Registration of a company in the Cloud Computing Economic City

Registering a company in Saudi Arabia is attractive to many foreign investors. Broad investment opportunities, political and economic stability, as well as a strategically important location at the convergence of key trade routes, increase the chances of long-term business success.

Recently (in April 2023), four special economic zones (SEZ) were launched here as part of the Vision 2030 program. The goal of this strategy is to diversify the economy, implement advanced technologies, and attract multi-skilled professionals to the country. In this article, we will discuss the registration of a company in the Cloud Computing Economic City in Saudi Arabia.

Registration of a Company in the Cloud Computing Economic City: Who is this SEZ aimed at?

The Cloud Computing Economic City was created with the aim of strengthening the country's position internationally in the ICT sector and establishing innovative infrastructure to position the country as the most advanced technological center in the region. This free zone is located in the King Abdulaziz City for Science and Technology (KACST).

Registering a company in the free zone of Cloud Computing Economic City grants the right to offer cloud computing services, with the understanding that business laws in this zone have certain differences from those in the mainland of the country. The primary goal of the government in launching this zone was to attract global companies to open offices in the country, thereby stimulating progress in the adoption of advanced technologies such as artificial intelligence, machine learning, blockchain, and so on.

It's worth noting that Saudi Arabia has become one of the first countries in the Arab world to adopt relevant regulations and standards for regulating and promoting activities related to cloud computing.

Launching a business in the Cloud Computing Economic City comes with several advantages for investors who decide to register their company there:

1. Access to cutting-edge future technologies: Being part of the economic city provides access to breakthrough technologies of the future, fostering innovation and staying at the forefront of the industry.
2. Highly qualified personnel: The zone offers access to a pool of highly skilled professionals, facilitating the recruitment of talent with expertise in cloud computing and related fields.
3. Special tax regime: Businesses in the Cloud Computing Economic City may benefit from a special tax regime, potentially reducing tax burdens and creating a more favorable financial environment.
4. Competitive business administration costs: The zone aims to provide competitive costs for business administration, which can contribute to improved profitability and efficiency for companies operating within it.
5. Ability to offer Cloud Computing services across the Kingdom of Saudi Arabia: Registering in this economic city allows companies to offer cloud computing services throughout the entire Kingdom of Saudi Arabia, expanding market reach and potential clientele.

Key Tax Incentives:

1. Decreased business tax rates can create a more advantageous tax environment for companies in the Cloud Computing Economic City, potentially boosting profitability.
2. Eliminating customs duties on goods transported to the Special Economic Zone (SEZ) within the Cloud Computing Economic City can markedly alleviate the financial load for businesses involved in importing goods. This incentive is designed to encourage and streamline trade activities within the zone.

Conclusion

Access to digital innovations, research laboratories, and a pool of qualified talents are some of the advantages that companies investing in the Kingdom can leverage. However, registering a company in the Cloud Computing Economic City involves specific characteristics, legal nuances, and formalities, especially considering that the zone was established not long ago, and its legislation may still undergo changes in the future. Nevertheless, it is expected that this zone, along with the other three, will contribute to the economic progress of the country.