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Saudi Arabia: Regulatory frameworks for special economic zones

Tax benefits include exemptions from withholding tax and Zakat, effective April 16, 2026.

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february 17, 2026

The Saudi Council of Ministers in January 2026 approved regulatory frameworks for four special economic zones (SEZs):

  • King Abdullah Economic City (KAEC)
  • Ras Al-Khair (RAK)
  • Jazan
  • Cloud Computing

Effective April 16, 2026, these frameworks offer incentives—including tax and customs exemptions—for qualifying companies, along with exemptions from certain Saudi laws.

Tax benefits include exemptions from withholding tax and Zakat, customs duty suspensions, and a 0% value added tax (VAT) rate under specific conditions.

Read a February 2026 report prepared by the KPMG member firm in Saudi Arabia

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