RESTRICTED  
  
WT/TPR/S/407  
27 January 2021  
(21-0739) Page: 1/146 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
THE KINGDOM OF SAUDI ARABIA 
This report, prepared for the third Trade Policy Review of the Kingdom of Saudi Arabia , has been 
drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the 
Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought cl arification from the Kingdom of Saudi Arabia 
on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Mark Koulen, Tel: +41 22 739 
5224; Ricardo Barba, Tel: +41 22 739 5088; Mombert Hoppe, Tel: +41 22 739 6 098; and 
Martha  Lara, Tel: +41 22 739 6033.  
 
Document WT/TPR/G/407 contains the policy statement submitted by the Kingdom of Saudi Arabia . 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 . This report 
was drafted in English.  
  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main Features of the Economy  ................................ ................................ ..................... 13 
1.2   Recent Economic Developments  ................................ ................................ ................... 14 
1.3   Fiscal Policy  ................................ ................................ ................................ ............... 15 
1.4   Monetary and Exchange Rate Policy  ................................ ................................ .............. 16 
1.5   Balance of Payments  ................................ ................................ ................................ ...17 
1.6   Developments in Trade and Investment  ................................ ................................ ........ 18 
1.6.1    Trends and patterns in merchandise and services trade  ................................ ................ 18 
1.6.1.1    Merchandise trade  ................................ ................................ ................................ .18 
1.6.1.2    Services trade  ................................ ................................ ................................ ......21 
1.6.2    Trends and patterns in FDI  ................................ ................................ ....................... 21 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  23 
2.1   General Framework  ................................ ................................ ................................ ....23 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 26 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 27 
2.3.1    WTO ................................ ................................ ................................ ...................... 27 
2.3.2    Regional and p referential agreements  ................................ ................................ ........ 30 
2.3.2.1    Cooperation Council for the Arab States of the Gulf  ................................ ................... 30 
2.3.2.2    Pan-Arab Free Trade Area (PAFTA)  ................................ ................................ .......... 32 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 32 
2.4   Investment Regime  ................................ ................................ ................................ ....32 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  39 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 39 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 39 
3.1.2    Customs valuation  ................................ ................................ ................................ ...41 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 42 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 42 
3.1.4.1    MFN applied tariffs  ................................ ................................ ................................ 42 
3.1.4.2    WTO bound tariffs  ................................ ................................ ................................ .45 
3.1.4. 3   Preferential rates  ................................ ................................ ................................ ..45 
3.1.4.4    Tariff exemption  ................................ ................................ ................................ ...45 
3.1.5    Internal taxes collected at the border  ................................ ................................ ......... 45 
3.1.6    Import prohibitions, restrictions, and licensing  ................................ ............................ 47 
3.1.7    Contingency measures  ................................ ................................ ............................. 49 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 50 
3.2.1    Export procedures and requirements  ................................ ................................ .......... 50 
3.2.2    Export taxes and duties  ................................ ................................ ............................ 51 
3.2.3   Export control  ................................ ................................ ................................ ......... 51 WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.2.3.1    Export prohibitions  ................................ ................................ ................................ 51 
3.2.3.2    Export licensing  ................................ ................................ ................................ ....52 
3.2.4    Export finance, insurance, guarantees, and assistance  ................................ ................. 53 
3.2.5    Special economic zones  ................................ ................................ ............................ 54 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......55 
3.3.1    Incentives  ................................ ................................ ................................ ............... 55 
3.3.2    Standards and technical requirements  ................................ ................................ ........ 57 
3.3.3    Sanitary and phytosanitary measures  ................................ ................................ ......... 59 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 62 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 67 
3.3.6    Government procurement  ................................ ................................ ......................... 69 
3.3.7    Intellectual property rights  ................................ ................................ ........................ 71 
3.3.7.1    Overview  ................................ ................................ ................................ ............. 71 
3.3.7.2    Copyright and related rights  ................................ ................................ ................... 74 
3.3.7. 3   Industrial property  ................................ ................................ ................................ 74 
3.3.7.3.1    Overview  ................................ ................................ ................................ .......... 74 
3.3.7.3.2    Trademarks and geographical indications (GIs)  ................................ ...................... 75 
3.3.7.3.3    Industrial designs  ................................ ................................ ............................... 75 
3.3.7.3.4    Patents  ................................ ................................ ................................ ............. 75 
3.3.7.3.5    Plant variety protection  ................................ ................................ ....................... 76 
3.3.7.3.6    Layout -designs of integrated circuits  ................................ ................................ ....76 
3.3.7.4    Enforcement  ................................ ................................ ................................ ......... 76 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  78 
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ ............... 78 
4.1.1    Features  ................................ ................................ ................................ ................. 78 
4.1.2    Trade  ................................ ................................ ................................ ..................... 79 
4.1.3    Policies  ................................ ................................ ................................ ................... 81 
4.1.3.1    Trade policies  ................................ ................................ ................................ .......82 
4.1.3.2    Domestic policies  ................................ ................................ ................................ ..82 
4.1.3.3    WTO notifications  ................................ ................................ ................................ ..84 
4.2   Mining and Energy  ................................ ................................ ................................ ......86 
4.2.1    Mining  ................................ ................................ ................................ .................... 86 
4.2.2    Energy  ................................ ................................ ................................ ................... 90 
4.2.2.1    General  ................................ ................................ ................................ ............... 90 
4.2.2.2    Oil and petroleum products  ................................ ................................ .................... 91 
4.2.2.3    Natural gas  ................................ ................................ ................................ .......... 96 
4.2.2.4    Electricity  ................................ ................................ ................................ ............. 98 
4.2.2.5    Energy price reform  ................................ ................................ ............................  100 
4.3   Manufacturing  ................................ ................................ ................................ ..........  102 
4.4   Services  ................................ ................................ ................................ ..................  106 WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.4.1    Financial services  ................................ ................................ ................................ ... 106 
4.4.1.1    Banking  ................................ ................................ ................................ .............  107 
Structure  ................................ ................................ ................................ ........................  107 
Regulatory changes  ................................ ................................ ................................ ..........  109 
Islamic banking  ................................ ................................ ................................ ...............  110 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  110 
Structure  ................................ ................................ ................................ ........................  110 
Regulatory changes  ................................ ................................ ................................ ..........  111 
4.4.1.3    Capital markets  ................................ ................................ ................................ .. 112 
4.4.2    Telecommunications  ................................ ................................ ...............................  113 
E-comm erce ................................ ................................ ................................ ....................  117 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 118  
 
CHARTS  
 
Chart 1.1 GDP by economic activity at constant prices, 2019  ................................ .................  13 
Chart 1.2 Merchandise trade by main products, 2015 and 2019  ................................ .............  19 
Chart 1.3 Direction of merchandise trade, 2015 and 2019  ................................ .....................  20 
Chart 3.1 Frequency distribution of MFN tariff rates, 2020  ................................ .....................  43 
Chart 4.1 Total domestic support for agriculture, 2012 -17 ................................ ....................  85 
Chart 4.2 Green Box support for agriculture, 2012 -17 ................................ ..........................  85 
Chart 4.3 Composition of Amber Box support, 2012 -17 ................................ ........................  86 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2015 -20 ................................ ........................  14 
Table 1.2 Balance of payments, 2015 -19 ................................ ................................ ............  17 
Table 1.3 Trade in services by sector, 2015 -19 ................................ ................................ .... 21 
Table 1.4 FDI, 2015 -19................................ ................................ ................................ ..... 21 
Table 2.1 Institutional changes related to trade and investment, 2016 -20 ...............................  25 
Table 2.2 Notifications to the WTO, 2015 -20 (30 June)  ................................ .........................  29 
Table 2.3 List of businesses prohibited from foreign investment, 2020  ................................ .... 34 
Table 2.4 Types of licences, minimum capital requirement, and percentage of  
Saudi partnership, 2020  ................................ ................................ ................................ ... 35 
Table 2.5 Bilateral investme nt treaties  ................................ ................................ ................  36 
Table 2.6 Agreements/conventions on double taxation and prevention of tax evasion  ...............  37 
Table 3.1 Summary of time and cost for trading across borders, 2020  ................................ .... 40 
Table 3.2 Structure of applied MFN and bound tariffs, 2015 and 2020  ................................ .... 42 
Table 3.3 Summary analysis of MF N tariff, 2020  ................................ ................................ .. 44 
Table 3.4 Import prohibitions, 2020  ................................ ................................ ...................  48 
Table 3.5 Definitive anti -dumping measures in force, 2020  ................................ ...................  50 WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table 3.6 Export prohibitions, 2020  ................................ ................................ ....................  51 
Table 3.7 Products requiring export licences, 2020  ................................ ...............................  52 
Table 3.8 Export finance and guarantees, 2017 -19 ................................ ...............................  53 
Table 3.9 SPS measures: products and countries affected, 2016 -20 ................................ ....... 59 
Table 3.10 Main changes between the old and new Competition Laws ................................ ..... 63 
Table 3.11 Price regulation, 2020  ................................ ................................ .......................  66 
Table 3.12 Selected publicly listed companies with state investments, 2020  ............................  68 
Table 3.13 Legislation on government procurement, 2020  ................................ ....................  70 
Table 3.14 Annual statistics on IPR protection – applications, 2015 -19 ................................ ... 73 
Table 3.15 Annual statistics on IPR protection – registrations/grants, 2015 -19 ........................  73 
Table 3.16 Patent Office of the GCC, patent applications and patent grants, 2015 -19 ...............  76 
Table 3.17 Enforcement actions: copyright, 2015 -20 ................................ ............................  77 
Table 3.18 Number of trademark cases referred to the public prosecution, 2017 -20 .................  77 
Table 4.1 Crop pro duction, 2014 -19 ................................ ................................ ...................  78 
Table 4.2 Livestock and animal products, 2014 -19 ................................ ...............................  79 
Table 4.3 Exports of agricultural products, 2014 -19 ................................ .............................  79 
Table 4.4 Imports of agricultural products, 2014 -19 ................................ .............................  80 
Table 4.5 Agricultural Development Fund lending,  2006-19 ................................ ...................  83 
Table 4.6 Production of minerals, 2015 -19 ................................ ................................ ..........  86 
Table 4.7 Mineral ores extracted, 2015 -19 ................................ ................................ ..........  86 
Table 4.8 Major imports of minerals, 2015 -19 ................................ ................................ ..... 87 
Table 4.9 Major exports of minerals, 2015 -19 ................................ ................................ ...... 87 
Table 4.10 Number of valid mining licences at the end of the year, 2015 -19 ...........................  90 
Table 4.11 Production of crude oil, refined products, and natural gas, 2015 -19 ........................  92 
Table 4.12 Daily crude oil production, 2015 -19 ................................ ................................ .... 93 
Table 4.13 Domestic consumption of refined products,  crude oil, and natural gas, 2015 -19 ....... 93 
Table 4.14 Exports of crude and refined products, by region, 2017 -19 ................................ .... 94 
Table 4.15 Electricity generation, consumption exports, and capacity, 2015 -19 .......................  98 
Table 4.16 Increases in energy commodity and service prices since 2015  .............................  101 
Table 4.17 Electricity tariffs (SAR/kWh)  ................................ ................................ ............  101 
Table 4.18 Number of manufacturing establishments by size, 2018  ................................ ...... 102 
Table 4.19 Banking sector 2014 -18 ................................ ................................ ..................  107 
Table 4.20 Bank credit to private sector, by economic activity, 2017 -19 ...............................  108 
Table 4.21 Telecommunications indicators, 2015 -19 ................................ ...........................  114 
Table 4.22 Pricing data for mobile telephony, 2019  ................................ ............................  115 
 
BOXES  
 
Box 2.1 Investment principles  ................................ ................................ ............................. 33 
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  APPENDIX TABLES  
 
Table A1. 1 Merchandise exports by HS sections and major HS chapters/subheadings,  
2015-19 ................................ ................................ ................................ .........................  118 
Table A1. 2 Merchandise imports by HS sections and major HS chapters/subheadings,  
2015-19 ................................ ................................ ................................ .........................  119 
Table A1. 3 Merchandise exports by des tination, 2015 -19 ................................ .....................  120 
Table A1. 4 Merchandise imports by origin, 2015 -19 ................................ ............................  121 
  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  SUMMARY  
1. Saudi Arabia's economy continues to be heavily dependent on oil. The review period witnessed 
a wide range of cross -cutting and sector -specific policy initiatives aimed at modernizing and 
diversifying the economy. Continuing such initiatives to improve the competitiveness of the 
non-oil sector remains important.  
2. Oil markets have been particularly volatile since the last Review in 2016. Real GDP average 
growth during 2015 -19 was 1.6%, with non-oil sectors outpacing the growth of the oil sector. The 
current account balance fluctuated from a deficit of 8.7% of GDP in 2015 to a surplus of 9.2% of 
GDP in 2018, attributed primarily to movements in the value of oil exports over the period. In 2020 , 
the COVID -19 pandemic caused the largest contraction in world oil demand in history with significant 
impact on government revenues, in addition to the global economic shock induced by the pandemic. 
According to the IMF, Saudi Arabia's real GDP growth dec lined from 0.3% in 2019 to -5.4% in 2020. 
Several measures were adopted to provide financial support to the private sector. For 2020, the 
fiscal deficit is estimated at 12% of GDP due to the fiscal shocks to the Government's oil and non -oil 
revenues and it s additional expenditures as a result of the COVID -19 pandemic.  
3. Saudi Arabia's dependence on oil entails certain structural weaknesses, as reflected in, for 
example, the high unemployment rate among Saudi nationals. Recognition of such structural 
challeng es led to the launch, in 2016, of "Vision 2030", a comprehensive strategy designed to 
modernize and diversify the Saudi economy. Vision 2030 encompasses a wide range of policies to 
create more private -sector jobs for Saudi nationals, increase the participa tion of women in the 
workforce, support small - and medium -sized enterprises, increase investment in non -oil sectors and 
promote non -oil exports, increase domestic production and procurement through local -content 
measures, privatize state -owned assets and g overnment services, deregulate the energy market 
and reform energy and water prices, improve the business environment to attract foreign and local 
investment, and develop new infrastructure. Vision 2030 also envisages enhancing the efficiency of 
government , including through accelerating decision -making processes and further developing 
e-government services, embracing standards of transparency and accountability, monitoring 
performance, and improving the management of public finances. Some commentators rais ed 
questions regarding the level of ambition reflected in some of the Vision 2030 objectives. The scale 
and pace of implementation of Vision 2030 could be affected by the impact of the COVID -19 
pandemic on government revenue and expenditures. The authoriti es indicated in the context of this 
Review that Vision 2030 is currently being reviewed.  
4. While a comprehensive assessment of progress made towards achievement of the Vision 2030 
objectives is beyond the scope of this Review, results in certain areas are no teworthy. For example, 
prior to the COVID -19 pandemic, the fiscal deficit declined from 15.8% in 2015 to 4.5% in 2019 due 
to significant progress in diversifying and stabilizing the Government's revenues. Measures adopted 
by the Government in matters such as starting a business, registering property, and protecting 
minority investors appear to have significantly improved the business climate. At the same time, 
there remain governance and rule of law issues that may warrant reform. Illustrative in this respe ct 
is the IMF's recent call for continuing reforms to enhance fiscal transparency to reduce the risks of 
corruption. During the review period, the Government also introduced reforms concerning the status 
of women in society.  
5. Changes to the structure of th e Government have occurred since the last Review, many of 
which related to Vision 2030, including, for example, the creation of a General Authority for Foreign 
Trade as a separate public entity to take over all the responsibilities related to foreign trade  
previously carried out by the Ministry of Commerce; the restructuring of the Ministry of Energy, 
Industry and Mineral Resources into the Ministry of Energy and the Ministry of Industry and Mineral 
Resources; the transformation of the Saudi Arabian General  Investment Authority into the Ministry 
of Investment; the creation of the Saudi General Authority for Intellectual Property; the 
establishment of the Local Content and Government Procurement Authority; and the change in the 
name of the Saudi Monetary Auth ority to Saudi Central Bank. The review period also witnessed the 
adoption of new legislation regarding many aspects of Saudi Arabia's economic and trade policies.  
6. Regarding the overall orientation of Saudi Arabia's trade policy, prominent aspects of the 
Kingdom's recent trade and economic policies, including the simplification of customs procedures, 
the existence of a generally low level of import duties, the removal of foreign investment restrictions, 
and the introduction of new policy instruments to pro mote exports, suggest that openness to WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  international trade and foreign investment is seen by the authorities as playing an essential role in 
the Kingdom's economic transformation. On the other hand, certain elements, notably the emphasis 
on "localization" and the existence of detailed sector -specific industrial policies, might raise questions 
about their potential distortive effects on trade and resource allocation. Much will depend upon the 
precise policy instruments used by the Government to achieve its o bjectives regarding the promotion 
of domestic industrial development.  
7. Saudi Arabia is a strong supporter of the multilateral trading system and the WTO. 
Its negotiating interests span a wide range of issues, and it participates in several Joint Ministeria l 
Statement Initiatives. It ratified the protocol concerning the WTO Trade Facilitation Agreement in 
2016. It regularly submits notifications to the WTO, although its notifications on domestic support 
in agriculture for the most recent years remain outstan ding. Saudi Arabia has never been a 
complainant under the WTO dispute settlement mechanism; it was a respondent in 2 cases and 
participated as a third party in 49 cases. In 2020, during Saudi Arabia's presidency of the G20, 
two extraordinary G20 Trade and Investment Ministerial Meetings were held to address the 
challenges posed by the COVID -19 pandemic. Saudi Arabia also launched and actively promoted the 
Riyadh Initiative on the Future of the WTO, which aims to identify common ground and shared 
principles for the next 25 years of the WTO, and to provide the political support needed to make 
progress in the discussions on reforms among all WTO Members. At their summit held on 
21-22 November 2020, G20 leaders explicitly recognized the contribution that the Riy adh Initiative 
made. Saudi Arabia believes that regional trade agreements can complement and reinforce the 
multilateral trading system, and help the Kingdom's integration into the global economy. It is a 
member of the Gulf Cooperation Council (GCC), and th e Pan -Arab Free Trade Area. The GCC as a 
group has free trade agreements with Singapore and with the European Free Trade Association. 
Along with other GCC members, Saudi Arabia is currently assessing its approach to FTAs in light of 
the Vision 2030 goals.  
8. Increasing private investment, both foreign and local, is a key element of Saudi Arabia's 
strategy to stimulate and diversify its economy, generate employment, and achieve sustainable 
development. Sectors identified as priority areas for foreign and domest ic investment are: 
(i) transport and logistics; (ii) information and communications technology (ICT); (iii) health and 
biotechnology; (iv) education; (v) tourism; (vi) entertainment; (vii) industry (mining and 
manufacturing); and (viii) renewable energy. F oreign investment is allowed in practically all sectors 
of the economy, except for some activities specified on a negative list. Since the previous Review, 
several activities have been removed from this list. Foreign investment licensing requirements vary 
according to sector and type of investment. Some of these requirements were eased or removed 
during the review period. The Government implemented new fees for expatriate employers (which 
are paid per employee per month). It also increased levies on expatri ates with dependents and 
imposed higher fees for business visas and entry/exit permits for foreign workers.  
9. While there were no changes to the basic customs legislation (the GCC Common Customs Law 
and Implementation Rules and Explanatory Note), Saudi Arab ia introduced important changes in 
customs procedures, as a result of which it now has a country -wide single window for customs 
procedures. The Saudi Customs Authority enhanced an electronic data interchange system, an 
electronic trade single window that a llows electronic submission and processing of import 
declarations. Also, Saudi Arabia now has a new risk management system and targeting centre to 
classify shipments based on their risk level.  
10. Import tariffs, which are subject to common GCC rules, did not change significantly until the 
recent COVID -19 pandemic. Nearly all tariff lines in Saudi Arabia are subject to ad valorem  rates, 
while 1.3% of total lines have non -ad valorem  rates. The simple average of Saudi Arabia's 2020 
applied MFN tariff rate was 5.5 %, up from 5.2% in 2015 due to changes in the tariff structure and 
increases in customs duty rates for some products (e.g. fertilizers, and meat and dairy products). 
On 77.4% of tariff lines, the applied MFN tariff rate was 5%; on 10.6% of tariff lines, th e rate was 
duty free, and on 9.7% of the tariff lines the rate was between 5% and 15%. A very small group of 
agricultural products is subject to significantly higher applied MFN tariff rates, with tobacco products 
subject to a rate of 100%. In June 2020, c ustoms duties were raised on various categories of 
consumer, industrial, and agricultural products as part of the Government's response to the 
COVID -19 pandemic.  
11. Saudi Arabia introduced the value added tax (VAT) as from 1 January 2018 at a standard rate 
of 5%. VAT was introduced as a result of a common approach between GCC member States. On WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  1 July 2020, the standard rate was increased to 15% as part of the measures adopted to deal with 
the economic crisis caused by the COVID -19 pandemic. On 31 January 2017 , Saudi Arabia ratified 
the GCC Common Excise Tax Agreement and issued the Excise Tax Law and its Implementing 
Regulations. Two different excise tax rates apply: 50% on soft/sweetened drinks or 100% on 
tobacco -related products, energy drinks, and electroni c devices for smoking/vaping.  
12. Import prohibitions continue to be maintained based on security, public safety, moral, and 
religious considerations, as well as on international obligations such as international conventions 
requirements and UN sanction resolu tions. Import licensing requirements are applied to some 
imports from all trading partners except other GCC member States. There were no changes in 
Saudi  Arabia's trade remedies legislation. Saudi Arabia maintains export bans on eight categories of 
product s. In response to the COVID -19 pandemic, Saudi Arabia introduced a temporary export ban 
on exports of COVID -19 detection and prevention products, medical equipment, and pharmaceutical 
products. Saudi Arabia continues to have 10 categories of goods subject to export licensing 
requirements.  
13. Several new policy instruments were adopted to achieve Vision 2030's objectives of increasing 
non-oil exports and promoting economic diversification. First, the Export -Import Bank was created 
in 2019 and became operationa l in 2020. Export financing and guarantees continue to be available 
through the Saudi Export Programme. Second, the creation of special economic zones is a key 
element of Vision 2030 and the National Industrial Development Program (NIDLP). A National 
Strategy for Special Economic Zones and implementing regulations were adopted, and the first 
special economic zone was established in October 2018. NEOM, a futuristic city project with 
significant logistics and high -end tourism components, which is currently be ing developed in 
Saudi  Arabia's northwest, is considered the world's largest international special economic zone in 
terms of size and scale of investment (about USD 500 billion). Third, the Saudi Industrial 
Development Fund (SIDF) is the main financial ena bler of the NIDLP. While the SIDF used to finance 
only manufacturing businesses, since 2019, it has also financed projects in other sectors covered by 
the NIDLP  (mining and energy). Fourth, Saudi Arabia aims to increase the contribution of small and 
mediu m-sized enterprises (SMEs) in GDP from 20% to 35% and encourage local financial institutions 
to allocate up to 20% of overall funding to SMEs by 2030. To this end, the SME Authority (Monshaat) 
was established in 2016.  
14. In 2019, the Saudi Accreditation Centr e was created as the national accreditation body. The 
Saudi Standards, Metrology and Quality Organization has so far issued more than 30,000  standards, 
the majority of which were adopted from international standards. According to the authorities, at 
end-2019, 89% of Saudi standards in force were adopted from GCC standards. Currently, 
Saudi  Arabia has 32 technical regulations in force, of which two GCC Technical Regulations were 
adopted during 2016 -20. Since the last Review, some concerns have been expressed  about 
Saudi  Arabia's technical regulations on animal products, motor vehicles, vehicle tyres, toys, energy 
drinks, sugar limits on food products, electrical and electronic equipment, and plastic products. With 
respect to sanitary and phytosanitary measure s, concerns were raised relating to Saudi Arabia's ban 
on the importation of shrimp, fish, crustaceans, and other aquatic animal products.  
15. Saudi Arabia's new Competition Law came into force on 23 September 2019. It aims to protect 
and encourage fair compe tition and to combat and prevent monopolistic practices that affect lawful 
competition or consumer interest, leading to an improved market environment and economic 
development. The new Competition Law applies to all firms in Saudi Arabia, regardless of the ir 
nationality or seat. The General Authority for Competition is the regulatory authority in charge of 
implementation of the Competition Law and its Implementing Regulations. The Law prohibits certain 
anti-competitive practices and abuses of dominant posit ions and provides for merger control based 
on a definition of economic concentration. Under the new Competition Law, prices of goods and 
services are to be determined according to market rules and principles of free competition. However, 
certain goods and services, including wheat flour, cement, crude oil, energy transportation services, 
and electricity are subject to regulations that set maximum prices.  
16. In addition to direct holdings by the Government in some undertakings, government agencies, 
such as the General Organization of Social Insurance, the Public Pension Agency, and notably the 
Public Investment Fund (PIF), have holdings in several businesses. Since March 2015, the PIF has 
reported to the newly created Council of Economic and Development Affairs.  Under Vision 2030, 
Saudi  Arabia aims to transform the PIF into a global industrial conglomerate and the world's largest WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  sovereign wealth fund. The privatization of state -owned assets is being further encouraged to 
increase the participation of the private  sector in the economy from less than 40% to 65% of GDP.  
17. As part of its accession commitments, Saudi Arabia agreed to start negotiations to join the 
Government Procurement Agreement (GPA) at a future date. Presently, it is an observer to the GPA. 
Saudi Ara bia's new Government Tenders and Procurement Law (GTPL) came into force in 
December  2019, its key stated objective being to strengthen government procurement activities 
while protecting public funds and enhancing economic development. The new GTPL also aim s to 
support SMEs and increase local content in government procurement contracts. Consideration is 
being given to whether preferences related to local content should also apply to commercial 
companies in which the State owns more than 51% of the share capi tal. Under the new GTPL, 
domestically produced products qualify for a price preference of 10%.  
18. Regarding the protection of intellectual property rights, the most important change during the 
review period was the creation of a more unified institutional framework, with the establishment, in 
2017, of the Saudi Authority for Intellectual Property to as sume the duties and responsibilities of 
the Saudi Patent Office, the Copyright Department, and the Trademark Department. Reforms of the 
intellectual property administrative regime undertaken during the review period were aimed at 
supporting the Vision 2030  objective of encouraging innovation and entrepreneurship.  
19. Saudi Arabia remains a major net importer of agricultural products. Imports of some products 
are prohibited (any product containing alcohol, and pigmeat products). Domestic agricultural policy 
priorities are linked to Vision 2030, which aims to prioritize the use of water in agriculture to those 
areas with natural and renewable water sources, adjust the crop mix towards crops with lower water 
use, and rebalance the mix of imports and domestic produ ction for food security. In addition to 
measures to reduce water consumption, important policy developments in this period were the 
privatization of the wheat and flour sector, the introduction of a new animal feed policy, and the 
provision of additional f unding under the Agricultural Development Fund in the context of the 
COVID -19 pandemic. Notified Green Box support increased from SAR 860 million in 2012 to 
SAR 1.1 billion in 2015, before falling again to SAR 780 million in 2017, driven primarily by chang es 
in expenditures for infrastructure services and to a lesser degree for pest and disease control. 
Saudi  Arabia's Current Total AMS varied between SAR 1,185 million and SAR 2,782 million, well 
below its bound Total AMS commitment level of SAR 3,218 millio n. Support notified under the 
Amber  Box (including de minimis  support) fluctuated but has fallen overall since 2012. In 2017, feed 
subsidies for poultry sectors accounted for all the Current Total AMS (SAR 1,876 million). Important 
changes to domestic supp ort programmes introduced since 2018 (the replacement of feed subsidies 
by direct support and the reintroduction of price support for wheat) have not yet been notified. 
According to its notifications to the WTO Committee on Agriculture, Saudi Arabia did no t provide 
export subsidies for agricultural products.  
20. The Vision 2030 strategy provides that one of the means to achieve the strategic objective of 
growing and diversifying the economy is to unlock the potential of non -oil sectors, including by 
growing an d capturing maximum value from the mining and energy sectors. In 2017, the Council of 
Ministers approved the Comprehensive Mining and Mining Industries Strategy, which aims to address 
several challenges confronting the sector. The Government's objectives f or 2030 are to make the 
mining sector the third major pillar of Saudi industry, alongside oil and petrochemicals, by more 
than tripling its contribution to GDP, reduce imports by about SAR 37 billion, create more than 
200,000 direct and indirect jobs, and nearly double the sector's contribution to government revenue. 
A new Mining Investment Law was adopted in 2019.  
21. Saudi Arabia was the world's second -largest crude oil producer in 2019 and the world's largest 
crude oil exporter. The Vision 2030 objectives i n respect of the energy sector are to increase the 
localization of the oil and gas sector, increase the Kingdom's gas production and distribution 
capacity, develop oil - and gas -adjacent industries, increase the contribution of renewables to the 
national en ergy mix, and enhance the competitiveness of the energy market. Vision 2030 aims to 
transform Saudi Aramco from an oil producer into a global industrial conglomerate. In 2019, 
Saudi  Aramco issued USD 12.0 billion of senior unsecured notes listed on the Lon don Stock Exchange 
and became a public company, with shares listed on Saudi Arabia's main stock market, the Tadawul. 
In December 2017, Saudi Aramco and the Government entered into a revised Concession 
Agreement, and a new Hydrocarbons Law was enacted. The development of alternative sources of 
energy to diversify the sources of electricity generation is being pursued through the National 
Renewable Energy Program launched in 2017. The Government defined certain quantitative targets WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 11 - 
 
