China's Baoshan Iron, Steel to Invest USD4bn in Saudi Arabia's Ras Al-Khair Economic Zone
Date
5/31/2023 3:07:18 AM
(MENAFN) Saudi Arabia's manufacturing sector is poised to receive a significant boost as Baoshan Iron and Steel Co., one of the world's largest steelmakers based in Shanghai, announced its plans to invest SR15 billion (USD4 billion) in a project located in Ras Al-Khair's new economic zone. The company aims to establish a manufacturing facility in the zone to produce metal plates, as disclosed during an event held in Riyadh on Monday.
This investment aligns with Saudi Arabia's industrial outreach initiative, which aims to attract businesses to operate within its special economic zones. By offering preferential corporate tax rates, customs duty exemptions, and allowing full foreign ownership of enterprises, the Kingdom seeks to transform these regions into attractive investment gateways.
The success of Saudi Arabia's special economic zones (SEZs) has been evident, as they have garnered SR47.2 billion ($12.6 billion) worth of investments to date, solidifying the country's emergence as a global trade hub. In addition to the existing investments made by companies such as Lucid Motors and Seera, the Saudi Special Economic Zones Investment Forum held in Riyadh witnessed new investment commitments for projects in various zones, including Ras Al-Khair, King Abdullah Economic City, Riyadh, and Jazan.
Notably, oil and energy firm McDermott Arabia Co. revealed plans to invest SR375 million in Ras Al-Khair, aiming to develop fully integrated engineering construction solutions for the energy industry. The SEZ also attracted Danish equipment company Makeen Energy, which committed to an investment of SR2.14 billion.
With these developments, Saudi Arabia's economic zones are becoming increasingly attractive for domestic and international investors, fostering growth in various sectors and contributing to the country's broader economic diversification goals.
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