News in brief:
-King Khalid Airport in Riyadh will get a separate logistics zone for the air cargo sector
-The move will boost investments in the logistics sector and create a specialised zone where value-add solutions be provided
-Services such as sorting, maintenance, repair, treatment, modification, development, assembling, storing, packing, distribution, importing or exporting call all be done at the airport
King Khalid Airport in Riyadh is to get its own dedicated logistics zone for the air cargo sector, according to reports by Okaz.
The objective of the project is to boost investment from logistics majors around the airport and create a specialised zone where various logistics services and value-add solutions be provided.
Sorting, maintenance, repair, treatment, modification, development, assembling, storing, packing, repacking, wrapping, trading, distribution, using and importing of goods, exporting or re-exporting them, and garbage and electronic waste recycling will therefore be possible at the airport.
Saudi Arabia will establish similar zones in the rest of the Kingdom’s airports under supervision of the General Authority of Civil Aviation (GACA).
The Zakat Authority is in the process of preparing income tax controls for publication so that they are made obligatory on firms with activities inside the zone.
According to the regulation for integrated logistics zones, no Value Added Tax (VAT) will be levied on the goods in these zones as long as they are in customs pending status or if they are shifted temporarily between the main yard and the area allocated for the purposes of repair, maintenance and post-sale services.
The regulation has granted the Ministry of Labor and Social Development powers to grant work visas necessary for achieving the investment goals in the zone.
In this regard, the General Authority of Civil Aviation (GACA) in cooperation with the Ministry of Labor is set to lay down the necessary conditions and Saudisation programs to be implemented in the zone so as to achieve the investment goals in the zone.