Leaders from the global logistics industry are in Riyadh today to join Saudi Arabia's General Authority for Civil Aviation (GACA) in celebrating the launch of the Special Integrated Logistics Zone, a truly integrated special economic zone.
Spanning 3 million sq mtrs, the Special Integrated Logistics Zone is strategically located to serve billions of potential customers in easy reach across Africa, Asia and Europe and uses technology designed to streamline the movement of goods.
Scale of Saudi Market
The Zone includes best-in-class inventory systems optimized for e-commerce, providing direct linkages between investors, suppliers, customs, and government entities.
Saleh bin Nasser AlJasser, Saudi Arabia's Minister of Transport and Logistics said: "The launch of the Special Integrated Logistics Zone today is a testimony to Vision 2030 and the relentless support of His Royal Highness for the sector, positioning the Kingdom as a global logistics hub connecting three continents, attracting the largest companies in the world to the Kingdom as our logistics sector is transformed by the National Transport and Logistics Strategy.
"The Special Integrated Logistics Zone is a vital enabler for Saudi Arabia's logistics sector because it offers a unique value proposition to multinationals based on enhanced fiscal and regulatory incentives.
"It will strengthen Saudi Arabia's position as the largest, fastest growing market and leading strategic trading nation in the Middle East and continue Vision 2030's mission to connect the Kingdom to the world."
HRH Saudi Crown Prince Announces Five Regional Investment Companies
As part of the wider transformation of the Kingdom's logistics sector, by 2030 Saudi Arabia is significantly increasing its cargo capacity to more than 4.5 million tonnes per annum and increasing the contribution of the transport and logistics sector to national gross domestic product from the current six percent to 10%.
This will help to fuel business growth, attract inward investment, and increase the sector's non-oil revenues to about $12 billion a year by 2030.
Ultra-competitive Regulatory Approach
The Special Integrated Logistics Zone is a key enabler of these objectives and the package of incentives and regulatory mechanisms have been developed in consultation with leading international companies to ensure that the Special Integrated Logistics Zone value proposition is unmatched globally.
GACA has designed the Special Integrated Logistics Zone to respond to the needs of the world's leading international corporations, ensuring that the world's leading companies can have an ultra-competitive position for their base in the Kingdom.
The Special Integrated Logistics Zone is a fully integrated special economic zone that integrates best practice in regulation, technology and infrastructure from around the world.
"The Saudi Aviation Strategy is investing $100 billion in the Kingdom's future, creating an unprecedented growth story," Saleh bin Nasser AlJasser, Saudi Arabia's Minister of Transport and Logistics, continued.
Uniquely Integrated Model Driving Value Chain Efficiencies
The zone's unique value proposition includes Value Added Tax advantages on servicing and on manufacturing and assembly, reducing the cost for multinationals and their third-party suppliers, who reassemble products in the zone for onward sale in Saudi Arabia and the wider MENA region.
Ease of doing business has been enhanced by 100% foreign ownership, streamlined incorporation processes, expedited certification and permit procedures and allowable company structures – helping facilitate businesses seamlessly.
Awad A. AlSulami, Vice President, Logistics & Special Economic Zones at GACA said: "The Special Integrated Logistics Zone's best-in-class inbound and outbound inventory systems provide direct linkages between investors, suppliers, customs and government agencies.
"An investor based in the Special Integrated Logistics Zone can already deliver a product to a customer within four hours – saving significant time and cost when compared to delivering a product from any other location outside of the Kingdom.
"We have developed a product at the Special Integrated Logistics Zone that offers integration at every level.
"Integration of thought, through collaboration, designed with sector leaders for sector leaders and integration of supply chains, through technology, providing a non-stop, seamless, experience, inbound and outbound.
"An innovative approach allows companies to access the Saudi market faster and with benefits at every point in the value chain."
Read More: Saudi Investment Ministry Launches Key Supply Chain Initiative at FII6