A guide on free zones in Saudi Arabia
Company Hubs
Saudi Arabia has become one of the excellent spots of attraction for investors and business people out there. Also, there are some obvious reasons for it, such as the advancement in technology, elevation in innovation, ease of doing business, and the hospitality of Saudi Arabian citizens for foreign investors or business people.
But the business people are primarily attracted to the free trade zones in Saudi Arabia. Let us find out everything about it in this article.
What is a free zone?
The economic free zone is the vehicle that is put to use by the Saudi Arabian government to attract foreign investment and eventually improve economic growth. The free zones mainly focus on attracting businesses from particular industries aligned with the ideas of the government about what kind of industries they will like to see in the economy.
The free zones offer a broad range of incentives for attracting companies to relocate there. The popular incentives are described below:
● There are no restrictions on foreign borrowing.
● No restrictions on the repatriation of dividends and profits.
● The companies can have full ownership of every asset, including their intellectual property.
● 100% foreign ownership is going to be allowed.
● 0% tax on the income earned from normal business activities.
● Relief from the withholding tax associated with the non-residents’ activities.
● No import and customs restrictions.
● Zero VAT.
● A 50-year tax exemption.
Get in touch with Company Hubs as they have experts who can guide you on the ways to set up your business in the economic-free zones.
Why locate in a free zone in Saudi Arabia?
A lot of factors are there that make the free zones in Saudi Arabia very attractive to multinational firms. These factors include:
● Population: About 35 million people are there in Saudi Arabia. The multinational companies who want to move to the free zone will have complete unrestricted access to the large economy of Saudi Arabia without any extra import tariffs. So, the free zone company Saudi Arabia can make an immense profit compared to the others operating in different regions.
● Accessibility of government contracts: Saudi Arabia is going to change its rules about the government, making it easy for businesses at present located in Saudi Arabia to win government work. Currently, several abroad-based firms are there offering services to the government of Saudi Arabia. Thus, the free zones may move to Saudi Arabia, which can be attractive for the businesses that operate on some sort of Saudi Arabian government contracts.
● Marketing opportunity: For multinational organizations that do not yet possess a foothold in the Middle East, it can be highly beneficial for them to move to Africa. It is one of the leading powers in the region and has a clear plan for diversifying the economy. The free zone in Saudi Arabia serves as a powerful incentive for businesses that want to move to the region.
Conclusion:
The Saudi Arabian government is offering full support to foreign investors and multinational companies. However, you need to maintain the rules and regulations of the country to make things seamless for you. Saudi Arabia is one of the leading growing countries in terms of almost everything and catching the eye of every investor and business person across the world.