RESTRICTED  
  
WT/TPR/G/407  
27 January 2021  
(21-0738) Page: 1/29 
Trade Policy Review Body   Original: English  
 
 
TRADE POLICY REVIEW  
REPORT BY  
THE KINGDOM OF  SAUDI ARABIA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
the Kingdom  of Saudi Arabia  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the Kingdom of Saudi Arabia . WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  4 
1.1   Trade and Investment Litigations, Appeals and Arbitration  ................................ ................  5 
1.2   Labor Reform Initiative  ................................ ................................ ................................ . 6 
2   ECONOMIC DEVELOPMENT  ................................ ................................ ..........................  7 
2.1   Economic Growth  ................................ ................................ ................................ ........  7 
2.2   Diversification of the Economy  ................................ ................................ ......................  7 
2.3   Privatization Strategy  ................................ ................................ ................................ ... 8 
2.4   Investment Regime  ................................ ................................ ................................ ..... 8 
3   TRADE POLICY DEVELOPMENTS  ................................ ................................ ..................  9 
3.1   Tariffs, Other Measures Affecting Imports  ................................ ................................ ....... 9 
3.1.1    Customs procedures ................................ ................................ ................................ .. 9 
3.1.2    Import and export formalities  ................................ ................................ .....................  9 
3.1.3    Crossing borders' formalities  ................................ ................................ ..................... 10 
3.1.4    Customs valuation  ................................ ................................ ................................ ...10 
3.1.5    Rules of origin  ................................ ................................ ................................ ......... 10 
3.1.6  Exports and free zones  ................................ ................................ .............................. 10 
3.2   Technical Barriers to Trade (TBT)  ................................ ................................ ................. 11 
3.3   Sanitary and Phytosanitary Measures (SPS)  ................................ ................................ ...11 
3.4   Taxation and Zak at ................................ ................................ ................................ .....11 
3.5   Trade Remedy Laws (Anti -dumping, Countervailing, and Safeguard Measures) ................... 12 
3.6   Trade -Related Intellectual Property Rights (TRIPS)  ................................ ......................... 13 
4   SECTORAL DEVELOPMENTS  ................................ ................................ .......................  14 
4.1   Agriculture  ................................ ................................ ................................ ................. 14 
4.1.1    Agriculture  ................................ ................................ ................................ .............. 14 
4.1.2    Water  ................................ ................................ ................................ ..................... 14 
4.1.3    Environment  ................................ ................................ ................................ ........... 15 
4.1.4    Privatization  ................................ ................................ ................................ ............ 15 
4.2   Food Security  ................................ ................................ ................................ ............. 15 
4.3   Fisheries and Aquaculture  ................................ ................................ ............................ 16 
4.3.1   Fisheries  ................................ ................................ ................................ ................. 16 
4.3.2    Aquaculture  ................................ ................................ ................................ ............ 16 
4.4   Hydrocarbon  ................................ ................................ ................................ .............. 17 
4.4.1    Hydrocarbon Sector  ................................ ................................ ................................ .17 
4.4.1.1    Oil ................................ ................................ ................................ ....................... 17 
4.4.1.2    Natural ga s ................................ ................................ ................................ .......... 17 
4.4.1.3    Downstream  ................................ ................................ ................................ ......... 17 
4.5   Manufacturing and Mining Sectors  ................................ ................................ ................ 17 
4.5.1    Manufacturing  ................................ ................................ ................................ ......... 17 
4.5.2    Mining  ................................ ................................ ................................ .................... 18 WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4.6   Services  ................................ ................................ ................................ .................... 18 
4.6.1    Financial services  ................................ ................................ ................................ .....19 
4.6.1.1    Banking sector  ................................ ................................ ................................ ......19 
4.6.1.2    Cooperative insurance  ................................ ................................ ........................... 19 
4.6.1.3   Finance  ................................ ................................ ................................ ................ 20 
4.6.1.4    Capital market  ................................ ................................ ................................ ......20 
4.6.2    Tourism services  ................................ ................................ ................................ ......21 
4.6.3    Recreation services  ................................ ................................ ................................ ..21 
4.6.4    Education services  ................................ ................................ ................................ ...22 
4.6.5    Health and social services  ................................ ................................ ......................... 23 
4.6.6    Courier services  ................................ ................................ ................................ .......23 
4.6.7    Telecommunication services  ................................ ................................ ...................... 24 
5   FREE TRADE AGREEMENTS  ................................ ................................ ........................  24 
5.1   GCC Customs Union  ................................ ................................ ................................ ....24 
5.2   Pan Arab Free -Trade Area (PAFTA)  ................................ ................................ ............... 24 
5.3   GCC-Singapore FTA  ................................ ................................ ................................ ....25 
5.4   GCC-EFTA FTA  ................................ ................................ ................................ ........... 25 
5.5   Trade in Services between Arab Countries  ................................ ................................ .....25 
6   FUTURE DIRECTION OF SAUDI ARABIA'S TRADE POLICY  ................................ ..........  25 
6.1   Saudi Arabia and the G20  ................................ ................................ ............................ 25 
6.2   Saudi Arabia and New Sources of Energy  ................................ ................................ .......26 
6.2.1    Atomic and renewable energy  ................................ ................................ ................... 26 
6.2.1.1    Key milestones & activities in the atomic & renewable energy fields  ............................ 26 
6.2.1.1.1    The Saudi National Atomic Energy Proje ct ("SNAEP")  ................................ .............  26 
6.2.1.1.2    Renewable energy  ................................ ................................ .............................  26 
6.2.2    Electricity  ................................ ................................ ................................ ............... 27 
6.2.3    Energy and water price reform  ................................ ................................ .................. 28 
6.3   Competition  ................................ ................................ ................................ ............... 28 
ANNEX  ................................ ................................ ................................ ...........................  29 
 
 WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  1  INTRODUCTION  
1.1.  This is the Kingdom of Saudi Arabia's third Trade Policy Review; it covers the period 2016 -20. 
1.2.  During this period Saudi Arabia has continued to implement its trade policies consistently with 
its WTO  obligations and pursue best practices in all areas of the management of its international 
trade. The multilateral trading system is central to Saudi Arabia's trade policies.  
1.3.  In 2016, Saudi Arabia launched its Vision 2030, which is  a blueprint and an ambitious roadmap 
for Kingdom's economic diversification and eventual development. The Vision focuses on three main 
themes, "a vibrant society ", "a thriving economy " and "an ambitious nation ". Through predefined 
economic objectives, the  Kingdom is set to overcome its structural challenges and leverage its 
unique comparative advantage.  
1.4.  Saudi Arabia looks forward to engage constructively under the leadership of the new elected 
Director -General along with other WTO Members to advance and ex pedite the negotiations in all 
areas in a consensual manner. Saudi Arabia's trade policy is determined to play an active role in 
strengthening the multilateral trading system, in this context Saudi Arabia had launched the "Riyadh 
Initiative on the future o f the WTO " during its G20 presidency in 2020, which aims to support 
necessary reform of the WTO.  
1.5.  The General Authority for Foreign Trade (GAFT) was established by virtue of Council of Ministers 
Decision No. 211 dated 25/4/1440H (1 January 2019). Its administrative regulation was approved 
by virtue of Council of Ministers Decision No. 741 dated 23/11/1 441H (14 July 2020).  
1.6.  GAFT is in charge of the following:  
• Foreign trade responsibilities which were previously carried out by Ministry of Commerce 
(MoC), including consistency of laws, regulations and measures with WTO agreements 
and coordination with rele vant ministries and agencies in this regard ;  
• Handling disputes of interest to the Kingdom within WTO ; 
• Improving market access and eliminating trade barriers facing Saudi exports ;  
• Developing, updating and implementing National Foreign Trade Strategy ; 
• Leading the Saudi Negotiating Team in charge of international trade negotiations ; 
• Consulting the private sector on the Kingdom's trade policy ; 
• Defending the Kingdom's interests in trade remedies ; 
• Supervising Saudi commercial representation offices abroad ; 
• Overseeing joint trade councils with the Kingdom's trading partners ; 
• Representing the Kingdom in regional and international trade related organizations.  
1.7.  MoC is responsible for overseeing internal trade and regulation of domestic market. MoC had 
been underg oing a digital transformation plan since 2016 to improve business environment. Because 
of this endeavor, 76 of its key services are new digitally enabled.  The most prominent of these 
services are: (i) issuing the commercial registration within 180 seconds (ii) Establishing companies 
electronically.  
1.8.  MoC has been working on developing various laws and regulations. The most prominent of 
these laws, is the Companies Law, which has entered into force in 2016. The law aims to facilitate 
procedures and regulatory requirements and increase capital attraction as well as to achieve balance 
between stakeholders thus, strengthening corporate governance in accordance with international 
best practices.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  1.9.  MoC has issued the Professional Companies Law, which aims to motivate free profession 
practitioners to establish professional companies, and to motivate partnerships in professional 
companies based on corporate agglomeration and organization, and increase their contribution to 
GDP. 
1.10.   In addition, the franchising Law was initia ted, which seeks to regulate franchising activities in 
the Kingdom in line with the most prominent international advanced experiences.  
1.11.   Electronic Commerce Law   was issued by virtue of Royal   Decree No. (M/126) dated 
7/11/1440H (10/7/2019) aims to support and  develop e -commerce activities, enhance confidence 
in e-commerce transactions, as well as provide protection for e -commerce from deception and fraud.  
1.12.   The Kingdom has advanced in business environment ranking which is reflected in international 
indicators su ch as the World Bank's Report on Business Facilitation 2020, which witnessed the 
Kingdom's improvement in many areas such as; the index for ease of business, the index of business 
startups, and the index of protecting minority investors. Saudi Arabia has a chieved prominent 
progress in the World Bank Doing Business 2020 report climbing up 30 places from last year, making 
it the top reformer and top improver among 190 economies around the world.1 MoC has also obtained 
several accreditations to international standard specifications such as (BSI & ISO) Membership in 
global platforms in knowledge management and benchmarking such as (EFQM) and (APQC). In 
addition to the above MoC won the Arab Government Excellence Award as the best ministry in the 
Arab world.  
1.13.   The former Saudi Arabia General Investment Authority (SAGIA) was transformed to the 
Ministry of Investment (MISA) by virtue of a royal decree announced in February 2020. The Ministry 
launched the "Invest Saudi" platform, which includes investment opportunitie s in various sectors, 
along with launching the identity (slogan) of "Invest in Saudi Arabia"; a unified national identity for 
marketing and attracting investments to the Kingdom.  
