Saudi Arabia Announces Logistics Focussed SEZ
Smart Logistics

Saudi Arabia Announces Logistics Focussed SEZ

Zone to be located in King Khalid International Airport in Riyadh

Saudi Arabia has nnounced the establishment of a Special Economic Zone (SEZ), the first special zone of its kind in the world.

The zone, to be located in King Khalid International Airport in Riyadh, will focus on integrated logistics and will enjoy special rules and regulations aiming at attracting more multi-national companies to the Kingdom.


A Royal decree was issued to approve the regulation of the “Integrated Logistics Bonded Zone - ILBZ” and has assigned its establishment and operation to the General Authority for Civil Aviation (GACA) as the Zone Governing Body, while Saudi Arabian General Investment Authority (SAGIA) will carry the investment attraction.

ILBZ is a major step in translating Vision 2030 into action by leveraging Saudi Arabia’s strategic location as the hub connecting three continents, one of three core pillars of the Kingdom’s Vision 2030 announced in 2016.

The establishment of ILBZ is part of a broad plan to establish special economic zones in competitive locations for promising sectors, including ICT, logistics, tourism, industrial and financial services.

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These zones will leverage the unique advantages of Saudi Arabia’s location within less than seven hours’ distance from a vast number of consumers in Europe, Asia, and the Middle East and North Africa, as well as its strong and growing transportation and logistics infrastructure.


SAGIA Governor, Ibrahim Al-Omar, stated that this represents a significant opportunity for multinational companies to enhance their operations, efficiency and market reach.

“A significant proportion of global trade passes through the region, making logistics hub in the Kingdom a natural choice for any company seeking to serve international markets,” he said.


The ILBZ offerings are tailored for multi-national companies, supporting a wide range of activities, including warehousing and fulfillment, inventory management, maintenance and repairs, staging, testing, and assembly.

By serving as a unified hub in which companies can engage in these activities and access a vast network of transportation corridors by air, land and sea, the ILBZ is expected to enable the Kingdom to become regional and eventually a global logistics hub, playing an increasingly central role in world trade.

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