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King Abdullah Economic City is poised to become an economic powerhouse in the region, which promises explosive growth in almost all sectors and businesses.
Click on the links below to learn where your business could fit in, the incentives and funding that could be availed as well as some facts & figures that support the economic sustainability of this city and region.
Click on the links below to learn where your business could fit in, the incentives and funding that could be availed as well as some facts & figures that support the economic sustainability of this city and region.
With designated areas within the city for the Sea port, Industrial zone and the financial sectors, KAEC caters to a plethora of business opportunities. Listed below, are only a sampling of the kind of opportunities that KAEC provides.
Manufacturing & Logistics
One major focus of the manufacturing sector is the 'Plastics Valley' output to service food packaging and storage, medical devices and products, sports safety, home construction, automotives etc. Another area is the downstream processing of petrochemical products and crude oil derivatives, sourced from the country's oil industry. Equally efficient and state-of-the-art facilities will be provided for high-tech industries such as computer-chip manufacturing, sectors using raw materials such as steel, wood, paper and other light or small scale industries.
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The city districts will provide the ideal background, for commerce to take center stage with a luxurious living ambience, in the midst of open spaces, green gardens and iconic structures. The city center includes spiritual, cultural and economic elements that combine to form a special urban landscape. The accessible waterways, the distinct neighborhoods are all hallmarks of the city center. The integrated transit systems, roadways and tall buildings will in addition, create a special identity for the city promoting both investment and tourism.
The financial district, that is dedicated to providing the banking and financial services of the region, will feature two high-rise landmark towers with hotels, residences and retails space. These facilities along with a modern convention center and the surrounding water canals stand to make KAEC a self-sustaining city on the world stage.
The city will be built for 'intelligent' living where communities will enjoy a suite of value added services such as eGovernment, home automation, efficient healthcare and transportation infrastructure. The vision of the smart city is to create new jobs and businesses, boost the performance of industries and attract residents by providing attractive living environments.
SAGIA provides a number of special incentives and regulations for foreign investors, to achieve its objectives of economic competitiveness and diversification. These include but are not limited to:
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100% foreign ownership of projects, including property required to support the business activities, in addition to owning private residences and employee accommodation |
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Minimum capital requirement and no restrictions on repatriation of capital |
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No personal income tax and a minimal 20% corporate tax for foreign companies |
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Ability to carry forward losses indefinitely |
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Exemption of import fees for selected raw materials imported for manufacturing products |
As the government agency responsible for all inbound investments, SAGIA has setup one-stop shops for processing of all investment procedures through the Smart Service Centers (SSC) at all major cities and KAEC.
Read more about the Smart Service Centers »
Read more about the Smart Service Centers »
As part of its initiative to create integrated economic cities and increase Saudi Arabia's competitive advantage as a hub between the West and the East, SAGIA offers some debt and equity funding to co-finance projects, in order to encourage private investment in the economic cities.
Debt and Equity Funding
SAGIA Funds Initiative(SFI)
SFI a form of equity financing established to help fund and promote projects in targeted sectors of the Kingdom as well as aid in the strategic matching of foreign and local investors.
Saudi Industrial Development Fund (SIDF)
SIDF extends soft, medium and long term low cost financing for up to 50% of the total cost of the project. Loans are provided for a maximum term of 15 years with repayment schedules designed to match projected cash flow for the project.
Debt and Equity Funding
Saudi Arabia is the largest country in the Arabian Peninsula. The government is headed by a monarchy, but the Supreme Economic Council operates within a free market policy. Its largest industry is the petroleum industry that accounts for 90% of its exports and 75% of its budget revenues.The Supreme Economic Council has undertaken the privatization of key economic sectors to create economic diversification within the country. Foreign investment is being encouraged within the country, with the signing of the WTO Agreement in 2005, giving this process a greater momentum. Today Saudi Arabia has a tall standing as a regional player and is playing a proactive role to occupy its place as a global economic power within the next few decades.
As per the World Bank's comprehensive 'Doing Business 2008' report, Saudi Arabia ranks,
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23rd for ease of doing business | |
7th for ease of paying taxes |
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3rd for ease of registering properties |
Based on credit classification, the International Financial Corporation ranks the country 38th in its worldwide rankings and the 1st among Arab countries.
Saudi Arabia Fact Book
Cost of Doing Business
Saudi Arabia Fact Book
Cost of Doing Business
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