1.1  Trade and Investment Litigations, Appeals and Arbitration   
1.14.   The Board of Grie vances (BoG) in Saudi Arabia, an administrative judiciary body, consists of 
the Supreme Administrative Court, Administrative Courts of Appeal and Administrative Courts. It 
specializes in adjudicating rights claims in the civil and military service and reti rement for 
government employees in accordance with the laws, revoking administrative decisions, considering 
contracts in which the administration entity is a party, administrative compensation cases, 
disciplinary cases that have been filed by the competent  authority and any other administrative 
disputes.  
1.15.   During the Corona pandemic, the BoG has added to its electronic judicial services the remote 
hearings service, in which (414,149) cases were filed, (562,874) request for appeals were filed, 
(209,107) reques t to review a ruling, (17,089) first defense memorandum were filed. The number 
of visits to the judicial platform "Moeen" reached (3,411,075) visitors, and the number of electronic 
sessions and hearings during the pandemic reached (125,651).  
1.16.   The Ministry o f Justice (MoJ) has made paradigm shift to accelerate the pace of litigation, and 
to improve the quality of the parties' experience, by approving the following : 
• First:  The Rules of Conciliation by virtue of Minister of Justice Decision No . (5595) dated 
29/11/1440 AH, this program is one of MoJ National Transformation Programs (NTP 
2020) which aims to promote the role of the conciliation as an alternative to litigation 
and to speed up resolving commercial conflicts. The advantages of these r ules are; 
conciliation process is less time consuming, while reserving parties' rights to seek 
litigation if an agreement on the outcome cannot be reached. In addition, the mutually 
agreed conciliation decision is legally binding and enforceable without th e need for 
further actions ; 
 
1 Viewed at: 
https://openknowledge.worldbank.org/bitstream/handle/10986/32436/9781464814402.pdf?sequence=24&isAl
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  • Second:  the "Remote Litigation" by virtue of Minister of Justice Decision No . (8056) 
dated 5/10/1441 AH and its practice direction, to ensure that litigants have access to 
judicial bodies during (COVID 19) and to support digital transformation which have a 
huge impact on speeding up judicial rulings in commercial cases ; 
• Third:  issued "Commercial Courts Law" by virtue of Council of Ministers Decision 
No. (511) dated 14/8/1441 AH, the main objective of the law is to support and enhance 
the business environment, by enabling electronic notice and noticing the general 
principles of comme rcial law such as prescription and use all means of proof and the 
recognition of business practices. Furthermore, in some commercial cases stated in 
Article (58) the parties shall not file a case unless they prove that they fail to resolve 
the conflict bef ore "the Conciliation or mediation process" within (30 days).  
1.17.   MoJ is currently working on drafting a bill to amend the Saudi "Code of Law Practice" to 
encourage increasing presence of foreign attorneys in Saudi Arabia, which will facilitate and attract 
foreign investments and raise investors' confidence.  
1.18.   The Saudi Small and Medium Enterprises Authority (Monshaat) was established based on a 
royal decree in late 2015 and it has been mandated to increase the contribution of MSMEs in 
Saudi's  GDP from 20% to 35 % by 2030.  
1.19.   Monshaat  supports the growth and competitiveness of MSMEs through building a supportive 
ecosystem and an entrepreneurial society by leading cooperation with strategic partners in the public 
and private sectors and the non -profit sector locally and internationally. Creating business 
opportunities for MSMEs, eliminating roadblocks, ensuring availability of financing,  modernize and 
upskill MSMEs and fostering entrepreneurship culture are of key focus interventions type to develop 
MSMEs ecosystem in  the Kingdom.  
1.2  Labor Reform Initiative  
1.20.   The Ministry of Human Resources and Social Development (HRSD)   launched the Labor Reform 
Initiative (LRI) under the National Transformation Program (NTP) on 4 November 2020. The initiative 
enables HRSD vision of establi shing an attractive job market through enhancing the contractual 
relationship between employees and employers, empowering and developing labor competencies, 
and the work environment. The reforms will enter into force on 14 March 2021.  
1.21.   LRI allows job mobili ty and simplifies issuance of Exit and Re -Entry Visa, expatriates will be 
able to travel outside the Kingdom of Saudi Arabia without the employer's approval, the employer 
will be notified electronically of their departure. All expatriates in the private se ctor will benefit from 
this initiative.  
1.22.   LRI will grant expatriates the right to transfer between employers upon the expiry of the 
binding work contract without the employer's consent. KSA's new initiative abolishes the sponsorship 
system "KAFALAH" and will  enter into force on the 14th March 2021.  
1.23.   The Final Exit Visa reforms allow the expatriate worker to leave the Kingdom after the end of 
the employment contract without the employer's consent, and will notify the employer electronically 
with the worker bea ring all consequences (financial or otherwise) relating to breaking the 
employment contract. All these services will be electronically available.  
1.24.   This initiative will improve and increase the efficiency of the work environment in Saudi Arabia 
and complemen t similar initiatives launched in this regard, including; The Wage Protection System, 
the digital documentation of work contracts, the Labor Education and Awareness Initiative, and the 
launch of "Wedy" for the settlement of labor disputes. In addition to o ther programs concerning the 
development and improvement of the working environment and safeguarding the rights of both 
parties of the employment relationship.  
1.25.   LRI seeks to increase the flexibility, effectiveness, and competitiveness of the labor market 
and raise its attractiveness in line with international best practices. It targets to improve 
Saudi  ranking on international competitiveness indicators, decrease dispute cases between 
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  1.26.   Women empowerment in Saudi Arabia is one of Saudi Vision 2030's main pillars. The economic 
empowerment of Saudi women is among the top priorities of the reform plan, which sets out a 
commitment to increase female participation in the workforce from an average of just under 20% 
to over 30% by 2030. Saudi  Arabia has become recognized in terms of improvement and progress 
toward gender equality since 2017. Saudi  Arabia has become one of the leaders in the region in 
terms of women empowerment.  
2  ECONOMIC DEVEL OPMENT  
2.1  Economic Growth  
2.1.  Vision 2030 calls for unlocking the Kingdom's strategic sectors. Spearheaded by the Public 
Investment Fund (PIF), over the medium to long terms, the objective is to increase the PIF's assets 
to over SAR 7 trillion through leveraging  the Kingdom's investment capabilities and participating in 
established as well as emerging technologies from around the world.  
2.2.  One of the most ambitious undertakings to support the Kingdom's economic development 
objectives is ARAMCO's successful 2019 IPO, which netted the Saudi government more than 
SAR 97 billion. The proceeds will be used to fund Saudi Arabia's ambitious economic reform plans.  
2.3.  Ministry of Tourism has launched National Tourism Strategy to develop Saudis' talents 
capabil ities in response to the needs of tourism market with the aim of achieving 10% contribution 
to the Kingdom's GDP by 2030. The National Tourism Strategy's objectives, within Vision 2030, are 
achieving the 15th international tourism destination by 2022 (1st in destination in Middle East) and 
promoting tourism beyond religious purposes and share a wide range of unique experiences.  
2.4.  Saudi Arabia aims to lower unemployment rate from 11.6% to 7%, increase the private sector 
contribution to 65% of GDP, and raise th e share of non -oil exports in non -oil GDP to 50%. During 
the period 2015 -19, the GDP increased from US D 654 billion to US D 793 billion.  
2.2  Diversification of the Economy  
2.5.  Vision 2030 aims to change decades old dependency on oil exports, as the main source of 
government revenue, through national realignment. Saudi Arabia is undertaking concerted efforts 
to structurally transform its economy and establish the foundation for its long -term economic 
diversification objectives.  
2.6.  The fluctuation of oil prices is one of the primary reasons for the Kingdom's economic 
diversification plans. The value of the Kingdom's imports has remained relatively unchanged. The 
Vision aims to increase the share of non -oil exports in the non -oil GDP. In addition, a number of 
reform meas ures have been implemented since the beginning of 2016, including optimizing 
government expenditures as well as increasing non -oil revenues through introducing certain 
measures such as; value added tax, new excise duties, expat levies and fees and energy p rice 
reforms.  
2.7.  According to the Ministry of Finance (MoF) figures, the non -oil revenues for Q3 -2020 amounted 
to SAR 122.9 billion, while oil revenues reached SAR 92.5 billion, marking a continuation of an 
upward trend since Vision 2030 announcement in 2016 to successfully diversify the Saudi economy 
and shift the country away from its reliance on oil revenues.  
2.8.  The continued upward trend of non -oil revenues reflects increased fiscal stability and also a 
positive future outlook for foreign investors. Moreover , the non -oil sectors including manufacturing 
and renewable energy sectors continue to drive growth. Small and medium -sized enterprises (SMEs) 
are a main focus for Vision 2030, with the project seeks to increase the contribution of SMEs to the 
Kingdom's GD P from 20 to 35% over the next decade.  
2.9.  In order to improve the services balance, tourism sector has witnessed major changes after 
launching Vision 2030. The tourism strategy, which falls under the umbrella of Vision 2030, aims to 
increase international and domestic trips to more than 100 million a year by 2030.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  2.3  Privatization Strategy  
2.10.   The Kingdom's privatization strategy, along with the related area of Public -Private 
Partnerships (PPP) has evolved considerably since 2016. Privatization and P PP will contribute to 
achieving other objectives; including those related to improving the fiscal balance, attracting foreign 
investment and improving the quality and efficiency of public services.  
2.11.   The Kingdom has invested significant effort and resources into establishing the policies, 
legislation, institutions and processes to support an accelerated and expanded privatization and PPP 
program that is in line with international best practices and precedents. This includes the 
establishment of Privatization Supervisory Committees (PSCs) and the National Center for 
Privatization and PPP (NCP) as the government's center of excellence to support targeted sectors by 
the strategy. NCP subsequently issued the Privatization Projects Manual that lays out the processe s 
to be used and the government published its initial program listing specific planned transactions in 
the Privatization Delivery Plan.  
2.12.   In parallel with the development of this strategic framework, NCP supported the main 
economic sectors in preparing and i mplementing specific transactions. In 2019 seven PPP tenders 
were closed, these included three new wastewater treatment plants, two new water desalination 
plants and a new container terminal at Jeddah Port. The first strategic privatization sale of the 
Saudi Medical Service was completed.  
2.13.   The momentum has continued into 2020, despite the constraints imposed around the world 
by the Covid -19 pandemic. PPP tenders were awarded for two further water and wastewater projects, 
a new container terminal at Dammam po rt, a second cargo terminal at KKIA and the construction of 
60 new schools, as well as privatization of two flour mills. Most of these transactions involved 
international investors. The PPP investments were financed through a combination of local and 
international banks.  
2.14.   New projects are being added to the pipeline from all sectors that will see further 
diversification in the sectoral focus such as, health, education, municipal services, social care, 
agriculture and housing, as well as further projects in t he water and transport sectors. Future 
privatizations include government's remaining flour mills and a portfolio of desalination 
co-generation plants.  
2.15.   The new Private Sector Participation (PSP) Law is being prepared and it is expected to be 
promulgated in 2021.  
