Saudi Arabia Implements Custom Duty Exemptions to Boost Industrial Sector
In a move to stimulate its industrial sector, Saudi Arabia has implemented custom duty exemptions for a variety of manufacturing products entering the country.
Levy-Free Imports for Raw Materials and Machinery
Effective April 1st, raw materials, semi-processed goods, packaging materials, machinery, equipment, and spare parts are now exempt from custom duties. This decision aims to reduce costs for businesses with valid import licenses and alleviate financial strain.
Facilitating Importation for Enhanced Competitiveness
The Ministry of Industry and Mineral Resources has extended the custom duty exemptions to specific products to enhance the competitiveness of businesses. This initiative will allow firms to allocate more funds towards operations, expand production capabilities, and ultimately foster growth within the Kingdom’s industrial sector.
Promoting Domestic Industrial Capacities
The ministry also considers including domestically manufactured products and essential production materials in the list of items exempt from custom duties, provided valid justifications are provided. This move aligns with the Kingdom’s commitment to bolstering the industrial sector and improving manufacturing proficiencies.
Supporting Saudi Vision 2030 and National Industrial Strategy
The expansion of industrial custom exemptions is in line with Saudi Vision 2030 and the National Industrial Strategy, demonstrating the ministry’s role in stimulating growth within the Kingdom. The number of industrial units in Saudi Arabia saw a 10 percent increase in 2023, reaching a total of 11,549.
Investment in Industrial Initiatives
With an investment of SR1.54 trillion ($48.4 billion), new industrial initiatives have been established to support the Kingdom’s goal of reaching 36,000 plants by 2035. In 2023, over 1,300 new licenses were issued, with investments exceeding SR81 billion, indicating a growing industrial landscape in Saudi Arabia.
Progress in Industrial Sector
Since the initiation of Vision 2030 in 2016, the Kingdom’s industrial sector has experienced significant growth, with cumulative manufacturing assets reaching $132 billion. This highlights the success of the economic diversification strategy and the continuous efforts to enhance industrialization in Saudi Arabia.