Jazan’s economic zone to attract $2.93bn in foreign investments by 2040

Located on the Red Sea coast, the special economic zone poses an advanced industrial city and an ideal center for business growth. (File)
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Updated 11 June 2023
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Jazan’s economic zone to attract $2.93bn in foreign investments by 2040

RIYADH: Jazan’s economic zone is on track to attract SR11 billion ($2.93 billion) in foreign investments by 2040 as it offered unused mining reserves valued at more than $1.3 trillion. 

The new mining reserves in the region make it an ideal platform for firms wishing to benefit from the mining sector’s vast potential, which is set to become the third pillar of Saudi Arabia’s national industry. 

The competitive and integrated economic center is also forecast to provide 17,000 direct jobs by 2040, Al-Ekhbariya reported. 

Located on the Red Sea coast, the special economic zone poses an advanced industrial city and an ideal center for business growth. 

This advantage is because of its proximity to the largest export port in Jazan, host to 12 berths with a combined capacity of 5 million tons. 

In addition, the region will provide access to abundant natural resources and raw materials for the agricultural sector, which is growing at a rate of 9 percent annually. 

The Jazan region could contribute an estimated SR39 billion to the gross domestic product. 

Furthermore, the region is a gateway to Europe and Africa and a bedrock of Saudi-Chinese investment. 

The region has already committed investments of over SR80 billion to connect with the Chinese Silk Road network. 

Promising opportunities will be provided by local supply chains of over 100 factories and 570 construction projects currently in the pipeline. 

Jazan’s economic zone aims to take advantage of the Kingdom’s strategic location to create new hubs for businesses across crucial growth sectors so that they can launch and expand companies and technologies that will help shape the future, the Saudi Press Agency reported in April. 

It seeks to support existing national strategies and create new links with international frameworks, building on the competitive advantages of each region of the country to support critical sectors such as logistics, advanced manufacturing, technology and other priority sectors in the Kingdom. 

Companies operating in the zone will benefit from competitive corporate tax rates; exemption from customs duties on imports, production inputs, machinery and raw materials; 100 percent foreign ownership of companies and flexibility to attract and hire the best talent worldwide. 


As world fractures, experts weigh in on the politics of AI at WGS

Updated 26 sec ago
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As world fractures, experts weigh in on the politics of AI at WGS

  • e& group CEO Hatem Dowidar said there was increasing pressure to choose between the Chinese and US ecosystems

DUBAI: Across three days of rigorous debate at the World Government Summit in Dubai, experts from some of the world’s largest tech and telecommunication companies debated what the future political landscape of artificial intelligence development would be.

Speaking at the summit on Thursday, e& group CEO Hatem Dowidar said there was increasing pressure to choose between the Chinese and US ecosystems, which could have impacts on the sovereign capabilities of countries, like Gulf Cooperation Council member states, which thus far have stayed in the middle.

“I think the fracture and the pressure today is if you use this technology, you cannot use the other. You must separate them completely and this is something that never happened before,” Dowidar said.

He warned that whilst people around the world currently have access to both the leading large language models in the US and China, ChatGPT and Deepseek, this would not always be the case, and middle powers would need to develop their own capability to maintain their sovereignty.

“Europe is trying to find its own way as well, because Europe — having been caught now in the middle — they don’t have platforms, they don’t have the data center capability,” he said.

“So now, Europe is focusing a lot on building sovereign capability, sovereign data centers to run AI applications within Europe.”

Dowidar said the GCC had been ahead of the curve in this regard, having worked out early on that sovereign capability would be necessary in the new multipolar world and subsequently investing heavily in local infrastructure and capability.

“We were lucky here in the region that already — I would say a couple of years ago —we have kind of ironed out how this works,” he said.

“I think that everyone will try to see how they can either utilize the global platforms in a sovereign manner, or they end up trying to push to develop their own platforms.” 

This sentiment was echoed by Chamath Palihapitiya, the founder and managing partner of Social Capital, who said that China’s dedication to open-source models — whose code is released under a license granting users rights to view, study, modify, and redistribute it freely — could make Chinese AI more popular in the long run for nations looking to keep some level of sovereignty.

“I do think that there are a handful of American open-source models that are quite good. I think Nvidia’s models are excellent. But in fairness, the Chinese open-source models are just superb,” he told the summit on Wednesday.

“It’s going to be important for every country to make their own decisions about their own sovereignty, and in that realm, I think the open-source models provide the clearest path, because it just gives you total transparency to what’s happening underneath the hood.”

This was reiterated by Joseph Tsai, the chairman and co-founder of Alibaba Group, who said Chinese open-source systems would be favored by middle powers — but warned they had yet to find a way to be economically self-sufficient. 

“Because countries care about the sovereignty aspect and care about their data privacy, you can take an open-source model and deploy it on your own infrastructure … giving you ownership and control” he said.

“But it remains to be seen how economically all the model companies are going to make it sort of sustainable with an open-source approach … This is the biggest challenge for the Chinese firms.”