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Tier 3 · Makkah

King Abdullah Economic City Special Economic Zone (KAEC SEZ) — within King Abdullah Economic City

King Abdullah Economic City · Economic Cities and Special Zones Authority (ECZA)

high confidenceVerified 18 Jul 2026official ↗
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Best for

Export-oriented manufacturers and logistics operators in the six target sectors (automotive/EV, pharma, MedTech, FMCG, ICT light manufacturing, logistics) that want Red Sea port access and a 20-year tax incentive runway.

Not ideal for

SMEs or service businesses seeking cheap flexi-desk setups, transparent off-the-shelf pricing, or a large existing expat business community; activities outside the target sectors get no SEZ benefits.

01Capability profile

Six independent dimensions, scored from official zone data.

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Banking7/15
?
Visa scale5/15
?
Cost (lower=better)10/20
?
Activity breadth24/25
?
Workspace options15/15
?
Location6/10
02Where KAEC sits

Tick marks for every zone, KAEC highlighted. The shape of the field, not just the rank.

Year 1 cost← lower is better

Licence + registration, AED.

Setup time← lower is better

KAEC: 25th percentile (14 days) · Total estimated days from application to operational.

Visa caphigher is better →

KAEC: 16th percentile (10 visas) · Absolute maximum visa allocation. Values above 500 clipped to the right edge so the bulk of the distribution stays readable.

Banking ease← better
Easy
4
Moderate
73
Difficult
15
Very difficult
1

KAEC: Difficult · Corporate bank account opening difficulty. Each cell is one zone.

03Costs

Year-one license, renewals, and 5-year totals in AED.

—
Year 1 minimum · AED
budget tier
Show in
Base licence
AED 1,500
Renewal (year 2+)
AED 1,500
2-year visa cost
AED 7,000
Flexi-desk per year
AED 18,000
Hidden & one-off costs
Visa renewal
AED 8,190
Visa cancellation
AED 1,200
Dependent / spouse visa
AED 3,000
Year-on-year fee tracking begins 2026 — changes appear here as they accrue.
Indicative, from published ratesOfficial fee schedule ↗Verified 2026-07high confidence

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04Visas & workspace

Visa caps, workspace options, and family-sponsorship rules.

Visa allocation
Maximum visas
10
Flexi-desk cap
1
Office cap
5
Warehouse cap
3
Family sponsorship
Available
Freelancer permit
Not available
Medical required
Yes
Processing time
~10 days
Workspace options
Virtual office
Yes
Flexi-desk
Yes
Coworking
Yes
Dedicated office
Yes
Executive office
Yes
Warehouse
Yes
Industrial unit
Yes
Land plot
Yes
Ejari issued
No
Parking
Yes
05Banking & setup

Banking difficulty, partner banks, and setup timeline.

Banking
Difficulty
Difficult
Time to account
~30 days
Minimum deposit
AED 25,000
Corp tax rate
5%
Audit cost (est)
AED 5,000
UBO filing
Required
AML / KYC
enhanced
Partner banks
Saudi National Bank (SNB)Al Rajhi BankRiyad BankAlinma BankSaudi Awwal Bank (SAB)
Neo-bank options
None for corporate accounts; Saudi digital banks (e.g.STC BankD360) are retail-focused
Setup timeline
  1. Registration mode
    Fully online — no in-person visit required
  2. Documents & application
    Passport, visa, business plan — ~3–5 days
  3. Licence issued
    ~7 business days after submission
  4. Bank account active
    Additional ~30 days · Difficult banking
  5. Operational
    Typically ~14 days, up to ~21 days
06Permitted activities

Activity categories, restrictions, and approval flags.

15 activities

automotive assembly

pharmaceuticals

consumer goods

electronics

ICT

advanced healthcare

global logistics*

Categories
manufacturing and logisticstechnology and tradingprofessional servicesautomotive assemblypharmaceuticalsconsumer goodselectronicsICTadvanced healthcareglobal logisticsindustrial developmentcommercetourism*
Matched industry clusters
consultingtechtradinghealthcareindustriallogistics
Restricted
Specific industry focusese.g.pharmaceutical companies may only set up in KAECnot Jazan SEZ*
Require approval
ECZA licensing approval per activitySector regulators for regulated fields (e.g., pharma/MedTech)Draft economic-substance compliance to retain incentives
07Jurisdiction & ecosystem

Legal framework, tax status, audit requirements, and zone focus — every value sourced.

