Saudi Arabia is calling for investors as it continues to build the country's maritime capabilities.

It recently said that local and foreign investors could now tap into the country's flourishing maritime infrastructure as it unveiled Saudi Arabia's Ras Al-Khair Special Economic Zone (SEZ).

[Source: Ras Al-Khair Special Economic Zone]

"Investors will benefit from the financial, strategic, and operational advantages that come with a presence in the King Salman International Complex for Maritime Industries and Services, which is one of the largest maritime yards in the world," the announcement said.

"The inauguration of the Ras Al-Khair SEZ —operated by the Royal Commission for Jubail and Yanbu— is inviting companies to be at the forefront of an exciting new chapter in the growth of the Kingdom's Maritime and Offshore Cluster sectors, by exploring the myriad of opportunities offered," it added.

Saudi said Ras Al-Khair SEZ will play an "integral role" in accelerating and delivering innovation to the sector through state-of-the-art shipbuilding located adjacent to the Kingdom's newest industrial port.

"Ras Al-Khair SEZ is transforming into a key global hub for strategic investments with its rapid growth and unique position at the centre of the Arabian Gulf, raising its economic importance in the Kingdom and wider region, but also across the global maritime and Offshore Cluster industries," said Ahmed M. Hassan, chief executive officer of Ras Al-Khair City for Mining Industries.

The announcement noted that companies investing in this global initiative will fulfil an essential role in driving Saudi Arabia's ambition to develop Maritime and Offshore Cluster support industry by localizing end-to-end supply chains and creating a docking hub for regional ship repairs and maintenance.

The Ras Al-Khair SEZ

Ras Al-Khair SEZ is a rapidly expanding zone with two focus areas, with an initial area of 20 square kilometres: The King Salman International Complex for Maritime Industries and Services, and the Offshore Cluster supply chain.

Ras Al-Khair SEZ offers investors a series of competitive incentives, beginning with its strategic location in Ras Al-Khair City for Mining Industries in the Eastern Province of Saudi Arabia. 

The announcement noted that the SEZ is conveniently located next to Ras Al-Khair Port, the Kingdom's newest industrial port, at the heart of the Arabian Gulf. 

It added that approximately one-third of all seaborne-traded oil passes through the Arabian Gulf.

"Local and foreign investors will not only gain access to the largest and most technically advanced shipyard and fully integrated Offshore Cluster in the Middle East and North Africa region but will also find the facilities and materials they need to build the maritime capabilities of the future. Whether it is building new ships, developing innovative technology and materials, or maintaining, repairing, and overhauling existing vessels," Hassan said, noting that Ras Al-Khair SEZ has an ecosystem to facilitate these.

Ras Al-Khair SEZ also offers attractive investment incentives, including a 5% corporate income tax rate for up to 20 years and a permanent 0% withholding tax for any profits repatriated from the SEZ to overseas countries. 

It said that there is also a 0% customs duties deferral for goods inside Ras Al-Khair SEZ and 0% Value Added Tax (VAT) for all goods exchanged either within the SEZ or with other zones. 

The announcement said 70% of ships produced in Ras Al-Khair SEZ will supply regional markets.