News

HFI was delighted to meet Abdullah Alabdali, Director of Business Development, Mohammed Al-Zahrani, Industrial Cluster Development Analyst, and Kawthar Al-Hajji, Medium & Small Enterprises Coordinator at Ras Al-Khair SEZ.

Saudi Arabia's strategic maritime location positions the Kingdom as a global hub, with 6% of global maritime trade passing through its ports. Ras Al-Khair SEZ, under the jurisdiction of Royal Commission for Jubail and Yanbu, aims to become a technology and innovation hub, contributing significantly to the Saudi economy. Its core industries include shipbuilding, offshore rig fabrication, and maintenance, repair, and operations. This aligns with Vision 2030, promoting economic diversification, import substitution, and exports.

To attract investment, incentives Ras Al-Khair SEZ include:-

-0% withholding tax on repatriated profits
-Flexible foreign talent regulations for five years
-0% VAT for intra-SEZ transactions
-5% corporate income tax for 20 years
-Deferred customs duties for SEZ goods
-Expat levy exemption for employees and families

70% of the SEZ has been allocated to the following companies:-

-International Maritime Industries (IMI), an aramco sponsored joint venture with global industry-leading partners HD Hyundai Heavy Industries, Bahri and Lamprell. IMI has recently secured US $10 billion in agreements with Aramco and Bahri for rigs and vessels over 10 years, fulfilling 75% of Bahri’s commercial needs;

-McDermott International, Ltd, a premier provider of engineering and construction solutions to the energy industry;

-Saudi Engines Manufacturing Co - MAKEEN, a joint venture between Saudi Aramco, Hyundai Heavy Industries and Saudi Arabian Industrial Investment Co. Last year a framework licensing agreement was signed with Rolls-Royce Plc’s power systems business unit to manufacture, test, sell, and maintain high-speed engines and generator sets under the MTU brand in Saudi Arabia; and

-Baosteel Group Co, a leading modern iron and steel complex headquartered in China.

KSA is a focus for many of HFI’s clients. It has been a pleasure to support Interocean Marine Services led byRobert Dalziel in the Middle East.  Interocean, headquartered in Glasgow, provides a comprehensive range of services to the offshore oil and gas, marine, and renewable sectors. Interocean operates a global network with offices in the UK, Norway, Canada, Ghana, Angola and UAE.

On a related note, Energy Industries Council (EIC) will be hosting the UK pavilion at the Informa Markets - Saudi Maritime & Logistics Congress in October of this year, following on from the EIC KSA Connect event in February.