Saudi Arabia’s Industrial Zones: A Strategic Overview for Investors

A guide to Saudi Arabia’s industrial zones, incentives, and opportunities for foreign investors in manufacturing and logistics.

Saudi Arabia has built some of the world's most ambitious industrial infrastructure—and foreign companies are increasingly using it as a springboard into regional markets. From special logistics zones near Riyadh to petrochemical cities on the Red Sea, the Kingdom now operates a diverse network of industrial and manufacturing zones, each with its own incentive structure, sectoral focus, and investment entry points.

If you are exploring setting up a business in Saudi Arabia with a manufacturing, logistics, or industrial component, here is what you need to know about the six main zones.

1. Special Integrated Logistics Zone (SILZ)

SILZ is Saudi Arabia's first special logistics zone, located adjacent to King Khalid International Airport in Riyadh. It is operated and developed by SILZ Company and is specifically designed to attract foreign investors in logistics, light manufacturing, pharmaceuticals, aerospace, and luxury goods.

SILZ operates under a special economic zone framework, which means its regulatory rules differ from standard Saudi company registration. The zone has already attracted a growing roster of multinational logistics and technology companies seeking a regional distribution base in Saudi Arabia.

Apple and Lenovo have established regional distribution centers within SILZ, leveraging its proximity to Riyadh and its customs-enabled logistics infrastructure. Lenovo recently broke ground on a new manufacturing base in Riyadh through a partnership with Alat. The facility will be developed on a 200,000 sqm campus within “Riyadh Integrated,” the logistics and industrial district operated by SILZ.

The zone has also continued to attract large-scale logistics investment. In late 2025, DHL Supply Chain announced a EUR 130 million ($151 million) investment to develop a new logistics facility there, while JINGDONG Property, the infrastructure arm of JD.com, signed an agreement to develop a Grade-A warehouse.

Beyond occupiers and logistics operators, SILZ is also drawing international engineering and infrastructure partners, with AECOM entering a strategic partnership with SILZ Company to support the zone's long-term development.

2. Oxagon: NEOM's Industrial Hub

Oxagon is NEOM's industrial and manufacturing city, positioned on the Red Sea coast in northwest Saudi Arabia. It is designed around advanced manufacturing, green energy, logistics, and port-led trade, sectors that align closely with Saudi Arabia's industrial diversification push under Vision 2030. Oxagon typically targets companies in advanced manufacturing, clean energy, and logistics.

Unlike the more conceptual phases of NEOM, Oxagon is already operational and receiving investment. In early 2026, Boskalis completed the expansion of the Port of Oxagon, giving the zone direct deep-water maritime access.

Investment activity has continued to build alongside this infrastructure rollout: Saudi industrial gases company AHG signed a land lease agreement with NEOM for a production facility within Oxagon, while Saudi Arabia and the World Economic Forum also announced a partnership aimed at accelerating industrial transformation initiatives through the zone.

3. King Abdullah Economic City (KAEC)

KAEC is a PIF-backed economic city on Saudi Arabia’s west coast, located approximately 100 km north of Jeddah. Built around an integrated industrial platform and the deep-water King Abdullah Port, the city operates as a Special Economic Zone and includes an Industrial Valley designed to accommodate foreign manufacturers, logistics operators, and export-oriented businesses.

The city continues to see active infrastructure and ecosystem development as part of its long-term industrial expansion strategy. In May 2026, Emaar The Economic City awarded a SAR 547 million (USD 150 million) infrastructure contract to further develop KAEC’s Industrial Valley and Special Economic Zone, reinforcing ongoing capital investment into the area.

Alongside industrial expansion, KAEC is also building out its broader commercial and residential environment. The city signed MoUs with Turkish developer NEF to develop hotel, retail, and residential projects, supporting the growth of a more integrated live-work industrial ecosystem.

4. MODON Industrial Cities

MODON, the Saudi Authority for Industrial Cities and Technology Zones, is the largest network of industrial real estate in the Kingdom. It operates 36 industrial cities across Saudi Arabia, with over 4000 factories, serving as the primary home for mid-to-large-scale manufacturing and logistics facilities outside of the specialized zones.

Recent investment activity has been significant. At the UNIDO General Conference in Riyadh in November 2025, MODON signed contracts and MoUs representing investments of over SAR 8.8 billion ($2.3 billion) across more than 3.3 million square meters of industrial and logistics projects. JINGDONG Property signed a partnership to co-develop two million square meters of industrial and logistics assets across MODON's cities.

5. Ras Al-Khair Industrial City

Ras Al-Khair is a specialized industrial city on the Arabian Gulf coast, managed by the Royal Commission for Jubail and Yanbu (RCJY). It is the Kingdom's hub for mining, metals processing, and mineral exports, the downstream anchor for Saudi Arabia's ambition to position mining as the third pillar of its national economy alongside oil and petrochemicals.

The city is home to one of the world’s largest integrated phosphate complexes, a major aluminum smelter operated by Ma’aden and Saudi Aramco, and a growing cluster of downstream minerals processing and maritime industries. By the end of 2025, total investments in Ras Al-Khair had reached approximately SAR 165 billion ($44 billion), with the private sector contributing more than 90% of total capital deployed.

Investments within the city’s Special Economic Zone, which bears the same name, reached around SAR 27 billion ($7.2 billion), including SAR 12 billion ($3.2 billion) in foreign direct investment, supported by tax exemptions, customs incentives, and investor facilitation measures introduced through the zone framework.

6. Jubail and Yanbu: RCJY Cities

Jubail Industrial City on the Arabian Gulf and Yanbu Industrial City on the Red Sea are Saudi Arabia's original and largest integrated industrial hubs, both managed by the Royal Commission for Jubail and Yanbu. Together, they form the backbone of the Kingdom's non-oil industrial export capacity.

By the end of 2025, total investments across RCJY-managed cities exceeded SAR 1.5 trillion ($400 billion). Jubail is a cornerstone of Saudi Arabia’s industrial economy and plays a critical role in supporting the Kingdom’s non-oil export base. Yanbu, while smaller in scale, is emerging as a center for refining, downstream processing, and green hydrogen, areas receiving targeted investment as part of Vision 2030.

RCJY has set a target to attract SAR 2 trillion ($533 billion) in investment over the next five years, with an active pipeline of approximately SAR 500 billion ($133 billion) currently under negotiation.

Before committing to a zone, ensure your intended activity aligns with its eligible sectors and that your legal structure is appropriately designed for the chosen framework. Engaging with an advisor who understands both zone-specific regulations and the broader business setup process can help streamline approvals and position your investment for long-term success.