• 1- The following words and phrases shall have the meanings indicated next to each of them, unless the context requires otherwise:

  • Kingdom: The Kingdom of Saudi Arabia.

  • Authority: Economic Cities and Special Zones Authority.

  • Council: The Board of Directors of the Authority.

  • Statute: The Authority's Statute issued by Royal Order No. (A/19) dated 10/3/1431 AH, and any amendments thereto.

  • Regulation: The Regulatory Regulation of the Special Economic Zone at King Abdullah Economic City.

  • Concerned Entity: Emaar Economic City Company.

  • Competent Authorities: The competent government agency, in accordance with the provisions of the Regulation.

  • Zone: The Special Economic Zone at King Abdullah Economic City established pursuant to Council of Ministers Decision No. (233) dated 29/3/1444 AH.

  • Licensed Establishment: Any establishment licensed to practice activities in the Zone pursuant to the Regulation and its derived rules and decisions.

  • Exemptions and Incentives: The exemptions and incentives granted to the Zone pursuant to Council of Ministers Decision No. (233) dated 29/3/1444 AH, and any amendments thereto or its replacement.

  • Employee: Any natural person working for the benefit of the licensed establishment in the Zone, under its management and supervision in return for a wage, even if working remotely from its oversight.

  • Tax System: All tax legislations applicable in the Kingdom, including laws, regulations, rules, instructions, international tax agreements, and any amendments thereto.

  • Customs System: All customs legislations applicable in the Kingdom, including laws, regulations, rules, instructions, international agreements, and any amendments thereto.

  • Law of Zakat Collection: The Law of Zakat Collection issued by Royal Decree No. (17/2/28/8634) dated 29/6/1370 AH-, andits executive regulations and any amendments thereto..

  • Uniform Customs Law: The Uniform GCC Customs Law issued by Royal Decree No. (M/41) dated 3/11/1423 AH, its executive regulations and any amendments thereto.

  • Other Regions of the Kingdom: All regions of the Kingdom except the special economic zones.

  • Activities: Activities qualified to obtain the exemptions, incentives, and exceptions approved for the Zone.

  • Regulatory Oversight: All powers and roles that include regulatory work and oversight of activities, individuals, and licensed establishments within the Zone, including the authority to set controls, conditions, and procedures, and the authority of supervision, management, and oversight.

• 2- In matters not specifically addressed, the same meanings set forth in the Statute shall apply to the words and phrases stipulated in the Regulation.

The regulation aims to organize the works of the area and its activities in a manner that contributes to achieving its objectives, in accordance with the geographical location and the maps approved pursuant to the relevant Council of Ministers' resolutions.

The concerned authority shall exercise the powers granted to it under the statute and regulation, provided that the roles of regulatory oversight remain with the Authority.

1- Establishing regulations that define the best specifications and international standards for all infrastructure works in the area, and determining the conditions for the construction of buildings, roads, ports, industrial, commercial, and residential zones, and providing public utility services, taking into account security, safety, environmental, and public health conditions.

2- Establishing the necessary regulations for managing industrial areas within the region, their operation, and safety.

3- Establishing the regulations and procedures organizing the work of the executive director in the region and his responsibilities.

4- Supervising and monitoring developers, investors, operators, contractors, employees, residents, and visitors in the region.

5- The authority shall carry out the organization and supervision of activities, individuals, and companies within the region, and establish regulations, requirements, procedures, supervision, management, and control.

1- The concerned authority - in coordination with the Authority - issues the licenses, permits, or approvals necessary to practice activities in the area.

2- The concerned authority shall prepare a guide that includes the conditions, procedures, and requirements necessary for licensing, permitting, or approving the practice of activities in the area in accordance with the provisions of the statute, regulation, and regulations established by the Authority, as well as the specific capacity standards of the area.

• Subject to exemptions and incentives, the licensed establishment shall be treated in terms of Zakat and taxes as follows:

  • 1- The licensed establishment shall be subject to income tax, in accordance with the provisions regulating this under the tax law.

  • 2- The provisions of the Law of Zakat Collection shall not apply to the licensed establishment.

  • 3- The licensed establishment shall be exempt from withholding tax regulated under the tax law.

• 1- A zero percent Value Added Tax - regulated under the tax system - shall apply to goods supplied from other regions of the Kingdom to the licensed establishment in the zone. This includes supplies of goods made between licensed establishments within the same zone, or between licensed establishments in different special economic zones, provided that the following two conditions are met:

  • A- That such goods are under customs suspension status, in accordance with the provisions regulating this under the Customs Law.

  • B- That such goods are related to the activities licensed for the establishment to practice in the zone, provided that the Authority, in agreement with the Zakat, Tax, and Customs Authority, sets the necessary standards for this.

• 2- Supplies of goods imported into the zone from outside the Kingdom shall be considered outside the scope of Value Added Tax - regulated under the tax system - provided that the following two conditions are met:

  • A- That such goods are under customs suspension status, in accordance with the provisions regulating this under the Customs Law.

  • B- That such goods are related to the activities licensed for the establishment to practice in the zone.