These regulations prescribe the Economic Substance Requirements (ESR) for investors within Saudi Arabia's Special Economic Zones, including King Abdullah Economic City, Ras Al-Khair, Jazan, and Cloud Computing zones. The mandate ensures investors maintain adequate local premises, assets, and full-time employees while incurring proportionate operational expenditure. Article 3 outlines core compliance pillars, specifically managing activities from within the Zone and ensuring board meeting quorums are met in the Kingdom. Additional stringent requirements apply to Intellectual Property activities to prevent base erosion, requiring detailed business plans and resident directorship to qualify for tax exemptions and incentives.