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Saudi Arabia · Special Economic Zones

King Abdullah Economic City (KAEC) Special Economic Zone

Red Sea logistics, light manufacturing and mobility hub. Explore the zone's focus sectors, location, and headline incentives, while one team handles licensing, structuring, and compliance end to end.

  • Licensed CSP
  • 50+ yrs combined experience
  • 15+ jurisdictions
Location
King Abdullah Economic City, Red Sea coast, north of Jeddah
Authority
Economic Cities and Special Zones Authority (ECZA)
Corporate tax
Reduced rate (indicative)
Customs duties
0% in zone
Intra-zone VAT
Relief
Foreign ownership
Competitive

About the KAEC SEZ

The KAEC Special Economic Zone sits within King Abdullah Economic City on the Red Sea coast, anchored by King Abdullah Port and positioned as a manufacturing, logistics and mobility hub serving the Red Sea trade corridor and onward markets. It is one of the four zones launched by ECZA and is designed for companies in the automotive supply chain, consumer goods, light manufacturing, pharmaceuticals, ICT and logistics that want a coastal base with strong port and freight links.

Focus sectors

Automobile supply chain and assemblyConsumer goods and light manufacturingPharmaceuticals and MedTechLogistics and supply chainICT and electronics

Headline incentives

Competitive corporate income tax rate for a fixed period (indicative)

0% customs duties on goods imported into the zone

VAT relief on goods exchanged within the zone

Competitive foreign ownership and relaxed expat / Saudization rules for an initial period

Connectivity to King Abdullah Port and the Red Sea trade corridor

All figures above are indicative. Corporate income tax rates and periods, customs and VAT treatment, and ownership and expat rules are confirmed with the relevant authority (Economic Cities and Special Zones Authority (ECZA)) and in a tailored quote.

Other Saudi Special Economic Zones

Jazan SEZ

Heavy industry, food processing and Red Sea trade in the south

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Ras Al-Khair SEZ

Maritime, shipbuilding and offshore industry on the Gulf

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Cloud Computing SEZ

A nationwide virtual zone for data centres and cloud services

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SILZ (Riyadh)

Airport-adjacent logistics and re-export zone in Riyadh

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Back to all Saudi Special Economic Zones

KAEC SEZ - Frequently Asked Questions

Common questions about the King Abdullah Economic City (KAEC) Special Economic Zone: focus sectors, incentives, how it compares to a MISA mainland company, and setup.

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