Special Integrated Logistics Zone (SILZ)

The demand for logistics hubs is rising, driven by the essential role they play in global supply chain and facilitating the movement of goods. Saudi Arabia, given its strategic geographic location and evolving market, presents opportunities for businesses to capitalise on these dynamics.

Riyadh Integrated are leveraging Saudi’s unique market position, as the largest consumer market in the Middle East and the largest, geographically. Central to surrounding GCC countries – UAE, Oman, Bahrain, Qatar and Oman combined with its proximity to Riyadh’s King Khalid International Airport, businesses in SILZ can take advantage of optimal connection routes, especially air routes.

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Business Licenses in SILZ

Business permits and licenses in the zone are issued by the General Authority of Civil Aviation (GACA), an authority focused on driving Saudi’s Aviation Strategy. As the regulatory authority for SILZ, GACA is committed to accelerating license processing to support growth in both the logistics and aviation sectors.

Riyadh Integrated has developing a strategic logistics hub tailored to high-value sectors, including consumer electronics, computer products, pharmaceuticals, aviation technology, and luxury goods.

Permitting activities such as:

light manufacturing and repair
import/export and trade distribution
logistics and value-added services
product handling and packaging
recycling of general and electronic waste

Qualification Requirements:

To set up in SILZ, your business will need to meet on of the following qualification categories:

Sector Leaders Category

The Investor shall be one of the top one hundred (100) leaders in the Targeted Sectors;

The Investor must be a publicly listed company on a recognized stock exchange market; or,
A private company with annual revenue exceeding five hundred (500) million dollars; and,
carries out commercial activities on at least three continents in his Targeted Sector.

Logistics Providers Category:

The Investor shall be one of the top fifty (50) leaders in the logistics services sector; or,

The Investor will provide logistics services to one of the sector leaders who carry out their activities in the Zone; and,
Has a presence in at least three (3) countries, regionally or globally.

Regional Distributors Category

The Investor shall:

Possess a strong regional customer base; and,
Distribute goods in no less than seven (7) countries within the region.

Application Requirements

Before the application, the company must ensure they are able to provide all Investor information including global presence licensing and accounts – stock exchange market if PLC or annual revenue if a Private Company

Provide a Business Plan for 5 years which must include a detailed project description, detailed headcount and staffing plan and a financial plan and an overview of the expected investment.

Incentives to Set Up in SILZ

There are strong incentives and growing opportunities for companies looking to expand their operations or establish a regional base within Riyadh’s SILZ.

Infrastructure designed specifically for supply chain, logistics and distribution business activities.
SILZ allows for 100% foreign ownership.
No share capital requirements.
Exemption from labour nationalisation (Saudization) requirements for the first five years.
It imposes no financial restrictions on international borrowing, capital recovery and repatriation, revenue and profit transfer and commission payments.
Tax reliefs for up to 50 years, 0% Corporate income Tax, VAT, WHT and Remittance tax exemptions.
Eased import controls and customs duties on goods that remain within the zone, and which are transferred from any port to the zone.
Eased certification procedures for import into mainland

How we can assist?

As the first Special Economic Zone to be introduced in the Kingdom, Riyadh’s Special Integrated Logistics Zone (SILZ) offers exceptional infrastructure, incentives, and a prime location, which will attract significant foreign investment. As additional economic and free zones become available, it will diversify market entry opportunities across key sectors, supporting Saudi Arabia economic diversification and growth ambitions.

Contact Sovereign PPG’s team in Riyadh for support with company formation in Saudi Arabia, including mainland and economic zones such as SILZ via the contact form below.