Arab News, Saturday, Dec 19, 2020 | Jamadi Al Awwal 4, 1442
Saudi free economic zones under final review by govt: Al-Falih
Saudi Arabia: The free economic zones planned to be launched
in Saudi Arabia are under final review by the government, said Minister of
Investment Khalid Al-Falih.
Speaking to Argaam during the 2021 Budget Forum, Al-Falih indicated that select
zones will be exempt from some taxes to support macro economy. These zones will
have a special legislative environment and also special incentives.
Local and foreign investors interested in building new industries will be
attracted to the Kingdom. The economic zones do not target to attract the
existing investments. They rather seek to introduce new sectors that eye exports
and improved balance of payments.
The free zones also aim to enhance the qualitative economy, such as
pharmaceuticals, biotechnology, digital industries including cloud computing and
artificial intelligence, according to Al-Falih.
As for his forecasts for foreign investment in the Kingdom during the second
half of 2020, the minister said that foreign investment inflows are seen falling
40-50 percent globally and Saudi Arabia will not be an exception.
He also indicated that foreign investors are now unable to assess opportunities
in other countries and several companies have shelved their plans due to the
current circumstances.