Common lawNo
VAT designated zoneYes
QFZP eligible (0% tax)No
Inferred · 2026-07-18
Mainland permitNo
Inferred · 2026-07-18
Audit requiredNo
Inferred · 2026-07-18
Economic substancestandard
Inferred · 2026-07-18

This zone offers physical-office options sufficient for a standard QFZP substance posture, though the bar still applies at the entity level (CTGFZP1).

Focus: Automotive, Pharmaceuticals, Logistics, Consumer Goods, ICT, MedTech, Manufacturing*

160+ companies housed, 53+ factories operational/under construction, SAR 30bn+ investments attracted (ECZA, verified 2026-07-17); KAEC SEZ launch PR (June 2023) cited 115+ multinational companies in the Industrial Valley; kaec.net/invest currently states 'more than 110 investors' in the Industrial & Logistics Hub companiessmall — resident population and tenant base still modest relative to the 2M-resident masterplan; no recent official population figure communityNetworking events: YesIncubator: Yes
Notable companies

'MASARAT Mobility Park (TASARU automotive supplier hub, King Salman Automotive Cluster)'

QFZP, audit, mainland-permit and substance values are sourced where the zone authority or FTA publishes them, and inferred from published zone characteristics otherwise. How we determine these values.

08Strengths & limitations

5 strengths · 3 caveats.

Strengths
  • 5% corporate income tax for up to 20 years, 0% withholding tax on repatriation and Zakat exclusion — codified in the 2026 SEZ regulatory frameworks
  • King Abdullah Port (World Bank #1 container-port efficiency 2021) plus bonded-zone customs suspension on eligible goods
  • Proven anchor tenants: Lucid (operational), Ceer, Hyundai, Pirelli within the King Salman Automotive Cluster
  • Industrial land and warehouses available now — Ceer purchased >1M m²; 53+ factories operating/under construction
  • 100% foreign ownership, expat-levy exemptions for employees and families, flexible Saudization for first 5 years
Caveats
  • No published fee schedule — all license, land, warehouse and visa pricing is quote-based, slowing comparison shopping
  • Location ~100 km from Jeddah; city population and services still thin versus established hubs
  • Incentives are conditional on qualifying activities and draft economic-substance rules (in-zone premises, staff, KSA-resident director); mainland sales incur customs/VAT on entry

Not ideal for: SMEs or service businesses seeking cheap flexi-desk setups, transparent off-the-shelf pricing, or a large existing expat business community; activities outside the target sectors get no SEZ benefits.

09Tax considerations

3 tax questions relevant to this zone.

Questions to raise with your tax advisor

  1. Will you need audited accounts even if this zone doesn't require them?

    FTA corporate-tax filing typically expects audited accounts for revenue above AED 50M, and banks often request them at much lower thresholds.

  2. Do your goods movements actually fall inside the VAT Designated Zone treatment?

    Designated Zone status applies to goods within the zone, not services. Most service businesses get no VAT benefit from being inside one.

  3. Do any of your customers, suppliers, or shareholders meet the FTA's related-party definition?

    Related-party transactions need transfer-pricing documentation and may push otherwise-qualifying income into the 9% bracket.

These prompts are due-diligence questions, not tax advice. Confirm every answer with a UAE-licensed tax advisor before incorporating.

10About this data

Last verified 2026-07-18 · high confidence.

KAEC data is sourced from official zone authority publications, government fee schedules, and where available, verified against direct communications with the zone. All figures in AED.

Location
King Abdullah Economic City
Authority
Economic Cities and Special Zones Authority (ECZA)
Last verified
2026-07-18
Confidence
high
Methodology
How we score →
Cited source
Fee data sourced from the official fee schedule, fetched 2026-07-18. View source ↗
Per-field citations
How we verify every zone →
11Founder reviews

What founders who've registered here say.

4.4★8,000 reviewsGoogle

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12Take the next step

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