PR98545

RIYADH, Saudi Arabia, Oct. 31, 2022 /PRNewswire=KYODO JBN/ --

The Special Integrated Logistics Zone launched on 31st October 2022 in Riyadh

by HE the Minister of Transport & Logistics and the General Authority for Civil

Aviation.

- The Special Integrated Logistics Zone is truly integrated, with a value

proposition that has been developed alongside its first batch of investors,

including the global technology leader Apple.

- The Special Integrated Logistics Zone is strengthening Saudi Arabia's

competitive position as the largest, fastest growing and leading trading nation

in the Middle East, and continuing Vision 2030's mission to connect the Kingdom

to the world.

- The strategically located integrated special logistics zone will serve

billions of potential customers in easy reach in Africa, Asia and Europe and

help to significantly increase Saudi's cargo capacity to more than 4.5 million

tons per annum.

Leaders from the global logistics industry are in Riyadh today to join Saudi

Arabia's General Authority for Civil Aviation (GACA) in celebrating the launch

of the Special Integrated Logistics Zone, a truly integrated special economic

zone.

Scale of Saudi Market

Spanning 3 million-square-meters, the Special Integrated Logistics Zone is

strategically located to serve billions of potential customers in easy reach

across Africa, Asia and Europe and uses technology designed to streamline the

movement of goods, including best-in-class inventory systems optimized for

e-commerce, providing direct linkages between investors, suppliers, customs,

and government entities.

"The launch of the Special Integrated Logistics Zone today is a testimony to

Vision 2030 and the relentless support of His Royal Highness for the sector,

positioning the Kingdom as a global logistics hub connecting three continents,

attracting the largest companies in the world to the Kingdom as our logistics

sector is transformed by the National Transport and Logistics Strategy" said

Saleh bin Nasser AlJasser, Saudi Arabia's Minister of Transport and Logistics.

"The Special Integrated Logistics Zone is a vital enabler for Saudi Arabia's

logistics sector because it offers a unique value proposition to multinationals

based on enhanced fiscal and regulatory incentives. It will strengthen Saudi

Arabia's position as the largest, fastest growing market and leading strategic

trading nation in the Middle East and continue Vision 2030's mission to connect

the Kingdom to the world," Saleh bin Nasser AlJasser, Saudi Arabia's Minister

of Transport and Logistics, added.

As part of the wider transformation of the Kingdom's logistics sector, by 2030

Saudi Arabia is significantly increasing its cargo capacity to more than 4.5

million tons per annum and increasing the contribution of the transport and

logistics sector to national gross domestic product from the current six

percent to 10 percent. This will help to fuel business growth, attract inward

investment, and increase the sector's non-oil revenues to about SR 45 billion

($12 billion) a year by 2030.

Ultra-competitive Regulatory Approach

The Special Integrated Logistics Zone is a key enabler of these objectives and

the package of incentives and regulatory mechanisms have been developed in

consultation with leading international companies to ensure that the Special

Integrated Logistics Zone value proposition is unmatched globally. GACA has

designed the Special Integrated Logistics Zone to respond to the needs of the

world's leading international corporations, ensuring that the world's leading

companies can have an ultra-competitive position for their base in the Kingdom.

The Special Integrated Logistics Zone is a fully integrated special economic

zone that integrates best practice in regulation, technology and infrastructure

from around the world.

"The Saudi Aviation Strategy is investing $100 billion in the Kingdom's future,

creating an unprecedented growth story. The Special Integrated Logistics Zone

is an opportunity to participate from the outset in Saudi Arabia's rapid

emergence as the Middle East's pre-eminent logistics hub, and we have put the

regulatory measures in place to give maximum flexibility for global businesses

when they enter the Kingdom," Saleh bin Nasser AlJasser, Saudi Arabia's

Minister of Transport and Logistics, continued.

Uniquely Integrated Model Driving Value Chain Efficiencies

The zone's unique value proposition includes Value Added Tax advantages on

servicing and on manufacturing and assembly, reducing the cost for

multinationals and their third-party suppliers, who reassemble products in the

zone for onward sale in Saudi Arabia and the wider MENA region. Ease of doing

business has been enhanced by 100% foreign ownership, streamlined incorporation

processes, expedited certification and permit procedures and allowable company

structures – helping facilitate businesses seamlessly.

"The Special Integrated Logistics Zone's best-in-class inbound and outbound

inventory systems provide direct linkages between investors, suppliers, customs

and government agencies accelerating the speed of processing and integrated

Vendor Managed Inventory, meaning more flexibility and cost efficiencies for

investors. An investor based in the Special Integrated Logistics Zone can

already deliver a product to a customer within four hours – saving significant

time and cost when compared to delivering a product from any other location

outside of the Kingdom," said Awad A. AlSulami, Vice President, Logistics &

Special Economic Zones at GACA.

"We have developed a product at the Special Integrated Logistics Zone that

offers integration at every level. Integration of thought, through

collaboration, designed with sector leaders for sector leaders and integration

of supply chains, through technology, providing a non-stop, seamless,

experience, inbound and outbound. An innovative approach allows companies to

access the Saudi market faster and with benefits at every point in the value

chain," Awad A. AlSulami continued.

You can find all news about the Special Integrated Logistics Zone on the

www.silz.gaca.gov.sa.

You can find all the news of the General Authority of Civil Aviation in the

media center on our website [

https://gaca.gov.sa/web/en-gb/page/gaca-media-center ].

About the Special Integrated Logistics Zone

The Special Integrated Logistics Zone is Saudi Arabia's first Special Logistics

Zone and has been developed by the General Authority of Civil Aviation (GACA).

The zone was given its legislative basis by Royal Order in October 2018 and

integrates regulatory, technological and infrastructure best practice to create

the best possible operating environment for multinational businesses.

The Special Integrated Logistics Zone is located within the parameters of King

Khalid International Airport in Riyadh – connecting businesses with the largest

consumer market in the Middle East and offering air connectivity to the rest of

the world.

The zone was designed from the ground up with industry leaders, including Apple

Inc, for the world's leading supply chain and logistics companies. It is the

only SEZ in GCC that offers both Vendor Managed Inventory (VMI) and gives VAT

advantages to goods which are temporarily transferred between the mainland and

the zone for purposes of repair, maintenance, after-sales services and

manufacturing and assembly services.

The Special Integrated Logistics Zone has a unique value proposition that goes

beyond tax, allowing tenants to drastically reduce time and cost taken to

deliver goods to Saudi consumers. The zone features best-in-class inbound and

outbound inventory systems which provides direct linkages between investors,

suppliers, customs and government.

Logo - https://mma.prnewswire.com/media/1933083/GACA_Logo.jpg

Logo - https://mma.prnewswire.com/media/1933084/SILZ_Logo.jpg

Source: General Authority of Civil Aviation