  regarding the contribution of renewable energy to the power mix and is considering the development 
of a nuclear energy capacity.  
22. Reform of domestic energy prices, as provided for in the Fiscal Balance Program adopted in 
2016, was an important element of Saudi Arabia's economic trans formation policies during the 
review period. An Executive Committee for the Governance of Energy and Water Prices Reform was 
established to oversee the development of the energy and water price reform plan, considering its 
economic, social, and sectoral im pacts, and to develop the necessary support mechanism during the 
transition period. In 2016, a first wave of price reforms involved increases in prices of water, fuel, 
and electricity; a second wave of price reforms was implemented at the start of 2018, fo cusing on 
gasoline and electricity. Domestic fuel prices remain far below the global average.  
23. A vibrant, competitive, sustainable, and export -oriented manufacturing sector is seen by the 
Government as critical to the realization of Vision 2030 as the prim ary driver of non -oil exports, 
foreign investment, innovation, and higher -quality jobs. In this respect, the NIDLP, one of the 
Vision  2030 Vision Realization Programs launched in January 2019, envisions a "second wave of 
industrial development" or "second growth wave". The key guidelines under the new approach are 
that growth must focus on a diversified portfolio of sectors that are based on a sustainable 
competitive advantage; the private sector must lead the growth process, as the Government plays 
the rol e of the enabler; and growth must generate clear socio -economic benefits in terms of its 
contribution to GDP and employment. The new industrial policy is reflected in a comprehensive and 
detailed National Industrial Strategy (NIS) focusing on nine sectors:  (i) equipment and machinery; 
(ii) renewable energy supplies; (iii) pharmaceutical manufacturing; (iv) medical supplies; (v) the 
automotive sector; (vi) oil - and gas -adjacent industries; (vii) food processing; (viii) the aviation 
industry; and (ix) militar y industries. The NIS is currently being updated.  
24. The Financial Sector Development Program (FSDP), which is part of Vision 2030, aims to 
develop a strong, innovative, and stable financial sector, able to support private -sector growth 
through lending, new services, and an advanced capital market, while promoting and enabling 
financial planning in society more broadly. In the banking sector, the Central Bank further developed 
the regulatory framework in the areas of governance and transparency (issuance of a  new Law on 
Anti-Money Laundering, and updating of disclosure requirements regarding retail financing and 
savings products), and prudential regulations (issuance of Business Continuity and Cyber Security 
Frameworks and of a Code of Conduct and Work Ethics in Financial Institutions, and adoption of a 
Whistle -blowing Policy for Financial Institutions, 2019). Saudi Arabia's ranking in indicators of 
shareholder governance and investor protection improved greatly during the review period. Revised 
licensing guide lines were issued in 2019 for banks under the Banking Control Law 1966, the main 
legislative text governing the banking sector. Under the guidelines, foreign bank branches are, in 
principle, subject to the same prudential requirements as locally incorporat ed banks. New rules were 
also issued for the licensing and supervision of branches of foreign insurance and/or reinsurance 
companies under which foreign insurance and reinsurance firms are allowed to open a branch if they 
meet some, primarily prudential, c onditions.  
25. The FSDP's second pillar aims to develop an advanced capital market for equity and debt, 
including a market for derivatives. Key activities under this Program include: (i) enhancing access 
by Qualified Foreign Investors through the simplificati on of processes and increases in foreign equity 
caps; (ii) privatizing state -owned enterprises through initial public offerings; (iii) deepening debt 
markets; and (iv) improving the quality of audits of public companies. As a result of reforms 
undertaken d uring the review period to protect investors, open trading to non -resident foreigners, 
and deepen capital markets, the Tadawul was included in three internationally renowned emerging 
market indices. While the stock market has grown significantly, it remain s highly concentrated. 
Despite recent efforts to increase access by non -resident foreign investors to capital markets, 
investment in Saudi capital markets continues to face restrictions. Steps were taken to deepen debt 
markets through regulatory reforms to  facilitate trading in bonds and other debt instruments, 
including for foreign legal and natural persons.  
26. While the Telecommunications Act 2001, which establishes the basic regulatory framework for 
the telecommunications sector, remained unchanged, many re gulatory changes were made during 
the review period in order to increase competition and attract investment. Reforms were initiated 
with respect to access to radio spectrum, the telecommunications services licensing framework, 
interconnection rules, and ac cess to physical facilities. Royalty fees for telecommunications services 
were adjusted in 2018 in a deal that saw telecommunications operators commit to additional WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  investment in infrastructure. Several other regulatory changes were based on the priorities  outlined 
in Vision 2030 and the ICT Sector Strategy 2023. The Strategy outlines key initiatives to transform 
the ICT sector, support technology localization, and expand the IT and emerging tech market. The 
ICT sector is considered as one of the major enab lers of Vision 2030 and as serving as the foundation 
for digitizing the Kingdom. In this regard, regulatory frameworks were established in 2019 for cloud 
computing (including localization requirements for certain sensitive data) and for the Internet of 
Things, the Quality of Service Framework was revised in 2018 to ensure minimum acceptable levels 
of service, procedural rules were adopted in 2018 for mergers and acquisitions in the ICT sector, 
and regulations were adopted in 2018 to reduce spam.  
 WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The Kingdom of Saudi Arabia is the world's largest oil exporter and one of the biggest producers 
of oil and natural gas. In 2019, 38.0% of real GDP, 64.1% of government revenues, and 77.6% of 
merchandise exports were based on crude petroleum and natural ga s. Nonetheless, as shown in 
Chart 1.1, the largest contributor to real GDP is the services sector with a 41.5% share, led by 
government services. Manufacturing, based on Saudi Arabia's comparative advantage in 
energy -intensive industries, represents 12.0% of real GDP, while construction and agriculture and 
related activities account for 4.5% and 2.3%, respectively.  
Chart 1.1 GDP by economic activity at constant prices, 2019  
 
Note:  Preliminary figures.  
Source:  General Authority for Statistics, Statistics Library. Viewed at: https://www.stats.gov.sa/en . 
1.2.  GDP per capita increased from USD 21,180 in 2015 to USD 23,174 in 2019. Saudi A rabia had  
a population of around 34.2 million in 2019, of which 38.3% (13.1 million) were non -Saudis . 
Expatriate labour accounts for 79.4% of private sector employment.1 The unemployment rate of 
Saudi  nationals remained high at 12.0% in 2019 , while for no n-Saudis it was 0.4% .2 With a view to 
increasing the employment of nationals , notably women, the authorities have been implementing 
the Nitaqat  programme since 2011. It is a labour market reform strategy designed to make 
Saudi  nationals more competitive in the private sector labour market, make private sector jobs more 
attractive to nationals, and require or encourage private firms to meet certain Saudization quotas . 
As from 14 March 2021, Saudi Arabia will allow foreign workers in the private  sector to change jobs 
and leave the country without an employer's consent.  
1.3.  In April 2016, Saudi Arabia launched its Vision 2030,  an ambitious strategic plan to modernize 
and diversify the Saudi economy ( Section 2.1 ). Under Vision  2030, Saudi Arabia aims t o advance 
into the top 15 economies in the world in terms of GDP. This goal is to be achieved through increasing 
the private sector's contribution from 40% to 65% of GDP, raising the share of non -oil exports in 
non-oil GDP from 16% to 50%, and expanding sm all and medium -sized enterprises' (SMEs) 
contribution to GDP from 20% to 35% by 2030.3  
1.4.  Other goals of Vision 2030 include: (i)  further developing non -oil activities, notably renewable 
energy, information and communication technology (ICT), industrial equipment, tourism and leisure, 
 
1 General Authority for Statistics, Labour Force . Viewed at: https://stats.gov.sa/en/814 . 
2 General Authority for Statistics. Viewed at: https://www.stats.gov.sa/en . 
3 Saudi Arabian Monetary Authority (2020), 56th Annual Report 1441H -2020, Riyadh.  
Agriculture, forestry & 
fishing
2.3%Crude petroleum & 
natural gas
38.0%Other mining 
and quarrying
0.4%Manufacturing
12.0%
(of which 3.5% for 
petroleum refining)Electricity, gas and water
1.3%
Construction
4.5%
Wholesale & retail trade, 
restaurants & hotels
9.4%Transport, storage & 
communication
6.2%Real estate activities
5.4%Finance, insurance & 
business services
4.9%
Government 
services
14.2%
Other
1.3%Services
41.5%Chart 1.[SAU] GDP by economic activity at constant prices, 2019
Note:  Preliminary figure.
Calculations are based on GDP excluding import duties. 
Source:  General Authority for Statistics, Statistics Library.  Viewed at: https://www.stats.gov.sa/en.
.WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  retail sector, digital economy, and financial services; (ii)  increasing domestic production and 
government procurement through local content measur es; (iii)  privatizing state -owned assets and 
government services (such as health, education, and housing); (iv)  stock listing the national oil 
company ( Saudi Aramco); (v)  reforming the prices of energy and water; (vi)  further improving the 
business environ ment; (vii)  creating more private sector jobs for Saudi nationals; and 
(viii) expanding the participation of women in the workforce.4 Nonetheless, the costs of the measures 
taken by the Government to fight the COVID -19 pandemic, together with the recent f all of global oil 
prices and their impact on public finances could affect the pace and scale of the implementation of 
Vision 2030 (Section 1.2).  
1.2  Recent Economic Developments  
1.5.  At the time of its previous Review in 2016, Saudi Arabia had one of the strongest -growing 
economies in the G20. During the period 2010 -13, high oil prices underpinned growth in nearly all 
sectors. However, the price of oil started declining in mid -2014, affecting the whole economy.5 Since 
then, Saudi Arabia's GDP grew 1.6% on average d uring 2015 -19 (4.2% in 2002 -14), with non -oil 
sectors outpacing the growth of the oil sector (Table 1.1). Economic activity was driven by the 
evolution of oil revenues over the period, the implementation of economic and social reforms under 
Vision 2030, an d by construction and infrastructure projects partly financed through the Public 
Investment Fund (PIF), Saudi Arabia's sovereign wealth fund ( Section  3.3.5 ). In 2020, the COVID -19 
pandemic and lower than expected oil prices negatively impacted all economic  sectors. According to 
the IMF, real GDP growth went from 0.3% in 2019 to -5.4% in 2020, while 3.1% is estimated for 
2021 as the Saudi economy recovers somewhat from the effects of the pandemic.6  
Table 1.1 Selected macroeconomic indicators, 2015 -20 
 2015  2016  2017  2018  2019  2020a 
GDP, unemployment and inflation        
GDP at current prices (SAR billion)  2,453.5  2,418.5  2,582.2  2,949.5  2,973.6  .. 
GDP at current prices (USD billion)  654.3  644.9  688.6  786.5  793.0  .. 
GDP per capita (USD)  21,180  20,289  21,114  23,539  23,174  .. 
Real GDP growth (% change)  4.1 1.7 -0.7 2.4 0.3 -5.4 
 Oil sector  5.3 3.6 -3.1 3.1 -3.6 .. 
 Non-oil sector  3.2 0.2 1.3 2.2 3.3 .. 
Unemployment rate, Saudi nationals (%)  11.5 11.6 12.8 12.7 12.0 .. 
Unemployment rate, overall (%)  5.6 5.6 6.0 6.0 5.7 .. 
Inflation (CPI average, % change)  1.2 2.0 -0.8 2.5 -2.1 3.6 
National accounts (% of GDP at 
current prices)        
Government consumption  30.0 25.8 24.4 24.6 23.8 .. 
Private consumption  40.3 42.8 41.2 37.9 38.9 .. 
Change in inventory  4.3 4.8 4.4 3.1 6.7 .. 
Gross fixed capital formation  29.9 26.1 24.5 21.0 22.1 .. 
Exports of goods & services  33.3 31.1 34.9 40.0 36.0 .. 
Imports of goods & services  37.8 30.7 29.3 26.6 27.6 .. 
Money and credit (% change)        
Money and quasi money (M3)  2.5 0.8 0.3 2.7 7.1 .. 
Net foreign assets  15.4 6.8 12.6 -1.0 1.7 .. 
Net domestic assets   90.5 16.7 16.2 .. .. 
 of which: claims on private sector  9.2 2.4 -0.8 3.0 .. .. 
Interest rate (%)b 0.9 2.1 1.8 2.5 2.6 .. 
Central government finance (% GDP)        
Revenue  25.0 21.5 26.8 30.7 31.2 .. 
 of which: oil  18.2 13.8 16.9 20.7 20.0 .. 
Expenditure  40.8 34.3 36.0 36.6 35.6 .. 
Fiscal balance  -15.8 -12.9 -9.2 -5.9 -4.5 .. 
Public debt  4.9 13.1 17.2 19.0 22.8 .. 
External sector        
Terms of trade (% change)  -44.5 -12.0 23.9 23.5 -4.3 .. 
 