2.4  Investment Regime  
2.16.   The Kingdom has accelerated the development of the investment sector, which is one of the 
most important pillars of its economy. The kingdom aims for economic diversification and a 
comprehensive development, including all aspects of  the investment climate.  
2.17.   Other developments included establishing international investment attraction offices in a 
number of target countries; and enabling 100% foreign investment in the retail and wholesale 
sectors, transportation, engineering services an d associated consultations, and private health 
institutions.  
2.18.   MISA has succeeded in increasing and re -prioritizing investment sectors, while providing 
important new opportunities in unprecedented sectors such as entertainment and tourism. It also 
improved t he investment climate by reducing the negative list from 19 business activities to 
10 activities. The current negative list includes the following activities: oil exploration, drilling and 
production (except the services related to mining sector), catering  to military sectors, security and 
detective services, real estate investment in Makkah and Madina, tourist orientation and guidance 
services related to Hajj and Umrah, recruitment services, commission agents, services provided by 
midwives, nurses, physica l therapy services and quasi -doctoral services, fishing/hunting marine 
living resources and poison centers, blood banks and quarantine.  
2.19.   Establishing the National Competitiveness Center (NCC) to enhance the Kingdom's 
competitiveness and improve its position  in important global indicators, including ease of doing WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  business, international competitiveness, and the IMD report. The Kingdom of Saudi Arabia has 
advanced 30 ranks in the Doing Business Index, to be 62nd in 2019, and become the best country 
in terms of  progress and reform.  
2.20.   Saudi Arabia has succeeded in reducing the gap with the world's leading countries by 
7.7 points, to become the highest among all member countries, as per the World Bank Index 2020. 
This progress is a result of the various reforms impl emented by the Kingdom. These reforms have 
enhanced and strengthened the Kingdom's competitiveness and raised its rank in the World Indexes.  
2.21.   NCC has launched "Meras", a government program aiming to facilitate conducting business. 
It provides government ser vices required from the private sector to start a business in one day. 
Meras provides high quality integrated services through an online and physical One -Stop-Shop 
centers. NCC also lunched Meras Application on Smart Devices.  
2.22.   MISA has facilitated the issua nce of a foreign investment license by reducing the issuance 
period to 20  minutes, and the number of required documents to only two documents. In addition, it 
provides most of its services electronically.  
2.23.   Saudi Arabia has introduced the permanent residency programme designed to attract foreign 
investment. Premium Residency holders will be granted the right to invest in various fields such as 
industry and real estate, in addition to job mobility.  
3  TRADE POLICY DEVELOPMENTS  
3.1  Tariffs, Other Measures Af fecting Imports   
3.1.1   Customs procedures  
3.1.  Saudi Customs has updated and developed the comprehensive tariff (12 columns) in 
accordance with the classifications of World Customs Organization.  
3.1.2   Import and export formalities  
3.2.  Since 2016 up to now, Saudi customs facili tated and automated customs procedures to achieve 
customs vision of being ranked the first in the region for providing  distinguished custom services. In 
order to become a global logistic hub, the Kingdom fully applies the agreement on Trade Facilitation 
and has automated various customs formalities.  
3.3.  Saudi customs operated the Electronic Single Window, which connects Saudi customs clients 
with relevant authorities, and provides online payment service though "FASAH" platform, which is, 
activate 24 hours.  
3.4.  The Saudi customs undertook steps to facilitate customs formalities, including minimization 
import documents number from 12 documents to 2 documents (Bill of Lading and invoice) and export 
documents from 8 documents to 2 documents (manifest and invoice). In ad dition to, developing 
delivery customs procedures to stay up to date with the rapid evolution of online trade and facilitate 
related customs procedures.  
3.5.  Create customs operations center that operates 24/7 to facilitate import and export processes 
and activ ate truck -scheduling service through FASAH platform which records information about the 
driver and the truck to minimize trucks waiting list, reduce the congestion within borders, improve 
work efficiency in borders, and insure the high level of monitoring.  
3.6.  Receive online documents through prior submission of customs declaration and archive the 
requested documents aiming to reduce the required time of FASAH, improve supplies chains 
efficiency, improve economic cycle, and reduce costs.  
3.7.  Keeping up the rapid evolution of mail delivery processes and fast delivery to clients whether 
through online trade or otherwise, customs formalities of Saudi post's imports have been engineered 
and developed through FASAH in the first access point and issuing customs br oker licenses for 
Saudi  post to practice customs brokerage for packages delivered through it. In addition, WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  automatically connected it with fast delivery companies instead of single broker licenses and issuing 
licenses to fast delivery companies for creatin g and operating its own warehouse. Moreover, 
exempting investors from customs services' duties.  
3.1.3   Crossing borders' formalities  
3.8.  As part of Saudi customs' effort to facilitate delivery process and delivery though passing 
borders, Saudi Arabia joined the TIR C onvention given its importance to the logistic sector.  
3.1.4   Customs valuation  
3.9.  Saudi customs currently working to transfer customs valuation and the work of governance 
value's adjudication formalities to an automated system in order to accelerate FASAH and adher e 
to  accuracy in application in order to improve the quality of provided services and measure 
performance.  
3.1.5   Rules of origin  
3.10.   Saudi Customs applies preferential rules of origin as per the free trade agreements signed 
with other countries and group of countrie s (associations). Saudi Arabia does not apply 
non-preferential rules of origin.  
3.11.   Under the Pan Arab Free Trade Agreement (PAFTA), there are rules of origin governing the 
trade between the parties where 4 main criteria are applied in this regard; Value Added , Change in 
Tariff Heading, Wholly Obtained and Sufficient Working.  
3.12.   According to the GCC - EFTA (European Free Trade Association) FTA, there is a list of goods 
that have preferential Rules of Origin. More so, GCC -Singapore FTA has its own rules of origin a s 
well.  
3.13.   Saudi customs automated the verification process of certificate of origin to accelerate customs 
clearance through "FASAH" for goods traded within the framework of GCC -FTAs.  
3.1.6   Exports and free zones  
3.14.   One of the fundamental objectives of the Saudi Vis ion 2030 is to increase the contribution of 
non-oil exports to the Kingdom's GDP. Recognizing the importance of achieving this objective and 
supporting it by approving the mandate of the Saudi Export -Import Bank (Saudi EXIM Bank).  
3.15.    The aims and objectives  of the Saudi EXIM Bank are as follows:  
• Promote the development of Saudi exports along with their diversity and 
competitiveness ; 
• Provide export -financing, guarantees and export credit insurance services ; 
• Enhance confidence in Saudi exports and supporting their market access to new markets 
and reducing non -payment risk ; 
• Provide export credit facilities  . 
3.16.   Saudi Arabia has established the Economic Cities and Special Zones Authority (ECZA). ECZA 
target to be the national umbrella delivering the follo wing; (1) translate national strategy and 
priorities into a portfolio of zones (2) centralize and streamline zones requests for Special Economic 
Zone (SEZ) status (3) create a strong brand for investors, ensuring uniformity and excellence of 
services acros s zones, and (4) issuing regulations at zone's level.  
3.17.   The SEZs provide competitive facilitations in different dimensions such as; Ecosystem 
readiness, Ecosystem cost competitiveness, Regulatory framework. It will be developed and WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  operated in accordance to one of the following three models: Fully government -led, Public Private 
Partnership (PPP) and fully privately led.  
3.18.   SEZs being developed in Saudi Arabia have competitive locations targeting (17 sectors) which 
can be collectively described as; Industrial, Lo gistics, Aviation, Military, Maritime, Food processing, 
Pharma & Bio -pharma, Machinery & equipment, Automotive, Renewables, Specialty Chemicals, 
Healthcare, Media, Financial services, Tourism, Digital and E -commerce.  
3.19.   ECZA is planning to establish more than  7 SEZs in the coming 5 years, each SEZ will enjoy 
customized privileges, as per the nature of the zone and the targeted objectives. Such privileges will 
include as a non -exhaustive list; international arbitration and judicial system, sustainable 
regulatio ns, non -implementation of nationalization restrictions, simplified procedures to obtain 
residence permits, no restrictions on work visas for the workforce deployed within SEZ, no 
restrictions on foreign ownership "Except in the holy cities". In addition to , the implementation of 
administrative enhancements; One -stop-shop for all administrative processes (e.g. company 
registration, issuing building permits, work visas etc .), and relaxed financial restrictions on 
borrowing and repatriation of funds.  
3.2  Technica l Barriers to Trade (TBT)  
3.20.   In order to protect commercial facilities from fraud and tampering with technical documents, 
in addition, ensure products are free from defects that may affect the health, safety, and the 
environment of the consumer; Saudi Standar ds, Metrology and Quality Organization (SASO) 
introduced "SABER " platform. SABER automated tracking of products, technical processes involved 
in the supply chain and raising products' safety levels.  
3.21.   The percentage of conforming products, out of all inspected samples, in the Saudi market in 
2019 reached 72.9%, while the percentage in 2018 was 66.8%. In addition, "SABER " allows 
importers and local manufacturer to register the required certificates of co nformity, and 
electronically issue certificates of conformity for consumer commodities consignment, required to 
access the Saudi market.  
3.22.   The platform also contributed to facilitating and enhancing trade, as the Kingdom's ranking 
in the cross -border trade i ndex advanced 72 ranks, which confirms SASO's commitment to boost 
trade facilitation.  
3.23.   "SABER " reduced the time required to clear consumer products and accelerated the 
certificates of conformity registration.  
3.3  Sanitary and Phytosanitary Measures (SPS)  
3.24.   Saudi Food & Drug Authority (SFDA) has issued requirements and conditions for importing 
food products to Saudi Arabia, which aim to; clarify conditions and requirements for competent 
authorities in exporting country, clarify the responsibility of the competent a uthorities in the 
exporting countries towards verifying the compliance of their establishments, and ensure food safety 
and facilitate the movement of trade.  
3.25.   SFDA has issued the approval framework for control authorities and establishments exporting 
fish an d other aquatic products to the Kingdom. This framework aims to verify the procedures of the 
official regulatory authority that is responsible for food safety in these countries, as a perquisite for 
its authorization to approve fishing, processing faciliti es and farms.  
3.4  Taxation and Zakat  
3.26.   The General Authority of Zakat and Tax (GAZT) underwent several developmental phases 
throughout the period from 2016 to 2020, of which the Royal Decree No. (A/133) dated 30/7/1437 
AH, specified in Section 11 that the "Zakat  and Income Authority" to be transformed to become 
GAZT, and chaired by the Minister of Finance. GAZT has set its vision as a role model of an efficient, 
transparent and customer centric Zakat and Tax Administration globally. GAZT developed Zakat and 
tax systems as to provide outstanding services, of which the Taxpayer platform can assist taxpayer WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  to access or raise any request related to GAZT and receive responses in a time manner, and to foster 
collaboration with the national and international tax ecosyst em. 
