King Abdullah Economic City (KAEC) is not strictly a free zone. In Saudi Arabia, economic cities are established and controlled by the Economic Cities Authority. The laws and regulations in these cities are different to the laws in free zones. Therefore, economic cities cannot be called free zones per se.

The Economic Cities Authority (ECA) was established by Saudi Arabia Royal Decree No. 19/1431 On the Approval of the Regulation of the Economic Cities Authority to be the sole authority for KAEC and it will report to the King. The ECA mandate has been amended pursuant to Saudi Arabia Royal Order No. A240 /1441. The name of the entity has been changed to the “Economic Cities and Special Zones Authority” (ECZA).

The main internal regulations governing KAEC are the same regulations applicable in Saudi Arabia. The ECZA will coordinate with the Saudi authorities such as the Ministry of Interior and the Ministry of Labour.