4 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://www.vision2030.gov.sa . 
5 WTO document WT/TPR/S/333/Rev.1, 21 June 2016.  
6 IMF (2020), World Economic Outlook , October, Washington, D.C.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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   2015  2016  2017  2018  2019  2020a 
Real effective exchange rate ( % change )c 9.2 3.0 -2.0 -0.8 -1.1 .. 
Current account (% GDP)  -8.7 -3.7 1.5 9.2 4.8 -2.5 
Trade in goods & services (% GDP)d 71.0 61.9 64.2 66.7 63.7 .. 
FDI inflows (% GDP)  1.2 1.2 0.2 0.5 0.6 .. 
SAMA's total net foreign assets 
(USD billion)  608.9  528.6  488.9  489.6  494.0  .. 
 In months of imports of goods & 
servicese 46.3 36.5 33.4 34.1 34.7 .. 
Imports goods & services (% GDP)  37.8 30.7 29.3 26.9 27.6 .. 
Oil exports (% of total exports)  75.2 74.2 76.7 78.6 76.6 .. 
Oil production (million barrels per day)  10.2 10.5 10.0 10.3 9.8 .. 
Price of Arabian Light oil  
(USD per barrel, average)  49.9 41.0 52.6 70.6 65.0 .. 
.. Not available.  
a Projections.  
b Interest rate on domestic currency deposits (three -month SAIBOR yearly average).  
c Negative sign means depreciation.  
d Total exports and imports of goods and services.  
e Next 12 months.  
Source:  General Authority for Statistics. Viewed at: https://www.stats.gov.sa/en ; Saudi Arabian Monetary Authority 
(SAMA). Viewed at: http://www.sam a.gov.sa/en -US/Pages/default.aspx ; and IMF.  
1.6.  On 11 May 2020, the Saudi Government announced a set of measures to deal with the 
economic crisis caused by the COVID -19 pandemic, notably increasing the VAT rate from 5% to 
15%, and reducing capital and operatin g expenditures. At the same time, the Government undertook 
some large expenditures, including free healthcare for all COVID -19 patients regardless of nationality 
and legal presence status, and launching support initiatives for the private sector of more th an 
SAR 218 billion.7 Moreover, on 14 March 2020, the Saudi Arabian Monetary Authority (SAMA) 
announced the introduction of the Private Sector Financing Support Program, with a total value of 
over SAR 51 billion, as at August 2020, to support the Governmen t's efforts to combat the pandemic 
and help the private sector, especially SMEs (Section 1.4).  
1.7.  On 21 April 2020, Saudi Arabia enacted Cabinet Decision No. 559 to increase import tariffs on 
certain goods, e.g. dairy products, juices, vegetables and olive o ils, some chemicals, building 
materials, and vehicles. The changes took effect on 10 June 2020.8 
1.8.  Inflation, as measured by the consumer price index (CPI), averaged 0.6% during the period 
2015-19 (Table 1.1), compared with 3.2% over 2002 -11. In 2019, average inflation contracted by 
2.1%, mainly reflecting decreases in, inter alia, housing, water, electricity, and other fuels. 
For 2020, the IMF estimates an average inflation rate of 3.6%,  driven by increases in housing and 
food prices and continued non -oil growth.9  
1.3  Fiscal Policy  
1.9.  The Fiscal Balance Program (FBP), one of the initiatives of Vision 2030, made significant 
progress in diversifying and stabilizing the Government's revenues. Since the F BP's initiation in 2016, 
non-oil revenues  increased from SAR 186 billion to SAR 332 billion in 2019. This allowed an increase 
in the share of non -oil revenues to total revenues (35.9% in 2019) and, in turn, a reduction in 
Saudi  Arabia's fiscal deficit. Dur ing the review period, the fiscal deficit, as percentage of GDP, went 
from a peak of 15.8% in 2015 to 4.5% in 2019 (Table 1.1).  
1.10.   For 2020, the Government was targeting a fiscal deficit of 6.4% of GDP under the assumption 
that the price of Brent Crude, a crude oil  that serves as a reference price or benchmark for oil 
traders , would average about USD  65 per barrel.10 Saudi Arabia's breakeven oil price depends on 
 
7 KAPSARC, The Fiscal Response to COVID -19 in Saudi Arabia , 26 July 2020. Viewed at: 
https://www.kapsarc.org/research/publications/the -fiscal-response -to-covid-19-in-saudi -arabia/ . 
8 WTO document WT/TPR/ OV/23, 30 November 2020.  
9 IMF (2020), World Economic Outlook , October, Washington, D.C.  
10 "Saudi Arabia's Economy Can Ill Afford Oil -Price War It Began", The Economic Times , 10 March 20 20. 
Viewed at: https://economictimes.indiatimes.com/markets/stocks/news/saudi -arabias -economy -can-ill-afford -
oil-price-war-it-began/articleshow/74562016.cms . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  several factors, including the level of oil production, how much oil revenues are transferred to the 
budget, and how non -oil revenues perform. According to some estimates made before the COVID -19 
pandemic, Saudi  Arabia needed the price of Brent Crude to be between USD  80 and USD  85 to 
balance its fiscal budget in 2020.11 The price of Brent Crude went from a peak of around USD  125 
in 2011 -12 to around USD  20, as countries around the world started implementing lockdown 
measures due to the pandemic, to just over USD  40 in December 2020.  
1.11.   As indicated above, the onset of COVID -19 resulted in unavoidable fi scal shocks to the 
Government's oil and non -oil revenues and its expenditures. To finance the fiscal gap, the 
Government implemented a series of fiscal adjustments, such as expanding planned borrowing in 
2020 from SAR  120 billion to SAR  220 billion. The Go vernment also took some measures to 
compensate for the large reduction in the price of oil, notably earmarking USD  1 billion in fiscal 
stimulus, and tripling its VAT rate (Section 3.1.5).  For 2020, the fiscal deficit is estimated at 12% of 
GDP. 
1.12.   Looking forward, as fiscal policy remains the main driver of economic growth, strengthening 
Saudi Arabia's fiscal space gives the Government the capacity to continue supporting the economy. 
The Government would be able to sustain the expected expenditure levels in th e near term by 
drawing down reserves and increasing borrowing. According to some sources, however, growing 
trade imbalances and fiscal deficits caused by the COVID -19 pandemic are of concern to 
Saudi  Arabia's external creditors and could impact the country 's international borrowing rate, making 
it more expensive to access capital.12 This is even though Saudi Arabia fared better than most 
countries as far as creditworthiness is concerned, especially with respect to private markets. 
Moreover, oversupply and t he increasing competitiveness of cleaner energy sources mean that oil 
may stay cheap for the foreseeable future. In the absence of an oil price recovery in the medium 
term, the Government may need to put in place a fiscal consolidation plan to sustain its Vision  2030 
objectives. The Saudi authorities do  not share the assessment in this paragraph of the Kingdom's 
fiscal prospects.  
1.4  Monetary and Exchange Rate Policy  
1.13.   On 24 November 2020, the Council of Ministers approved a new law changing the name of 
Saudi Ara bian Monetary Authority (SAMA) to the Saudi Central Bank, but keeping the SAMA 
abbreviation. Under the new law, SAMA is linked directly to the King of Saudi  Arabia and will enjoy 
full financial and managerial independence.13 Also, under the new law, SAMA u pdated its mandate 
to include supporting economic growth as one of its prime objectives, formally changing its operating 
principles for the first time in more than 60 years.14 SAMA is vested with the conduct of monetary 
policy, and its key monetary policy objective remains the stability of the Saudi riyal (SAR) exchange 
rate in local and global markets, complemented by protecting the stability and resilience of the 
financial system, expanding and deepening the financial sector, and contributing to the econo mic 
development of the country .15 Saudi Arabia accepted the obligations of Article  VIII of the IMF 
Agreement in the early 1960s. It has no restrictions on capital receipts or payments by residents or 
non-residents.16 
1.14.   Since 1986, the Saudi riyal has been pe gged to the US dollar (SAR 3.75 per  USD), and a 
countercyclical fiscal policy has been used to stabilize the growth path.17 SAMA uses a range of 
 
11 "Saudi A rabia Would Need Oil at $80 -$85 a Barrel to Balance Budget: IMF Official", Reuters , 
11 February 2019. Viewed at: https://www.reuters.com/article/us -saudi -economy -imf/saudi -arabia -would -
need-oil-at-80-85-a-barrel -to-balance -budget -imf-official -idUSKCN1Q01N0 . The authorities consider that this 
estimate of the oil price needed to balance the budget is o utdated and in any event irrelevant  
12 KAPSARC, The Fiscal Response to COVID -19 in Saudi Arabia , 26 July 2020. Viewed at: 
https://www.kapsarc.org/ research/publications/the -fiscal-response -to-covid-19-in-saudi -arabia/ . 
13 Arab News , 25 November 2020.  
14 Bloomberg , 26 November 2020.  
15 Saudi Arabian Monetary Authority (2020), 56th Annual Report 1441H -2020, Riyadh.  
16 IMF (2019), Saudi Arabia: 2019 Article IV Consultation – Press Release and Staff Report , IMF Country 
Report No. 19/290, p. 4. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/09/09/Saudi -Arabia -
2019-Article -IV-Consultation -Press -Release -and-Staff-Report -48659 . 
17 The Government runs a fiscal surplus when oil exports are strong, and the economy is in external 
surplus. When oil exports weaken, foreign exchange assets are utilized, and the Government boosts domestic 
demand by deficit spending.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  monetary tools to achieve this goal, including repo and reverse repo rates18, open market operations, 
and reser ves requirements, as well as foreign exchange swaps and direct deposits, and other 
monetary tools available to manage liquidity.  
1.15.   According to the IMF, the r iyal peg to the US dollar remains the best exchange rate option, 
and it provides Saudi Arabia with a longstanding and credible policy anchor. A  move away from the 
peg would remove a credible monetary anchor, increase uncertainty, and have limited benefits for 
competitiveness in the near term.  Given the close link between the fiscal and external bal ance and 
the structure of the economy, with exports dominated by oil and oil -related products and limited 
substitutability between imports and domestically produced goods , external adjustment will be 
driven by fiscal policy rather than the exchange rate.19 
1.16.   Based in Riyadh, the Gulf Monetary Council (GMCO) was founded in March 2010 as a regional 
economic organization. GMCO's membership is open only to countries of the Gulf Cooperation Council 
(GCC). In June 2009, the current GMCO members (the Kingdom of Bahr ain, the State of Kuwait, 
Qatar, and Saudi Arabia) signed an agreement to form a monetary union; the agreement was ratified 
and entered into force in March 2010; however, the date for adoption of a single currency is yet to 
be determined.  
1.17.   As part of its ro le in preserving financial stability and helping the Government's efforts to 
combat the COVID -19 pandemic, SAMA injected over SAR  51 billion into the banking sector as at 
August 202 0. To support banking liquidity and enable banks to continue providing cred it facilities for 
the private sector, especially SMEs, the Private Sector Financing Support Program includes the 
Deferred Payments Program (extended in September until December 2020), the Funding for Lending 
Program, the Loan Guarantee Program, and support  of point -of-sale and e -commerce transaction 
fees for the private sector.  
1.5  Balance of Payments  
1.18.   During the review period, the current account balance fluctuated from a deficit of 8.7% of 
GDP in 2015 to a surplus of 9.2% of GDP in 2018, reaching a surplus of  4.8% in 2019 (Table 1.1). 
This evolution in the current account can be attributed primarily to movements in the value of oil 
exports over the period (Table 1.2). However, the most significant change in the balance of 
payments took place in the financial a ccount, which went from d eficits in 2015 -16 to surpluses 
thereafter  largely  due to increases in net acquisition of financial assets.  
1.19.   SAMA's total net foreign assets decreased from USD  608.9 billion in 2015 to USD  494.0  billion 
in 2019. Moreover, SAMA's ne t foreign assets are down about a third from their 2014 peak. The IMF 
expects current account deficits, as percentage of GDP, of 2.5% and 1.6% for 2020 and 2021, 
respectively, mainly as a result of the COVID -19 pandemic.20 
Table 1.2 Balance of payments, 2015 -19 
(USD billion)  
  2015  2016a 2017a 2018a 2019b 
Current account  -56.7 -23.8 10.5 72.0 38.2 
 Goods and services  -29.3 2.7 38.0 105.3  66.9 
 Goods  44.3 55.8 98.5 168.7  121.3  
 Credit  203.5  183.6  221.9  294.4  261.6  
 Debit 159.3  127.8  123.4  125.6  140.3  
 General merchandise  46.7 57.0 100.2  171.2  122.6  
 Credit  203.2  182.8  221.3  293.9  260.8  
 Oil exports  152.9  136.2  170.2  231.6  200.5  
 Non-oil exports  50.3 46.6 51.1 62.3 60.3 
 Debit 156.5  125.8  121.1  122.7  138.2  
 of which: Re -exports (credit)  8.6 8.0 8.5 8.5 11.2 
 Nonmonetary gold  -2.4 -1.3 -1.8 -2.4 -1.3 
 
18 The repo rate is the rate at which banks borrow funds from SAMA overnight, while the reverse repo 
rate is the rate at which banks deposit  their excess liquidity overnight.  
19 IMF (2019), Saudi Arabia: 2019 Article IV Consultation – Press Release and Staff Report , IMF Country 
Report No. 19/290.  
20 IMF (2020), World Economic Outlook , October, Washington, D.C.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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    2015  2016a 2017a 2018a 2019b 
 Credit  0.3 0.8 0.6 0.5 0.8 
 Debit 2.7 2.0 2.3 2.9 2.1 
 Services  -73.6 -53.0 -60.4 -63.4 -54.4 
 Credit  14.5 17.3 18.1 20.5 24.2 
 Debit 88.0 70.3 78.6 84.0 78.7 
 Primary income  17.3 15.7 10.7 7.7 7.9 
 Credit  25.6 24.0 18.9 19.5 20.6 
 Debit 8.3 8.2 8.2 11.8 12.7 
 Secondary income  -44.7 -42.3 -38.3 -41.1 -36.6 
 General government  -6.5 -4.9 -2.6 -7.8 -6.0 
 Financial corporations, nonfinancial corporations, 
 households, and non-profit institutions serving 
 households (NPISHs ) -38.2 -37.5 -35.7 -33.2 -30.6 
 Personal transfers  -37.8 -37.0 -35.3 -33.0 -30.3 
 Credit  0.0 0.0 0.0 0.0 0.0 
 Debit 37.8 37.0 35.3 33.0 30.3 
 of which: Workers' remittances  37.8 37.0 35.3 33.0 30.3 
 Other current transfers  -0.4 -0.5 -0.3 -0.3 -0.3 
Capital account  -1.1 -0.9 -1.8 -2.3 -1.7 
Financial account  -73.1 -91.4 7.5 68.8 36.2 
 Direct investment  -2.8 1.5 5.9 15.0 9.0 
 Net acquisition of financial assets  5.4 8.9 7.3 19.3 13.5 
 Net incurrence of liabilities  8.1 7.5 1.4 4.2 4.6 
 Portfolio investment  10.8 -11.4 -2.5 12.0 -11.5 
 Net acquisition of financial assets  10.4 5.4 19.2 28.5 34.6 
 Net incurrence of liabilities  -0.3 16.8 21.7 16.5 46.1 
 Other investment  34.8 -0.8 43.5 41.6 35.7 
 Net acquisition of financial assets  38.7 8.2 47.8 53.3 55.7 
 Net incurrence of liabilities  3.9 9.0 4.2 11.7 20.0 
 Reserve assets  -115.9  -80.6 -39.4 0.2 3.0 
Net errors and omissions  -15.3 -66.6 -1.2 -0.8 -0.3 
a Preliminary.  
b Estimated.  
Source:  SAMA, Monthly Bulletin October 2020 . Viewed at: http://www.sama.gov.sa/en -
US/EconomicReports/Pages/MonthlyStatistics.aspx . 
1.6  Developments in Trade and Investment  
1.6.1   Trends and patterns in merchandise and services trade  
1.20.   Saudi Arabia's economy is dependent on international trade, albeit decreasingly: the ratio of 
merchandise and services trade (exports and imports) to GDP went down from 71.0% in 2015 to 
63.7% in 2019 (Table 1.1). This fall is largely due to a reduction of im ports of goods and services, 
as a percentage of GDP, from 37.8% to 27.6%. In 2018, Saudi  Arabia ranked 15th among world 
merchandise exporters and 22nd among importers (considering the countries of the European Union 
together and excluding intra -EU trade). In services trade, Saudi Arabia ranked 28th among exporters 
and 16th among importers.21 
1.6.1.1   Merchandise trade  
1.21.   Saudi Arabia's exports continued to be dominated by mineral products (mainly oil), which 
accounted for 77.0% of total merchandise exports in 2019, com pared with 75.3% in 2015 (Chart  1.2 
and Table A1.1). The share of fuels in total merchandise exports depends largely on the evolution 
of Arabian oil world prices and Saudi Arabia's quota production within the Organization of Petroleum 
Exporting Countries (OPEC). Non -oil exports are led by plastics and rubber (7.4% of total 
merchandise exports in 2019) and chemicals (7.1%).  
 
21 WTO Statistics database, Trade Pr ofiles: Saudi Arabia . Viewed at: http://stat.wto.org/Country 
Profiles/SA_e.htm . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Chart 1.2 Merchandise trade by main products, 2015 and 2019  
Source:  WTO Secre tariat's calculations, based on General Authority for Statistics data.  
1.22.   Asia accounted for 60.5% of merchandise exports in 2019 (up from 55.2% in 2015), led by 
China, with a share of 18.3% in 2019 (12.1% in 2015), followed by India and Japan (Chart 1.3). 
The European  Union is also a major destination of merchandise exports, with 13.1% in 2019 (12.1% 
in 2015), while the United  States' share dropped from 10.5% in 2015 to 5.0% in 2019. 
Gulf Cooperation Council (GCC) countries  represented 9.1% of merchandise exp orts in 2019, down 
from 10.4% in 2015 (Table A1.3).  
1.23.   As in most countries, the structure of Saudi Arabia's imports is much less concentrated than 
exports. The largest single import category continues to be machinery and electrical equipment 
(20.9% of mercha ndise imports in 2019), followed by transport equipment (20.6%) and chemicals 
Chart 1.[SAU]
Production composition of merchandise trade, 2015 and 2019
2015 2019
Exports (f.o.b.)
Mineral 
products
75.3%Transport 
equipment
2.3%
Other
6.2%Chemicals and 
products thereof
7.1%
Plastics and rubber 
7.4%
Mineral 
products
77.0%
Total:   USD 203.6 billion Total:  USD 261.6 billion
Imports (c.i.f.)
Transport equipment
18.4%Chemicals and products 
thereof
8.4%Base metals and 
articles thereof
9.8%Vegetable products
5.2%Prepared food, 
beverages
and tobacco 4.7%Plastics and
rubber
3.4%
Textiles and textile 
articles 3.3%
Machinery, 
electrical 
equipment
27.2%Other 15.9%Live animals and 
products 3.7%
Machinery, 
electrical 
equipment
20.9%
Transport 
equipment
20.6%Chemicals 
and products 
thereof
9.4%Base metals and 
articles thereof
8.5%Vegetable 
products
5.4%Prepared food, 
beverages and 
tobacco 4.8%Textiles and 
textile articles 
4.0%Plastics 
and rubber
3.6%Other 19.5%Live animals and 
products 3.4%
Total:   USD 174.7 billion Total:   USD 153.2 billionOther
7.1%Chemicals and 
products thereof
7.7%
Source:  WTO Secretariat's calculations, based on General Authority for Statistics.Plastics and rubber
7.6%Transport 
equipment
2.3%WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  (9.4%) ( Chart 1.2  and Table A1.2). Nonetheless, the share of machinery and electrical equipment 
in the import bill has fallen due to decreased capital and development expenditure  by 
the Government.  
Chart 1.3 Direction of merchandise trade, 2015 and 2019  
 
