The Special Integrated Logistics Zone launched on 31^st October 2022 in Riyadh by HE the Minister of Transport & Logistics and the General Authority for Civil Aviation.

• The Special Integrated Logistics Zone is truly integrated, with a value proposition that has been developed alongside its first batch of investors, including the global technology leader Apple.
• The Special Integrated Logistics Zone is strengthening Saudi Arabia’s competitive position as the largest, fastest growing and leading trading nation in the Middle East, and continuing Vision 2030’s mission to connect the Kingdom to the world.
• The strategically located integrated special logistics zone will serve billions of potential customers in easy reach in Africa, Asia and Europe and help to significantly increase Saudi’s cargo capacity to more than 4.5 million tons per annum.

RIYADH, Saudi Arabia, Oct. 31, 2022 /PRNewswire/ — Leaders from the global logistics industry are in Riyadh today to join Saudi Arabia’s General Authority for Civil Aviation (GACA) in celebrating the launch of the Special Integrated Logistics Zone, a truly integrated special economic zone.

Scale of Saudi Market

Spanning 3 million-square-meters, the Special Integrated Logistics Zone is strategically located to serve billions of potential customers in easy reach across Africa, Asia and Europe and uses technology designed to streamline the movement of goods, including best-in-class inventory systems optimized for e-commerce, providing direct linkages between investors, suppliers, customs, and government entities.

"The launch of the Special Integrated Logistics Zone today is a testimony to Vision 2030 and the relentless support of His Royal Highness for the sector, positioning the Kingdom as a global logistics hub connecting three continents, attracting the largest companies in the world to the Kingdom as our logistics sector is transformed by the National Transport and Logistics Strategy" said Saleh bin Nasser AlJasser, Saudi Arabia’s Minister of Transport and Logistics.

"The Special Integrated Logistics Zone is a vital enabler for Saudi Arabia’s logistics sector because it offers a unique value proposition to multinationals based on enhanced fiscal and regulatory incentives. It will strengthen Saudi Arabia’s position as the largest, fastest growing market and leading strategic trading nation in the Middle East and continue Vision 2030’s mission to connect the Kingdom to the world," Saleh bin Nasser AlJasser, Saudi Arabia’s Minister of Transport and Logistics, added.

As part of the wider transformation of the Kingdom’s logistics sector, by 2030 Saudi Arabia is significantly increasing its cargo capacity to more than 4.5 million tons per annum and increasing the contribution of the transport and logistics sector to national gross domestic product from the current six percent to 10 percent. This will help to fuel business growth, attract inward investment, and increase the sector’s non-oil revenues to about SR 45 billion ($12 billion) a year by 2030.

Ultra-competitive Regulatory Approach

The Special Integrated Logistics Zone is a key enabler of these objectives and the package of incentives and regulatory mechanisms have been developed in consultation with leading international companies to ensure that the Special Integrated Logistics Zone value proposition is unmatched globally. GACA has designed the Special Integrated Logistics Zone to respond to the needs of the world’s leading international corporations, ensuring that the world’s leading companies can have an ultra-competitive position for their base in the Kingdom. The Special Integrated Logistics Zone is a fully integrated special economic zone that integrates best practice in regulation, technology and infrastructure from around the world.

"The Saudi Aviation Strategy is investing $100 billion in the Kingdom’s future, creating an unprecedented growth story. The Special Integrated Logistics Zone is an opportunity to participate from the outset in Saudi Arabia’s rapid emergence as the Middle East’s pre-eminent logistics hub, and we have put the regulatory measures in place to give maximum flexibility for global businesses when they enter the Kingdom," Saleh bin Nasser AlJasser, Saudi Arabia’s Minister of Transport and Logistics, continued.

Uniquely Integrated Model Driving Value Chain Efficiencies

The zone’s unique value proposition includes Value Added Tax advantages on servicing and on manufacturing and assembly, reducing the cost for multinationals and their third-party suppliers, who reassemble products in the zone for onward sale in Saudi Arabia and the wider MENA region. Ease of doing business has been enhanced by 100% foreign ownership, streamlined incorporation processes, expedited certification and permit procedures and allowable company structures – helping facilitate businesses seamlessly.

"The Special Integrated Logistics Zone’s best-in-class inbound and outbound inventory systems provide direct linkages between investors, suppliers, customs and government agencies accelerating the speed of processing and integrated Vendor Managed Inventory, meaning more flexibility and cost efficiencies for investors. An investor based in the Special Integrated Logistics Zone can already deliver a product to a customer within four hours – saving significant time and cost when compared to delivering a product from any other location outside of the Kingdom," said Awad A. AlSulami, Vice President, Logistics & Special Economic Zones at GACA.

"We have developed a product at the Special Integrated Logistics Zone that offers integration at every level. Integration of thought, through collaboration, designed with sector leaders for sector leaders and integration of supply chains, through technology, providing a non-stop, seamless, experience, inbound and outbound. An innovative approach allows companies to access the Saudi market faster and with benefits at every point in the value chain," Awad A. AlSulami continued.

You can find all news about the Special Integrated Logistics Zone on the www.silz.gaca.gov.sa.

You can find all the news of the General Authority of Civil Aviation in the media center on our website.

About the Special Integrated Logistics Zone

The Special Integrated Logistics Zone is Saudi Arabia’s first Special Logistics Zone and has been developed by the General Authority of Civil Aviation (GACA). The zone was given its legislative basis by Royal Order in October 2018 and integrates regulatory, technological and infrastructure best practice to create the best possible operating environment for multinational businesses.

The Special Integrated Logistics Zone is located within the parameters of King Khalid International Airport in Riyadh – connecting businesses with the largest consumer market in the Middle East and offering air connectivity to the rest of the world.

The zone was designed from the ground up with industry leaders, including Apple Inc, for the world’s leading supply chain and logistics companies. It is the only SEZ in GCC that offers both Vendor Managed Inventory (VMI) and gives VAT advantages to goods which are temporarily transferred between the mainland and the zone for purposes of repair, maintenance, after-sales services and manufacturing and assembly services.

The Special Integrated Logistics Zone has a unique value proposition that goes beyond tax, allowing tenants to drastically reduce time and cost taken to deliver goods to Saudi consumers. The zone features best-in-class inbound and outbound inventory systems which provides direct linkages between investors, suppliers, customs and government.