Executive summary

On 23 April 2026, Saudi Arabia issued the draft regulations (Draft Regulations) of the Special Economic Zones (SEZs) for public consultation on Istitlaa, the public consultation platform. The public consultation is open from 24 April 2026 to 8 May 2026. The draft regulatory framework governing bonded zones within the King Abdullah Economic City (KAEC), Jazan and Ras al Khair (RAK) SEZ introduces a structured mechanism for storage, manufacturing and re-export activities under customs supervision.

The Draft Regulations also provide for potential application to the Cloud Computing SEZ. For investors, bonded zones present opportunities to optimize supply chains, manage customs-duty exposure and support regional distribution strategies.

The framework of the Draft Regulations also imposes clear licensing, compliance and operational obligations that are relevant from a customs and governance perspective.

The Istitlaa links to access the Draft Regulations for each zone are listed below:

• The Regulation of the Special Economic Zone at Ras Alkhair
• The Regulation of the Special Economic Zone at Jazan
• The Regulation of the Special Economic Zone at King Abdullah Economic City
• The Regulations for Cloud Computing and Information Technology Special Economic Zone

Background

Saudi Arabia introduced SEZs as part of its broader Vision 2030 agenda to attract foreign investment, localize strategic industries, enhance non-oil economic growth and position Saudi Arabia as a regional and global trade hub.

SEZs are designated geographic areas offering a tailored regulatory and operating environment, including competitive tax and customs treatment, streamlined licensing processes and infrastructure designed to support targeted sectors such as logistics, manufacturing, advanced industries and digital services.

These SEZs operate under the oversight of the Economic Cities and Special Economic Zones Authority (ECZA), with sector-specific coordination from relevant government bodies, including the Zakat, Tax and Customs Authority (ZATCA) for customs-related matters.

Within this framework, bonded zones are a key mechanism enabling duty suspension and customs-controlled operations, supporting regional distribution, export-oriented manufacturing, and supply chain optimization.

Draft Regulations highlights

The key features, distinctions and risk considerations relevant to prospective SEZ investors are provided below.

SEZ bonded zones — Draft Regulations overview

Bonded zones may be established within an SEZ, if considered necessary by the relevant governing authorities based on operational needs. These zones operate under the supreme supervisory authority of the ECZA, coordinating closely with the ZATCA.

From a customs perspective, bonded zones function as customs-controlled environments, enabling storage, processing and, if applicable, re-export of goods under prescribed conditions without payment of customs duties (duty suspended).

Two bonded-zone models: Central Bonded Zones (CBZs) and Dedicated Bonded Zones (DBZs)

CBZs are shared facilities made available to all eligible SEZ investors and are licensed directly by the designated zone authorities and other relevant governing entities; investors access these zones as users rather than as license holders, benefiting from lower upfront investment and reduced direct regulatory exposure, with some limitations on operational flexibility and bespoke arrangements.

In contrast, DBZs are allocated exclusively to one or more eligible investors, licensed separately to each investor in coordination with the zone authority, and established on land held under a right-of-use or lease agreement. It offers investors greater control over inventory, processes, systems and enhanced operational autonomy, but with direct responsibility for customs regulatory compliance, accompanied by a correspondingly higher level of regulatory review.

Permitted bonded zone activities — beyond storage

SEZ bonded zones may support: storage and handling; value-added operations; simple to full manufacturing and assembly; mixing, blending, processing and upgrading; maintenance activities; e-commerce fulfilment; storage of liquid petroleum; petrochemical derivatives; and bulk products. In addition, activities may be classified as re-export activities if goods are re-exported outside Saudi Arabia or imported under temporary admission and then exported.

Key customs regulatory considerations for investors

From a customs perspective, investors should note that:

• Customs-duty suspension does not equal exemption from compliance — post-clearance audits apply.
• Dedicated structures imply direct accountability for inventory discrepancies, goods valuation and tariff classification.
• Record-keeping and system integrity are critical to defend re-export treatment, "suspended" customs status and value-added tax (VAT) positions linked to customs procedures.

Implications

The bonded zones within Saudi Arabia's SEZs offer a powerful platform for supply chain optimization, regional distribution and manufacturing strategies. However, the choice between a central and a dedicated model has material customs compliance and regulatory governance implications. Investors should align the chosen structure with their operational scale, risk appetite and compliance maturity.