Source:  WTO Secretariat's calculations, based on General Authority for Statistics data.  
1.24.   In 2019, Saudi Arabia's largest import supplier was the European  Union, led by Germany and 
France, with 23.5% share, followed by China (18.4%) and the United  States (12.4%) ( Chart 1.3  
and Table A1.4). Asia accounted for 38.8% of merchandise imports in 2019, the same as in 2015. 
GCC count ries represented 9.6% of Saudi Arabia's merchandise imports in 2019, up from 7.4% in 
2015.  
Chart 1.[SAU]
Direction of merchandise trade, 2015 and 2019
2015 2019
Exports (f.o.b.)
Asia
55.2%
Gulf Cooperation 
Council (GCC)
9.1%Other 
5.3%Asia
60.5%
Total:   USD 203.6 billion Total:  USD 261.6 billion
Imports (c.i.f.)
EU-28
25.6%United States
13.7%
Turkey 
1.9%India 
3.4%
Gulf Cooperation 
Council (GCC)
7.4%
EU-28
23.5%Turkey 
2.1%Gulf Cooperation 
Council (GCC)
9.6%India 
4.3%
Other Asia
9.0%
Other 
10.0%
United States
12.4%
Total:   USD 174.7 billion Total:   USD 153.2 billionJapan
10.6%
Korea, 
Rep. of
2.7%Korea, 
Rep. of  
5.7%United States
10.5%United States
5.0%
Source:  WTO Secretariat's calculations, based on General Authority for Statistics .Japan
4.4%
Other 
9.1%EU-28
13.1%
Africa 
6.1%
Japan
5.7%China
18.3%
EU-28
12.1%Other Asia
10.6%
China
12.1%
Gulf Cooperation 
Council (GCC)
10.4%Japan
10.2%
China
18.4%Other Asia
10.4%
Africa
3.5%Other Asia
9.9%Korea, Rep. of
8.7%
Africa 6.9%
China
14.1%
Asia 
38.8%Asia
38.8%
Africa
3.6%Korea, Rep. of
8.0%
India  
10.3%Singapore 
3.3%
India  9.4 %Singapore 3.8%
Other 
5.7%WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  1.6.1.2   Services trade  
1.25.   Balance -of-payments data indicate that Saudi Arabia is a net importer of services, with a 
deficit averaging USD  61.0 billion per year during 2015 -19, peaking at USD  73.6 billion in 2015. 
However, services exports increased significantly during the same period, from USD  14.5 billion in 
2015 to U SD 24.2 billion in 2019  (Table 1.3). Saudi Arabia is a major site for religious tourism, with 
millions visiting the country to perform the Hajj and Umrah pilgrimages to the holy city of Makkah. 
On the import side, government -related services constitute alm ost a third of services imports, 
followed by transport (2 2.5% in 2019) and travel (19. 2% in 2019).  
Table 1.3 Trade in services by sector , 2015 -19 
(USD billion, %)  
  2015  2016a 2017a 2018a 2019b 
Trade balance (USD billion)  -73.6 -53.0 -60.4 -63.4 -54.4 
Exports (USD billion)  14.5 17.3 18.1 20.5 24.2  
(% of total exports)  
 Transport  19.7 25.4 23.7 22.0 19.6 
 Passenger  7.3 13.6 16.3 15.5 14.1 
 Freight  6.3 5.6 4.5 4.0 2.7 
 Other  6.2 6.3 2.9 2.4 2.7 
 Travel  70.0 64.3 66.5 67.2 67.8 
 Construction  0.0 0.0 0.0 0.0 0.0 
 Insurance and pension services  2.1 1.3 0.3 0.4 0.3 
 Financial services  1.7 3.3 3.7 1.5 2.5 
 Telecommunications  1.7 1.6 1.9 5.6 6.5 
 Other business services  0.1 0.1 0.1 0.1 0.4 
 Government goods and services  4.6 4.0 3.8 3.3 2.9 
Imports (USD billion)  88.0 70.3 78.6 84.0 78.7  
(% of total exports)  
 Transport  22.8 23.3 20.1 18.7 22.5 
 Passenger  1.2 1.4 1.9 1.5 1.6 
 Freight  20.9 19.8 16.6 15.9 18.9 
 Other  0.8 2.1 1.5 1.3 1.9 
 Travel  22.0 23.7 22.3 19.8 19.2 
 Construction  5.6 7.9 7.1 7.6 9.0 
 Insurance and pension services  2.4 2.2 1.9 2.0 2.3 
 Financial services  0.9 1.3 1.9 3.0 2.4 
 Telecommunications  3.3 3.9 3.7 2.0 2.2 
 Other business services  6.2 8.9 12.0 12.4 12.7 
 Government goods and services  36.7 28.7 30.9 34.4 29.8 
a Preliminary.  
b Estimated.  
Source:  SAMA, Monthly Bulletin October 2020 . Viewed at: http://www.sama.gov.sa/en -
US/EconomicReports/Pages/MonthlyStatistics.aspx . 
1.6.2   Trends and patterns in FDI  
1.26.   A key objective of Vision 2030 is to promote and facilitate foreig n investment and increase its 
GDP share from 3.8% to 5.7%.22 FDI inflows declined steadily over the last decade, when they were 
over three times higher than today. Inward FDI averaged USD  5.2 billion per year during 2015 -19, 
compared with an annual average  of USD  18.2 billio n in 2005-07, while the stock of FDI in 2019 
stood at USD  236 billion (Table 1.4).  
Table 1.4 FDI, 2015 -19 
(USD million)  
 2015  2016  2017  2018  2019  
FDI inflows  8,141  7,453  1,419  4,247  4,563  
FDI inward stock  224,050  231,502  227,566  231,814  236,370  
FDI inward stock (% of GDP)  34.3 36.0 33.1 29.4 29.7 
FDI outflows  5,390  8,936  7,280  19,252  13,547  
 
22 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://www.vis ion2030.gov.sa . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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   2015  2016  2017  2018  2019  
FDI outward stock  63,121  73,973  84,437  104,613  122,917  
FDI outward stock (% of GDP)  9.6 11.5 12.3 13.4 15.5 
Source:  UNCTAD (2020), World Investment Report 2020 , Geneva; and information provided by the 
authorities.  
1.27.   In line with Vision 2030, Saudi Arabia is implementing several reforms to attract larger FDI 
inflows, including approving the inv estment policy principles to encourage local and foreign 
investment ( Box 2.1 ). During the review period, several activities were removed from the negative 
list and opened to foreign investment (Section 2.4 ). 
1.28.   Moreover, in 2019, the Saudi Arabian General Inve stment Authority (SAGIA) was transformed 
into the Ministry of Investment (MISA) to add power and capacity to help increase Saudi  Arabia's 
effectiveness in attracting local and foreign investments. MISA implemented, inter alia , the following 
reforms: reduced the foreign investment licence requirements to two  documents; launched instant 
licence and renewal; automated post services (licence renewal, company activities amendment, 
adding branches); reduced the time to issue new lic enses (from an average of 53 hours to less than 
4 hours); and extended the validity of the foreign investment licence to five years (rather than being 
renewed annually).  
1.29.   During the review period, Saudi Arabia also established a one -stop shop for company 
incorporation, and made importing and exporting faster by enhancing the electronic trade single 
window (Section 3.1.1). Other reforms led to improving access to credit, strengthening minority 
invest or protections, and facilitating the resolution of insolvency.23  
1.30.   As a result of these measures, Saudi Arabia became the most improved country for doing 
business according to the World Bank's Ease of Doing Business 2020 Index; its world ranking is 
62nd out of 190 economies (up from 92nd a year before).24 Nonetheless, Saudi Arabia was ranked 
49th based on the World Bank's Ease of Doing Business 2015 Index.25 
1.31.   Saudi Arabia is among the top five economies in the world in terms of FDI outflows, with 
annual outfl ows averaging over USD  10 billion during 2015 -19 (against USD  175 million in 2005 -07), 
reaching a peak of USD  19.3 billion in 2018.  FDI outward stock  as percentage of GDP rose from 
9.7% in 2015 to 15.5% in 2019  (Table 1.4) . Saudi  Arabia is  increasing its investments in the rest of 
the world, primarily in technology, finance, and infrastructure activities, driven by an investment 
push from its PIF and large private investors.26 
 
23 World Bank, Ease of Doing Business in Saudi Arabia . Viewed at: 
https://www.doingbusiness.org/en/data/exploreeconomies/saudi -arabia# . 
24 The index is based on 10 topics (Saudi Arabia's ranking in parentheses), i.e. starting a business (38); 
dealing with construction permits (28); getting electricity (19); registering property (19); getting credit (80); 
protecting minority investors (3); paying taxes (57); tra ding across borders (86); enforcing contracts (51); 
and resolving insolvency (168). World Bank, Ease of Doing Business in Saudi Arabia . Viewed at: 
https://www.doingbusiness .org/en/data/exploreeconomies/saudi -arabia# . 
25 World Bank (2014), Doing Business 2015: Going Beyond Efficiency . Viewed at: 
https://www.doingbusiness.org/en/reports/global -reports/doing -business -2015. 
26 UNCTAD (2020), World Investment Report 2020 , Geneva.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  The Kingdom of Saudi Arabia is a monarchy. The King is the head of State, Government, and 
the judiciary, and is the Commander in Chief of the military forces. As Prime Minister, the King 
presides over the Council of Ministers ( Majlis al -Wuzarā ), which has both executive and legislative 
functions. The Council of Ministers is composed of 38 government and state ministers. Since 2015, 
the Crown Prince has served as Deputy Prime Minister in the Council of Ministers, as per appointment 
by the King.  
2.2.  The Consu ltative Council ( Majlis al -Shūrā ) is a unicameral quasi -legislative body, which has the 
power to propose legislation, together with the Council of Ministers, for the King's approval. The 
Consultative Council is composed of 150 members, all of whom are appo inted by the King. Since 
2013, it has included 30 women members. Municipal elections are held every five years. There are 
no political parties.  
2.3.  Saudi Arabia's legal and judiciary systems are based on the Shariah (Islamic law). The 
independence of the judic iary is enshrined in Article 46 of the Basic Law of Governance.1 The judicial 
system consists of: (i) courts of first instance (i.e. general courts, personal status courts, commercial 
courts, labour courts, criminal courts, and enforcement courts); (ii) a ppeal courts; and (iii) the 
Supreme Court. In addition, the Board of Grievances hears cases that involve government 
administrative decisions, including commercial disputes between government agencies and private 
contractors.2 There are also committees wit hin government ministries that address disputes under 
their respective jurisdictions, such as those related to banking, insurance , and other financial 
matters. The legal system allows for the adjudication of commercial disputes through arbitration  
(Paragra ph 2.66) . In 2016, the Saudi Center for Commercial Arbitration (SCCA) was established, 
with the objective of enhancing commercial dispute resolution.  
2.4.  In order to improve the climate for local and foreign investment, in recent years, the 
Government took measures to modernize the judiciary; these include the creation of specialized 
courts, the training of judges, measures to expedite cases and reduce caseloads, rules to improve 
the enforcement of domestic and foreign judgements3, and the codification of juri sprudence. In 
September 2017, commercial courts4 were opened in several major cities, with jurisdiction over: all 
commercial disputes; lawsuits filed against natural and corporate persons in relation to their 
business; disputes among partners/shareholders  in corporations; cases involving violations of 
commercial law (without prejudice to the jurisdiction of the Board of Grievances); and bankruptcy 
cases.5 In February 2018, the Ministry of Justice issued new rules for commercial courts, mainly 
aimed at exp editing judicial proceedings and improving the quality of rulings. Also, in early 2018, 
a compilation of legal principles and precedents was published, and further efforts at codifying 
jurisprudence are ongoing. In November 2018, seven specialized labour c ourts were established, 
with the aim of boosting the labour market and creating a conducive investment climate.6  
2.5.  The Basic Law of Governance, 1993 , serves as the constitutional framework, and stipulates 
that the Shariah is the bedrock of the Kingdom.7 Over the years, the Shariah has been supplemented 
by an evolving body of laws and regulations issued through royal decrees and other legal 
instruments. Trade policy and other related policies (such as intellectual property, and corporate 
 
1 Basic Law of Governance, Royal Decree No. A/90 of 27/8/1412H (1993).  
2 Royal Decree No. M/78, 1 October 2007.  
3 The Enforc ement Law was promulgated by Royal Decree No. M/53 in March 2013, and enforcement 
courts were established in 2014.  
4 Commercial courts came into being four years after the Law establishing their jurisdiction was passed 
(Law of Procedure  before Shariah Courts , Royal Decree No. M/1 of 22/01/1435H, 25 November 2013).  
5 Basrawi, A., The Development of the Judicial System in Saudi Arabia under Vision 2030 , March  2018. 
Viewed at: https://www.tamimi.com/law -update -articles/the -development -of-the-judicial -system -in-saudi -
arabia -under -vision -2030/ . 
6 Asharq Al -Awsat, Seven Labor Courts Inaugurated Across KSA to Attract Inves tment , 
26 November  2018. Viewed at: https://aawsat.com/english/home/article/1479306/seven -labor-courts -
inaugurated -across -ksa-attract-investment . 
7 The Basic Law of Governance states that the Qur'an and the life and traditions of the Prophet 
Muhammad (Sunnah) represent the Kingdom's Constitution.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  law) are implemente d by means of such legal instruments. These are, in order of precedence, the 
following:  
• royal decrees: issued by the King to enact primary legislation and amendments approved 
by the Council of Ministers, and to approve international treaties;  
• royal orders : issued by the King; may address any matter;  
• Council of Ministers decisions: promulgate implementing regulations regarding specific 
issues in primary legislation for which there are no royal decrees or orders;  
• ministerial decisions: issued to make impleme nting regulations effective; and  
• circulars: issued by ministries to clarify regulations pursuant to a piece of legislation.  
2.6.  The legislative process has not changed since the last Review. The Consultative Council and 
the Council of Ministers review draft le gislation submitted by government ministries and agencies, 
and propose it to the King for approval. I n case of divergent views between  the two bodies, the King 
decides. Approved legislation is enacted through a royal decree. All legal instruments are publi shed 
in the Official Gazette8 and enter into force on the date of publication, unless otherwise specified. 
Following their ratification and enactment by royal decree, international agreements are applicable 
as domestic law. The authorities indicated that,  should there be any inconsistencies between 
international agreements and domestic law, the former appl y.  
2.7.  A significant development in Saudi Arabia's overall legal and policy framework since its previous 
Review was the launching of Vision 2030 in April 20 16. This is an ambitious strategic plan designed 
to modernize and diversify the Saudi economy, mainly by reducing its dependence on oil, developing 
alternative sources of revenue, and increasing the participation of the private sector in the economy. 
It also aims to improve the efficiency of government services, and transform the Saudi  society into 
a more modern and inclusive one. The plan, prepared by the Council of Economic and Development 
Affairs9, has three main pillars: the status of Saudi Arabia as t he "heart of the Arab and Islamic 
worlds"; its determination to become a global investment powerhouse; and the transformation of 
the country into a hub connecting Asia, Europe, and Africa.  
2.8.  Vision 2030 is developed around three main themes, namely: a vibra nt society; a thriving 
economy; and an ambitious nation. For each theme, the plan sets out specific objectives, 
programmes , and measurable targets to be achieved by 2030.10 Under the theme "a thriving 
economy", multiple initiatives are envisaged. These inc lude: creating more private -sector jobs for 
Saudi nationals, and increasing the participation of women in the workforce; supporting SMEs; 
increasing investment in non -oil sectors ( i.e. renewable energy , industrial equipment , tourism and 
leisure , retail, digital economy , and financial services); increasing domestic production and 
procurement through local -content measures; privatizing state -owned assets and government 
services (such as health, education, and housing); listing the national oil company ( Saudi  Aramco)  
on the stock exchange ; deregulating the energy market; and reducing energy subsidies.  
2.9.  The plan also envisages improving the business environment to attract foreign and local 
investment, including through the strict application of international commercial regulations, trade 
facilitation, and the simplification of customs procedures; and the establishment of special zones 
dedicated to logistics, tourism, and industrial and financial activities.  
2.10.   In addition, in order to leverage the country's geographical position and transform it into a 
regional logistics hub, Saudi Arabia intends to complete and improve its transport infrastructure, 
internally and across borders, through public -private partnersh ips. As stated in Vision 2030, a top 
priority is to strengthen and extend the country's interconnectivity and economic integration with 
other Gulf Cooperation Council (GCC) countries by completing the implementation of the GCC 
 
8 Umm al -Qura. Viewed at:  https://www.uqn.gov.sa/ . 
9 The Council of Economic and Development Affairs, established in 2015, is responsible for setting the 
overall governance, mechanisms, and measures necessary to achieve Vision 2030. It is presi ded over by the 
Crown Prince, and is composed of all the cabinet ministers and heads of other agencies.  
10 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: 
https://vision2030.gov.sa/sites/default/files/report/Saudi_Vision2030_EN_2017.pdf . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  common market, unifying custo ms and other economic policies, and building road and railway 
networks.11 Under the theme "an ambitious nation", the plan envisages enhancing the efficiency of 
government, including through accelerating decision -making processes and further developing 
e-government services , embracing standards of transparency and accountability , monitoring 
performance , and improving the management of public finances.  
2.11.   The implementation of Vision 2030 is supervised by the National Center for Performance 
Measurement, the Deli very Unit, and the Project Management Office of the Council of Economic and 
Development Affairs. The National Transformation Program (NTP), launched in 2016, is a package 
of state regulatory and policy reforms to be rolled out within a period of five years , with the 
overarching goal of making the private sector the main driver of the national economy. The NTP is 
the first of three phases  that are expected to lead towards the achievement of the goals and targets 
of Vision 2030. Other sectoral programmes, inc luding the National Industrial Development and 
Logistics Program, have also been issued, and are at different phases of implementation.  
2.12.   The authorities indicated that Vision 2030 is currently being reviewed.  
2.13.   As part of the multiple initiatives envisaged i n Vision 2030, Saudi Arabia is undertaking 
massive construction and infrastructure projects, including, notably, the establishment of a new city, 
NEOM, a USD  500 billion special economic zone that will function as an urban -scale technology 
incubator in the  northwest of the country.12 Financing for the mega -projects and other programmes 
under Vision 2030 is managed through the Public Investment Fund (PIF), the nation's sovereign 
wealth fund. PIF funds were increased with the sale of a 1.5% stake in the state -owned oil company, 
Saudi  Aramco, in December 2019, which raised USD  25.6 billion. However, the costs of the measures 
taken by the Government to fight the COVID -19 pandemic , together with the recent collapse of 
global oil prices, and their impact on public  finances could affect the pace and scale of the 
implementation of Vision 2030. On 11 May 2020, the Government announced a set of measures to 
deal with the economic crisis caused by the pandemic, including an increase of the VAT rate (from 
5% to 15%), the suspension of cost -of-living allowances for state employees since 1  June 2020, and 
reductions in capital and operating expenditures.13 
2.14.   Regarding the structure of government, some important institutional changes have taken 
place since the last Review, which  are also aligned to the objectives of Vision 2030. Table 2.1 
summarizes the changes related to the institutional framework for trade and investment. The 
establishment of the General Authority for Foreign Trade (GAFT), and the transformation of the 
Saudi A rabian General Investment Authority (SAGIA) into the Ministry of Investment (MISA) , are 
discussed in Sections 2.2 and 2.4, respectively.  
Table 2.1 Institutional changes related to trade and investment, 2016 -20 
Institution established/transformed  Legal instrument  
General Authority for Foreign Trade (GAFT)  Council of Ministers Resolution No. 211, 3 January 2019  
Ministry of Investment (MISA)  
(transformed from the Saudi Arabian General 
Investment Authority (SAGIA))  Royal Decree No. A/455, 25 February 2020  
 
Ministry of Commerce  
(transformed from the Ministry of Commerce and 
Investment)  Royal Decree No. A/455, 25 February 2020  
 
Saudi General Authority for Intellectual Property 
(SAIP)  Council of Min isters Decision No. 410, 27 March 2017  
Local Content and Government Procurement 
Authority  Royal Decree No. A/168, 13 December 2018  
Ministry of Energy  
(transformed from Ministry of Energy, Industr y 
and Mineral Resources)  Royal Decree No. A/472, 31 August 2019 
Ministry of Industry and Mineral Resources  Royal Decree No. A/472, 31 August 2019  
 
11 Kingdom of Saudi Arabia, Vision 2030 .  
12 Other mega -projects are the Riyadh metro project; the King Abdullah Financial District, a commercial 
centre development in the capit al; the Red Sea Project, a luxury tourism and leisure mega -development  on the 
western coast; and the new city, Qiddiya, the planned home for a nascent Saudi entertainment industry 
located southwest of Riyadh.  
13 "Twin Shocks Threaten Saudi Crown Prince's Gr and Reform Plans", Financial Times,  11 May 2020. 
Viewed at: https://www.ft.com/content/351005d6 -6478-41c6-b7aa-04ea8bdda350 . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Institution established/transformed  Legal instrument  
Ministry of Tourism  
(replacing Saudi Commission for Tourism and 
National Heritage)  Royal Decree No. A/455, 25 February 2020  
Ministry of Human Resources and Social 
Development (transformed from Ministry of 
Labour and Social Development)  Royal Decree No. A/455, 25 February 2020  
Ministry of Sports  
(replacing the General Authority for Sports)  Royal Decree No. A/455, 25 February 2020  
General Authority for Exhibition and Convention  Royal Decree No. A/154, 27 December 2018  
General Entertainment Authority (GEA)  Supreme Order, 7 May 2016  
Source:  Information provided by the authorities.  
2.15.   The measures implemented by the Government to create a more favourable business 
environment enabled Saudi Arabia to improve its rankings in some world economic indicators in the 
last few years. For example, the Saudi economy was ranked 83rd (out of 180) in the 2020 Index of 
Economic Freedom, up from 91st in 2019.14 Likewise, in the World Bank's Doing Business 2020 
report, Saudi Arabia was classified among the 10 countries with the most notable improvements 
regarding ease of doing business in 2019. While Saudi Arabia did improve its scores in some areas 
such as start ing a business, registering property , and protecting minority investors, its scores were 
somewhat lower regarding enforcing contracts and resolving insolvency.15 This suggests that there 
might still be room for improvement in areas such as the enforcement of commercial contracts, the 
application of the new bankruptcy law (effective in August 2018; see below), and the overall legal 
framework for the resolution of commercial disputes.  
2.16.   Saudi Arabia ranked 51st (out of 180 economies) in the Corruption Percepti ons Index in 2019, 
improving from 58th in 2018.16 Saudi Arabia has been a party to the United Nations Convention 
against Corruption since January 2013. Key domestic institutions to combat corruption and enhance 
accountability include the National Anti -Corruption Commission and the General Auditing Bureau. In 
its 2019 Article  IV consultations report, the IMF noted that "Fiscal transparency is critical to support 
the efficient allocation of government resources, ensure government accountability, and reduce th e 
risks of corruption". It also underscored the importance of continuing reforms to enhance the 
governance and anti -corruption framework.17 Issues have been raised by some other analysts 
regarding transparency and accountability, in particular concerning  financial and budgetary affairs.18  
2.17.   In 2018, the Government introduced reforms concerning the status of women in society,  
including entitling them to obtain passports and travel abroad without the approval of a male 
guardian, and allowing them to drive cars .  
2.2  Trade Policy Formulation and Objectives  
2.18.   During the review period, there was a significant change in Saudi Arabia's institutional 
framework for trade policy formulation and implementation. The General Authority for Foreign Trade 
(GAFT) was established in  January 2019 as a separate public entity to take over all the 
responsibilities related to foreign trade that were previously carried out by the Ministry of 
Commerce.19 The GAFT is currently responsible for all trade policy matters, including n egotiating 
 