3.27.   GAZT targeted widening the Kingdom's double tax avoidance treaty ("Treaties") network to 
assist investments promotion. Among the most recent ratified treaties are those executed with the 
UAE, Albania, Kosovo, Georgia, Hong Kong, Portugal, Sweden, Egypt , Jordan, Mexico, Bulgaria, and 
Cyprus.  
3.28.   GAZT focused on raising taxpayer's awareness via the following: conducting workshops for 
taxpayers, issuing rulings and operating a communication system to answer specific inquiries, and 
issuing multiple guidelines a nd circulars for specified scenarios. In addition to, providing a 
relationship manager service, of which GAZT dedicates a personal for the large Taxpayers to follow 
up on their requests to ensure and maintain a good relationship between them and GAZT. More  so, 
GAZT calls for public consultations regarding any new draft regulations.  
3.29.   Finally, based on the bylaws of the Committees for Adjudicating Violations and Tax Disputes 
("Bylaws"), taxpayers may appeal any resolution issued by GAZT within a period of 60 days from 
the issuing date of the resolution. GAZT has initiated a platform to facilitate submission of appeals 
and all supporting documents for GAZT to study it within a period of 90 days. The platform allows a 
direct, effective and rapid method of commun ication with the Taxpayers.  
3.30.   In case the Taxpayer did not agree with the appellate decision, GAZT has established a 
settlement committee to help resolve disputes between the taxpayers and GAZT in a faster pace 
compared to judicial procedures. GAZT has settl ed multiple cases during the aforementioned period.  
3.31.   GAZT is qualified for ISO9001 (Quality Management System) and ISO10002 (An international 
standard for handling complaints and increasing customer satisfaction), and it was certified with 
international st andards of competencies.  
3.5  Trade Remedy Laws  (Anti-dumping , Countervailing , and Safeguard Measures)   
3.32.   The current trade remedy law effective in the Kingdom of Saudi Arabia is the GCC Common 
Law on Anti -dumping, Countervailing and Safeguard Measures (hereafter, the GCC Common Law) 
and its Rules of implementation (amended).  
3.33.   Under the Common Law, the determination of injury is based on the overall market of the 
GCC member States. The 2010 amendments to the Common Law has established a Ministerial 
Commit tee, a Permanent Committee, and the Cooperation Council for the Arab States of the Gulf, 
Bureau of Technical Secretariat of Anti -Injurious Practice in International Trade "GCC -TSAIP" for 
trade remedy issues within the GCC market.  
3.34.   The "GCC -TSAIP" is the in vestigating authority for trade remedy proceedings. A complaint 
shall be submitted to the GCC -TSAIP, which reviews it and submits an initial report to the GCC 
Permanent Committee with a recommendation to pursue an investigation or not. Based on the initial  
report issued by the GCC -TSAIP, the GCC Permanent Committee may decide to initiate an 
investigation based on preliminary determination report by the GCC -TSAIP . It may also decide  to 
impose  or not to impose  provisional measures or not. Finally, based on th e final findings report of 
the investigation, the GCC Permanent Committee may propose the imposition of definitive measures 
to the GCC Ministerial Committee.  
3.35.   On 3 January 2019, the Ministerial Decree No. 211 was issued to establish the General 
Authorities  of Foreign Trade (GAFT), in which the Trade Remedies Deputyship (TRD) is responsible 
for all trade remedies matters in the Kingdom of Saudi Arabia. The Deputy Governor of the TRD is 
a member of the GCC Permanent Committee.  
3.36.   The Minister of Industry and Mi neral Resources represents the Kingdom of Saudi Arabia in the 
GCC Ministerial Committee, which is responsible for issuing final decisions regarding GCC trade 
remedies aspects. The Kingdom of Saudi Arabia via the GCC -TSAIP has conducted several 
anti-dumping  and safeguards proceedings but no countervailing proceedings.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  3.6  Trade-Related Intellectual Property Rights  (TRIPS)  
3.37.   Saudi Authority for Intellectual Property (SAIP) established under the Council of Ministers 
Decision No.  410 of 27 March 2017. The Decision a ims to unify all IP matters under a single entity 
and transfer the duties and responsibilities from Saudi Patent Office (King Abdulaziz City for Science 
and Technology), Copyright Department (Ministry of Culture and Media) and Trademark Department 
(Ministr y of Commerce) to SAIP.  
3.38.   Saudi Arabia has become a member of the following Agreements:  
• Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, 
Visually Impaired or Otherwise Print Disabled (21 November 2018) ; 
• Locarno Agreement Es tablishing an International Classification for Industrial Designs 
(3 September  2020) ; 
• Vienna Agreement Establishing an International Classification of the Figurative Elements 
of Marks (3  September 2020 ; 
• Budapest Treaty on the International Recognition of the Deposit of Microorganisms for 
the Purposes of Patent Procedure (16  October 2020) ; and, 
• Strasbourg Agreement Concerning the International Patent Classification (IPC) 
(16 October 2020).  
3.39.   SAIP issued the regulations of Optional Copyrights Re gistration to provide registration 
services for architectural designs and computer software and applications. Under Article 3(3) of the 
regulations, registration services may be extended to include other types.  
3.40.   The GCC Trademark Law entered into force for  Saudi Arabia on 2 October 2016. The GCC 
Trademark Law sets out provisions regarding to the registrability, registration and enforcement of 
trademark rights in GCC Member States. The IP offices of each GCC Member State continues to 
receive and register tra demarks on a national basis; the GCC Trademark Law does not establish a 
unitary registration or enforcement mechanism.  
3.41.   In 2020, Saudi Arabia issued the Law of Commercial Courts, which provides the commercial 
courts with subject matter jurisdiction over all  criminal and civil IP cases.  
3.42.   SAIP is currently reviewing and amending its IP legislations to incentivize innovation, 
investment and production of creative works, addition to, and requesting public feedback on a 
number of draft new legislations.  
3.43.   Saudi Arab ia has established "the National Committee for Enforcing Intellectual Property 
Rights". The committee is permanent and composed of different government authorities, and aims 
to improve and strengthen the IP enforcement eco -system. More so, it has establish ed the IP Respect 
Council to connect the private sector with relevant government entities to discuss all intellectual 
property matters including enforcement, plans and initiatives, and policy developments that require 
public comment, and solicit informatio n on any obstacles intellectual property owners face.  
3.44.   Raising public awareness of IPRs is an important objective for the Kingdom. SAIP is 
communicating with the public through workshops, seminars, webinars and mobile applications to 
raise awareness of IPR s among the society. In this regard, SAIP launched the IP Respect Officer 
initiative on Sep tember  2020, which aims to qualify and train competent employees in government 
authorities to be advisors to all matters related to IP.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4  SECTORAL DEVELOPMENTS  
4.1  Agricu lture  
4.1.1   Agriculture  
4.1.  During the period under review The Ministry of Environment, Water and Agriculture (MEWA) 
has successfully achieved major transformation goals. A number of fundamental strategies have 
been formulated to serve as a roadmap to achieve strate gic goals as to ensure harmonization, 
among; food security strategy, national water strategy, environment strategy, national strategy for 
agriculture and agricultural development fund strategy.  
4.2.  In 2019, the agricultural sector has achieved a real growth of  (1.31%), which is considered the 
highest growth rate during the past four years, as the agricultural GDP amounted to SAR 61.4 billion 
(at constant prices), and its relative contribution   to real GDP is about (2.33%) and (4%) of the non -
oil GDP.  
4.3.  The National Strategy for Agriculture targets to enhance food security, promoting the 
sustainable use of natural resources to contribute effectively in achieving water security and 
preserving the environment, as well as contributing to promoting rural developm ent, improving 
productivity and competitiveness of agricultural products and services, enhancing human and animal 
health and safety.  
4.4.  MEWA is responsible for implementing all necessary actions for fighting and controlling 
epidemic and endemic animal disease s, as well as the animal -human diseases, and preventing their 
spread in the Kingdom. In this regard, it has established and rehabilitated 14 centers to control 
these animal diseases in the Kingdom.  
4.5.  MEWA plays a major role in examining all imported consignm ents (living animals, chicks and 
eggs) through quarantines. MEWA also responsible for setting and implementing policies, legislations 
and laws, such as the laws of animal resources, quarantines, veterinary labs, practicing of veterinary 
professions and ani mal welfare, as well as conducting plans, studies and research that aim at 
developing the animal resources sector in Saudi Arabia.  
4.1.2   Water  
4.6.  The high -water demand in the agriculture sector is exacerbating the water scarcity situation in 
the Kingdom, due to ari d climate conditions, renewable water is extremely scarce and the Kingdom 
has limited reserves of non -renewable groundwater, given it is rapidly depleted.  
4.7.  MEWA developed a unified framework for the Saudi water sector that includes a comprehensive 
water st rategy comprehensive water law and integrates directions, policies, regulations and practices 
in the water sector at the national level, with the principal objective of addressing the key challenges 
and restructuring the sector. The scope of the project ha s several components including stakeholder 
engagement and an assessment of the current state of sector along several dimensions such as 
water demand, water resources, sector operations, and enablers. It sets out to identify the nature 
and scale of the gap between supply and demand, as well as sector economics under different 
scenarios.  
4.8.  The National Water Strategy has set five main objectives, including : ensure continuous access 
to adequate quantities of safe water, under normal operations and during emerg ency situations; 
enhance water demand management across all uses; deliver cost -effective and high quality water 
and wastewater services, accounting for affordability; safeguard and optimize the use of water 
resources, while preserving the local environment  for the highest benefit of the Saudi society in this 
generation and the future; and ensure water sector competitiveness and positive contribution to the 
national economy through promoting effective governance, private sector participation, localization 
of capabilities and innovation.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4.1.3   Environment  
4.9.  The environment sector is undergoing a large -scale transformation in line with Vision 2030. 
The sector has achieved several milestones in institutional framework design, legislations, and 
economic efficiency.  
4.10.   As pa rt of the National Environment Strategy, the environment sector's institutional setup 
was revamped by abrogating the two existing environmental authorities, the General Authority of 
Meteorology and Environmental Protection (GAMEP) and the Saudi Wildlife Au thority (SWA). In 
addition to, establishing an environmental fund and five specialized national environmental centers; 
center for environmental compliance, center for wildlife development, center for vegetation cover, 
center for meteorology, and center for  waste management.  
4.11.   The precedent environmental laws were replaced with a new law and a set of executive 
regulations, standards, requirements and guidelines that aim to protect, develop and sustain the 
environment. On the regional level, the final drafts of a unified GCC environmental and 
meteorological law, and an operational plan for the GCC environment strategy were developed.  
