Saudi Arabia’s Ras Al-Khair Special Economic Zone (SEZ) said it is seeking local and foreign investors to help boost the Kingdom’s maritime infrastructure.
With an initial area of 20 square kilometers, Ras Al-Khair SEZ, operated by the Royal Commission for Jubail and Yanbu, is an expanding zone with two focus areas, The King Salman International Complex for Maritime Industries and Services, and the Offshore Cluster supply chain. The SEZ is located next to Ras Al-Khair Port, the Kingdom’s newest industrial port.
Ahmed M. Hassan, CEO of Ras Al-Khair City for Mining Industries, said, “Ras Al-Khair SEZ is transforming into a key global hub for strategic investments with its rapid growth and unique position at the center of the Arabian Gulf, raising its economic importance in the Kingdom and wider region, but also across the global maritime and Offshore Cluster industries.”
“Local and foreign investors will not only gain access to the largest and most technically advanced shipyard and fully integrated Offshore Cluster in the Middle East and North Africa region but will also find the facilities, and materials they need to build the maritime capabilities of the future. Whether it is building new ships, developing innovative technology and materials, or maintaining, repairing, and overhauling existing vessels such as offshore support ships, jack-up rigs, or very large crude carriers, Ras Al-Khair SEZ offers a globally recognized marine ecosystem in which to facilitate that,” Hassan added.
The SEZ offers direct links to the Kingdom’s mines and Ras Al-Khair Industrial Port via the KSA North-East Rail link. In addition, King Fahd International Airport is two hours away with connectivity to 43 local and international destinations.
It's expected 70% of ships produced in Ras Al-Khair SEZ will supply regional markets. A key joint venture with the International Maritime Industries (IMI), Saudi Engines Manufacturing Company (MAKEEN), and McDermott is set to propel the region’s maritime focus, including shipbuilding, constructing offshore rigs, and performing repairs, and maintenance.
Flexible regulations to attract talent help to set Ras Al-Khair SEZ apart along with attractive investment incentives, including a 5% corporate income tax rate for up to 20 years, and a permanent 0% withholding tax for any profits repatriated from the SEZ to overseas countries. There is also a 0% customs duties deferral for goods inside Ras Al-Khair SEZ, and 0% Value Added Tax (VAT) for all goods exchanged either within the SEZ or with other zones.
