In the Official Gazette issued on 24/2/1448 A.H. (corresponding to 07 August 2026), the regulation of genuine economic requirements for the special economic zones was published. This regulation aims to specify the genuine economic requirements that must be fulfilled by the licensed entity within the zone, along with related provisions to ensure compliance with principles of governance and transparency, as well as to regulate beneficiaries of tax advantages within the zone. The regulation applies to the King Abdullah Economic City Special Economic Zone, the Ras Al-Khair Special Economic Zone, the Jazan Special Economic Zone, and the Cloud Computing and Informatics Special Economic Zone established under Cabinet Resolution No. (233) dated 29/3/1444 A.H. (corresponding to 25 October 2022 AD).
According to Article (Four) of the regulation, the licensed entity must have an appropriate location and suitable assets to conduct the qualifying activities within the zone. The activities must be directed and managed from within the zone, and the management personnel must possess the necessary qualifications to oversee the qualifying activities. Strategic decisions, management, and assumption of risks related to intellectual property assets within the zone must be carried out appropriately. Additionally, at least fifty percent (50%) of the managers responsible for managing the qualifying activities must be residents of the Kingdom. If the licensed entity violates the actual economic requirements, penalties issued by the competent authority shall be applied in accordance with (Article Seven).
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