Falih said in the brochure.
Mr Al Jadaan said the special economic zones were a "very important project" for Saudi Arabia's Vision 2030 as they are expected to attract more foreign direct investment, boost private sector participation and enhance local content.
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The five pillars of Islam
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
At Eternity’s Gate
Director: Julian Schnabel
Starring: Willem Dafoe, Oscar Isaacs, Mads Mikkelsen
Three stars
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Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024
India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.
India will also cut automotive tariffs to 10% under a quota from over 100% currently.
Indian employees in the UK will receive three years exemption from social security payments
India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery
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The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
Result
UAE (S. Tagliabue 90 1') 1-2 Uzbekistan (Shokhruz Norkhonov 48', 86')
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
MATCH INFO
Champions League quarter-final, first leg
Manchester United v Barcelona, Wednesday, 11pm (UAE)
Match on BeIN Sports
The figures behind the event
1) More than 300 in-house cleaning crew
2) 165 staff assigned to sanitise public areas throughout the show
3) 1,000 social distancing stickers
4) 809 hand sanitiser dispensers placed throughout the venue
RESULT
West Brom 2 Liverpool 2
West Brom: Livermore (79'), Rondón (88' )
Liverpool: Ings (4'), Salah (72')
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
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Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
Killing of Qassem Suleimani
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
MATCH INFO
Everton v Tottenham, Sunday, 8.30pm (UAE)
Match is live on BeIN Sports
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
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Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.
UAE currency: the story behind the money in your pockets
The biog
Hometown: Birchgrove, Sydney Australia
Age: 59
Favourite TV series: Outlander Netflix series
Favourite place in the UAE: Sheikh Zayed Grand Mosque / desert / Louvre Abu Dhabi
Favourite book: Father of our Nation: Collected Quotes of Sheikh Zayed bin Sultan Al Nahyan
Thing you will miss most about the UAE: My friends and family, Formula 1, having Friday's off, desert adventures, and Arabic culture and people
West Asia Premiership
Dubai Hurricanes 58-10 Dubai Knights Eagles
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Jebel Ali Dragons 16-56 Abu Dhabi Harlequins
UAE currency: the story behind the money in your pockets
The bio
Favourite vegetable: Broccoli
Favourite food: Seafood
Favourite thing to cook: Duck l'orange
Favourite book: Give and Take by Adam Grant, one of his professors at University of Pennsylvania
Favourite place to travel: Home in Kuwait.
Favourite place in the UAE: Al Qudra lakes
Company%20Profile
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Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
THE BIO
Age: 33
Favourite quote: “If you’re going through hell, keep going” Winston Churchill
Favourite breed of dog: All of them. I can’t possibly pick a favourite.
Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?
Favourite colour: All the colours that dogs come in
COMPANY%20PROFILE
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