RIYADH: The free economic zones planned to be launched in Saudi Arabia are under final review by the government, said Minister of Investment Khalid Al-Falih.
Speaking to Argaam during the 2021 Budget Forum, Al-Falih indicated that select zones will be exempt from some taxes to support macro economy. These zones will have a special legislative environment and also special incentives.
Local and foreign investors interested in building new industries will be attracted to the Kingdom. The economic zones do not target to attract the existing investments. They rather seek to introduce new sectors that eye exports and improved balance of payments.
The free zones also aim to enhance the qualitative economy, such as pharmaceuticals, biotechnology, digital industries including cloud computing and artificial intelligence, according to Al-Falih.
As for his forecasts for foreign investment in the Kingdom during the second half of 2020, the minister said that foreign investment inflows are seen falling 40-50 percent globally and Saudi Arabia will not be an exception.
He also indicated that foreign investors are now unable to assess opportunities in other countries and several companies have shelved their plans due to the current circumstances.
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