With China's Baoshan Iron and Steel Co. stating its intentions to invest SR15 billion ($4 billion) on a project in Ras Al-Khair's new economic zone, Saudi Arabia's industrial capacity is anticipated to increase. The zone will produce metal plates, the Shanghai-based business, one of the biggest steel producers in the world, stated during a Riyadh event.
The investment is a part of the Kingdom's effort to attract enterprises to its special economic zones through its industrial outreach programme. Saudi Arabia aims to turn the regions into investment hubs by offering advantageous corporate tax rates, exempting companies from numerous customs taxes, and permitting full foreign ownership of corporations.
The SEZs in Saudi Arabia have also received attention since they have attracted investments totaling SR47.2 billion ($12.6 billion), confirming the country's rise as a hub for international trade. The Saudi Special Economic Zones Investment Forum in Riyadh on Monday witnessed new investment pledges for projects in zones established in Ras Al-Khair, King Abdullah Economic City, Riyadh, and Jazan in addition to the previous investments made by businesses like Lucid Motors and Seera.
McDermott Arabia Co., an oil and energy company, also intends to invest SR375 million in Ras Al-Khair in order to create completely integrated engineering construction solutions for the energy sector. Additionally, Makeen Energy, a Danish equipment firm, entered the SEZ with an SR2.14 billion investment.
“Saudi Arabia will offer foreign investors operating in the Kingdom’s special economic zones extra incentives to hire local workforce,” said Minister of Human Resources and Social Development Ahmed Al-Rajhi, speaking at a forum in Riyadh.