Tech giant Apple sets up shop in Riyadh's new special economic zone
The Saudi Arabian government announced at the end of October the inauguration of a new special economic zone on the outskirts of the capital Riyadh, located in the centre of the country. It was Saleh al-Jasser, Minister of Transport and Logistics, who gave the news and inaugurated the space of more than 3 square kilometres tax-free and with further incentives for business activity.
"The Special Logistics Zone is a vital enabler for Saudi Arabia's logistics sector because it offers a unique value proposition to multinationals based on enhanced tax and regulatory incentives. It will reinforce Saudi Arabia's position as the fastest growing major market and leading strategic trading nation in the Middle East and will continue Vision 2030's mission to connect the Kingdom to the world," Minister al-Jasser said at the launch of the project.
This new business hub is part of the Kingdom's Vision 2030 project. The Riyadh government's intention is to boost the transit of goods by road and to make the Kingdom's capital city an obligatory point of transit for the delivery of goods throughout the Arabian Peninsula to all other countries. Not only that, but also a hub between Asia and Africa.
According to government sources in Riyadh, the government is negotiating with some twenty large international companies to set up in the new special economic zone. Among those that have already announced their arrival in Riyadh is the American technology and communications giant Apple. The Apple brand is giving the Saudi government a boost to achieve its plans thanks to its notoriety and reputation.
Saudi Arabia aims to increase its transport infrastructure capacity to 4.5 million tonnes per year, increasing the contribution of the transport and logistics sector to gross domestic product from the current 6% to 10% and the creation of around 30,000 jobs linked to the special economic zone. The ultimate goal behind these objectives is to diversify Saudi Arabia's income in order to reduce dependence on the hydrocarbon economy.
The SEZ is located near Riyadh's international airport and plans are being studied in collaboration with the Saudi civil aviation authority, so it is expected that not only by road, but also by air, goods will be transported in the future. "The Saudi Aviation Strategy is investing $100 billion in the kingdom's future, creating an unprecedented growth story. The Special Integrated Logistics Zone is an opportunity to participate early on in Saudi Arabia's rapid emergence as the pre-eminent logistics hub of the Middle East, and we have put in place the regulatory measures to give maximum flexibility to global companies as they enter the Kingdom," Minister al-Jasser reported on the role of aviation in the development of Saudi plans.