The following phrases and terms - wherever they appear in this regulation - shall have the meanings specified next to them, unless the context requires otherwise:
Regulation: Regulation of Economic Cities and Special Zones.
Authority: Economic Cities and Special Zones Authority.
Council: Board of Directors of the Authority.
Economic Cities (or Economic City): The existing Saudi economic cities or those that will be established in the future.
Investor: Any natural or corporate person who invests in the economic cities or special zones, whether Saudi or foreign.
Developer: A corporate personality entrusted - under a special agreement concluded with the Authority regarding the economic cities and special zones under its jurisdiction, or the relevant entity regarding the special economic zones under that entity - with the development and enhancement of the geographical area designated for the establishment of economic cities or special zones or parts thereof, by establishing its infrastructure and implementing the necessary projects and services, either by themselves or through others.
General Secretary: The General Secretary of the Economic Cities and Special Zones Authority.
Executive Director of the City: The Executive Director of the company developing the economic city.
Operator: A corporate personality entrusted with operating one of the services or facilities in any of the economic cities or special zones.
Master Plan of the City: A set of documents agreed upon by the Authority and the Developer, which define the general framework for the design of the city.
Concept (60×24×7): Completion of every government service within a period not exceeding (sixty) minutes over (twenty-four) hours during the week.
Special Economic Zones (or Special Economic Zone): The Saudi special economic zones established in accordance with the provisions of the regulation.
Supervision of Special Economic Zones: The Authority's oversight of the management of the special economic zone, in accordance with the regulations, rules, controls, and arrangements specific to each special economic zone and the powers defined therein, including those related to the implementation of exemptions and financial, customs, and tax incentives, among others, within each special economic zone.
Relevant Entity: The entity that grants approval for the establishment of a special economic zone.
Executive Director of the Special Economic Zone: The administrative official appointed by the Authority or the relevant entity - as applicable - as the Executive Director of the special economic zone, or the Executive Director of the company developing the special economic zone appointed by the relevant entity.
Master Plan of the Special Economic Zone: A set of documents agreed upon by the Authority - and the Developer or the relevant entity and the Developer, which define the general framework for the design of the special economic zone.

1- A body called the "Authority for Special Economic Cities and Zones" is established under this regulation, which is linked to the King, enjoys legal personality, and has financial and administrative independence. Its main headquarters is located in King Abdullah Economic City in the Governorate of Rabigh, and it has the authority to establish branches or offices within the Kingdom to perform its duties.
2- The authority operates on commercial principles and standards and enjoys the flexibility and powers that enable it to carry out its tasks, in accordance with its internal, financial, and administrative regulations as stipulated in this regulation.

The Authority shall have full supervision - administratively and financially - over the special economic cities and regions affiliated with it in order to achieve its objectives of localizing national capital and attracting foreign investments, as well as the objectives of the development plans in the Kingdom. The Authority shall also supervise the special economic regions affiliated with the relevant entities, and organize them, within the limits prescribed by the law. Specifically, the Authority shall have the following responsibilities:
1- Concluding agreements and contracts, developing plans and programs, and conducting necessary studies to develop the special economic cities and regions affiliated with it, supporting them, monitoring their growth, and preserving their achievements.
2- Reviewing and approving the general plans for the special economic cities and regions and ensuring their proper implementation, as well as approving any amendments proposed by the developer to the general plan, after coordinating with the relevant entity regarding the special economic region affiliated with that entity.
3- Establishing controls that define the best specifications and global standards for all infrastructure works of the special economic cities and regions affiliated with it, determining the conditions for the establishment of buildings, roads, ports, industrial, commercial, and residential areas, and providing public benefit services, taking into account security and safety conditions, environmental considerations, and public health.
4- Establishing the necessary controls for managing, operating, and ensuring the safety of industrial areas within the special economic cities and regions affiliated with it.
5- Issuing licenses for all commercial, industrial, service, professional, educational, training, and health activities in the special economic cities and regions affiliated with it, in accordance with regulations and standards set by the Council that include the method of supervising and monitoring those activities.
6- Determining the financial fees for licenses and services provided in the special economic cities and regions.
7- Granting usufruct rights within the special economic cities and regions affiliated with it.
8- Establishing companies or entering into partnerships, in accordance with the applicable legal procedures, to achieve the tasks and responsibilities assigned to the Authority.
9- Monitoring the application of design, construction, operation, and maintenance controls in the special economic cities and regions.
10- Establishing the controls and procedures governing the work of the Executive Director of the economic city and the Executive Director of the special economic region affiliated with it and their responsibilities.
11- Supervising and monitoring developers, investors, operators, contractors, employees, residents, and visitors in the special economic cities and regions affiliated with it.
12- Studying the need to establish special economic cities and regions and submitting the findings to the Council for consideration of necessary actions.
13- Receiving applications for the establishment of special economic regions, studying them, and submitting what it deems appropriate to the Council for consideration.
14- Conducting comparative studies and research on exemptions and financial, customs, and tax incentives, and others that are feasible and appropriate; to consider proposing their application in the special economic cities and regions in the Kingdom, guided by international experiences and practices, and submitting the results to the Council for consideration of necessary actions.
15- Coordinating with the relevant entity regarding the special economic region in all matters concerning the region affiliated with that entity.
16- Following up on the implementation of exemptions and financial, customs, and tax incentives related to the special economic regions in coordination with the relevant entity to which the region belongs, and monitoring the implementation of the regulations, rules, controls, and arrangements specific to each special economic region.
17- Monitoring compliance with the licensing controls issued for all commercial, industrial, service, professional, educational, training, and health activities.
18- Concluding agreements with the relevant entities regarding the special economic regions or others that include delegating some of the Authority's tasks to enable the relevant entity to organize relationships and tasks in the special economic region affiliated with it.
19- Performing any other task that aligns with its nature of work or the purpose of its establishment.