14 Heritage Foundation, 2020 Index of Economic Freed om. Viewed at: 
https://www.heritage.org/index/country/saudiarabia , and https://www.heritage.org/index/book/chapter -3. 
15 World B ank Group, Doing Business 2020, Economy Profile, Saudi Arabia . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/s/saudi -arabia/SAU.pdf . 
16 Transparency International, Corruption Perceptions Index 2019 . Viewed at: 
https://www.transparency.org/files/content/pages/2019_CPI_Report_EN.pdf . 
17 IMF, Saudi Arabia: 2019 Article  IV Consultation -Press Release and Staff Report , 9 Se ptember. IMF 
Country Report No. 19/290, pp.19 and 23. Viewed at: 
https://www.imf.org/en/Publications/CR/ Issues/2019/09/09/Saudi -Arabia -2019-Article -IV-Consultation -Press -
Release -and-Staff-Report -48659 . 
18 Transparency International, Transparency International Anti -Corruption Helpdesk Answer, An 
Overview of Corruption and Anti -corruption in Saudi Arabia . Viewe d at: 
https://knowledgehub.transparency.org/assets/uploads/helpdesk/Country -profile -Saudi -Arabia -2020__PR.pdf . 
19 The Ministry used to be  called the Ministry of Commerce and Investment, until the creation of the 
MISA in February 2020.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  international trade agreements, ensuring Saudi Arabia's compliance with its WTO  obligations, and 
representing the Kingdom in the WTO and other international economic org anizations.  
2.19.   In formulating trade policy, the GAFT coordinates with relevant ministries and agencies. The 
Board of Directors of the GAFT is headed by the Minister of Commerce, and includes representatives 
from the Ministry of Foreign Affairs ; the Ministry of Investment;  the Ministry of Transport ; the 
Ministry of Finance ; the Ministry of Environment, Water and Agriculture ; the Ministry of Energy ; the 
Ministry of Industry and Mineral Resources ; the Ministry of Economy and Planning ; and the 
Saudi  Food and Drug  Authority.20  
2.20.   The GAFT leads the Saudi Negotiating Team in charge of foreign trade negotiations, including 
WTO-related matters. The Team comprises the heads of the technical negotiating teams in the areas 
of goods, services, investment, origin, e -commerce , general provisions, intellectual property rights , 
and government procurement.  
2.21.   The private sector contributes to the formulation of trade policy by providing inputs and 
feedback, either directly to the GAFT or through the Council of Saudi Chambers, which  includes 
28 chambers of commerce and industry, representing various sectors and regions across the 
country.21 
2.22.   Trade policy objectives are guided by Vision 2030. Accordingly, the GAFT aims to maximize 
the Kingdom's contribution to international trade in order to strengthen the national economy. It 
seeks to achieve this by enabling market access to international markets for Saudi exports of non -oil 
goods and services, and by providing protection for national goods and services from u nfair trade 
practices abroad. The GAFT also aims to support greater private sector participation in foreign trade. 
At present, the GAFT is developing the National Foreign Trade Strategy, for which it receives inputs 
from relevant government entities and th e private sector.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.23.   Saudi Arabia is a Member of the WTO since 11 December 2005. Upon accession, it bound 
100% of its tariff lines, and undertook broad commitments under the General Agreement on Trade 
in Services  (GATS) , including in sectors such as banking, insurance, capital markets, and legal 
services. Saudi Arabia also incorporated into its tariff schedule the tariff reductions of the Information 
Technology Agreement, and accepted the Chemical Tariff Harmonization Agre ement. As part of its 
accession commitments, Saudi Arabia agreed to start negotiations to join the Government 
Procurement Agreement (GPA) at a future date; presently, it remains an observer to the GPA. It is 
also an observer to the Committee on Trade in Ci vil Aircraft.  
2.24.   On 26 July 2016, Saudi Arabia ratified the Protocol concerning the WTO Trade Facilitation 
Agreement (TFA). It designated all provisions in Section 1 of the Agreement under Category A, 
meaning that the Kingdom committed to their implementation  upon the entry into force of the TFA 
(22 February 2017).22 Saudi Arabia also accepted the Protocol Amending the TRIPS  Agreement  (on 
29 May 2012), which came into force on 23 January 2017.  
2.25.   The trade policies of Saudi Arabia have been reviewed twice at the WTO; the second Review 
took place on 4 and 6 April 2016.  
2.26.   Saudi Arabia participates actively in the negotiations and other work of the Organization . It is 
a member of the group of recently acceded members (Article  XII Members)23, the WTO Arab Group, 
the gro up of Asian Developing Members , and the Informal Group of Developing Countries. Saudi 
Arabia supports the Enhanced Integrated Framework (EIF), and has made monetary contributions 
to its implementation. During the review period, with the support of the WTO Secretariat, the GAFT 
 
20 MC, H.E. Al -Harbi Expresses His Thanks and Appreciation to the Custodian of the Two Holy Mosques 
for Being Appointed as Governor of the General Authority fo r Foreign Trade . Viewed at: 
https://mci.gov.sa/en/mediacenter/News/Pages/23 -03-19-01.aspx . 
21 Council of Saudi Chambers, About Us.  Viewed at: https://csc.org.sa/?lang=en .  
22 WTO document G/TFA/N/SAU/1, 30 November 2018.  
23 The Group of Article  XII is composed of Members that joined the WTO after 1995.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  organized technical assistance workshops on notifications, e -commerce, trade negotiating skills, and 
the preparations for MC12.  
2.27.   Saudi Arabia is a strong supporter of the multilateral trading system and the WTO. As stated 
by its Minist er of Commerce at the Eleventh Ministerial Conference of the WTO (Buenos Aires, 
December 2017), Saudi Arabia believes the multilateral trading system can deliver fair, balanced , 
and equitable outcomes and generate further growth and prosperity; hence, it a dvocates for 
Members to support and reinforce multilateral trade rules, and safeguard and strengthen the WTO.24 
Saudi Arabia's negotiating interests span a wide range of issues, including the achievement of 
positive outcomes regarding the Net Food Importin g Developing Countries' programme , a permanent 
solution for Public Stockholding for Food Security Purposes , domestic regulation disciplines in trade 
in services , the phasing -out of illegal, unreported , and unregulated fishing subsidies , and the 
e-commerce work programme.25 In 2019, Saudi Arabia joined the Joint Ministerial Statements 
(Initiatives) on e -commerce, investment facilitation for development, domestic regulation in 
services, and the informal programme on micro, small, and medium -sized enterprises (MSMEs ). The 
Saudi authorities are of the view that they have undertaken extensive commitments upon their 
accession to the WTO, and wish all countries to do the same. They also recognize the centrality of 
the development dimension in the work of the WTO.  
2.28.   In 2020, Saudi Arabia assumed the presidency of the G20. During its tenure, 
two extraordinary G20 Trade and Investment Ministerial Meetings were held (in March and April) to 
address the challenges posed by the COVID -19 pandemic. At their second meeting, th e Ministers 
endorsed short -term actions to support global trade and investment in response to the pandemic, 
and long term actions "to support the necessary reform of the WTO and the multilateral trading 
system, build resilience in global supply chains and strengthen international investment".26 
2.29.   Also during its G20 presidency , Saudi Arabia launched and actively promoted the Riyadh 
Initiative on the Future of the WTO, which aims to identify common ground and shared principles 
for the next 25 years of the WTO,  and to provide the political support needed to make progress in 
the discussions on WTO reforms among all WTO Members.  A Focus Group was created within the 
G20 Trade and Investment Working Group (TIWG)  to focus the Riyadh Initiative discussions on some 
strategic questions  pertaining  to the multilateral trading system and the future of the WTO. At their 
meeting on 22 September 2020, the Trade and Investment Ministers took note of the summary  of 
the discussions prepared by the Chair of the TIWG, and the docum ent was transmitted to the General 
Council of the WTO.27 The Ministers also declared that , amid the COVID -19 pandemic, they would 
continue their cooperation and coordination to: (i) support the recovery of international trade and 
investment; (ii) support t he necessary reform of the WTO to which the Riyadh Initiative provide d 
political support; (iii) encourage greater international competitiveness of MSMEs; (iv) foster 
economic diversification; and (v) strengthen international investment.28  
2.30.   At the Riyadh Su mmit, on 21 -22 November 2020, the leaders of the G20 explicitly recognized 
the contribution that the Riyadh Initiative has made "…by providing an additional opportunity to 
discuss and reaffirm the objectives and foundational principles of the multilateral trading system as 
well as to demonstrate our ongoing political support for the necessary reform of the WTO, including 
in the lead up to the 12th WTO Ministerial Conference" .29 
 
24 WTO document  WT/MIN(17)/ST/115, 9 January 2018.  
25 WTO document  WT/MIN( 17)/ST/115, 9 January 2018.  
26 The Ministerial Statement was submitted to the WTO; see WTO document WT/GC/216, 20 May 2020, 
which contains the Annex "G20 Actions to Support World Trade and Investment in Response to COVI D-19". 
27 Annex 1 to the G20 Trade and Investment Ministerial Meeting Communiqué of 22 September 2020, 
WTO document WT/GC/221, 29 September 2020.  
28 WTO document WT/GC/221, 29 September 2020.  
29 G20 Leaders' Declaration, Riyadh Summit, 21 -22 November 2020, WTO document WT/L/1101, 
25 November 2020 , para. 12.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  2.31.   Saudi Arabia has never been a complainant under the WTO dispute settlement mecha nism, 
but it was a respondent in two cases30 and participated as a third party in 49 cases.31 The two cases 
in which Saudi Arabia was a respondent were requested by Qatar. In the first case (DS528), initiated 
in 2017, no dispute panel was established, and no mutually agreed solution or withdrawal was 
notified. In the second case (DS567), a panel was composed on 18  February  2019, and it delivered 
its report on 16 June 2020. The case concerned alleged infringements of copyrights.32 
2.32.   A list of selected notifica tions made by Saudi Arabia to the WTO during the review period is 
contained in Table 2.2. Notifications on agriculture domestic support for the most recent years 
(2018 -20) remain outstanding . 
Table 2.2 Notifications to the WTO, 2015 -20 (30 June)  
Agreement/Article  Requirement  Symbol and date of latest 
notification  
Agreement on Agriculture  
Articles 10 and 18.2  Export subsidies (ES:1)  G/AG/N/SAU/20, 09/03/2020  
Article  18.2  Domestic support (DS:1)  G/AG/N/SAU/18, 27/02/2020  
GATT  1994  
Article  XVII:4(a)  State trading activities  G/STR/N/18/SAU, 06/03/2020  
Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of 
Developing Co untries  
Paragraph 4(a)  Notification of RTA under the Enabling 
Clause  WT/COMTD/N/45/Rev.1, 14/07/2015  
Agreement on Import Licensing  
Articles 5.1 to 5.4  Changes to import licensing procedures  G/LIC/N/2/SAU/2, 11/02/2020  
Agreement on Trade Facilitation   
Articles 1.4, 10.4.3, and 
10.6.2  Transparency notifications  G/TFA/N/SAU/2, 23/01/2020  
Article  15, Section II  Category A commitments  G/TFA/N/SAU/1, 30/11/2018  
Agreement on Rules of Origin   
Article  5:4 of Annex II  Preferential rules of origin  G/RO/N/48, 08/11/2006  
Agreement on the Implementation of Article  VI of the GATT  1994  (Anti -dumping)  
Article  16.4 Anti-dumping actions (taken within 
preceding six months)  G/ADP/N/335/SAU , 18/05/2020  
Article  18.5 Notification of laws and regulatio ns G/ADP/N/1/SAU/2/Suppl.1, 20/01/2016  
Agreement on Subsidies and Countervailing Measures  
Article  25.1 and GATT 
Article  XVI:1  Subsidies (new and full notification)  G/SCM/N/284/SAU and 
G/SCM/N/315/SAU, 11/04/2018  
Article  32.6 Notification of laws and regulations  G/SCM/N/1/SAU/2/Suppl.1, 20/01/2016  
Agreement on Safeguards  
Article  12.1(a)  Initiation of an investigation  G/SG/N/6/SAU/3, 24/10/2019  
Article  12.6 Notification of laws and regulations  G/SG/N/1/SAU/2/Suppl.1, 20/01/2016  
Agreement on Sanitary and Phytosanitary Measures  
Article  7, Annex B  SPS measures – regular notifications  G/SPS/N/SAU/430, 17/06/2020  
 SPS measures – emergency notifications  G/SPS/N/SAU/422/Add.1, 25/03/2020  
Agreement on Technical Barriers to Trade  
Article  2.9.2 Technical regulations  G/TBT/N/SAU/1136, 04/06/2020  
Agreement on Trade -Related Investment Measures  
Article  6.2 Publications in which TRIMs may be found  G/TRIMS/N/Rev.28, 27/09/2018  
(No TRIMs maintained)  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article  63.2 Notifications of laws and regulations  IP/N/1/SAU/3 and IP/N/1/SAU/C/4, 
10/06/2020  
Article  69 Notification of Members contact points  IP/N/3/SAU/1, 30/04/2020  
General Agreement on Trade in  Services  
Articles III:4 and/or IV:2  Enquiry/contact points  S/ENQ/78/Rev.20, 25/03/2020  
Article  V:7(a)  Economic integration agreements  S/C/N/807/Rev.1, 14/07/2015  
Source:  WTO Secretariat.  
 
30 Saudi Arabia – Measures Relating to Trade in Goods and Services, and Trade -Related Aspects of 
Intellectual Property Rights  (DS528); and Saudi Arabia – Measures concerning the Protection of Intellectual 
Property Rights  (DS567). For details on these cases, see WTO information at: 
https://www.wto.org/english/thewto_e/countries_e/saudi_arabia_e.htm . 
31 WTO, Kingdom of Saudi Arabia and the WTO.  Viewed at: 
https://www.wto.org/english/thewto_e/countries_e/saudi_arabia_e.htm . 
32 WTO, DS567: Saudi Arabia – Measures concerning the Protection of Intellectual Property Rights. 
Viewed at: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds567_e.htm . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  2.3.2   Regional and preferential agreements  
2.33.   Saudi Arabia believes that regional trade agreements can complement and reinforce the 
multilateral trading system, and help deepen the integration of its economy into the global 
marketplace.  
2.3.2.1   Cooperation Council for the Arab States of the Gulf  
2.34.   Saudi Arabia is one of the six members of the Cooperation Council for the Arab States of the 
Gulf (Gulf Cooperation Council (GCC)), a political and economic alliance created in May 1981.33 The 
main objectives of the GCC are to enhance regional cooperation and integration in all economic, 
social , and cultural fields; strengthen ties among member States; develop common regulations in a 
number of areas, including trade, industry, investment, finance, and communications; and foster 
scientific and technical prog ress and encourage cooperation with the private sector.34 
2.35.   The basis for economic integration among the GCC States is the Economic Agreement signed 
in November 1981, which called for the establishment of a free trade area as the first step towards 
integrati on. The GCC Free Trade Area was established in 1983, and GCC -originating goods were 
exempt  from customs tariffs among member States. The Economic Agreement was comprehensively 
revised in December 2001, and stipulated the creation of a customs union no late r than 
January  2003. The Agreement was notified to the WTO by Saudi Arabia.35 A factual presentation of 
the GCC Customs Union was prepared by the WTO Secretariat.36 
2.36.   Saudi Arabia and the other GCC member States implemented the GCC Common Customs Law 
on 1 January 2003.37 Pursuant to the Law, a common external tariff (CET) has been applied since 
then, with ad valorem  rates of 0% and 5% for most tariff lines. The implementation of the Customs 
Union required a transitional period for member States to adopt the n ecessary procedures. The full 
GCC Customs Union was inaugurated on 1 January 2015, with the Unified Guide for Customs 
Procedures and the single -point-of-entry principle applying to imports of foreign goods in all GCC 
member States. However, some difference s remain in the implementation of the CET, as each GCC 
member has the right to keep lists of prohibited and restricted goods.38 Imports that are prohibited 
in some GCC member States and permitted in others are not allowed to transit through the States 
in which they are prohibited. Moreover, GCC member States continue to maintain customs check 
points, for security and other purposes (e.g. statistics, and prevention of piracy and commercial 
fraud).  
2.37.   The Gulf Common Market (GCM) was officially launched in Janu ary 2008. Among other goals, 
the GCM aims to achieve equal treatment among citizens of GCC member States in 10 general 
economic fields, including freedom to engage in economic activities, investment, and property 
ownership.39 The effective establishment of  the GCM remains a work in progress. As indicated in the 
last TPR report, the objectives of the GCC remain: the complet ion of the common market, with equal 
treatment of GCC citizens (about 56 million) in each member State; respect of freedom of 
 
33 The other members of the GCC are Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates.  
34 GCC, Article  4, GCC Charter . Viewed at: https://www.gcc -sg.org/en -
us/AboutGCC/Pages/Primarylaw.aspx .  
35 Saudi Arabia notified the Economic Agreement to the WTO in 2006 as a customs union under 
Article  XXIV of the GATT  1994 (WTO document WT/REG222/N/1, 20 November 2006). In 2007, Saudi Arabia 
changed the notification from GATT Article  XXIV to Paragraph 4(a) of the Enabling Clause (WTO documents 
WT/REG222/N/1/Corr.1 and WT/COMTD/N/25, 31 March 2008). In 2009, the Agreement wa s re-notified under 
Article  XXIV of the GATT  1994 (WTO document WT/REG276/N/1/Rev.1, 17 November 2009).  
36 WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
37 Saudi Arabia implements the Common Customs Law under Royal Decree No. 41 of 1423H (2 003).  
38 The list of prohibited imports maintained by the GCC member States is available in Annex 2 of WTO 
documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
39 Pursuant to Article  3 of the Economic Agreement 2001, the general fields include (but ar e not limited 
to): movement and residence; work in private and government jobs; pension and social security; engagement 
in all professions and trades; participation in all economic, investment, and service activities; real estate 
ownership; capital transfe r; taxation treatment; stock ownership and formation of corporations; and education, 
health, and social services. There are, however, some exceptions among GCC member States in the field of 
"participation in all economic, investment and service activities"  with respect to activities such as commercial 
agencies; Hajj and Umrah services; and printing presses, publishing, and newspapers. These exceptions are 
currently under discussion in the GCC. Also, as regards real estate ownership, Saudi Arabia reserves it s right to 
prohibit ownership in the areas of Makkah and Madinah.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  movement, w ork, residence, and ownership of real estate; free movement of capital; and financial 
and monetary integration. In June 2009, Bahrain, Kuwait, Qatar and Saudi Arabia signed an 
agreement to form a monetary union. The agreement was ratified and entered into force in 
February  2010. However, the date for adoption of a single currency is yet to be determined.  
2.38.   Over the years, t he GCC member States have made progress in several areas of economic 
cooperation, such as agriculture, energy, telecommunications, and tr ansportation. They have also 
advanced in the development of common legislation by adopting some 17 standard laws.40 Likewise, 
they have made progress in setting up regional institutions, e.g. , Gulf Investment Organization , 
Technical Secretariat for Anti -Dumping , GCC Standardization Organization , Commercial Arbitration 
Centre , Patents Office , and Technical Office for Telecommunications . In the field of taxation, the GCC 
member States began rolling out value -added tax in 2018.  
2.39.   In June 2017, Saudi Arabia, the United Arab Emirates and Bahrain severed diplomatic, trade , 
and travel ties with Qatar, including restricting access by land, sea , and air . The embargo was lifted 
in January 2021.  
2.40.   Establishing trade and economic partnerships with other countries and economic groupings is 
one of the approaches pursued by the GCC member States to deepen their integration into the world 
economy. The GCC  as a group concluded negotiations for free trade agreements (FTAs) with 
Singapore and with the member States of the European Free Trade Association (EFTA).41  
2.41.   The GCC -Singapore FTA, the first such agreement signed by the GCC, entered into force on 
1 Septe mber 2013 , and was notified to the WTO in June 2015.42 The Agreement covers a range of 
areas, including trade in goods, rules of origin, customs procedures, trade in services, government 
procurement, and electronic commerce. The Parties agreed to negotiate  investment issues at a later 
stage. GCC member States agreed to eliminate tariffs on 99% of Singaporean exports.43 
2.42.   The FTA between the GCC and  the EFTA entered into force on 1 July 2015.44 Its coverage 
includes trade in goods (industrial and processed agr icultural goods, and fish and other marine 
products), trade in services, government procurement, and competition policy. Certain topics, such 
as intellectual property rights and investment, were left for subsequent negotiations after the entry 
into force o f the Agreement. Bilateral agricultural agreements cover basic agricultural products, and 
are an integral part of the legal instruments establishing the free trade area between the GCC and 
the EFTA.45 
2.43.   During the late 2000s, the GCC engaged in negotiations for free trade agreements with several 
other countries and economic groupings, including Australia, China, the European  Union46, India, 
Japan, the Republic of Korea, MERCOSUR, New Zealand47, Pakistan, and Turkey. None of these 
 
