Saudi Arabia's General Authority for Civil Aviation (GACA) has announced the launch of Saudi Arabia's first Integrated Logistics Bonded Zone (ILBZ) in Riyadh, including incentives for multinational companies establishing operations in the zone. Along with the announcement, GACA has also provided English-language versions of the related rules and regulations.
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ILBZ's Main Regulations, Saudi Arabia's First Special Economic Zone
GACA has launched ILBZ – Saudi Arabia's first integrated logistics zone in Riyadh – the inaugural project in a series of planned special logistics zones supporting His Royal Highness Crown Prince Mohammed bin Salman's ambitious vision to make it one of the 10 largest city economies in the world – and supporting wider efforts to make the Kingdom a globally competitive transportation and logistics hub for the movement of goods and services around the world, within a progressive business-friendly environment.
The zone development will offer incentives to companies to establish operations at its site adjacent to the international airport in Riyadh, including:
- a 50-year Tax Holiday to include VAT suspension while under customs suspension;
- zero-rated corporate, income and withholding tax on certain payments;
- 100% business ownership;
- 100% suspension of customs and import restrictions; and
- no restrictions on capital repatriation.
ILBZ is the first important step towards developing the logistics sector and special economic zones in Saudi Arabia as it competitively positions itself as a global transportation and logistics hub.
The 3 million-square-meter zone is strategically located to serve more than 650 million customers across Africa, Asia and Europe, linking them through King Khalid International Airport as well as the domestic and regional markets via the Saudi Land-Bridge Railway crossing Riyadh, and dry ports surrounding King Khalid International Airport.
The zone will offer aviation facilities, cargo handling, government-sponsored training programs and advanced cargo-tracking technology, alongside a Government Services Office in the ILBZ to serve as a one-stop-shop to obtain any government services for the investors.
ILBZ Companies Regulations _ لائحة الشركات
ILBZ Employment Regulations_ لائحة العمل