Saudi Arabia has recently made significant progress in diversifying its sources of income, shifting from a primarily oil-based economy to one increasingly driven by industry. This transformation is largely attributed to Vision 2030, which places industry at the core of the Kingdom’s economic strategy.

When examining the industrial sector in Saudi Arabia, the Jazan region stands out as a key area of focus. For many years, it remained outside the Kingdom’s major development plans. However, it has now emerged as one of the most important industrial hubs in Saudi Arabia, thanks to the government’s commitment to advancing its industrial and economic growth.

In this article, we will highlight the advantages of Industrial Investment in Jazan. We will also explore the opportunities available in the region and outline the steps to obtain an investment license and begin operations there.

About Jazan
Located in southern Saudi Arabia, Jazan occupies a strategic position along the Red Sea, serving as a vital gateway for global exports through its modern ports and active sea lanes. The region is also rich in natural resources, which has encouraged the government to invest heavily in developing its industrial infrastructure as part of the Kingdom’s broader economic diversification efforts.

Since the launch of these development initiatives, Jazan has made steady progress toward establishing itself as a strategic hub for advanced technologies, particularly within the industrial and energy sectors. This remarkable transformation is driven by Vision 2030, which positions Industrial Investment in Jazan as a highly attractive point for both domestic and international investors.

The Current Economic and Industrial Situation in Jazan
The ongoing transformation in Jazan—driven by strong political will—has led to remarkable economic and industrial progress. Among the most notable achievements are:

• Attracting major investments: Jazan has secured large-scale projects, most prominently Aramco’s Energy and Manufacturing Complex, valued at over $21 billion, making it one of the largest industrial ventures ever launched in the Kingdom.
• Growing industrial investments: By 2024, the total value of industrial investments in Jazan reached 71 billion SAR, reflecting the region’s rising importance as an industrial hub.
• Expanding manufacturing base: Jazan is now home to 193 operational factories, with an additional 52 factories currently under construction.
• Advancing the mining sector: To date, approximately 80 mining licenses have been issued in the region, highlighting its natural resource potential.

Together, these achievements illustrate how Jazan is rapidly evolving into a strategic center for industry and investment within Saudi Arabia.

Available Investment Areas in Jazan
The Jazan region presents a wide range of investment opportunities for those seeking a promising market with strong potential returns. Among the most attractive sectors for investment are:

1. Food Industries.
2. Metals and Mining.
3. Basic Manufacturing and Heavy Energy Industries.
4. Logistics and Export Services.
5. Supporting and Complementary Sectors.

Jazan Special Economic Zone
To further attract investors, Saudi Arabia has established the Jazan Special Economic Zone, one of the zones in the Kingdom operating under special commercial regulations. Covering mote than 24 square kilometers, the zone focuses on three key areas: food processing, metal processing, and logistics. With favorable policies and infrastructure designed to support business growth, it plays a vital role in Saudi Arabia’s economic diversification and strengthens Jazan’s position as a leading industrial hub.

Investment Privileges in Jazan
To strengthen investors’ ability to establish and expand their businesses both regionally and globally, the Kingdom has introduced a package of incentives and facilities within the Jazan Special Economic Zone. These benefits aim to create a business-friendly environment that is fully interconnected with international markets:

1. Reduced Corporate Tax: A preferential 5% corporate income tax rate up to 20 years.
2. Profit Repatriation Benefits: 0% withholding tax on profits transferred abroad from the Special Economic Zone.
3. Deferred Customs Duties: 0% deferred customs duties on some goods imported into the Special Economic Zone.
4. Talent-Friendly Regulations: Flexible and supportive policies for recruiting and employing foreign talent during the first five years.
5. VAT Exemptions: 0% value-added tax on all goods traded within the Special Economic Zone and between other special economic zones.
6. Labor Fee Exemptions: Exemptions from some operating fees for foreign employees and their families within the zone.

These privileges position Jazan as one of the most competitive destinations for industrial and commercial investment in Saudi Arabia, ensuring both cost efficiency and long-term business growth.

Licenses and Regulatory Requirements in Jazan
To establish an industrial project in Jazan or within the Special Economic Zone—investors must obtain several licenses and approvals to ensure compliance with regulatory and operational standards. The most important requirements include:

1. Industrial License (Ministry of Industry and Mineral Resources): Required to specify the project scope, type of production, technical requirements, safety measures, designs, and environmental standards.
2. Mining License: Applicable if the project involves mining or mineral exploitation.
3. Environmental Approval: A permit from the relevant authority confirming that the project meets environmental protection requirements and poses no harm to the ecosystem.
4. Operating License: Issued by local municipal authorities (e.g., utilities, water and electricity distribution, occupational health and safety) to begin operations.
5. Import Permit: Necessary for projects that rely on importing raw materials or equipment from abroad.
6. Special Economic Zone Registration: Mandatory for projects established within the SEZ, requiring compliance with logistics policies and international standards.
7. Occupational Health and Safety License: Demonstrates adherence to workplace safety standards and employee protection measures.
8. Labor Rules: Ensures compliance with Saudi labor laws, worker rights, and approved working conditions.
9. Infrastructure Readiness: Verification that essential infrastructure—such as electricity, water, sewage, and other services—is available to support the project.

These regulatory requirements are designed to provide investors with a structured, transparent framework that promotes sustainable industrial development while aligning with Saudi Arabia’s Vision 2030 goals.

Conclusion

As an investor, be sure that the Industrial Investment in Jazan offers strong potential—particularly in the mining, food, and manufacturing sectors. By meeting the necessary investment requirements and securing the appropriate licenses, you can launch your business smoothly and securely.

At the Mohammed Al-Khilwi Office, we are here to support you every step of the way. From handling regulatory procedures to simplifying complex details, our team will ensure your investment journey in Jazan is seamless and efficient.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.