4.12.   MEWA actively identified several investment opportunities in the environment and 
meteorological sector, such as; developi ng national parks and protected areas, enhancing the 
entertainment and tourism activities available in these areas, managing and protecting national 
forests in southern KSA, combatting desertification, protecting pastures, and managing grazing 
activities. More so, establishing waste management service companies and facilities for the 
protection of public health, promotion of a clean environment, enhancing resource recovery, and 
providing environmental services such as; inspections, environmental impact asse ssments, and 
biodiversity assessments  . 
4.1.4   Privatization  
4.13.   MEWA has established the Privatization Unit, which sets privatization plans for a number of 
agriculture sub -sectors and services such as; fish farming, irrigation, and a veterinary vaccination 
center, al so, establishing  Agri Company to encourage transformation in the provision of agricultural 
services.  
4.14.   Privatization also covers other promising sectors in other sister entities, such as the second 
privatization phase of the mills sector within the Saudi Gra ins Organization (SAGO) which is expected 
to be completed by 2021. In addition to, production assets in the Saline Water Conversion 
Corporation (SWCC), which aims to promote the Saudi water sector and improve the standards of 
the services provided, as well  as improve the efficiency and maximize resources and assets 
utilization, which is another major step forward in restructuring the water sector and enabling the 
participation of the private sector.  Furthermore, privatization extends to Sewage Treatment Pla nts. 
4.2  Food Security  
4.15.   Food security strategy in the Kingdom seeks to achieve five main objectives, which include; 
achieving sustainable domestic food production system, diversifying and stabilizing external food 
supply sources, ensuring access to safe and nut ritious food and promote healthy and balanced 
nutrition habits, building food security resilience capabilities and institutionalizing food security at 
the national level and ensuring clear and accountable governance.  
4.16.   The implementation of food security str ategy is carried out by SAGO in partnership with 
MEWA. SAGO through its chairmanship of the Committee of Food Security Secretariat oversees three 
basic initiatives emanating from the food security strategy that will redefine its role within the 
framework o f the Food Security Strategy. One of these initiatives relates to an effective program for 
strategic reserve, strategic food storage and early warning system, the other is about reducing food 
loss and waste.  
4.17.   Funding for food security is being carried out b y Agricultural Development Fund (ADF). Food 
security is one of the goals of Vision 2030 and ADF has been supporting Food Security initiative, 
consistent with its mandate i.e. contributing to enhancing food security while maintaining natural 
resources.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4.3  Fisheries and Aquaculture  
4.3.1   Fisheries  
4.18.   MEWA's policy focuses on the sustainable development of both the aquaculture sector and 
the marine fisheries sector, which aims that; the fisheries sector contributes effectively to the 
Kingdom's economy, to provide suitable  employment opportunities for Saudi citizens and to enhance 
food security strategies.  
4.19.   The Kingdom is engaged constructively in fisheries subsidies negotiations at the WTO with a 
view to adopting an agreement on comprehensive and effective disciplines that  prohibit certain forms 
of fisheries subsidies that contribute to overcapacity and overfishing, and eliminate subsidies that 
contribute to illegal, unreported and unregulated (IUU) fishing.  
4.20.   The marine fisheries sector is considered one of the economically and socially important 
sectors related to the fishing profession for certain Saudi citizens who have been associated with 
this profession for centuries . MEWA supervises all matters related to fishermen, fishing means, and 
marine excursion in terms of permi ts, method, fishing gear, fishing ports and landing points  . 
4.21.   According to the recent statistics, the fisheries captured in the Kingdom from both the Red 
Sea and the Arabian Gulf generates about 71,000 tons of fish; the Arabian Gulf production 
constitutes 63 % of the volume of production with more than 44,500 tons of fish annually, and the 
Red Sea production constitutes 37% of the volume of the production of nearly 26,500 tons per year.  
4.22.   MEWA provides all services related to the marine fisheries sector that inc lude granting fishing 
licenses, monitoring fishing tools and equipment, as well as determining the areas where fishing is 
prohibited, monitoring the marine environment, and other procedures such as supporting the 
recruitment of labor from abroad.  
4.23.   Among the important projects of the marine fisheries sector, is the establishment and 
development of fishing ports in all coastal regions of the Kingdom, to advance the industry of the 
sector and provide an attractive environment for generations to practic e the fishing profession in 
accordance with high standards of quality and regulation.  
4.3.2   Aquaculture  
4.24.   Aquaculture is one of the important and vital productive sectors, MEWA is fully supervising 
farms, granting licenses, selecting sites, evaluating technical a nd economic feasibility studies, as 
well as providing technical and advisory support to investors and developing regulations and 
legislation related to all matters of aquaculture. Its role and activities have expanded to develop the 
fisheries sector by cre ating various programs such as biosecurity, vaccines and applied research.  
4.25.   MEWA seeks to develop the aquaculture sector to compete globally, as one of the fastest 
growing food sectors at a gross rate of 6% annually, to achieve sustainable development and f ood 
security, develop coastal rural areas and reduce population migration to large cities.  
4.26.   The aquaculture sector has ample natural resources along the coastline of more than 
2,600  km long, and it has a capacity of five million tons of fish . The Kingdom i s also known 
internationally for quality in line with international standards programs for biosecurity, as it seeks 
to ensure that all companies operating in the sector are certified for Best Aquaculture Practices 
(BAP) . MEWA aims to reach 100,000 tons of various marine species in 2020 and 600,000 tons by 
2030  . WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4.4  Hydrocarbon  
4.4.1   Hydrocarbon Sector  
4.4.1.1   Oil 
4.27.   The Saudi Arabian Oil Company (Saudi Aramco) is a publicly listed company on the 
Saudi  Stock Exchange (Tadawul) with a majority shareholder by the Government of Sau di Arabia. 
Saudi Aramco operates on a commercial basis with complete autonomy for operational decisions, in 
compliance with the production policies established by the Saudi Government. The 
Saudi  Government sets the oil production levels within its territor y. 
4.4.1.2   Natural gas 
4.28.   The Kingdom of Saudi Arabia ranks 6th in the world for gas reserves. Its total natural gas 
reserves were estimated at 325 trillion standard cubic feet in 2019 with gas plants processing 
capacity stands at 17 billion scf/day.  
4.4.1.3   Downstream  
4.29.   The Kingdom intends to continue the strategic integration  of its upstream and downstream 
businesses to facilitate the placement of its crude oil in larger offtake volumes through a dedicated 
system of domestic and international wholly owned and affiliated refineries.  
4.5  Manufacturing and Mining Sectors  
4.5.1   Manufacturin g 
4.30.   The number of factories under construction in the Kingdom reached (1494) in 2020 by a 
growth rate of 48% compared to last year. Furthermore, the investments of these factories and 
licensed employees increased by 13% and 33% respectively.  
4.31.   The General Aut hority for Special and Economic Zones (Modon) has paid great attention to 
the development of industrial cities in the various regions of KSA, to make available industrial lands 
to all investors wishing to establish industrial projects. It also has establis hed ready -built factories 
for investors, entrepreneurs and owners of small and medium enterprises (SMEs). The number of 
those factories developed over this period to reach 407 factories of various sizes ranging between 
700-1500 m2 within several industrial  cities.  
4.32.   "Modon Environmental Management System" aims at supporting, developing and following up 
the performance of the environmental services provided to industrial cities, which includes several 
programs, such as; ambient air quality monitoring program in industrial cities, the two chimney 
testing programs and sanitation monitoring.  
4.33.   Modon has paid great attention to the development of its digital infrastructure, and it is keen 
on the application of the best enhanced systems for its employees as well as creating a flexible and 
secure environment that ensures e -transformation. During this period, Modon advanced in the 
maturity index for e -transactions to become among the platinum category of the top 15 entities.  
4.34.   To implement the technologies of the "Fourt h Industrial Revolution", through the "National 
Productivity Program", Modon adopted factory support initiative with the aim of helping industrial 
companies to apply the digital transformation.  
4.35.   "Tanafusiya" Program launched by Saudi Industrial Development Fund (SIDF) provides 
enablers and development support to help industrial enterprises reach a high degree of 
competitiveness through "the Energy Efficiency Program" which aims to reduce the cost of operation 
in industrial facilities by enabling them to acce ss energy -saving technologies. The "Industrial Digital 
Transformation Program" supports factories for increasing operational efficiency and 
competitiveness, for reducing high costs and for enhancing the productivity through applying the 
latest digitization . WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4.36.   "Mutajadeda" Program launched by SIDF helps to develop local producers in the field of 
renewable energy production, promote and align the quality of solar and wind energy products with 
the local and global demands to achieve the national aspirations of r enewable energy's production 
and to enable the renewable energy industry to meet local demand by financing the manufacture of 
renewable energy as well as financing the production and generation of renewable energy projects.  
4.37.   The Board of Directors of the Sa udi Arabian Military Industries (SAMI) approved the Industrial 
Participation Program. The Program will contribute to guiding the international manufacturers to 
share contractual works with local manufacturers, building new capabilities in the target areas and 
promoting the participation of MSMEs with the principal contractor in contracts, as well as qualifying 
and developing the local manufacturers.  
4.38.   SAMI commenced the issuance of licenses to the military industry sector, contributing to 
opening the way for the private sector. The military industry -licensing platform has been launched 
for the following categories (military manufacturing license, military service licensing and supply 
license for military products or services), supporting several licensing area s: (military equipment, 
individual equipment, military electronics and explosives, ammunition and firearms).  
4.5.2   Mining  
4.39.   A new Mining Investment Law was approved by the Saudi Cabinet and published in the 
Official  Gazette  on 3 July 2020 and will enter into force in 28 December 2020. The new law is 
designed, to increase investments in the sector through a transparent system, s implified procedures 
and enhanced investors' confidence.  
4.40.   The key changes expected to be achieved by the new law are; the development of the sector's 
governance, amend some licenses' types, enhance transparency, develop value -added chains, 
promote sustaina bility, preserve the environment, impose guarantees for rehabilitation, optimize 
the use of mineral resources, ensure equality between local and foreign investors and establishment 
of TAADIN (mining) platform aiming at boosting investment in the mining sec tor. 
4.41.   The Mining Investment Law of 2020 provides that all natural mineral deposits including quarry 
raw materials of all types, in whatever form or composition, whether in the soil or subsoil, shall be 
considered to be the exclusive property of the state. S ubject to certain exceptions, a licence is 
required for a natural person or corporate to have the right to undertake reconnaissance, 
exploration, exploitation or collection of materials.  
4.42.   The Mining Investment Law distinguishes between reconnaissance licen ces, exploration 
licences, material collection licences and exploitation licences. Within the category of exploitation 
licences a further division exists between mining licences, raw material quarry licences, small mine 
licences, and building materials qua rry licences. The mining and hydrocarbon sectors are open to 
private investors, without any discrimination between domestic and foreign investors. Licences are 
granted on a first -come -first-serve basis conditional technical and financial evaluation.  
