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Riyadh Integrated Special Logistics Zone (SILZ): The Complete Investor and Business Setup Guide

HomeBlogRiyadh Integrated Special Logistics Zone (SILZ): The Complete Investor and Business Setup Guide

Frequently Asked Questions About SILZ and Riyadh Integrated

What is the Special Integrated Logistics Zone (SILZ)?

SILZ is the Saudi company, under MATARAT Holding, that develops and operates Special Integrated Logistics Zones. Its flagship project, Riyadh Integrated, is Saudi Arabia’s first special logistics zone, located next to King Khalid International Airport in Riyadh.

Where is Riyadh Integrated located?

The zone sits approximately 10 minutes (about 8 km) from the KKIA Cargo Village in Riyadh, bounded by Airport Road, Mohamed Bin Faraj Road, and King Salman Road.

Can foreigners own 100% of a company in SILZ?

Yes. The zone permits 100% foreign business ownership with no requirement for a Saudi partner or sponsor.

What taxes apply inside SILZ?

Qualifying entities benefit from a 50-year tax relief period with 0% corporate income tax plus VAT, withholding, and remittance tax exemptions. Registration with ZATCA is still mandatory to file the zero-tax declaration.

How do customs duties work in the zone?

Customs duties are suspended for all goods that remain in the zone and for goods transported from any port — including the airport — into the zone. Certification standards and restrictions on goods imported into the zone are also suspended.

How much does a SILZ license cost?

The application fee is SAR 5,100 (one-time, non-refundable). Licenses cost SAR 16,100 for one year, SAR 48,300 for three years, or SAR 80,500 for five years.

What legal structures can I establish in the zone?

Only two forms are authorized: a SILZ Limited Liability Company or a Branch of a principal (parent) company. Both are incorporated through the Zone portal with Governing Body approval.

Do I need a business plan to apply?

Yes. A business plan covering at least 5 years is mandatory, including a project description with volume breakdowns, a headcount plan with FTE numbers, and a financial plan covering OPEX, CAPEX, revenues, and cash flows.

What activities are permitted in Riyadh Integrated?

Permitted activities are light assembly, manufacturing and repair; trade and distribution; import and export; logistics and value-added services; and recycling.

Which companies already operate in the zone?

Unipart has operated since August 2022 and iHerb since July 2025. Chalhoub Group, Lenovo, and Sapphire have broken ground, while SHEIN, Bahri Logistics, DHL, Rotortrade, and JD (Jingdong) Logistics signed contracts during 2025.

How long do I have to issue an Iqama for a new expat employee?

The Iqama application must be submitted within 90 days of the employee’s arrival in the Kingdom. Work permits must likewise be issued within 90 days of the employee starting work.

How much does hiring an expat employee cost in government fees?

Expect SAR 2,000 for the permanent work visa, SAR 650 for the employee’s Iqama card, SAR 500 per dependent over 18, plus the SAR 935 annual Qiwa subscription and mandatory medical insurance.

What is the GOSI contribution rate for employees in SILZ?

Pension contributions (Saudis only) total 18% of salary, split equally between employer and employee. Occupational hazards coverage of 2% applies to all workers and is fully employer-borne. Unemployment insurance (SANED) adds 1.5% for Saudis, split equally.

Can SILZ help me open a corporate bank account?

Yes. As part of its streamlined process, SILZ can facilitate the initial contact with your chosen SAMA-authorized bank on your behalf, after which you submit documents and meet the bank representative to finalize the account.

Is SILZ a free zone like those in the UAE?

It is Saudi Arabia’s equivalent of a special economic free zone: 100% foreign ownership, tax exemptions, and customs suspension inside a bonded perimeter. The key differences are the 50-year relief horizon, the selective investor criteria, and integration with Saudi platforms like Qiwa, GOSI, and ZATCA.

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