In this article, Steeve Zouein and Muhanad Zeitounie examine how Saudi Arabia’s Special Economic Zones (SEZs) are creating new pathways to regional and global markets while reshaping the Kingdom’s investment landscape. They outline the key advantages offered by these zones, including reduced corporate tax rates, customs and VAT exemptions, and a more flexible regulatory environment aimed at attracting foreign investors.

The article also highlights the importance of the Economic Substance Requirements (ESR) framework, under which companies must demonstrate genuine economic activity in Saudi Arabia through physical presence, local staffing, and in-Kingdom management in order to benefit from the available incentives. It ultimately shows that while SEZs offer compelling opportunities for growth and expansion, access to these advantages increasingly depends on real operational substance and long-term commitment to the Saudi market.

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