The organization of the Special Integrated Logistics Zone, located on the grounds of King Khalid Airport in Riyadh, was approved based on Royal Order No. (A/17) dated 1/2/1440 AH. The General Civil Aviation Authority is the authority responsible for managing, developing and supervising the zone. The organization aims to establish a logistics zone with tax facilities and exemptions for a period of 50 years, in a way that stimulates revenue and export activities around the zone. These exemptions include the following:
- Not imposing customs duties on goods entering the zone, as they are in a customs suspension situation.
- Not imposing value-added tax on goods held by customs.
- Foreign entities will be subject to 0% income tax during the tax exemption period.
These entities are also exempt from withholding tax on the following services:
1- Stock dividends
2- Loan interest
3- Royalties, technical and consulting services paid to a related party.
- A branch that carries out an activity directly related to goods located within the zone is not considered the owner of a permanent establishment in the Kingdom.
The Special Integrated Logistics Zone is the first special economic zone in the Kingdom that was launched to support the ambitious vision of His Highness the Crown Prince, which aims to make Riyadh one of the 10 largest economic cities in the world. The zone will pose a challenge to the General Authority of Civil Aviation, as all the steps it takes to organize and issue rules for the zone chart a path for all future economic zones in the Kingdom