The relevant authority shall have the necessary powers to manage and operate the special economic zone under its jurisdiction, either by itself or through others, within the limits prescribed by the regulations and the specific rules and arrangements for each special economic zone, in order to achieve the expected economic, financial, and commercial returns from the zone. In particular, it has the following:

1- To conclude agreements and contracts, develop plans and programs, and conduct necessary studies for the establishment and development of the special economic zones under its jurisdiction, support them, monitor their growth, and maintain their gains, after coordinating with the authority and the relevant entities involved in the targeted activities in these zones.
2- To make any amendments to the general plan of the special economic zone under its jurisdiction in accordance with what is permitted by the regulations or the rules or arrangements specific to the special economic zone.
3- To establish controls that determine the best specifications and global standards for all infrastructure works of the special economic zones under its jurisdiction, and to set conditions for the establishment of buildings, roads, ports, and industrial, commercial, and residential areas, as well as providing public benefit services, taking into account the conditions of security and safety, the environment, and public health.
4- To establish the necessary controls for the management, operation, and safety of industrial zones within the special economic zones under its jurisdiction.
5- To grant usufruct rights within the special economic zones under its jurisdiction.
6- To establish the controls and procedures governing the work of the executive director of the special economic zone under its jurisdiction and his responsibilities.
7- To supervise and monitor developers, investors, operators, contractors, employees, residents, and visitors in the special economic zones under its jurisdiction.
8- To propose the financial fees for licenses and services provided in the special economic zones under its jurisdiction and submit it to the council for further necessary action.

1- The Authority shall have a Board of Directors whose chairman is appointed by a Royal Decree, and whose members are a number of experienced and specialized individuals from both the governmental and private sectors, nominated by the Chairman of the Board, and their appointment is issued by a Royal Decree.
2- The term of membership of the Board shall be three years, renewable.

The Council is the authority responsible for the affairs of the Authority, overseeing its management and operations, and selecting the method it deems appropriate for implementing and operating the special economic cities and zones without being bound by the financial and administrative rules in force. This includes the powers related to the tasks and competencies of the Authority as stipulated in the regulations. The Council also supervises the special economic zones affiliated with the relevant entities, and it has, in particular, the following:
1- Establishing the policies that the Authority follows to achieve its objectives and approving the necessary programs for that.
2- Approving the organizational structure of the Authority.
3- Approving the administrative and financial regulations that govern the Authority and other internal regulations. The approval of financial regulations and provisions with financial implications in the administrative regulations shall be in agreement with the Ministry of Finance.
4- Approving the financial fees for licenses and services provided in the special economic cities and zones.
5- Approving the controls for granting usufruct rights within the special economic cities and zones.
6- Approving the annual work plan and operational plans for the Authority.

7- Approving the draft annual budget for the Authority, its final account, the auditor's report, and the annual report, in preparation for submitting them to the King.
8- Forming committees and granting them the necessary powers to accomplish the tasks assigned to them.
9- Proposing the establishment of special economic cities and zones, in preparation for presenting them to the Council of Ministers for consideration and approval.
10- Proposing exemptions and financial, customs, and tax incentives, among others, within each special economic city and zone according to the nature of each, ensuring the achievement of economic, financial, and commercial returns, and submitting them to the Council of Ministers for consideration and approval.
11- Approving the regulations, rules, and arrangements specific to the special economic cities and zones and determining the powers related to each city or zone.

• 1. Board meetings shall be held at the Authority's headquarters and they may be held elsewhere in the Kingdom, when necessary.

• 2. The Board shall convene upon the call of its chairman once every three months, or whenever the need arises, at the discretion of the Board's chairman, or at the request of at least half of its members. The call for a meeting shall be in writing and it shall be delivered at least seven days prior to the meeting, provided that it includes the agenda.

• 3. Board meetings shall be valid if attended by the majority of members, including the chairman or his designee.

• 4. Each Board member shall have a single vote, and Board resolutions shall pass by majority vote of Board members.

• 5. A member may not vote by proxy.

• 6. Board deliberations shall be recorded in minutes signed by the chairman of the meeting and attending members. A member who objects to any resolution may record his reasoned objection in the minutes.

• 7. A member may not disclose any confidential information relating to the Authority's business and activities he becomes privy to as a member.

• 8. The Board may invite any person it deems fit to attend its meetings in a nonvoting capacity to provide information and expertise.