4.43.   In 202 0, the Ministry of Industry and Mineral Resources, has issued seven decisions related 
to the allocation process for mining reserve sites in the Kingdom, including 54 sites with an area of 
approximately 4000 km2, which is considered one of the largest in Sa udi mining history. These 
potential sites will be open for local and international exploration companies.  
4.6  Services  
4.44.   In 2019 the financial, insurance and business services, in addition to retail trade and 
restaurants and hotels, were among the economic activ ities that saw the strongest growth. This was 
due to continued government's investment drive into sectors such as tourism and entertainment. 
On the other hand, the non -oil sector is expected to support overall GDP growth in 2020, despite a 
challenging econ omic backdrop, further weakened by the global spread of COVID -19 pandemic.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4.6.1   Financial services  
The Financial Sector Development Program (FSDP)  
4.45.   The FSDP which was launched in April 2017, to create a thriving financial sector. This program 
envisions expanding financial inclusion, achieving high degree of digitization and maintaining 
financial stability. The Saudi  Central Bank2 (SAMA), in partnership with MoF and the Capital Market 
Authority (CMA), has been working to support the implementation of ini tiatives falling under FSDP. 
It has contributed to the development and implementation of many initiatives related to the banking 
sector, insurance sector, finance sector, payment systems and consumer protection. In this 
perspective, the achievements includ e the following:  
• In Early 2018, SAMA launched the Regulatory Sandbox environment. Since then, SAMA 
have granted the permission to 32 FinTech companies to operate their financial services 
within the Sandbox environment. Thereafter, a total number of thirtee n companies have 
graduated from the Sandbox and licensed by SAMA ; 
• Simultaneously in 2018, SAMA launched Fintech Saudi, an initiative to develop the 
Kingdom as a hub for financial technology and contributing to the support of financial 
inclusion and the ris e of digital transactions ; 
• Toward a less cash society, smart phone payments were linked with the Apple operating 
system (Apple Pay), and the "Elevation Program" was implemented to incentivize 
merchants and cardholders to expand cashless payments.  
4.6.1.1   Banking sector  
4.46.   Since the last trade policy review, the banking industry has been well capitalized and liquid. 
The Total Bank Assets grew by 14.9% as of September 2020 (Q/Q) to reach SAR 2.9 Trillion. Total 
Bank Deposits increased by 10.7% reaching SAR 1.9 Trillion,  and the credit to the private sector 
increased by 15.2% reaching SAR  1.7 Trillion. The CAR based on the Basel Standard stood at 19.1% 
in Q2 -2020, which is higher than the ratio recommended by the Basel Committee. Non -performing 
Loans were 2.3%, which is c onsiderably low compared to other G20 members. Moreover, banks 
recorded a ROE of 6.7% and a ROA of 1.0%. Banks have also maintained an abundant liquidity as 
per LCR and  NSFR, which recorded 198% and 130%, respectively in 2019. Loan to Deposit Ratio 
was 75.12% in September 2020, which is still below the regulatory limit of 90%, indicating ample 
space for lending.  
4.47.   SAMA continued its efforts toward the timely implementation  of Basel III standards. These 
included instituting the Internal Liquidity Adequacy Assessment Process (ILAAP), which came into 
force in January 2018. Moreover, LCR and NSFR have been adopted in 2019 prior to Basel III 
suggested implementation plan.  
4.6.1.2   Coope rative insurance  
4.48.   In recent years, a number of developments were seen in the market, the most prominent 
among those was the increase in consolidations activities, which is expected to induce efficiency, 
where six companies announced signing of a preliminary  memorandum of understanding to assess 
the feasibility of three mergers in the insurance sector in 2019.  
4.49.   In Q2 -2020,   the insurance sector witnessed a growth of 5.1% (YOY) with Total Gross Written 
Premium reaching SAR 8.7 billion. The Solvency Ratio of the insurance sector increased by 27% and 
the net income after Zakat and Tax increased by 434%. Moreover, the insurance density, which 
indicates the average spending on insurance products per capita, increased by around 6% to 
 
2 The royal decree No. (M/36) dated 11/4/1442H (26th of November 2020), Issued to approve the new 
law of SAMA and change the name of the Saudi Arabian Monetary Authority to the Saudi Central Bank, with 
direct reporting to the King. The Saudi Central Bank wi ll continue to enjoy financial and administrative 
independence. According to the new law, the Saudi Central Bank will continue to use the acronym "SAMA" due 
to its historic significance and relevance locally and globally . Viewed at:  https://www.sama.gov.sa/en -
US/News/Pages/news -629.aspx . WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  SAR 1,105, whereas insurance penet ration, which measures the insurance sector's contribution to 
GDP, recorded 1.27% in 2019.  
4.50.   SAMA is continuously updating and improving its regulatory framework and a number of 
regulations have been promulgated, including the Rules for Licensing and Supervi sion of Branches 
of Foreign Insurance and Reinsurance Companies in Saudi Arabia.  
4.6.1.3   Finance  
4.51.   The number of licensed finance companies stood at 38 by the end of Q2 -2020 with six real 
estate finance companies, one real estate refinance company, one microfinance company, one 
contract registration company, and 29 companies offering other types of finance. The total capital 
and assets in the finance companies sector have remained stable reaching SAR 14.3 billion and 
SAR 43.9 billion at the end of Q2 -2020 respectivel y. Finance companies lending increased standing 
at SAR 49.9 billion. Real estate credit witnessed an increase reaching SAR 21.9 billion. The recent 
regulatory developments in this sector include promulgating the Rules Regulating Consumer 
Microfinance Compa nies. 
4.6.1.4   Capital market  
4.52.   CMA approved the application of the Saudi Arabian Oil Company (Saudi Aramco) to register 
and offer part of its shares for public subscription. Through the largest offering in history and with a 
value exceeding 110  billion Saudi Riyals,  the Saudi Stock Exchange (Tadawul) became the ninth 
largest in the world3 in terms of market capital, and the listing of Saudi Aramco highlighted the 
progress made in CMA's regulations for offerings of securities.  
4.53.   The CMA continued to expand access to fo reign investors and adopt significant structural 
reforms, resulting in the inclusion of Saudi Stock Exchange (Tadawul) as an Emerging Market to 
MSCI, FTSE Russell (FTSE), and S&P Dow Jones indices. The inclusions have resulted in increasing 
the incoming fo reign investor cash flow and foreign investor ownership in the Saudi Stock Exchange.  
4.54.   The CMA collaborated with Tadawul to develop the regulatory framework to accommodate the 
establishment of the parallel market (Nomu) with fewer listing requirements than t he main market 
in order to expand market access for companies seeking listing. Since its launch, Nomu has reduced 
financial reporting requirements, expanded the scope of exempt offers, and provided an easier 
transition to the main market. Nomu (meaning  growth in Arabic) aims to put in place a new funding 
channel for small and medium -sized enterprises and supports venture capital investors as it eases 
monetized exits.  
4.55.   The CMA made significant progress in preparing a conducive regulatory framework for the 
innovation of FinTech within the Kingdom of Saudi Arabia and through launching the FinTech Lab, 
which supports local and international applicants to deploy and test their innovative Fintech products 
and services related to the capital market. The FinTech Lab is currently testing several business 
models, such as equity crowdfunding, offering and investment in debt instruments, robo -advisory, 
social trading and the use of distributed ledger technology (DLT) to arrange and offer custody 
services.  
4.56.   The CMA worked w ith Tadawul to launch the first national Derivatives Market and to establish 
a new platform for listing income -generating real estate investment trusts (REITs).  
4.57.   The Capital Market Law (CML) has been amended to further enhance investor protection, 
develop c apital market infrastructure institutions, reduce risks, enable new classes of securities, and 
attract foreign investment to the capital market. The amendments also facilitate the provision of 
affected investors with compensation through the development of  mechanisms for class action suits 
and activation of the affected investors' compensation funds.  
4.58.   In addition, the CML included provisions that enhance the terms of reference and governance 
of the Committees for the Resolution of Securities Disputes (CRSD)  and the Appeal Committee for 
 
3 For more info please refer to CMA 's Annual report 2019 p.154 -155. Viewed at: 
https://cma.org.sa/en/Market/Reports/Documents/cma_2019_Report.pdf . WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  the Resolution Securities Disputes (ACRSD), as well as developing the reporting of violations by 
provide whistleblowers with incentives and putting in place protection procedures that contribute to 
protecting them.  
4.6.2   Tourism services  
4.59.   Saudi Arabia is engaged in a wide -ranged development process for its tourism sector, 
including Giga -projects, new and improved infrastructure and the restoration and preservation of 
the Kingdom's historical sites, including five UNESCO Wo rld Heritage Sites. Significant infrastructure 
investment is planned to support sector growth, including:  
• Airports capacities are expected to increase by 150m passengers per annum by 2030;  
• 150,000 new hotel rooms to be built in the next three years – representing a significant 
opportunity for hotel development;  
• An additional 500,000 hotel rooms will be added across the country by 2030;  
• By 2030, 1 million new jobs will be created by tourism in Saudi Arabia – increasing total 
employment in the sector to 1.6 m, expecting to create 260,000 new jobs in the next 
3 years ; 
• Up to SAR 160 billion ( USD 42.66 billion) of tourism projects will be financed in 
Saudi  Arabia.  
4.60.   The Saudi Commission for Tourism and National Heritage was transformed to the Ministry of 
Tourism (MoT) on 25/2/2020. MoT is the tourism sector regulator in the Kingdom and leads the 
implementation of the ambitious National Tourism Strategy that aims to advance the Kingdom's 
tourism ranking to become among the top five world destinations by 2030.  
4.61.   The N ational Tourism Strategy contributes to Vision 2030 objectives through achieving the 
following:  
• Increase international and domestic trips to more than 100 million a year by 2030 
including 37  million religious trips;  
• Targets the 15th international tourism d estination by 2022 (1st in destination in Middle 
East);  
• Promote tourism beyond religious purposes and share a wide range of unique 
experiences.  
4.62.   In order to facilitate and enhance attracting investments in this sector, various enhancements 
have been introduced including issuing licenses for specific sub sectors in only 120 Sec onds.  
4.63.   The kingdom launched a new tourism eVisa scheme in September 2019, where over 
400 thousand visas have been issued. The new tourist visa is issued within 5 -30 minutes, thro ugh 
an online portal. The eVisa is a one -year, multiple entry visa, that allows tourists from 49 countries 
a validity of 90 days stay.  
4.64.   The on -arrival -visa program has been extended to visitors holding a valid Schengen, UK and 
USA visa.  
