This engagement assessed whether a new special economic zone (SEZ) inside an established industrial city on Saudi Arabia’s Red Sea coast was economically viable, and how it should be designed and phased. The client was a Saudi government authority responsible for planning and managing industrial cities. Dr. Ghulam Mohey-ud-din led the economic analysis for the pre-feasibility study.
Context
The host city is a mature industrial hub built around refining, petrochemicals and downstream manufacturing. National economic diversification priorities call for widening that base beyond hydrocarbons, attracting foreign direct investment and creating non-oil jobs and exports. A special economic zone was one of the instruments under consideration.
What the study covered
- Market analysis: global demand trends for activities that build on the city’s existing strengths, including specialty chemicals, metals processing, logistics and advanced manufacturing.
- International benchmarking: performance and governance of zone models such as Shenzhen, Jebel Ali, Iskandar and Aqaba.
- Incentive design: tax holidays, customs exemptions, profit repatriation and land-lease terms needed to attract target investors.
- Labour projections: national workforce development needs and the skills mix required across development phases.
- Infrastructure requirements: utilities, road and port connectivity, logistics facilities, ICT and environmental management.
Output
The study delivered a structured pre-feasibility report covering economic viability, implementation risks, governance options and phased development scenarios, positioning the zone as an export-processing and value-added manufacturing location for the wider region.
Related service: Special Economic Zone Strategy.