- Saudi Arabia’s ZATCA launched a public consultation on draft economic substance regulations for Special Economic Zones (SEZs), which closed on March 3, 2026.
- The draft regulations require SEZ entities to demonstrate adequate premises, assets, employees, operating expenditure, and management presence within the zone.
- Stricter requirements apply to intellectual property activities, including higher director residency, detailed business plans, and proof of strategic management within the zone.
- Non-compliance may result in penalties from the Governing Body.
- Final regulations will be issued after reviewing stakeholder feedback; investors should prepare for enhanced compliance obligations.
Source: mailchi.mp
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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