1‏- The Regulation aims to establish controls for licensing facilities in the Zone and governing its real estate and security affairs, and to establish controls for the management, operation, and development of Deposit and Re-Export Zones, in accordance with Article (21) of the Statute and the related provisions of the Statute and the Implementing Regulation, while taking into account the nature of the Zone.

2‏- The provisions of this Regulation shall apply to the Authority, the Concerned Entity, the Competent Authority, Investors, Licensed Facilities, Operators of the Deposit Zone or Re-Export Zone, and any other persons conducting an activity in the Zone.

1‏- The qualified activity may not be conducted in the Zone until a license has been obtained from the competent authority in accordance with the provisions of the Implementing Regulations and the Regulation.

2‏- The license shall apply to conducting the qualified activity within the Zone. If the Investor wishes to conduct activities outside the Zone, the Investor shall fulfill the statutory procedures applicable in the other regions of the Kingdom.

1‏- The relevant authority, exclusively, shall issue the licenses, permits, or approvals necessary to conduct the qualifying activity in the Zone.

2‏- The relevant authority shall prepare a guide setting out the conditions, procedures, and requirements necessary for licensing, permitting, or approving the conduct of the qualifying activity in the Zone, in accordance with the requirements set out in Article (Eight) of the Regulation.

• 1‏- The competent authority shall issue the licenses necessary to conduct the qualifying activity after verifying compliance with the following regulations:

  • A- The Investor shall submit the necessary requirements specified by the competent authority in the License Guide.
  • B- The Saudi or foreign company branch shall submit the following requirements:
  • • The Commercial Register document of the parent company, its Articles of Association, and the address of its headquarters.

  • • A decision by the authorized persons approving the opening of a branch within the Zone, including the following:

      • • The activity.
      • • The name of the branch.
      • • The branch manager.
      • • The branch’s Zone.
  • C- The Agent shall submit a duly certified and notarized legal power of attorney.
  • D- The Investor shall submit a statement evidencing the availability of the technical competence and financial capacity required to conduct the qualifying activity.
  • ‌E- The Investor shall submit a business plan, and the competent authority shall specify the requirements necessary for this purpose in the License Guide.

• 2‏- The competent authority shall provide the Authority -periodically- with the licenses, the documents assessing the eligibility criteria, and the results thereof in the Zone.

• The competent authority shall evaluate investors based on the eligibility criteria specified for the region pursuant to Council of Ministers Decision No. (233) dated 29/‏3‏/1444 AH, as follows:

  • 1‏- The licensed establishment shall, throughout the term of its licence, achieve the minimum capital expenditure of the investment volume during the first five years in each of the following sectors:

    • A- Shipbuilding: (two million five hundred thousand) riyals.
    • B- Maritime services: (two million) riyals.
    • C- Rig construction: (two million) riyals.

  • 2‏- The competent authority shall verify the licensed establishment’s compliance with the quantitative eligibility criteria set out in Paragraphs (1) and (2) of this Article, and shall also verify that investors’ projects satisfy the qualitative criteria in the region in a manner that achieves the following:

    • A- Reducing migration from other regions of the Kingdom.
    • B- Reducing the risks of unfair competition with other regions of the Kingdom.
    • C- Developing talent distinguished by high-level skills.
    • D- Contributing to the level of product complexity.
    • E- Assessing the credibility of investors and their commitment.
    • F- Giving priority to investors seeking to deepen value chains within other regions of the Kingdom.

  • 3‏- The competent authority may propose targeted sectors in the region and submit them to the Authority to complete the statutory procedures.

• The licensed entity shall enjoy the exemptions and incentives granted to the zone pursuant to Council of Ministers Decision No. (233) dated 29/‏3‏/1444 AH, as follows:

  • 1‏- Corporate income tax (5%) for entities licensed in the zone for a period of (20) years.

  • 2‏- Exemption from withholding tax for entities licensed in the zone.

  • 3‏- Customs duties shall not be due on goods entered into the zone that are related to the licensed qualifying activity and placed under one of the customs duty suspension regimes pursuant to the Unified Customs Law of the GCC countries, issued by Royal Decree No. (M/41) dated 3/‏11‏/1423 AH.

  • 4‏- Value-added tax shall apply at the zero percent (0%) rate to goods supplied from other areas of the Kingdom to the licensed entity in the zone. This shall include supplies of goods made between licensed entities within the zone and other special economic zones, subject to the following:

    • A- The goods must be under a customs duty suspension regime.
    • B- The goods must be related to the activities of the licensed entity.

  • 5‏- Supplies of goods imported into the zone from outside the Kingdom shall be considered outside the scope of value-added tax, subject to the following:

    • A- The goods must be under a customs duty suspension regime.
    • B- The goods must be related to the activities of the licensed entity.

  • 6‏- Exemption from the financial consideration for employees of the licensed entity and their accompanying persons in the zone.

  • 7‏- Reduction of the Saudization rate for jobs in the zone as follows:

    • A- From the first year to the fifth year, the Saudization rate shall be (0%).
    • B- From the sixth year to the tenth year, the Saudization rate shall be (15%).
    • C- From the eleventh year to the fifteenth year, gradual transition to the Saudization requirements according to the flexibility granted to investors.

  • 8‏- The Exemptions and Incentives Guide issued by the Authority, in accordance with Article (Thirty-Two) of the Regulatory Regulations, shall set out the details necessary for implementing the provisions related to exemptions and incentives.