Interview: Nabil Khojah, Secretary-General, Economic Cities and Special Zones Authority
How does the establishment of economic zones contribute to diversification, and what role do these zones play in attracting foreign investment?
NABIL KHOJAH: The creation of special economic zones (SEZs) is a key component of Saudi Arabia’s economic diversification strategy under Vision 2030. These zones are designed to spur growth in targeted sectors beyond oil, including logistics, manufacturing, maritime industries and technology. By offering sector-specific incentives and streamlined regulations, SEZs can attract foreign direct investment (FDI), boosting the Kingdom’s position as an appealing destination for global enterprises.
Since their launch in April 2023 the Kingdom’s four SEZs have drawn more than SR30bn ($8bn) in investment, highlighting the initial success of this initiative. These zones are designed to support the development of industrial clusters, attracting foreign companies and fostering local supply chains and partnerships, thereby creating a multiplier effect in the economy. Each SEZ focuses on specific industries: Ras Al Khair SEZ specialises in maritime and related industries; King Abdullah Economic City (KAEC) SEZ focuses on automotive manufacturing; Jazan SEZ supports minerals and food processing; and the Cloud Computing SEZ drives innovation in digital technology.
In addition to financial incentives, the SEZs provide companies with streamlined administrative processes facilitated by the one-stop-shop initiative, which is designed to simplify licensing, permits and other government services. Furthermore, SEZs are backed by advanced infrastructure, which includes modern logistics networks, digital connectivity and access to ports, enabling companies to manage their operations efficiently and integrate with global supply chains.
What initiatives are in place to ensure that SEZs generate employment prospects for locals?
KHOJAH: A core goal of the SEZs is to attract foreign investment and establish businesses that generate direct and indirect employment opportunities. By focusing on sectors such as advanced manufacturing, maritime industries and technology, the SEZs create a diverse range of jobs, from high-skilled roles in technology and engineering to positions in manufacturing and logistics. Industrial clustering within these zones supports job creation by attracting suppliers and related firms, leading to further employment opportunities.
How does enhancing SEZs facilitate integration into the broader international economy?
KHOJAH: SEZs play a key role in integrating Saudi Arabia into the global economy by creating an environment that encourages foreign investment, trade and industrial growth. SEZs attract foreign capital through incentives like tax breaks and reduced tariffs, boost export growth, and support technology and skills transfer to the local workforce. These zones also enhance infrastructure, help to integrate local businesses into global supply chains and serve as a testing ground for economic reforms. Through this controlled and investment-centric environment, SEZs position Saudi Arabia as a more appealing market internationally.
To what extent does technological and logistical innovation in SEZs help to streamline supply chains and enhance Saudi Arabia’s global logistics position?
KHOJAH: Technological and logistical innovation in Saudi Arabia’s SEZs enhances supply chain efficiency and strengthens its role as a global logistics centre. Advanced technologies like automation and artificial intelligence improve resource allocation and delivery times, while modern infrastructure supports connectivity and efficient goods handling. Alignment with global trade standards integrates SEZs into international networks, supporting the Kingdom’s Vision 2030. Digital tools allow SEZs to adapt to disruption, and streamlined customs processes expedite trade flow – making Saudi Arabia a competitive and reliable centre for logistics.
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