The new special economic zone offers the MENA region's largest shipyard and a significant maritime hub, backed by the Saudi government and major industry players Aramco, Lamprell, Bahri, and Hyundai Heavy Industries.
RIYADH, Saudi Arabia--BUSINESS WIRE--
The Ras al-Khair Special Economic Zone (SEZ) leverages partnerships with major maritime players and has secured backing from the Saudi government to attract global investments.
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The King Salman International Complex for Maritime Industries and Services aims to be both the largest shipyard in the MENA region and the most technologically advanced. The shipyard will focus on shipbuilding, repair, offshore rig fabrication, and repairing, utilizing modern technologies like AI, IoT, and renewable energy sources. Additionally, a fully integrated offshore cluster aims to localize the end-to-end offshore supply chain. Four key entities have been established within the SEZ to meet the region's growing demand for maritime applications:
- International Maritime Industries (IMI), a joint venture of Aramco, Lamprell, Bahri, and Hyundai Heavy Industries (HHI).
- Saudi Engines Manufacturing Company (MAKEEN), a joint venture of Aramco, HHI, and the Saudi Arabian Industrial Investments Company (Dussur).
- McDermott Arabia Company Limited, fully owned by McDermott International.
- Aramco-Baosteel steel plate plant, a joint venture of Aramco and Baoshan Iron & Steel Company Limited.
IMI has already secured offtake agreements totaling US$10 billion over 10 years with partners Aramco and Bahri, for the delivery of 20 rigs and 52 vessels, covering at least 75% of Bahri's commercial vessel needs over the period.
Competitive incentives for international investors
Investors in Ras Al-Khair SEZ will play a crucial role in driving Saudi Arabia's ambition to develop a state-of-the-art Maritime and Offshore Cluster, contributing to the localization of end-to-end supply chains and establishing a docking hub for regional ship repairs and maintenance.
The SEZ offers a range of competitive incentives for investors, including a 5% corporate income tax for up to 20 years, 0% customs duties deferral for goods inside the zone, 0% withholding tax for profit repatriation abroad, and 0% VAT for intra-SEZ goods exchanged within the zone and between zones. These incentives are designed to attract both local and international investors, enhancing the SEZ's appeal as a business-friendly environment.
Ahmed M. Hassan, CEO of Ras Al-Khair City for Mining Industries, emphasized, "Ras Al-Khair SEZ is transforming into a key global hub for strategic investments with its rapid growth and unique position at the center of the Arabian Gulf. Local and foreign investors will not only gain access to the largest and most technically advanced shipyard but also the materials needed to build the maritime capabilities of the future."
Connected hub to foster regional growth, create 80,000 jobs
The SEZ benefits from its strategic location next to Ras Al-Khair Port, the Kingdom's newest industrial port, and is connected to the KSA North-East Rail link and King Fahd International Airport. This connectivity facilitates efficient movement of goods and personnel, further enhancing the SEZ's attractiveness.
The development of the SEZ and King Salman International Complex for Maritime Industries and Services is integral to Saudi Arabia's Vision 2030, aimed at diversifying the Kingdom's economy. Saudi Arabia's economic growth has been robust, with a cumulative 7.2% increase since Q4 2019, and unemployment rates dropping below 5%. The SEZ aims to reach a maritime industry target value of US$14 billion annually and create over 80,000 direct and indirect jobs.
"Projects like Ras al-Khair are spearheading the Kingdom's drive to become a global investment destination by developing a modern, sustainable maritime and logistics powerhouse," said Eng. Ahmed Hassan, (RC CEO of RCMI)