4.6.3   Recreation services   
4.65.   The General Entertainment Authority (GEA) was established to organize, develop, and lead 
the entertainment sector to provide entertainment options, and tailored experiences to the needs of 
people in the Kingdom, as well as, improving and enriching the li festyle and social cohesion among 
the community.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  4.66.   GEA has set a list of Investment Activities in the Entertainment sector in order to enable 
investors to issue commercial registrations in line with the list below:  
ISIC 
Code  Activity Name  Activity Descriptio n 
932101  Theme Parks  Amusement self -contained places with diverse areas and 
facilities, open picnic areas, various entertainment games: 
the mechanical, aquatic, electronic, electrical, technical, or 
kinetic games, including cities based on a special theme 
(such as cartoon characters, movies or animals).  
932103  Entertainment  Centers  Entertainment self -contained places or a part of another 
facility sites including diverse amusement corners such as: 
different types of entertainment games, entert ainment 
Showrooms, escape rooms, and puzzles with specialized 
features.  
932102  Entertainment  Events Venues  Self-Contained venues or arenas dedicated to run 
entertainment events, including multi -use halls and tents for 
entertainment shows such as circus and others. They carry 
all the essential services and equipment needed for events 
conducting.  
932918  Entertainment  Events  
Organization  Establishment specialized in organizing events including live 
shows, festivals, entertainment expos, theater performances, 
and entertainment activities. It also includes the coordination 
and supervision of specialized services providers and 
excludes entertainment ticketing and crowd management in 
events.  
900011  Entertainment  Talent 
Management  Managing, u ndertaking and developing talents that may 
present entertainment shows in Events, live shows or 
entertainment venues. Its activities include the coordination 
with artists, talents, actors and performers to present their 
shows in Licensed public or private events.  
932933  Entertainment  Venues 
Operation  Management and operation of entertainment venues through 
renting them to run entertainment events or provide 
qualified artists to operate the contents of the venue. This 
activity includes, according to the glo bal classification, the 
operation of musical and theater halls and other artistic 
venues.  
823004  Crowd  Management  Planning and providing crowd management services in 
events or entertainment venues, in addition to organizing the 
visitors' traffic, guiding and assisting them. Moreover, the 
crowd management performs exit operations, emergencies, 
manages crisis, sets security plans, maintains security during 
events or in entertainment venues and cooperates with the 
security authorities  
799020  Booking and ticketing  providing 
for Entertainment  and sports 
events,  conferences and expos  Provide entertainment ticketing services in accordance with 
the regulations in force, including online entertainment 
ticketing, entertainment ticketing through points of sal e and 
its promotion, in addition to render the possibility to choose, 
book and select seats  
 
4.67.   GEA aims to develop and organize the entertainment sector through providing different 
services, including:  
• Licenses:  issuing licenses for investors willing to est ablish entertainment activities 
whether permanent venues, temporary events, or providing services to different 
entertainment offerings ; 
• Market data:  providing data, insights, and reports related to entertainment sector 
which plays an important role in driv ing and supporting investments ; 
• International exhibitions and events:  hosting key international entertainment 
events and exhibitions in order to enable match making of investors.  
4.6.4   Education services  
4.68.   The Ministry of Education is responsible for regulating the education sectors, granting   
provisional investment licenses and supervising the general and higher education. The major WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  changes in the structure of the Ministry in relation to trade policies and private sector participation, 
are as follows:  
• Establishing the General Directorate of Investment and Privatization, to enhance work 
dynamics, diversify the sources of income and achieve financial returns by optimizing 
assets owned by the Ministry, in addition to, exploring opportunities of pa rtnership with 
the private sector through building quality allocation initiatives in accordance with 
international best practices ; 
• Establishing the National General Education Agency which is mandated to build a 
strategy and a road map to expand private sec tor participation, that aims to provide 
quality education in accordance with international quality standards, while preserving 
national principles and Islamic identity ; 
• Establishing the National University Education Agency which oversees qualitative 
educat ion and promote scientific research through licensing the establishment of 
academic institutions to the private sector, while building a quality system that 
supervises the academic process of these institutions. Academic institutions have 
reached 15 univer sities and 19 colleges in the Kingdom.  
4.69.   The National Centre for Competitiveness (NCC), consisting of 22 sub -committees and with 
the participation of 50 government agencies, incorporate the Education and Training Committee 
related to the Ministry and the Tec hnical and Vocational Training Corporation, was established to 
serve the private sector investors in education and training sector.  
4.70.   Ministry of Investment has established "Unification and Coordination of Investment Marketing 
and Attracting Efforts Committ ee" which is responsible for boosting the role of the private sector and 
set annual targets to attract foreign and national investments to the Saudi market, in both the 
general and university education.  
4.71.   The main objective of "PPP - Educational Buildings In itiative" is to attract the private sector 
investments to build, maintain and transfer (BMT) school buildings in KSA, the program was 
commercially structured in line with international best practices in PPP space. The Project Agreement 
is subject to arbitr ation which will give the international developers and lenders more comfort in 
such investments.  
4.6.5   Health and social services  
4.72.   The Ministry of Health (MoH) has implemented, in the current strategic plan, modern 
methodologies in providing patient -centered hea lth care system starting from primary health care 
to specialized therapeutic services in a professional manner, while preserving patients' rights, such 
as; the right to be briefed about their condition, the different treatment options, the right to choose 
their physician, and to be treated with care and respect.  
4.73.   MoH strategy includes other important aspects, such as health insurance, the cooperative 
health insurance programs, and considering extending coverage to new segments of the community. 
The strategy  will conduct studies on privatization of MoH hospitals in the future, as well as the best 
management and operation practices, in accordance with the principles of economics, cost 
calculation, diversification of funding sources, and the optimal use of reso urces.  
4.74.   Saudi Arabia encourages foreign investment in health care to promote the transfer of 
technology, which leads to strengthening the quality of health services, creating an economic impact 
and increasing employment opportunities for the citizens of th e Kingdom.  
4.6.6   Courier services  
4.75.   The fundamental change that occurred in the postal sector in Saudi Arabia, at the level of 
regulations and legislation, is the separation of the legislator from the service provider. Council of 
Ministers Resolution No. 403 dated  25 March 2019 provides that:  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  • The Ministry of Communications and Information Technology undertakes supervision of 
the postal sector, sets its general policies and development plans, and proposes draft 
regulations and amendments ; 
• The Communications and Inf ormation Technology Commission undertakes the 
regulatory and supervisory role over the postal sector.  
4.76.   This Resolution will ensure that Saudi Postal Corporation work is fully carried on commercial 
basis, as well as ensuring equal positions to competitors in  the postal market.  
4.6.7   Telecommunication services  
4.77.   The global telecom industry has changed significantly over the past few years with the 
development of new technologies and addition of new revenue streams. The telecom market started 
expanding soon after its liberalization in 2003. Since then, with the entry of foreign investment, 
KSA has built an extremely competitive telecom market that became the largest ICT market in the 
MENA region with a value of ( USD 18 Billion). The telecom sector currently includes se veral players 
holding unified licenses, also hosts Internet Service Providers (ISPs), Mobile Virtual Network 
Operators (MVNOs), and fixed -line service providers.  
4.78.   The government, through the Communications and Information Technology Commission 
(CITC), has played a vital role in developing a transparent, competitive market that keeps up with 
advanced technologies and infrastructure.  
4.79.   To create a competitive environment with a view to leverage the level of services delivered 
by the ICT sector, CITC issued Uni fied Licensing for the licensed ICT services providers in the 
Kingdom, aiming to enable them to offer a variety of packages for consumers, include mobile, fixed, 
voice and internet services, according to the providers' commercial and technical plans.  
4.80.   The g overnment plans to construct future -ready smart cities possessing advanced 
infrastructure to cater to new communication technologies, thus providing attractive prospects for 
ICT service providers.  
5  FREE TRADE AGREEMENTS  
5.1  GCC C ustoms Union  
5.1.  Saudi Arabia was one of the six founding States of the GCC free trade area in 1981. The basic 
objectives of the GCC -FTA are coordination, integration and inter -connection between member 
states in all fields, strengthen ties between their people, formulate similar regul ations in various 
fields such as economics, finance, trade, customs, tourism, legislation, administration, as well as 
foster scientific and technical progress in industry, mining, agriculture, water and animal resources, 
establish scientific research cente rs, set up joint ventures, and encourage the cooperation of the 
private sector.  
5.2.  The GCC Common Customs Law was promulgated on  the 1st of January 2003, hence 
inaugurating the GCC Customs Union. Since then, the GCC states have operated on the basis of the 
common external tariff (CET). On the 1  January  2008, members of the GCC announced the formation 
of the GCC common market.  
5.2  Pan Arab Free-Trade Area  (PAFTA)  
5.3.  Saudi Arabia is a member of the Pan Arab Free -Trade Area (PAFTA) Agreement, which entered 
into force on 1 January 1998. Under the PAFTA, almost all trade barriers among its members were 
eliminated as of 1  January 2005, with some products excluded from liberalization. The agreement 
also provides for Rules of Origin (RoO) requiring the value added not  be less than 40% of ex -factory 
cost. 
5.4.  In addition to the general RoO, PAFTA and implementing regulations and decisions include 
detailed RoO. They provide an exhaustive detailed and specific RoO for each product.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  5.5.  PAFTA members are currently negotiating an a nnex on Trade Facilitation.  
5.3  GCC-Singapore  FTA 
5.6.  The Kingdom grants preferential treatment to the goods of national origin imported from 
Singapore as of 1 April 2015 within the framework of the free trade agreement between the GCC 
states and Singapore. The GC C-Singapore FTA has its own rules of origin.  
5.4  GCC-EFTA FTA  
5.7.  The Kingdom also grants preferential treatment to the goods of national origin of the EFTA 
group (Iceland, Norway, Switzerland and Liechtenstein) within the framework of the free trade 
agreement bet ween the GCC states and the EFTA as of 1 July 2015. Under the GCC -EFTA agreement, 
there is a list of goods that have specific preferential rules of origin.  
5.5  Trade in Services between Arab Countries  
5.8.  The trade in services liberalization agreement between the  Arab countries has entered into 
force on 14 October  2019; after the ratification of three Arab countries and depositing their 
ratification instruments to the Arab League secretariat. The three countries are; the Kingdom of 
Saudi Arabia ( 1 November 2018), the Arab Republic of Egypt ( 25 March 2019), and the Hashemite 
Kingdom of Jordan ( 14 July 2019). Currently the number of members to this agreement are 
four countries after UAE ratification.  
5.9.  There are seven additional signatory countries to the agreement and  are in the ratification 
process, which are; Kuwait, Oman, Qatar, Yemen, Lebanon, Sudan and Morocco.  
5.10.   The agreement is open for   accession of additional countries as long as they commit to a higher 
level of liberalization than their current international com mitments.  
