Have you heard of the Economic Cities of Saudi Arabia? Ever wondered how they are different from other cities of the country? Don’t worry! Reading this blog will help you gain a clear understanding of the Saudi Arabia Economic Cities, and how it is accelerating the economic growth of this Arab Kingdom. So let’s dive into the topic.
Economic Cities in Saudi Arabia (ECs)
Economic Cities of Saudi Arabia are special areas within the country that are developed, funded and operated by the private sector under government guidance and oversight. They are strategic projects of the government of Saudi Arabia to boost its economic diversification and achieve Saudi Vision 2030 goals at a greater pace. Each city has their own focus sectors and works to achieve the same. They are the main business hubs in the country expected to contribute immensely for the economic development of the country. Initially the kingdom announced 6 Economic Cities, later focus was shifted to 4 Economic Cities in Medina, Hail, Jazan and Rabigh. The major aims of these Economic Cities are to attract global investors, diversify the Saudi economy, create new job opportunities, provide a favourable environment for the business setup in Saudi Arabia, development of the country, etc.
Benefits of Saudi Arabia Economic Cities
Economic Cities come with a lot of benefits and advantages for both investors and nationals alike. Below we list a few benefits of Economic Cities of Saudi Arabia, explore the same to gain a clear understanding on the same.
- Full integration of government services
- Easy access to top foreign talent
- Unparalleled network of logistics
- Exceptional living standard
- Planning and synergy at Sector level
- Well-planned cities
- High – class infrastructure
- Enhanced lifestyle
- Private sector owns the Saudi Arabia’s Economic Cities
- Favourable and dedicated judicial ecosystem
- National & international network
- Top class residential and lifestyle
What is the main purpose of the Economic Cities of Saudi Arabia?
Curious to know the main purposes of Saudi Arabia Economic Cities? Here are the few purposes of the Economic Cities of Saudi Arabia.
- Attract value-added investment from global investors
- Diversify the economy of the nation
- Improve public services of the country and elevate the quality of life
- Boost innovation & entrepreneurship
- Development of strategic sectors
- Promotion of new business concepts, models, and practices
How many Economic Cities are there in Saudi Arabia?
There are a total of 4 Economic cities in Saudi Arabia. Though initially there were 6 Economic Cities, later it was cut short to 4. Below are the 4 Economic Cities in Saudi Arabia, let’s go in detail to each of the cities and explore the same!
King Abdullah Economic City in Rabigh (KAEC)
Located north of Jeddah, King Abdullah Economic City in Rabigh (KAEC) Saudi Arabia is a world class logistics and manufacturing hub and is open to businesses across the globe. The important aim of this city is to develop logistics, automotive, fast-moving consumer goods (FMCG), pharmaceuticals, plastic, and building materials. The major components of KAEC include a modern seaport, a financial island, education zone, an industrial district, residential area, resorts, etc.
Prince Abdulaziz bin Musaid Economic City in Hael (PABMEC)
Prince Abdulaziz bin Musaid Economic City in Hael (PABMEC) is located at the strategic crossroads that connects trade and transportation routes for the Middle East. The main focus of this city is on agribusiness, logistics, construction material and minerals . The major components of PABMEC include dry port, agricultural industries, logistics and transportation centre, knowledge centre, mining centre, petrochemical industries centre, entertainment area, etc.
Knowledge Economic City in Madinah
Knowledge Economic City in Madinah (KEC) located near the Holy Mosque of the Prophet in Madinah focuses on developing knowledge-based industries with Islam and its services as the main focal point. The major components of this project include development of a Medical Sciences and Bio-Technology center, high-tech parks, a center for Islamic Civilization Studies and Research, construction of an educational or entertainment park, a business district, a multi modal transportation centre, and a hotel complex.
Jazan Economic City
Jazan Economic City (JEC) located on the Red Sea along the Kingdom’s southwestern region is a hub for logistics and industries, regional raw materials and is an export platform for consumer markets worldwide. The major focus of this project is industries that are driven by energy and labour. The main components of the JEC project include a sea port, fisheries, industrial park, centre for business and culture, health and education area
Economic Cities and Special Zones Authority (ECZSA)
The Economic Cities and Special Zones Authority (ECZSA) is an organization which is responsible for regulating the development and management of the Economic Cities and special zones in the country. It plays a significant role in providing a favourable environment for the development of the business operating in this area by providing infrastructure, support services, and regulatory frameworks. The major aim of the Economic Cities and Special Zones is to boost economic growth and create job opportunities at a larger scale. ECZSA works in close collaboration with various government agencies, international organizations, and private sector partners to achieve its goals and contribute to the economic development of the country.
Conclusion
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Frequently Asked Questions [FAQ]
What are the advantages of Industrial Cities in Saudi Arabia?
The advantages of Industrial Cities in Saudi Arabia is that it offers free zones, low utility cost and rent, import tax exemptions, etc.
What is the duty of MODON?
The Saudi Authority for Industrial Cities and Technology Zones (MODON) is the Regulatory Authority of Industrial Cities responsible for overseeing the 36 Industrial Cities with more than 3,500 factories in the Kingdom.