40 Common laws have been adopted in several areas including: customs; anti -dumping, countervailing, 
and safeguard measures; patents and trademarks regulation; consumer protection; industrial  law; standards 
and metrology; plant and veterinary quarantine; seeds and seedlings; fertilizers and soil enhancers; practice of 
veterinary profession; and maritime law.  
41 The EFTA member States are Iceland, Liechtenstein, Norway, and Switzerland.  
42 WTO d ocuments WT/COMTD/N/45/Rev.1 and S/C/N/807/Rev.1, 14 July 2015.  
43 Enterprise Singapore, The Gulf Cooperation Council (GSFTA) Legal Text . Viewed at: 
https://www.enterprisesg.gov.sg/ -/media/ESG/Files/Non -Financial -Assistance/For -Companies/Free -Trade -
Agreements/GSFTA/GSFTA_Legal_Text . 
44 According to the EFTA website, the Agreement entered into force on 1 July 201 4. Viewed at: 
https://www.efta.int/free -trade/free -trade -agreements/gcc . 
45 EFTA, Gulf Cooperation Council (GCC) . Viewed at: https://www.efta.int/free -trade/free -trade-
agreements/gcc . 
46 Negotiations for an FTA with the European  Union started in 1990 but were halted in 2008. In 
May 2017, the European  Union an d the GCC launched a dedicated Dialogue on Trade and Investment Issues. 
European Commission, Gulf Region . Viewed at: https://ec.europa.eu/trade/policy/countries -and-
regions/regions/gulf -region/ . 
47 New Zealand Treaties Online, New Zealand – Gulf Cooperation Council Free Trade Agreement . Viewed 
at: https://www.treaties.mfat.govt.nz/search/detai ls/p/22/2380 . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  agreements has been formally concluded.48 Currently, only negotiations for an FTA with China are 
ongoing. The GCC is reviewing its position regarding all its FTA negotiations.  
2.44.   Some GCC member States (Bahrain and Oman) concluded bilateral FTAs, notably with the 
United  States . In the ca se of Saudi Arabia, bilateral economic relations with the United  States  are 
conducted under the Trade and Investment Framework Agreement (TIFA), signed in 2003. The TIFA 
is aimed at improving legal protection for investors, strengthening intellectual prope rty protection, 
enhancing the efficiency of customs procedures, and increasing transparency in government and 
commercial regulations. The GAFT is currently assessing the potential to expand the Kingdom's 
network of FTAs in light of the Vision 2030 goals.  
2.3.2.2   Pan-Arab Free Trade Area (PAFTA)  
2.45.   Saudi Arabia is a member of the PAFTA, also known as the Greater Arab Free Trade Area, 
which was established in 1998 under the umbrella of the League of Arab States.49 The Economic and 
Social Council of the League of Arab  States is the main body responsible for the implementation of 
the Agreement. By 1  January  2005, the majority of tariff and non -tariff barriers among PAFTA 
members had been eliminated, with the exception of some products (mostly agricultural goods) that 
were excluded from liberalization. The PAFTA Treaty was notified by Saudi Arabia to the WTO under 
Article  XXIV of GATT/1994 in 2006.50  
2.46.   Since the last Review, an Agreement on Trade in Services has been concluded among the 
countries of the League  of Arab States . Saudi Arabia was the first to ratify the Agreement and the 
schedule of commitments, and it started its implementation in October 2019. However, negotiations 
on the implementation details of some PAFTA provisions on rules of origin and non -tariff barriers  are 
still ongoing, as reported in the previous Review.  
2.3.3   Other agreements and arrangements  
2.47.   Saudi Arabia does not use trade preferences under the Generalized System of Preferences 
(GSP),51 nor does it participate in the Global System of Trade Preferences am ong Developing 
Countries (GSTP).  
2.4  Investment Regime  
2.48.   Increasing private investment, both foreign and local, is a key component of Saudi Arabia's 
strategy to stimulate and diversify its economy, generate employment, and achieve sustainable 
development. One of the key goals of Vision 2030 is to increase foreign direct investment into the 
country from 3.8% of GDP to 5.7%. Hence, the Government actively seeks to attract investment 
projects that promote the development of non -oil sectors, transfer foreign technolo gy and expertise, 
create new jobs, and increase exports. Several sectors have been identified as priority areas for 
foreign and domestic investment, including transport and logistics, information and communications 
technology (ICT), health and biotechnolog y, education, tourism, entertainment, industry (mining 
and manufacturing), and renewable energy.  
2.49.   As part of its broader reform agenda, over the past years, Saudi Arabia opened up new sectors 
to foreign investment; implemented legal and institutional change s to improve the business climate 
and facilitate investment, including the streamlining of licensing procedures (see below); provided 
services and assistance to investors; and pursued negotiations of bilateral investment treaties. In 
addition, in 2019, Sau di Arabia adopted a set of Guiding Principles for Investment Policymaking, 
including non -discrimination, investment protection, investment sustainability, enhanced 
 
48 United Arab Emirates Ministry of Economy, Free Trade Agreements . Viewed at: 
https://ww w.economy.gov.ae/english/Ministry/MinistrySectors/ForeignTradeSector/Trade -Negotiations -
WTO/Trade -Agreements/Pages/default.aspx . 
49 PAFTA membership includes Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, 
Palestine, Qatar, Saudi Arabia , Sudan, Syria, Tunisia, United Arab Emirates, and Yemen.  
50 WTO document WT/REGG223/N/1, 20 November 2006.  
51 Saudi Arabia is eligible to receive trade preferences under the GSP schemes of Armenia, Australia, 
Kazakhstan, New Zealand, the Russian Federation,  and Turkey. WTO, PTA database . Viewed at: 
http://ptadb.wto.org/Country.aspx?code=682 . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  transparency in the provision of incentives, protection of public policy concerns, ease of e ntry for 
employees, and the transfer of knowledge and technology (Box 2.1).  
Box 2.1 Investment principles  
1. Ensure equality between Saudi and non -Saudi investors, and among non -Saudi investors.  
2. Ensure the protection of investments, in line with the Kingdom's regulations.  
3. Enhance the sustainability of investments, and deal with investor complaints in a transparent manner.  
4. Provide investment incentives when needed, and ensure full transparency when granting them. Provide a 
list of investment incentives and grant them in accordance with general, clear , and non -discriminatory criteria.  
5. Maintain environmental and social standards in order to ensure that Saudi and non -Saudi investors comply 
with regul ations regarding labour, health, and environmental safety, in accordance with national regulations 
and policies and the international conventions to which Saudi Arabia has acceded.  
6. Facilitate entry procedures for non -Saudi employees, including technicia ns, administrators, and their 
dependents. Arrange their residency in the Kingdom to facilitate their participation in activities related to 
foreign investment, in accordance with the Kingdom's regulations and its international obligations.  
7. Transfer and localize science and technology resulting from foreign direct investment, in accordance with 
the Kingdom's international obligations.  
Source:  Ministry of Investment , Investment Principles and Policies in the Kingdom . Viewed at: 
https://www.misa.gov.sa/en/investment -principles/ . 
2.50.   Since the previous Review, an important institutional change has been the transformation, in 
February 2020, of the Saudi Arabian General Inve stment Authority (SAGIA) into the fully  fledged 
Ministry of Investment (MISA), with overall responsibility for setting and implementing policies to 
attract local and foreign investment. Until then, the SAGIA was the entity in charge of formulating 
investme nt policies, proposing plans to enhance the investment climate, issuing investment licences, 
and assisting investors to set up and operate their businesses. The MISA took over all of these 
functions, and was endowed with more powers and resources to effect ively achieve its objectives. 
It provides a wide range of services to investors, supporting them along the different phases of their 
investment project, through its five Business Cent ers located across the country.  
2.51.   The MISA has launched several initiative s that aim to improve the investment environment 
and foster competition. Notably, it has issued the Consolidated Investment Plan, aimed at working 
closely with all relevant government agencies and leading Saudi companies to attract investment 
and channel i t into the most promising economic sectors, while also making the traditional sectors 
more competitive. Other initiatives are geared towards marketing investment opportunities in the 
Kingdom in cooperation with the chambers of commerce. "Invest Saudi" was established as the 
national investment brand, with the aim of promoting investment projects in Saudi Arabia and 
enhancing the image of the country's investment climate. It functions as a communication platform 
that serves and connects all government entiti es engaged in investment matters.52 Other reforms 
aimed at attracting investment include the establishment of Tayseer, a government committee 
mandated to continuously improve the way business is conducted in the Kingdom; and the issuance 
of Ministerial Res olution No. 713 on public consultation with stakeholders regarding proposed 
legislation, which seeks to improve the transparency and predictability of business regulations.  
2.52.   It is also worth noting that Saudi Arabia passed a new Bankruptcy Law that came int o force 
in August 2018. The Law allows indebted companies to continue operating while rescheduling their 
debts, and establishes a specialized committee under the Ministry of Commerce to take charge of 
all bankruptcy procedures. The Law aims to improve the business environment, making Saudi Arabia 
a more investor -friendly destination.  
2.53.   The foreign investment regime is mainly governed by the Foreign Investment Law , 200053, 
and its Implementing Regulations , 2002, as amended by Resolution No. 2/74 , 2014, of the  
Saudi  Arabian General Investment Authority Board. Also relevant is the Law of Real Estate 
Ownership and Investment by Non -Saudis , 200054, as amended by Royal Decree No. M/94 , 2018.55 
 
52 Invest Saudi, About Invest Saudi . Viewed at: https://investsaudi.sa/en/about/about -invest -saudi/ . 
53 Royal Decree No. M/1 of 5/01/1421H, 10 April 2000.  
54 Royal Decree No. M/15 of 17/04/1421H, 19 July 2000.  
55 Royal Decree No. M/94 of 15/09/1439H (2018). The purpose of the amendment was to facilita te the 
acquisition by non -Saudi entities of real estate in the cities of Makkah and Madinah, on an exceptional basis, 
under certain conditions, and in accordance with the relevant regulations.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  The authorities indicated that the draft of a new single investment law , which will grant equal 
treatment to national and foreign investors,  is in its final stages.  
2.54.   Under the current Foreign Investment Law, a foreign investor may invest as a shareholder i n 
a company owned by a Saudi national, or establish a 100% foreign -owned company (with certain 
exemptions). In both cases, the prospective foreign investor must obtain an investment licence from 
the MISA. Licensing procedures for foreign investments were simplified and expedited in recent 
years: requirements for new licences were reduced to two documents; licences are now issued within 
3 hours (previously 20 hours); an instant licence renewal procedure was set up; and the validity of 
the licences was extend ed from one to five years.56  
2.55.   Depending on the type of business, foreign firms may also be required to obtain 
registration/approval from other competent authorities, such as the Ministry of Commerce, the 
Ministry of Health, the Ministry of Tourism, the Com munication and Information Technology  
Commission , and the Capital Market Authority. Foreign investors from GCC member States are 
treated as Saudi nationals for the purpose of investment, and are not required to obtain a foreign 
investor licence, provided t hey are not in partnership with a non -GCC investor.  
2.56.   The most common legal forms for establishing a company are limited liability company, joint-
stock company, and branch of a foreign company; other legal forms are also permitted, such as sole 
proprietorsh ip and general partnership. The new Companies Law, promulgated in 2016, allows a 
single person to set up a corporation (previously, the minimum was two persons) in limited cases, 
and reduced the number of shareholders required to form a joint -stock company  from five to two.  
2.57.   Foreigners may invest in practically all sectors of the economy, except for some activities 
specified on a "negative list" (Table 2.3), which is issued and revised periodically by the Council of 
Economic and Development Affairs. Since t he previous Review, several activities have been removed 
from the negative list and were opened up to foreign investment, including real estate brokerage; 
printing and publishing; audio -visual and media services; land transport services; recruitment and 
employment services; manufacturing of certain military equipment, devices, and uniforms; and 
manufacturing of civilian explosives. O ther services sectors that have been opened to foreign 
investment in recent years are banking and insurance, distribution serv ices (except for commission 
agencies), aircraft maintenance and repair, computer reservations systems, basic and value -added 
telecommunication services, and computer and related services.57  
Table 2.3 List of businesses prohibited from foreign investment, 2020  
Sector  
Manufacturing  
▪ Oil exploration, drilling, and production, except mining services listed in categories 5115 and 883 of the 
International Standard Industrial Classification Codes  
Services  
▪ Catering to military sectors  
▪ Security and detective services  
▪ Real estate investment in the holy cities of Makkah and Medina  
▪ Tourist orientation and guidance services for religious tourism related to Hajj and Umrah  
▪ Recruitment offices  
▪ Commission agents, internationally classified in CPC 621  
▪ Services provided by midwives, nurses,  physical therapy services, and quasi -doctoral services, 
 internationally classified in CPC 93191  
▪ Poison centres, blood banks, and quarantine services  
▪ Fisheries  
Source:  Ministry of Investment  (2020), Services Manual. Eighth Edition , January. Viewed at: 
https://www.misa.gov.sa/media/1128/moi -service -manual -8th-edition -en-v4.pdf . 
2.58.   Foreign investment licences vary according to sector and type of investment, with each having 
its own regulations and conditions, such as minimum capital requirements and caps on foreign 
ownership, i.e. minimum Saudi participation (Table 2.4). Since the last Review, some of these 
 
56 Information provided by the authorities. See also UNCTAD, Investment Policy Measures – 
Saudi  Arabia . Viewed at: https://investmentpolicy.unctad.org/investment -policy-monitor/190/saudi -arabia . 
57 Information provided by the authorities.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  requirements have been eased or removed.  For example, in 2016, the retail and wholesale sectors 
were opened to 100% foreign ownership (they were previously limited to 75% and subject to a 
minimum capital requirement of SAR 20 million). Since 2017, foreign investors may have full 
ownership of eng ineering services companies and associated consultancies, provided that the 
company is at least 10 years old and operates in at least four countries.58  
Table 2.4 Types of licences, minimum capital requirement , and percentage of Saudi 
partnership, 2020  
Licence type  Minimum capital (SAR)  Minimum Saudi 
participation  
Commercial firm with Saudi 
Partner  26.6 million  
foreign capital not less than 20  million  25% 
 
100% foreign commercial firm  30 million  -- 
Basic communications  -- 40% 
Value -added communications  -- 30% 
Insurance  -- 40% 
Reinsurance  -- 40% 
Property financing  200 million  40% 
Property investment  30 million  
(covering land and construction); these 
must be outside the perimeter of the 
two Holy Mosques  -- 
Management of construction 
projects, detailed engineering 
design and engineering, 
procurement, and construction 
contracts  -- 25% 
Public transport (bus transport 
within cities)  500,000  30% 
Public transport (metro 
transport within cities)  500,000  20% 
Joint-stock company  500,000  -- 
Joint-stock one -person 
company  5 million  -- 
Other transport activities  10 million  -- 
Notes:  There is no minimum limit for the capital of property development projects. Government and 
semi-government companies are excluded.  
Source:  Ministry of Investment (2020), Services Manual. Eighth Edition , January. Viewed at: 
https://www.misa.gov.sa/media/1128/moi -service -manual -8th-edition-en-v4.pdf . 
2.59.   Licensed foreign investments are entitled to all benefits, incentives , and guarantees accorded 
to wholly Saudi -owned companies.59 Such benefits include ownership of freehold property necessary 
for carrying out the licensed activity and for h ousing staff; the possibility to sponsor foreign 
employees, subject to certain conditions; benefits granted under the double -taxation treaties to 
which Saudi Arabia is a signatory; and protection against expropriation and confiscation. A court 
order is nec essary in order to confiscate a foreign investment, and it may not be expropriated, in 
whole or in part, except for reasons of public interest and against an equitable compensation.60  
2.60.   Foreign investors have the right to transfer abroad profits, capital gains, funds derived from 
the sale of equity, and any amounts required to settle contractual obligations pertaining to their 
investment. Resident companies in Saudi Arabia that are wholly  owned, either directly or indirectly, 
by foreign investors (i.e. non -Saudi and non -GCC natural or juridical persons) are subject to 
corporate income tax on profits and capital gains at a flat rate of 20%. Whereas resident companies 
that are wholly owned, either directly or indirectly, by Saudi or GCC nationals, with no non -GCC 
entity in the ownership structure, do not pay corporate income tax  but are subject to a religious levy 
on net assets, called Zakat, at a rate of 2.5%.61 However, if the activity of t he resident company is 
 
58 UNCTAD, Investment Policy Measures, Saudi Arabia . Viewed at: 
https://investmentpolic y.unctad.org/investment -policy -monitor/190/saudi -arabia . 
59 Article  6, Foreign Investment Law.  
60 Article  11, Foreign Investment Law.  
61 Resident companies that are jointly owned by mixed companies (i.e. companies owned by Saudi/GCC 
and foreign nationals) are  subject to Zakat in proportion to the Saudi/GCC ownership, and to corporate income 
tax in proportion to the foreign ownership.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  in the hydrocarbons and natural gas industry, only the corporate income tax is levied, regardless of 
the nationality or origin of its shareholders. Withholding taxes are applied to payments made to any 
non-Saudi resident who derives income from a source in Saudi Arabia; the withholding tax  rate 
ranges from 5% for dividends and technical services to 15% for transfers to related parties, and 
20% for management fees.62 There are no taxes on personal income.  
2.61.   The Government offers financi al and other incentive s to foreign and local investors alike 
(Section 3.3.1).  Foreign investors can also have access to some regional financial programmes, such 
as those offered by the Arab Fund for Economic and Social Development, the Arab Investment and 
Export Credit Guarantee Corporation, the Islamic Development Bank, and the Ara b Monetary Fund.  
2.62.   In recent years, the Government introduced new local  content measures in a bid to increase 
sourcing of domestic goods and services. Vision 2030 set s out ambitious objectives for increasing 
local content in the oil and non -oil sectors of th e economy. Under the National Industrial 
Development and Logistics Program (NIDLP), local content is considered a key enabler for boosting 
domestic demand, GDP growth , and job creation. Accordingly, the NIDLP establishes a general 
framework, with strategie s and measures to be applied by government agencies, private companies , 
and individuals to increase local content in different sectors of the economy  (Section 4.3) .  
2.63.   Foreign investors must also comply with the Government's Saudization policy (Nitaqat), a 
long-term plan aimed at increasing the proportion of Saudi employees  (including women)  in the 
economy.63 The policy requires companies to employ a certain percentage of Saudi citizens, which 
ranges from 5% to 75% based on the nature of the business, the work conditions, and the availability 
of Saudi employees in the field. Foreign investors must include their Saudization levels when 
submitting their investment plans for approval. There are also limits on the number of visas for 
foreign workers available to c ompanies. Reportedly, in recent years, Saudization measures have 
been reinforced, by requiring that only Saudi citizens be employed in certain economic sectors (such 
as mobile phone stores, car rental agencies, and retail sales jobs in a dozen sectors).64 Additionally, 
since the last Review, the Government has implemented new fees for expatriate employers (which 
are paid per employee per month). It has also increased levies on expatriates with dependents, and 
imposed higher fees for business visas and entry /exit permits for foreign workers.  
2.64.   Saudi Arabia continued to expand its network of bilateral investment treaties (BITs) and 
double -taxation agreements. Currently, the Kingdom maintains 25 BITs. Two of these were signed 
during the review period, with Iraq and Jordan, but only the treaty with Jordan entered into force 
(Table 2.5). Saudi Arabia also has 51 agreements on double taxation and/or prevention of tax 
evasion in force, plus another 6 that were signed but have not yet entered into force. Since 2016, 
14 such agreements have been signed (Table 2.6). Moreover, Saudi  Arabia is a signatory to the 
Convention on Mutual Administrative Assistance in Tax Matters, which came into effect in the 
Kingdom on 1 April 2016.65 
Table 2.5 Bilateral investment treaties  
 
Status  Date of signature  Date of entry into force  
Austria  In force  30/06/2001  25/07/2003  
Azerbaijan  In force  09/03/2005  20/05/2011  
Belarus  In force  20/07/2009  07/08/2010  
Belgium -Luxembourg 
Economic Union  In force  22/04/2001  11/06/2004  
China  In force  29/02/1996  01/05/1997  
Czech Republic  In force  18/11/2009  13/03/2011  
France  In force  26/06/2002  18/03/2004  
Germany  In force  29/10/1996  08/01/1999  
Iraq Signed  17/04/2019  Not in force yet  
India Terminated  25/01/2006  20/05/2008  
Indonesia  In force  15/09/2003  05/07/2004  
 
