Saudi Arabia plans logistics free zone in Riyadh

22 October 2018
General Authority of Civil Aviation (Gaca) will establish and operate planned logistics free zone

Saudi Arabia’s General Authority of Civil Aviation (Gaca) will establish and operate an economic free zone to be located at the King Khalid International airport in Riyadh, the official Saudi Press Agency (SPA) said on 21 October.

Called Integrated Logistics Bonded Zone (ILBZ), the development will focus “on integrated logistics and will enjoy special rules and regulations aiming at attracting more multi-national companies to the kingdom.”

The statement did not specify timeline for the construction and establishment of the free zone.

It is understood Saudi Arabian General Investment Authority (Sagia) will be the main authority to liaise with international and regional investors who wish to build a presence in the planned free zone.

The establishment of ILBZ is “part of a broad plan to establish special economic zones in competitive locations for promising sectors, including ICT, logistics, tourism, industrial and financial services,” SPA said.

The zone is expected to capitalise on Saudi Arabia’s strategic geographical location, which lies within seven hours’ distance from consumers in Europe, Asia, and the Middle East and North Africa.

 

 

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