Saudi Arabia Logistics Riyadh’s Special Integrated Logistic Zone

The Saudi General Authority for Civil Aviation (GACA) launched operations at its Special Integrated Logistic Zone (SILZ) in Riyadh on October 31, 2022. The Special Integrated Logistics Zone is being designed to combine best in practice regulations, technologies, and infrastructure from around the world. Located directly next to King Khalid International Airport (KKIA), the zone covers more than 32 million square feet. SILZ’s first occupant, Apple Inc, utilizes the zone as a regional distribution center. SILZ offers companies three building options; a company can build its facility from scratch; SILZ can build a shell that the company finishes; or SILZ can build a full facility to a company’s specifications. 

SILZ is predominantly seeking businesses who specialize in any of the following activities:
•    Maintaining, repairing, processing, modifying, developing, assembling, and sorting goods.
•    Packing, repacking, trading, distributing, handling, and providing simple manufacturing processes.
•    Importing, exporting, and re-exporting goods.
•    Value-added services, logistics services, and after-sales services; and
•    Recycling waste and electronic waste.  

Similar to Free Trade Zones in the region, SILZ offers special regulations and incentives to foreign and domestic companies. Goods inside the SILZ are exempt from Saudi Arabia’s 15 percent value added tax and are under customs duty suspension arrangements. Firms operating inside the SILZ will also enjoy a five-year delay on required quotas for Saudi workers, known as “Saudization” quotas.  

 
U.S. companies specializing in Supply Chain and Logistics and related technologies may contact saad.ahmed@trade.gov for any questions or for further information.