62 The standard for the WHT is residence (not nationality). Accordingly, a payment made from 
Saudi  Arabia to a Saudi person who does not reside in the Kingdom is subject to withholding tax.  
63 Around 75% of jobs are currently held by foreigners.  
64 US Departm ent of State, 2019 Investment Climate Statements: Saudi Arabia . Viewed at: 
https://www.state.gov/reports/2019 -investment -climate -statements/saudi -arabia/ . 
65 OECD , Jurisdictions Participating in the Convention on Mutual Administrative Assistance in Tax 
Matters, Status – 9 December 2020 . Viewed at: https://www.oecd.org/tax/exchange -of-tax-
information/Status_of_convention.pdf . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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Status  Date of signature  Date of entry into force  
Italy In force  10/09/1996  22/05/1998  
Japan  In force  30/04/2013   07/04/2017  
Jordan  In force  27/03/2017  27/04/2018  
Korea, Republic of  In force 04/04/2002  19/02/2003  
Malaysia  In force  25/10/2000  14/08/2001  
Philippines  In force  17/10/1994  11/11/1996  
Singapore  In force  10/04/2006  05/10/2007  
Spain  In force  09/04/2006  14/12/2016  
Sweden  In force  11/03/2008  01/10/2009  
Switzerland  In force 01/04/2006  09/08/2008  
Chinese Taipei  Signed  31/10/200 0 Not in force yet  
Turkey  In force  08/08/2006  05/02/2010  
Ukraine  In force  09/04/2008  18/02/2009  
Uzbekistan  In force  06/06/2011  24/01/2014  
Source:  UNCTAD, Investment Policy Hub, Saudi Arabia . Viewed at: 
https://investmentpolicy.unctad.org/international -investment -agreements/countries/185/saudi -
arabia?type=bits . 
2.65.   Saudi Arabia is a member of the Multilateral Investment Guarantee Agency (MIGA). It is also 
a party to the Convention of the International Centre for the Settlement of Investment Disputes 
(ICSID); although, according to its terms of accession, specific conse nt from the Kingdom is required 
before any investment dispute can be referred to the ICSID for arbitration.  Specifically, Saudi Arabia 
reserved the right not to submit any questions pertaining to oil and acts of sovereignty for 
conciliation or arbitration under the ICSID. Since 1994, Saudi Arabia has been a party to the 
1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.  
Table 2.6 Agreements/conventions on double taxation and prevention of tax evasion  
 Date of signature  Date of entry into force  
Albaniaa 06/02/2019  01/12/2019  
Algeria  09/12/2013  01/03/2016  
Austria  19/03/2006  01/06/2007  
Azerbaijan  13/05/2014  01/05/2015  
Bangladesh  04/01/2011  01/10/2011  
Belarus  20/07/2009  01/08/2010  
Bulgariaa 29/11/2017  01/01/2019  
China  23/01/2006  01/10/2006  
Cyprusa 03/01/2018  01/03/2019  
Czech Republic  25/04/2010  01/05/2013  
Egypta 08/04/2016  01/07/2017  
Ethiopia  28/02/2013  01/10/2016  
France (2nd protocol)  18/02/2011  01/06/2012  
Gabon  17/12/2015  Not in force yet  
Georgiaa 14/03/2018  01/04/2019  
Greece  19/06/2008  01/05/2010  
Hong Kong, Chinaa 24/08/2017  01/09/2018  
Hungary  24/03/2014  01/05/2015  
India 25/01/2006  01/11/2006  
Ireland  19/10/2011  01/12/2012  
Italy 13/01/2007  01/12/2009  
Japan  15/11/2010  01/09/2011  
Jordana 19/10/2016  01/09/2017  
Kazakhstan  07/06/2011  01/09/2016  
Korea, Republic of  24/03/2007  01/12/2008  
Kosovoa,b  20/10/2019  Not in force yet  
Kyrgyz Republic  02/12/2014  01/10/2015  
Latviaa 07/11/2019  Not in force yet  
Luxembourg  07/05/2013  01/09/2014  
Malaysia  31/01/2006  01/07/2007  
Malta  04/01/2012  01/12/2012  
Mauritaniaa 02/12/2018  Not in force yet  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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   Date of signature  Date of entry into force  
Mexicoa 17/01/2016  01/03/2018  
Morocco  14/04/2015  Not in force yet  
Netherlands  13/10/2008  01/12/2010  
North Macedonia  15/12/2014  01/05/2016  
Pakistan  02/02/2006  01/12/2006  
Poland  22/02/2011  01/06/2012  
Portugal  08/04/2015  01/09/2016  
Romania  26/04/2011  01/07/2012  
Russian Federation  11/02/2007  01/02/2010  
Singapore  03/05/2010  01/07/2011  
South Africa  13/03/2007  01/05/2008  
Spain  19/06/2007  01/10/2008  
Sweden  19/10/2015  31/08/2016  
Switzerlanda 18/02/2018  Not in force yet  
Syrian Arab Republic  07/10/2009  01/10/2010  
Tajikistan  13/05/2014  01/06/2015  
Tunisia  08/07/2010  01/04/2013  
Turkey  09/11/2007  01/04/2009  
Turkmenistana 01/05/2016  01/04/2017  
Ukraine  02/09/2011  01/12/2012  
United Arab Emiratesa 23/05/2018  01/04/2019  
United Kingdom  31/10/2007  01/01/2009  
Uzbekistan  18/11/2008  01/11/2010  
Venezuela  11/11/2015  01/12/2016  
Viet Nam 10/04/2010  01/02/2011  
a Agreements signed since 2016.  
b All reference s to Kosovo in this report should be understood to be in the context of United Nations 
Security Council Resolution 1244 (1999).  
Source:  Information provided by the authorities.  
2.66.   In 2012, Saudi Arabia adopted a new arbitration law66 that enabled the establishment of the 
Saudi Centre for Commercial Arbitration in 2016, whose awards can be enforced in domestic courts. 
In June 2017, the implementing regulations to the arbitration law came into effect. The same year, 
the United Nations Commission on International Trade Law (U NCITRAL) added Saudi Arabia to the 
list of jurisdictions having adopted an arbitration law based on the UNCITRAL Model Arbitration Law. 
These steps are expected to give more certainty to the enforcement of foreign arbitral awards within 
the Saudi legal sys tem.67 Prior to the passing of the new arbitration law, any arbitral award had to 
be ratified by a supervising court (the Board of Grievances) in order to be enforceable. Under the 
2012 law, the supervising court only has the authority to review the award (and not the merits of 
the case) to ensure compliance with Sharia h law, public order, and/or the arbitration agreement, 
and to ascertain that it does not contradict any previous judgements and was properly served on 
the opposing party.68  
 
 
66 Royal Decree No. M/34 of 24/5/1433H, 16 April 2012, concerning the approval of the Law of 
Arbitration. Viewed at: https://www.idc.gov.sa/en -us/RulesandRegulations1/Arbitration%20Law.pdf . 
67 Nesheiwat, F. and Al -Khasawneh, A. (2015), "The 2012 Saudi Arbitration Law: A Comparative 
Examination of the Law and Its Effect on Arbitration in Saudi Ar abia", Santa Clara Journal of International Law , 
Vol. 13, 443 (2015). Viewed at: http://digitalcommons.law.scu.edu/scujil/vol13/iss2/5 . 
68 Article  55 B, Royal Decree No. M/34 of 24/5/1433 H, 16 April 2012.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  There have been no significant changes in Saudi Arabia's customs legislation and institutional 
framework since the last Review. The Gulf Cooperation Council (GCC) Common Customs Law and 
its Implementation Rules and Explanatory Note remain the basic legisla tion. Saudi Arabia 
implemented the GCC Common Customs Law by Royal Decree No. 41 of 1423H (2003), with effect 
from 1 January 2003. Article  1(ii) of the 2001 Economic Agreement between the GCC member States 
and Article  II.2(c) and (d) of the Implementation Rules require that common customs regulations 
and procedures be established and applied to imports into the GCC from non -member States.1  
3.2.  The Saudi Customs Authority  (SCA), under the Ministry of Finance, remains the principal 
agency responsible for implem enting customs procedures. However, several other government 
agencies are responsible for specific products or issues related to imports, such as the Saudi Food 
and Drug Authority (SFDA); the Ministry of  Environment, Water and  Agriculture; and the 
Saudi  Standards, Metrology and Quality Organization (SASO).  
3.3.  During the review period, Saudi Arabia introduced important changes in customs procedures; 
notably, the SCA enhanced an electronic data interchange system, an electronic trade single window 
that allows electronic submission and processing of import declarations. Moreover, Saudi Arabia 
implemented a new risk management system and targeting centre to classify the shipments based 
on their risk level2, launched both an online platform for the certification of imported goods and a 
truck reservation service at its seaports3, and upgraded its infrastructure at Jeddah. Saudi Arabia 
now has a country -wide single window for customs procedures.    
3.4.  Regarding customs procedures, other changes introduced since 2015 inc lude: (i)  reducing the 
required documents for imports to two (invoice and bill of lading); (ii)  cancelling the requirement to 
submit the certificate of origin, but when necessary for export, it can be electronically obtained 
through the Ministry of Commerc e website4; (iii)  cancelling the requirement for authentication of 
invoices and documents from the Chamber of Commerce and Embassies; (iv)  implementing the 
post-clearance audit (PCA) and accepting copies of the invoice and bill of lading to speed the proc ess 
(originals can be requested after clearance through PCA); (v)  restructuring the clearance process to 
allow pre -arrival submission and processing of declarations; and (vi)  launching a new economic 
program for trusted traders.  
3.5.  Regarding transparency, th e SCA implemented some changes during the review period, such 
as: (i)  launching an import and export guide to allow more transparency on the import or export 
process, in cooperation  with other government authorities, through the single window platform; 
(ii) publishing the customs tariff HS codes on its website and mobile application; (iii)  launching a 
public  platform for receiving reports from traders, brokers, employees, and public "clients" on 
corruption and violation of laws; and (iv)  establishing a Cust oms Committee (an independent 
customs court) to rule on duty-collection decisions and the variances in customs duties found by the 
PCA team, which enables the trader to submit a defence and initiate legal proceedings.5  
3.6.  As a result of these measures, Saud i Arabia's world ranking in trading across borders improved 
from 150th in 2016 to 86th in 2020, out of 190 economies, according to the latest World Bank's Doing 
Business report. The report states that, with the exception of the cost related to documentary 
compliance for imports, the time and cost (excluding tariffs) for imports into Saudi Arabia and for 
 
1 For an explanation of the customs -related procedures under the GCC, see WTO documents 
WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
2 According to the authorities, leveraging these systems decreased the manual inspection rate 
signifi cantly.  
3 According to the authorities, this service reduced the crowdedness at the seaport gates to a minimum.  
4 Ministry of Commerce, Issuing a Certificate of Origin of Products , Viewed at: 
https://mc.gov.sa/en/eservices/pages/servicedetails.aspx?sid=35 . 
5 In accordance with Article  1/I/2 of the Implementation Rules of the GCC Common Customs Law.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  exports are less than the average in the Middle East and North Africa (MENA) region ( Table  3.1).6 
This is a significant change compared with the situation prevailing in 2015, when the time and cost 
for imports were greater than the average in the MENA region.7 
Table 3.1 Summary of time and cost for trading across borders, 2020  
 Saudi Arabia  MENA  
Time to import: border compliance (hours)  72 94.2 
Cost to import: border compliance (USD)  464 512.5  
Time to import: documentary compliance (hours)  32 72.5 
Cost to import: documentary compliance (USD)  267 262.5  
Time to export: border compliance (hours)  37 52.5 
Cost to export: border compliance (USD)  319 441.8  
Time to export: documentary compliance (hours)  11 66.4 
Cost to export: documentary compliance (USD)  73 240.7  
Source:  World Bank (2020), Doing Business 2020, Economy Profile. Viewed at: 
https://www.doingbusiness.org/en/data/exploreeconomies/saudi -arabia# .  
3.7.  Since the implementation of the G CC Customs Union in 2003, the customs procedures and 
documentation requirements have been, in principle, the same among the GCC member States. 
However, implementation of the Common Customs Law and application of the Unified Guide for 
Customs Procedures is the responsibility of each GCC member State's customs agency. Furthermore, 
each member State may determine its own list of prohibited or restricted products, although 
members are developing a common list (Section 3.1.6) . 
3.8.  All enterprises, including importer s and exporters, irrespective of nationality, must register 
with the Ministry of Commerce before engaging in any business. Commercial registration is required 
when applying for import licences (Section  3.1.6) and when clearing customs for imported goods. 
The commercial registration period is optional, and it is valid for up to five  years (renewable for 
another five years). Using a Saudi commercial agent8 is required only when importing /exporting 
agricultural machinery.  
3.9.  All commercial imports, irrespective of value, must be declared to the SCA. The SCA also 
operates a pre -arrival document verification procedure, the Direct Clearance System, for certain 
products, including new vehicles, pipes, timber, and building materials, upon the request of 
importers.  
3.10.   With the goal of clea ring customs within 24 hours, all goods are eligible for direct clearance if 
the required documents are submitted.  
3.11.   Upon arrival, all imports are subject to customs inspections. Physical inspection may be 
carried out for goods on a random  basis determined by risk profiling. According to the authorities, 
100% of imported consignments are subject to X -ray scanning, of which 20% are physically 
inspected. Upon payment of customs duties, imported goods may be released from the SCA. 
According to  the authorities, the clearance of goods through customs takes an average of two  hours,  
regardless of the mode of transport.  
3.12.   Consignments of perishable imports, such as items for human consumption, are controlled by 
the SFDA inspectors at the border, who t ake a sample for laboratory analysis. In general, the SCA 
immediately releases consignments with an undertaking from the importer not to distribute the 
products until the analysis results are disclosed. Customs release of perishable goods does not imply 
that the imported product may be freely circulated in the market. Free circulation in the market is 
subject to the decision of the SFDA ( Section 3.3.3 ).  
 
6 World Bank, Ease of Doing Business in Saudi Arabia . Viewed at: 
https://www.doingbusiness.org/en/data/exploreeconomies/saudi -arabia# .  
7 See Table 3.2 of WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia , Geneva.  
8 Under the Commercial Age ncies Law (Royal Decree No. M/11, 20/2/1382H), a commercial agent is a 
natural or legal person acting as a representative of foreign distributors/producers, but not a customs broker.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 41 - 
 
  3.13.   On 1 January 2018, the SCA introduced the Authorized Economic Operator (AEO) programme, 
which is based o n a partnership between the SCA and businesses to strengthen the security of the 
international supply chain and provide more trade facilitation benefits.9 As at September 2020, 
175 companies were approved by the AEO and classified as low -risk business par tners that can 
therefore be trusted by Customs. These companies receive significant benefits that simplify their 
customs procedures, create greater predictability for business activities at the border, and facilitate 
the movement of their goods at a lower cost. 
3.14.   Using custom s brokers is voluntary. Customs brokers must be licensed by the SCA and must 
be nationals of GCC member States.  
3.15.   There are no legal provisions pertaining to advance rulings. According to the authorities, the 
SCA answers, on a case -by-case basis, requests for information on customs matters such as 
classification, valuation, and rules of origin.  
3.16.   Saudi Arabia uses documentary inspection on shipments before arrival. This is mainly applied 
on imports, and it can take place only if the importer  submits the required documents and shipments 
are declared prior to their arrival at the port.  
3.17.   Article  147 of the GCC Common Customs Law specifies the time limits within which  the trader 
can file an appeal. Importers that disagree with Customs' decisions concerning, inter alia , 
classifications, valuation, and intellectual property rights violations may appeal to the Director of 
Customs or the relevant customs committees. Importers may then refer the case to the Board of 
Grievances if they are not satisfied with the outcome of t he appeal. In 2019, 906 appeal decisions 
were issued (compared with 421 in 2015).  
3.18.   On 26 July 2016, Saudi Arabia ratified the Protocol concerning the WTO Trade Facilitation 
Agreement (TFA). It designated all provisions in Section 1 of the Agreement under C ategory A10, 
meaning that it committed to their implementation upon the entry into force of the TFA 
(i.e. 22 February 2017).11 According to Article  23.3 of the TFA, the Saudi National Trade Facilitation 
Committee was established to facilitate both domestic coordination and implementation of the 
provisions of the Agreement. The committee is headed by the General Authority for Fore ign Trade 
(GAFT)12 and includes all related government entities in its membership.  
3.1.2   Customs valuation  
3.19.   Saudi Arabia's customs valuation legislation is set out in accordance with the GCC Common 
Customs Law, its Implementation Rules, and the WTO  Agreement on C ustoms Valuation (CVA).13  
3.20.   The transaction value is the primary basis for determining customs value. The transaction 
values used are c.i.f. values. In case the transaction value cannot be used, the customs value is 
calculated by proceeding through the basi c methods established by the CVA. No minimum or 
reference prices are applied. According to the authorities, 98% of import declarations in 2019 were 
accepted in accordance with the transaction value method.  
3.21.   During the review period, the main changes introd uced regarding customs valuation refer to 
publishing customs valuation rules on the SCA website14, and applying the importer's right to appeal 
without penalty before the Customs Valuation Committee.15 The Customs Valuation Committee 
 
9 AEO is a global standard adopted by the World Customs Organization (WCO) SAFE Framework of 
Standards, and it was approved by the WCO Council in 2005. It is also a key component of the WTO Trade 
Facilitation Agreement (TFA).  
10 WTO document WT/PCTF/N/SAU/1,  22 July 2014.  
11 WTO document G/TFA/N/SAU/1, 30 November 2018.  
12 GAFT was established in January 2019 to take over all the responsibilities related to foreign trade that 
were previously carried out by the Ministry of Commerce. The Ministry used to be named  Ministry of Commerce 
and Investment, until the creation of the Ministry of Investment in February 2020. See Section 2.2.  
13 WTO document G/VAL/N/1/SAU/1, 6 February 2007.  
14 In accordance with Article  12 of the CVA. S audi Customs, Basis of Value Determinati on for Customs 
Purposes . Viewed at: https://www.customs.gov.sa/en/general/basisofvaluedetermination .  
15 In accordance with Article  11/2 of the CVA and Article  61 of the GCC Cus toms Law.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  handles the settlement of disputes arising between importers and the SCA over valuation. Its 
decisions are issued and shall be endorsed by the Governor of the SCA.  
3.1.3   Rules of origin  
3.22.   Neither the 2001 Economic Agreement between the GCC member States nor its 
Implementation Rules cont ain provisions relating to rules of origin.16  
3.23.   Saudi Arabia does not have non -preferential rules of origin.17  
3.24.   Saudi Arabia maintains preferential rules for goods originating from countries that it has 
free-trade agreements with ( Section 2.3.2 ). Under the Pan-Arab Free Trade Area (PAFTA) 
Agreement, four main criteria apply: value added, change in tariff heading, wholly obtained, and 
sufficient transformation. As regards the value -added criterion, at least 40% of local value added 
must be contained in the go ods in order to benefit from the preference. Moreover, direct transport 
is required for maintaining the preference. The agreement signed between the GCC and the EFTA 
contains a list of goods that have preferential rules of origin. The GCC -Singapore FTA als o has its 
own rules of origin.   
3.1.4   Tariffs  
3.1.4.1   MFN applied tariffs  
3.25.   Pursuant to the GCC Common Customs Law, Saudi Arabia has applied the GCC common 
external tariff (CET) since 1 January 2003. Under the "single port of entry" principle, items imported 
into Saudi Ar abia (or any other GCC member State), and destined for another GCC market, are 
subject to customs duty only at the first point of entry into the GCC territory.18 The implementation 
of the customs union required a transitional period for GCC member States t o adopt the necessary 
procedures. The full GCC Customs Union entered into force on 1 January 2015. However, there 
remain some differences in the implementation of the CET, as each GCC member State has the right 
to keep lists of prohibited and restricted go ods ( Section 3.1.6 ). The Saudi authorities maintain a 
public online database of tariff rates applied to imports.19 
3.26.   The tariff nomenclature is based on the Harmonized System (HS). Saudi Arabia's 2015 tariff 
was based on HS12 nomenclature, consisting of 7,32 5 tariff lines (8 -digit), while the 2020 tariff is 
based on HS17 nomenclature, consisting of 12,690 tariff lines (12 -digit). There are no tariff lines 
subject to tariff quotas, and no lines have "nuisance" rates (Table 3.2).  
Table 3.2 Structure of applied MFN and bound tariffs, 2015 and 2020  
 
2015  2020  Bound ratea 
Simple average rate (%)  5.2 5.5 10.9 
 WTO agricultural products  5.9 7.1 14.9 
 WTO non -agricultural products  5.1 5.2 10.2 
Duty-free tariff lines (% of all tariff lines)  11.0 10.6 5.3 
Simple average of dutiable lines only  5.9 6.1 11.6 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  1.5 1.3 1.5 
Domestic tariff "peaks" (% of all tariff lines)b 0.6 1.3 0.3 
 