6  FUTURE DIRECTION OF SAUDI ARABIA'S TRADE POLICY  
6.1  Saudi Arabia and the G20  
6.1.  During the Kingdom's presidency of the G20 -2020, the Trade and Investment Working Group 
(TIWG) held a number of Ministerial -level as well as Working Group -level meetings, w hich included 
virtual extraordinary meetings in response to COVID -19 pandemic. The first meeting of the working 
group took place in March 2020 in Al -Khobar, with the participation of G20 members, invited 
countries and a number of international organization s. During the meeting, the priorities of the TIWG 
were revealed and discussed in addition to the launch of the Riyadh initiative for the future of the 
World Trade Organization.  
6.2.  The Kingdom's Presidency of G20 undertook the responsibility of continuing coor dination and 
cooperation between G20 countries in a professional and advanced manner. The presidency made 
great use of technologies to virtually conduct all scheduled and extraordinary meetings, after the 
closure of borders, and banning of international fl ights and the limitation of travel between countries 
in response to COVID -19.  
6.3.  The presidency called on leaders of G20 countries, invited countries, and a number of 
international organizations to hold a virtual extraordinary Summit in late March to discuss  ways to 
move forward in coordinated global efforts to combat COVID -19 pandemic and limit its humanitarian 
and economic impact.  
6.4.  The G20 Trade and Investment Ministers also held three virtual meetings in 2020, including 
two extraordinary meetings, during wh ich the endorsement of "G20 Short and Long -term Actions to 
support international trade and investment in response to COVID -19". 
6.5.  The G20 TIWG held its second virtual meeting as planned at the end of June 2020. The meeting 
discussed the challenges facing the  multilateral trading system and current international trade 
developments, including the economic impact of the COVID -19, enhancing the contribution of MSMEs 
in the global economy, sharing experiences and recommendations on ways of economic WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  diversification  in both trade in services and special economic zones, and encouraging cooperation in 
the field of technical assistance and capacity -building for developing and least developed countries 
with the aim of encouraging investment.  
6.6.  The G20 TIWG third and final meeting, which preceded the G20 Trade and Investment 
Ministerial Meeting, was held virtually and concluded with endorsement of Trade and Investment 
Ministerial Communique, which included the following in its annex:  
• TIWG Chair's informal summary of the Riy adh initiative on the future of the Trade 
Organization, which was transmitted accordingly to the WTO General Council ; 
• G20 Policy Guidelines on boosting MSMEs' international Competitiveness ; 
• Synthesis Report of Members' Best Practices and Lessons Learned on Trade in Services ; 
• Synthesis Report of Members' Best Practices and Lessons Learned on Special Economic 
Zones (SEZs) ; 
• Statement on Technical Assistance for Investment Attraction.  
6.2  Saudi Arabia and New Sources of Energy  
6.2.1   Atomic and renewable energy  
6.7.  The Kingdom's rapid economic and population growths, along with its industrial and social 
developments as it pursues Vision 2030, have increased the demand for energy and desalinated 
water. One of the essential means of achieving a sustainable growth is th e introduction of nuclear 
and renewable energy in the energy mix.  
6.8.  King Abdullah City for Atomic and Renewable Energy ("K.A.CARE") was established according 
to Royal Order dated 17th April 2010 with a mandate to contribute to KSA's sustainable development 
by employing science, research, and industries related to renewable and atomic energy for peaceful 
purposes, to participate in upgrading the standard of living of the citizens, improve their quality of 
life and create additional employment and investment op portunities for Saudi nationals.  
6.2.1.1   Key milestones & activities in the atomic & renewable energy fields  
6.2.1.1.1   The Saudi National Atomic Energy Project ("SNAEP")  
6.9.  SNAEP is a strategic initiative set out to introduce nuclear energy in KSA's domestic energy 
mix with local requirements and international commitments. SNAEP, in line with Saudi Vision 2030, 
is a demonstration of KSA's efforts to enable a nuclear energy industry and diversify its economy, 
as well as enhance the well -established role of Saudi Arabia as  a key player in the energy sphere.  
6.2.1.1.2   Renewable energy  
6.10.   Saudi Arabia through MoE has launched in 2017 its National Renewable Program (NREP). The 
main goal of the program is to substantially increase the share of renewable energy in the total 
energy mix target ed under the Vision 2030. The NREP is managed and executed by MoE, directly 
supporting Saudi Arabia's National Transformation Program (NTP) and Vision 2030. The Program is 
phased and rolled out in a systematic and transparent way to ensure that the Kingdom  benefits from 
the cost -competitive nature of renewable energy.  
6.11.   All projects tendered by MoE are 100% IPPs backed by 25 -year Power Purchase Agreements 
(PPA) with the Saudi Power Procurement Company (SPPC) as offtaker. Since its inception, MoE, 
through the  NREP, has pre -developed and tendered 3,300 MW of renewable energy capacity in the 
Kingdom, of which 700 MW was awarded in 2019 and a further 1,475 MW was tendered in 2019. 
Also, 1200 MW of solar projects were tendered in April 2020.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  6.12.   Saudi Arabia is an opt imal host for a leading renewable energy industry; it holds several key 
success factors required for research, innovation, and commercially viable renewable energy 
projects that are positioned to achieve competitive levelled cost of electricity.  
6.13.   Saudi Arab ia is investing strategically, not only in developing competitive utility scale and 
micro generation renewable energy projects, but also in developing the full echo system required to 
support and position the Kingdom as a global leader in the field. Key in itiatives implemented to 
enable and grow the renewable energy sector include t he National Renewable Energy Data Centre; 
and Renewable Management Centre ("RMC") which provides energy services to foster and facilitate 
the integration of renewable energy sources. 
6.2.2   Electricity  
6.14.   The electricity sector in the Kingdom is witnessing a major transformation with a number of 
ongoing initiatives aimed at increasing the efficiency of the sector and providing service in a 
comprehensive and efficient manner, achieving sust ainability, raising the quality of service and 
sustaining safety within the sector  . 
6.15.   Some of the key initiatives that will be implemented in the electricity sector are as follows:  
• Setting the optimal Power Mix;  
• Deployment of Smart Meters Project;  
• National Renewable Energy Program (NREP);  
• Minimizing the utilization of the diesel in power generation; and  
• Organizing cross -border trade in electricity between the Kingdom and other countries.  
6.16.   Saudi Arabia experienced a very high rate of growth of electricity consumption in recent 
decades, but this growth stalled during the review period. Electricity consumption increased slightly 
between 2015 and 2018 and declined in 2019. Among the factors exp laining the slower growth, and 
decline, in electricity consumption are more stringent energy efficiency and energy intensity 
standards under the Saudi Energy Efficiency Programme and increases in electricity prices that 
occurred in 2016 and 2018. Demand fo r electricity is expected to grow, albeit at a slower rate than 
the period before 2016.  
6.17.   Saudi Arabia has significantly expanded its electricity generation capacity, including by relying 
more on independent power producers.  
6.18.   The GCC Interconnection Authori ty, based in Saudi Arabia, is responsible for managing an 
integrated grid owned and operated by GCC Member States. Agreements were signed with Egypt, 
Iraq and Jordan to explore these countries' possible connection to this grid. In the case of 
Saudi  Arabia net exports of electricity amounted to 36 GWh and 33 GWh in 2018 and 2019 
respectively.  
6.19.   MoE is responsible for setting the sector's policy and oversees the long -term development 
and progress. The Electricity and Cogeneration Regulatory Authority (ECRA) is  the regulator of 
electricity industry in Saudi  Arabia. Its mission is to develop and pursue a regulatory framework, in 
accordance with government laws, regulations, policies and standards, as well as international best 
practices in order to guarantee the provision of safe, reliable and efficient electric power.   
6.20.   The electricity market is characterized by a bundled, vertically integrated market structure. 
Saudi  Electricity Company (SEC) is a dominant operator in the electricity industry, engaged in 
generati on, transmission, and distribution. SEC is publicly traded on the Saudi capital market, and 
the Saudi Government owns 74.3% of its shares through the Public Investment Fund (PIF). In 2019, 
SEC accounted for 54.7% of all electrical power generated in Saudi Arabia.  WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  6.2.3   Energy and water price reform  
6.21.   As part of the Kingdom's transformation plan in Vision 2030, the government implemented 
two phases of energy and water price reforms in 2016 and 2018. The evaluation, planning and 
execution of energy and water price r eforms is overseen by an executive committee formed from 
multiple government agencies.  
6.22.   Energy price reforms would play a major role in transforming the power energy mix; including 
shifting from liquid fuel to gas and increasing the share of complimentary e nergy sources, as well as 
improving energy efficiency in all sectors.  
6.3  Competition  
6.23.   The new competition law4, issued by virtue of Royal Decree No. (M/75) dated 29/6/1440H 
(3\5\2019), replaced the old law.  
6.24.   According to Article 3 of the new Law, all firms in  the Kingdom of Saudi Arabia are subject to 
competition law, regardless of their nationality and owner. Wholly owned State establishment or 
company are exempted from the Law and the Regulations if it is solely authorized by the Government 
to provide a comm odity in a particular field. Such exemption shall be effective only by virtue of Royal 
Decree or Council of Ministers' Resolution.  
6.25.   The Law applies to all goods and services, in accordance with Article 4 of the Law, prices of 
goods and services are determi ned according to market rules and principles of free competition.  
6.26.   The General Authority for Competition (GAC) is responsible for the following : 
• Statute of GAC5 issued by Council of Ministers' Resolution No. 55 dated 20/01/1439H 
(11/10/2017) ; 
• The Competiti on Law ; 
• The Implementing Regulations6 issued by Resolution No. 337 dated 25/01/1441H 
(25/09/2019) of the Board of Directors of GAC.  
 
_______________  
 
  
 
4 Viewed at: https://www.gac.gov.sa/pdf/New_comp_law_booklet_03_en.pdf . 
5 Viewed at: https://gac.gov.sa/FileUpload/authority_statute_english.pdf . 
6 Viewed at: https://www.gac.gov.sa/pdf/comp_law_regulations_en.pdf . WT/TPR/G/407 • The Kingdom of Saudi Arabia  
 
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  ANNEX  
 
TECHNICAL ASSISTANCE NEEDS OF SAUDI ARABIA  
 
1.1.  Saudi Arabia is interested to be provided with technical assistance in various WTO agreements, 
to enhance the awareness of the newly established government entities and the private sector 
regarding the multilateral trading system and WTO agreements. Thus, Saudi Arabia welcomes the 
host of regional and national seminars and workshops organized by the WTO Secretariat, in the 
following fields:  
• Rules of origin;  
• E-ping System;  
• Negotiation Skills.  
1.2.  Within the context of the ITTC's University Programme, Saudi Arabia is looking forward to 
WTO assistance to set u p a cooperation programme between the WTO and a selected Saudi Arabian 
University in order to meet the objectives determined for this programme.  
 
__________