Arab News, Tue, Apr 02, 2024 | Ramadan 23, 1445
Saudi customs exemption on selected goods now effective
Saudi Arabia:
Custom duty exemptions for a range of manufacturing products coming into Saudi
Arabia are now in effect, as the Kingdom seeks to stimulate its industrial
sector.
Raw materials, semi-processed goods and packaging
materials, as well as machinery, equipment, and spare parts, are among the items
which are now levy-free.
In March, the Ministry of Industry and Mineral
Resources enacted a decision aimed at alleviating the financial strain and
reducing costs for businesses holding valid import licenses.
This measure, effective April 1, will facilitate
the importation of specific products, which will enhance the competitiveness of
these firms and bolster profitability.
This initiative will additionally enable
businesses to allocate more funds toward their operations and expand production
capabilities, thereby fostering growth and development within the Kingdom’s
industrial sector, as reported by the Saudi Press Agency.
The ministry clarified that the extension of
customs exemption also encompasses fully manufactured products as well as
materials and items essential for production processes, the SPA report said.
However, the ministry added that certain items
manufactured domestically, either as final products or imported as necessary
materials, supported by valid justifications for exemption from customs duties,
could be considered for inclusion on the list of domestic industrial
capacities.
According to the source, expanding the scope of
industrial customs exemption aligns with the Kingdom’s dedication to bolstering
the sector and enhancing manufacturing proficiencies.
Additionally, this initiative resonates with the
objectives outlined in Saudi Vision 2030 and the National Industrial Strategy,
reaffirming the ministry’s pivotal role in stimulating, empowering, and
accelerating growth within the Kingdom.
According to the Ministry of Industry and Mineral
Resources, the number of industrial units in the Kingdom experienced a 10
percent year-on-year increase in 2023, reaching a total of 11,549.
In February, Jarrah Al-Jarrah, a ministry
spokesman, disclosed that these new initiatives were established with an
investment of SR1.54 trillion ($48.4 billion).
This rise in the number of factories corresponds
with Saudi Arabia’s overarching plan to enhance industrialization, aiming to
achieve a target of 36,000 plants by 2035. Moreover, in 2023, the number of new
licenses issued amounted to 1,379, with investments totaling more than SR81
billion.
The sustained growth experienced by the Kingdom’s
industrial sector is underscored by the cumulative manufacturing assets reaching
$132 billion since the initiation of the economic diversification strategy,
Vision 2030, in 2016.