Saudi advantages .. the vision is global

The Kingdom of Saudi Arabia today – thanks to God – and then the “Vision 2030” under the leadership of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, and under the vision and supervision of Prince Mohammed bin Salman, Crown Prince – is moving rapidly towards diversifying the national economy and strengthening the Kingdom’s position among the countries of the world. Among the achievements in this aspect during the past period, and in each period, promotional programs are offered to support economic diversification projects, which represent a new force in the concept of macroeconomics, and is a stage of great importance for the national economy.
In this regard, Prince Muhammad bin Salman, Crown Prince, Prime Minister and Chairman of the Council of Economic and Development Affairs, announced the launch of four special economic zones in order to develop and diversify the Saudi economy and improve the investment environment. SEZs represent areas of rapid economic growth using tax and trade incentives. To attract foreign investment and technology.
Special economic zones have a long history and a clear impact on the development of international trade, especially those that have comparative advantages on safe international trade routes – such as Gibraltar, Hamburg and Singapore – which have been able to provide services that guarantee storage and free exchange, and the first modern “free industrial” zone was established in Shannon in Ireland in 1959, then this model spread to most industrialized countries, and they were called industrial cluster areas and specialized in a specific type of industry, such as the automobile industry, for example.
At the end of the seventies, the countries of East Asia and Latin America found promising opportunities in the model of special economic zones in order to attract investment from multinational companies in labor-intensive manufacturing. To integrate into global markets through export-led growth policies.
It was in this historical context that the first four Special Economic Zones (SEZs) were established in the southeastern coast of China in the 1980s, consisting of what were then the small cities of Shenzhen, Zhuhai, and Shantou in Guangdong Province, and Xiamen in Fujian Province. In these areas, China has applied the experience of establishing special economic zones within the scope of the general jurisdiction of the state, for the purposes of introducing various laws and regulations that are usually more favorable to trade and investment, in order to give the economy an opportunity to compete with the major industrial countries and to promote foreign trade and attract foreign investment, and to achieve this allowed governments At that time, the local government provided tax incentives to foreign investors and developed their own infrastructure without the approval of the central government in China. Commercial companies were also allowed to make most of their investment, production and marketing decisions, while legalizing foreign ownership of these projects.
Although these economic zones began as small cities, they quickly attracted foreign investment and became boomtowns, and with the rapid expansion of light industry, FMCG industries and a growing population – in particular, Shenzhen’s population grew from about 30,000 in 1979 to More than a million by the beginning of the 21st century, and with this wide success, the Chinese government opened in 1984 new cities along the coast to foreign trade and investment, and 14 of these “open” cities provided foreign investors with the same incentives as those in the special economic zones, but with income taxes. In 1992, the Chinese government decided to adopt some of the same policies in about 20 major cities in inland China, including many provincial capitals, as a way to encourage foreign investment. This rich Chinese experience had a great impact on the emergence of the Chinese giant and its dominance in the global economic scene.
When announcing the special economic zones, the Crown Prince indicated that they will provide tremendous opportunities for the development of the local economy, job creation, transfer of technology, and localization of industries. “Especially in the areas of supporting innovation and contributing to the transfer of technology and building local competencies by attracting international companies. Similar to the Chinese experience, these special zones are able to provide great opportunities for local companies and entrepreneurs, with what they will achieve for local communities in terms of many opportunities and indirect jobs, and from That is the growth of global tourism.
To achieve this, the special zones will form integrated logistical and industrial platforms, centered around the investor, and enjoy strategic locations in Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City, north of Jeddah.
International experiences of economic zones and studies in international law and global trade have confirmed that the success of the special economic zones experiment depends on devising its own legal experience, and that these special zones enjoy legislative systems and special regulations for economic activities. The incentives offered to companies include competitive tax rates, exemptions for imports and inputs. production, machinery and raw materials from customs duties, allowing 100 percent foreign ownership, and the ability to attract the best global human resources. Attracting international companies.