16 Article  II(f) of the Implementation Rules provides that goods produced in any GCC member State will 
be treated as of national origin. WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
17 WTO document G/RO/N/48, 8 November 2006.  
18 WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
19 Saudi Customs,  Tariff Search Engine . Viewed at: 
https://www.customs.gov.sa/en/customsTariffSearch . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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2015  2020  Bound ratea 
International tariff "peaks" (% of all tariff lines)c 0.6 1.3 1.5 
Standard deviation  5.7 5.8 11.1 
Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
a Calculations for final bound rates are taken from the CTS database. The final bound schedule is 
based on HS12 nomenclature (8 -digit).  
b Domestic tariff peaks are defined as those exceeding three times the overall average applied rate.  
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rat es are greater than 0% but inferior or equal to 2%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.27.   Overall, the simple average of Saudi Arabia's 2020 applied MFN tariff rate is estimated at 
5.5%, compared with 5.2% in 2015 .20 This slight rise is mainly attributable to changes in the tariff 
structure but also to increases in customs duty rates for some products (e.g. items related to 
fertilizers (HS 31), meat products (HS 02), and dairy products (HS 04)).21 Based on the 
WTO definition, the average applied rate for agricultural products was 7.1% in 2020 (up from 5.9% 
in 2015), while for non -agricultural products the average was 5.2%, about the same as in 2015 
(5.1%).  
3.28.   In the 2020 tariff schedule, 10.6% of all tariff lines are d uty free (11.0% in 2015), and 77.4% 
of lines have a 5% rate (79.8% in 2015). A further 9.7% of all tariff rates are greater than 5% and 
lower than 15% (Chart 3.1).  
Chart 3.1 Frequency distribution of MFN tari ff rates, 2020  
 
Note:  Percentages in parentheses denote the share of total lines. The 2020 tariff schedule consists of 
12,690 tariff lines.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.29.   Most tariff lines (98.7%) are subject to ad valorem  rates, while 1.3% of lines have 
non-ad valorem  rates; ad valorem  equivalents (AVEs) for these lines were not provided by the 
 
20 The analysis of applied ta riff rates in this subsection does not take into account the increases in 
customs duties that took effect in June 2020 . 
21 A full comparison between the 2015 tariff schedule and the 2020 tariff schedule was not possible; 
some 3.4% of tariff lines could not be compared, mainly due to changes in HS nomenclature and in the 
structure of the tariff schedule.  
(10.6%)(77.4%)
(3.9%)(5.8%)
(0.7%)(0.1%) (0.02%) (0.01%)(0.4%)(0.9%)
05001,0001,5002,0002,5003,0003,5004,000
Duty free 5 >5-10 >10-15 >15-20 >20-25 40 100 Non-ad
valorem
rateProhibitedChart 3.[SAU]  Distribution of MFN tariff rates, 2020
10,000
9,500
Note:   Figures in parentheses denote the share of total lines.  The 2020 tariff schedule consists of 12,690 tariff lines.
Source:   WTO Secretariat calculations, based on data provided by the authorities.Number of tariff lines
Non-ad 
valorem
rate
Tariff rates (%)WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 44 - 
 
  authorities. The tariff on some lines is 100% with a minimum specific duty, e.g . the tariff on 
HS 240220100000 (cigarettes) is 100% with a minimum of SAR 200 per 1,000 units.  
3.30.   The highest tariff rate of 100% or the ad valorem  part of 100% for mixed duties (e.g. 100% 
with a minimum of SAR 200 per 1,000 units) is exclusively levied on  tobacco products (HS 24); 
followed by fruit, vegetables, and plants (up to 40%), and dairy products (up to 25%). The highest 
simple average applied MFN rate among agricultural goods is for the beverages, spirits, and tobacco 
category with 27% (Ta ble 3.3).22 With regard to non -agricultural goods, petroleum products have 
the highest simple average applied MFN rate at 6.7%, followed by wood, pulp, paper, and furniture 
(6.5%); textiles (6.5%); and leather, rubber, footwear, and travel goods (6.0%).  
3.31.   In April 2020, the Government raised import tariffs on certain goods, including dairy products, 
juices, vegetables and olive oils, chemicals, building materials, and vehicles. The changes took effect 
in June 2020."  
Table 3.3 Summary analysis of MFN tariff, 2020  
 
Number of 
lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share 
of 
duty-
free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  12,690  5.5 0-100 5.8 10.6 1.3 
HS 01 -24 1,939  6.6 0-100 13.4 24.3 7.2 
HS 25-97 10,751  5.3 0-20 2.8 8.2 0.3 
By WTO category        
WTO agricultural products  1,706  7.1 0-100 14.3 22.1 8.2 
Animals and products thereof  305 5.4 0-20 7.7 51.8 14.8 
Dairy products  55 6.6 5-25 5.2 0.0 0.0 
Fruit, vegetables, and plants  399 4.1 0-40 4.0 24.3 4.8 
Coffee, tea, and cocoa and 
cocoa preparations  60 6.0 0-15 4.4 16.7 3.3 
Cereals and preparations  243 6.9 0-25 6.4 18.9 0.8 
Oils seeds, fats, oil and their 
products  127 4.9 0-12 1.9 6.3 7.1 
Sugars and confectionery  97 5.9 0-15 3.4 19.6 1.0 
Beverages, spirits and tobacco  164 27.0 0-100 39.7 1.2 31.1 
Cotton  5 5.0 5 0.0 0.0 0.0 
Other agricultural products  251 4.2 0-5 1.8 14.7 4.4 
WTO non -agricultural 
products  10,984  5.2 0-20 2.8 8.8 0.3 
Fish and fishery products  334 3.6 0-5 2.2 28.1 0.0 
Minerals and metals  2,356  5.5 0-15 2.2 2.2 0.4 
Chemicals and photographic 
supplies  2,268  4.6 0-6.5 1.6 9.6 0.1 
Wood, pulp, paper and 
furniture  994 6.5 0-20 5.0 11.9 0.2 
Textiles  1,043  6.5 0-15 3.1 0.4 0.1 
Clothing  535 5.0 5-12 0.4 0.0 0.0 
Leather, rubber, footwear and 
travel goods  296 6.0 5-15 2.5 0.0 2.7 
Non-electric machinery  1,043  4.5 0-15 2.2 14.2 0.0 
Electric machinery  537 4.1 0-15 3.8 34.6 0.4 
Transport equipment  465 5.3 0-15 3.5 15.7 0.6 
 
22 The presence of a few tariff lines with ad valorem  rates of 100% and minimum specific duties 
increases the average tariff for the beverages, spirits, and tobacco category, with a standard deviation of 
39.7% (Table 3.3).  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 45 - 
 
   
Number of 
lines  Simple 
average 
(%) Tariff 
range  
(%) SDa Share 
of 
duty-
free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Non-agricultural products  990 4.9 0-15 2.0 7.9 0.1 
Petroleum  123 6.7 5-10 2.4 0.0 0.0 
By ISIC sectorb       
ISIC 1 – Agriculture, hunting 
and fishing  753 4.8 0-100 14.0 49.5 4.6 
ISIC 2 – Mining and quarrying  566 5.4 0-15 2.1 0.5 1.1 
ISIC 3 – Manufacturing  11,370  5.5 0-100 4.9 8.5 1.1 
By stage of processing        
First stage of processing  1,784  5.2 0-100 9.2 20.9 2.7 
Semi-processed products  3,573  5.1 0-25 1.8 3.9 0.1 
Fully processed products  7,333  5.7 0-100 6.0 11.4 1.6 
Note:  Calculations for averages are based on the national tariff line level (12 -digit), excluding in -quota 
rates. Tariff schedule is based on HS17. In case of non -ad valorem  rates, the ad valorem  part is 
used for mixed rates.  
a Standard deviation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas, and water are excluded 
(1 tariff line).  
Source:  WTO Secretariat, based on the information provided by the authorities.  
3.1.4.2   WTO bound tariffs  
3.32.   With the exception of prohibited products (Section 3.1.6 ), as listed in Saudi Arabia's Schedule, 
all tariff lines are bound. The simple average bound tariff rate is 10.9%, almost twice the simple 
average applied MFN rate of 5.5% (Table 3. 2). 
3.1.4.3   Preferential rates  
3.33.   The preferential tariff was not available at the time of drafting.  Prefer ential tariffs are granted 
to countries that Saudi Arabia has free trade agreements with ( Section  2.3.2 ). Except alcohol, pork, 
and pork -related products, which are banned on religious grounds (Section  3.1.6),  imports from 
GCC member States and PAFTA membe rs are duty free. Saudi Arabia does not accord preferential 
tariff rates to imports from least developed countries.  
3.1.4.4   Tariff exemption  
3.34.   Saudi Arabia grants tariff exemptions to national and foreign investors for imports of raw 
materials, machinery, equipment , and semi -manufactured substances required for industrial 
production based on the GCC Common Industrial Law. Exemptions from customs duties are also 
applied to investors in the mining sector (Section 4.2.1).  
3.35.   There is no tariff drawback system.  
3.1.5   Internal t axes collected at the border  
3.36.   Saudi Arabia introduced the value added tax (VAT) as from 1 January 2018 at a standard rate 
of 5%. On 1 July 2020, the standard rate was increased to 15% as part of the measures adopted to 
deal with the economic crisis caused b y the COVID -19 pandemic ( Section  1.2).  
3.37.   VAT was introduced as a result of a common approach among the GCC member States, 
including a unified VAT system for GCC trade. This system is designed to operate where all 
GCC member States have introduced a domestic  VAT system, and processes for exchanging 
information on intra -GCC trade have been implemented. As such, transitional rules apply to ensure WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  the appropriate application of VAT until the GCC Agreement measures are implemented in full, 
including the introduct ion of an Electronic Services System.23  
3.38.   The Unified VAT Agreement for the Cooperation Council for the Arab States of the Gulf (Unified 
VAT Agreement) was approved by Royal Decree No. M/51 dated 3/4/1438H (31 January 2017). 
Pursuant to the provisions of th e Unified VAT Agreement, Saudi Arabia issued the VAT Law under 
Royal Decree No. M/113 dated 02/11/1438H (26 July 2017) and its corresponding Implementing 
Regulations were issued by the Board of Directors of the General Authority of Zakat and Tax (GAZT) 
by Resolution No. 3839 dated 14/12/1438H (6 September  2017).24  
3.39.   The GAZT is the authority in charge of the implementation and administration of VAT. In 
addition to the registration and deregistration of taxable persons for VAT, the administration of VAT 
return filings and VAT refunds, and the undertaking of audits and field visits, the GAZT also has the 
power to levy penalties for noncompliance with legal provisions relating to VAT.  
3.40.   VAT is imposed on all taxable supplies of goods and services made in Saudi Ar abia by a taxable 
person, or received in the country by a taxable person in instances where the reverse charge 
mechanism applies, as well as on imports of goods.25 VAT is charged by the SCA at the point of 
entry. The Common Customs Law requires that a cust oms declaration shall be produced by the 
importer for any goods entering or leaving the country.26 The named importer, who is licensed to 
import the goods and is shown as the importer on the customs declaration,  is the  person liable to 
pay the VAT .  
3.41.   The VA T payable on the import of goods must be paid to the SCA, together with the duty and 
other charges indicated on the customs declaration, to facilitate the release of goods for free 
circulation. If an importer notices the VAT amount payable is incorrect, du e to an error in 
classification or value, he or she should raise this issue with the SCA before making a payment. The 
importer can access the summary of VAT paid on imports through the SCA portal. This information 
is the definitive record of all amounts of  VAT paid to the SCA on imports. In all cases, VAT is paid 
by the importer of goods, and the right to deduction of that import VAT is with the importer, subject 
to normal deduction rules.  
3.42.   Import VAT is calculated based on the declared landed value of the goods for customs 
purposes, inclusive of freight and insurance (equivalent to the CIF value), any taxes, customs, or 
excise duties, and any incidental handling or storage charges, but excluding VAT, unless the import 
is exempt. Imports of certain goods, or  imports made in certain cases, are exempt from import VAT. 
These include:  
• goods whose supply are exempt or zero -rated for VAT purposes (e.g. qualifying medicines, 
medical goods, or means of transport)27;  
• goods that are exempt from customs duties under specific exemptions in the Common 
Customs Law: (i) diplomatic exemptions; (ii) military exemptions; (iii) imports of used 
personal luggage and household appliances that are brought by citizens residing abroad 
and foreigners who are coming to reside i n the country for the first time; (iv)  imports of 
exempt supplies to non -profit organizations; and (v) imports of returned goods28; and  
• personal items and gifts carried in travellers' personal luggage, which are exempt in 
accordance with the Common Custom s Law, up to a cap of SAR 3,000 on such imports.29  
 
23 General Authority of Zakat and Tax, Value Added Tax (VAT) . Viewed at: 
https://gazt.gov.sa/en/RulesRegulations/VAT/Pages/default.aspx#vat_page . 
24 General Authority of Zakat and Tax, Value Added Tax (VAT) . Viewed at: 
https://gazt.gov.sa/en/RulesRegulations/VAT/Pages/default.aspx#vat_page . 
25 Article  14 of the Implementing Regulations.  
26 Article  19 of the Common Customs Law.  
27 Article  38(1) of the U nified VAT Agreement.  
28 Article  38(2) of the Unified VAT Agreement and Article  42 of the Implementing Regulations.  
29 Article  42 of the Implementing Regulations and Article  19 of the Rules of Implementation of the GCC 
Common Customs Law.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.43.   The supply of goods made before the formal import clearance into Saudi Arabia should be 
considered as being made outside the Kingdom .30 The supply of goods made after the formal import 
clearance, when goods are situated in the country, is generally a supply that takes place in 
Saudi  Arabia and is therefore subject to VAT.  
3.44.   The export of goods outside the GCC territory is subject to the ze ro-rate of VAT where the 
appropriate evidence of such is retained.31 
3.45.   On 31 January 2017, Saudi Arabia ratified the GCC Common Excise Tax Agreement. Pursuant 
to the provisions of the Agreement, Saudi Arabia issued the Excise Tax Law and the Implementing 
Regulations of the Excise Tax Law. The excise tax is an indirect tax that is chargeable upon releasing 
certain goods for consumption in Saudi Arabia.32 Two excise tax rates (50% or 100%) are applied 
to the following goods:  
• soft drinks (50%);  
• sweetened drink s (50%);  
• tobacco -related products (100%);  
• energy drinks (100%);  
• electronic devices and equipment used for smoking, vaping, and similar activities (100%); 
and 
• liquids consumed in electronic devices and equipment used for smoking, vaping, and 
similar activi ties (100%).  
3.46.   There is an "other duty or charge" imposed on tobacco and tobacco products at SAR  0.03 for 
each packet, as set out in Schedule CLVIII of the Kingdom of Saudi Arabia, which, the authorities 
state, is applied for public health reasons.  
3.47.   For good s left in the SCA's  warehouses and not cleared within 10 days of the unloading date, 
storage charges are levied at SAR 20 per tonne per day; no charges are levied if the delay was not 
caused by the importer. Goods in transit are subject to a service charge  at a rate of 0.004% of the 
customs value. The authorities indicate that the charge is commensurate with the service cost.  
3.48.   There are no customs inspection charges imposed on goods. However, an X-ray scanning 
charge of SAR 100 per container is applied to sc anned goods.  
3.1.6   Import prohibitions, restrictions, and licensing  
3.49.   Under the GCC Common Customs Law, each GCC member State determines its own list of 
prohibited or restricted products, although members are developing a common list.33 Imports that 
are prohibit ed in some GCC member States but permitted in others may not transit through the 
member States in which they are prohibited.  
3.50.   In February 2020, Saudi Arabia made a new notification about its import licensing procedures 
with the aim of helping the business s ector, especially small and medium -sized enterprises (SMEs), 
by removing import barriers and increasing transparency for obtaining import licences, as well as by 
regulating the importing process.34  
 
30 Article  27(3) of the Implementing Regulations.  
31 Article  34 of the Unified VAT Agreement.  
32 Importing such goods into the country without putting them into a tax warehouse is considered a 
release for consumption.  
33 The list of prohibited and restricted imports maintained b y each GCC member State is available in 
Annex 2 of WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
34 According to Ministry of Commerce and Investment Decisions No. 106 and No. 107 of 07/04/1441H, 
27 December 2019. WTO document G/LIC/N/2/SAU/ 2, 11 February 2020.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.51.   Import prohibitions continue to be maintained based on se curity, public safety, moral, and 
religious considerations, as well as on international obligations, such as international convention 
requirements and UN sanction resolutions. According to the authorities, there are 111 prohibited 
items at the 12 -digit lev el covering, inter alia , narcotics, alcoholic beverages, live swine and swine 
products, and worn clothes (Table  3.4). According to the SCA website35, however, there are 
113 products at the 12 -digit level because items HS 220300000000 (beer made from malt) and 
HS 220600000000 (other fermented beverages) are also described as prohibited.  
Table 3.4 Import prohibitions, 2020  
HS code  Description  No. of 12 -digit lines  
01 Live animals  3 
02 Meat and edible meat offal 15 
0203 Meat of swine, fresh, chilled or frozen  6 
05 Products of animal origin  5 
08 Edible fruit and nuts; peel of citrus fruit or melons  1 
09 Coffee, tea, maté and spices  4 
12 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and 
fruit; industrial or medicinal plants; straw and fodder  9 
13 Lac; gums, resins and other vegetable saps and extracts  2 
15 Animal or vegetable fats and oils and their cleavage products; 
prepared edible fats; animal or vegetable waxes  6 
16 Preparations of meat, of fish or of crustaceans, molluscs or other 
aquatic invertebrates  4 
17 Sugars and sugar confectionery  1 
18 Cocoa and cocoa preparations  2 
20 Preparations of vegetables, fruit, nuts or other parts of plants  10 
2008 Containing added spirit  10 
22 Beverages, spirits and vinegar  18 
2208 Undenatured ethyl alcohol; spirits, liqueurs and other spirituous 
beverages  8 
23 Residues and waste from the food industries; prepared animal 
fodder  1 
24 Tobacco and manufactured tobacco substitutes  1 
25 Salt; sulphur; earths and stone; plastering materials, lime and 
cement  6 
28 Inorganic chemicals; organic or inorganic compounds of precious 
metals, of rare -earth metals, of radioactive elements or of isotopes  1 
29 Organic chemicals  1 
36 Explosives; pyrotechnic products; matches; pyrophoric alloys; 
certain combustible preparations  1 
40 Rubber and articles thereof  5 
41 Raw hides and skins (other than fur skins) and leather  4 
49 Printed books, newspapers, pictures and other products of the 
printing industry; manuscripts, typescripts and plans  2 
63 Other made up textile articles; sets; worn clothing and worn textile 
articles; rags  1 
68 Articles of stone, plaster, cement, asbestos, mica or similar materials  4 
85 Electrical machinery and equipment and parts thereof  2 
87 Vehicles other than railway or tramway rolling -stock, and parts and 
accessories thereof  3 
90 Optical, photographic, cinematographic, measuring, checking, 
precision, medical or surgical instruments and apparatus; parts and 
accessories thereof  1 
Total   113 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.52.   Under the Basel, Rotterdam, and Vienna Conventions, imports of recycled plastic waste are 
restricted. Imports of ozone -depleting substances under the Montreal Protocol are also restricted.  
3.53.   Import licensing requirements are applied to imports from all trad ing partners except other 
GCC member States.  
 
35 Saudi Customs, Tariff Search Engine . Viewed at: 
https://www.customs.gov.sa/en/customsTariffSearch . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 49 - 
 
  3.54.   Saudi Arabia does not operate an automatic licensing scheme, while the non -automatic 
licensing system is maintained for the purpose of meeting requirements of domestic legislation 
and/or for compliance with int ernational conventions. The list of products subject to licensing 
requirements is kept by the Ministry of Commerce and may be amended if necessary . 
3.55.   For imports of each product subject to import licensing requirements, licensing procedures 
are handled by a single relevant administrative body, and an eligible importer may apply to that 
authority for a licence ( Table A3.1 ). Licence applications may be submitted 21 days prior to the 
arrival of goods; it takes a maximum of 30 days to process the app lications, but the authorities 
indicate that licences are usually decided in a shorter period.  
3.56.   The validity of import licences differs depending on the type of product.36 No licensing fees, 
other than administrative charges or deposits, are required for i ssuing a licence. Import licences are 
not transferable.  
3.57.   In addition, imports of live animals and birds and of plants for planting also require an 
application for a licence from the Ministry of Environment, Water and  Agriculture on the grounds of 
SPS consi derations (Section  3.3.3). Imports of endangered species of wild fauna and flora under 
CITES or under national legislation37 must apply to the National Center for Wildlife Development for 
import permits; the applications must be accompanied by CITES certif icates issued by the 
exporting/re -exporting country.  
3.58.   The Ministry of Communications and Information Technology is the responsible agency for the 
approval procedure for information and communication technology (ICT) equipment, prior to 
manufacturing, impor ting, distributing, leasing, or selling telecommunications equipment. The 
procedure is based on established and published technical standards by the Communication and 
Information Technology Commission and is applied only on this type of equipment.  
3.1.7   Conting ency measures  
3.59.   Anti-dumping and countervailing are not permitted in intra -GCC trade, according to Article  1 
of the 2001 Economic Agreement between the GCC member States, which eliminated all tariff and 
non-tariff barriers in internal trade. There are no pro visions permitting the imposition of safeguard 
measures in intra -GCC trade. With respect to extra -GCC trade, Article  8 of the GCC Agreement 
requires member States to unify their industrial legislation and regulations with respect to rules 
related to anti -dumping and precautionary safeguards.38 
3.60.   There have been no significant changes regarding trade remedy measures in Saudi Arabia 
since its last  Review.  The GCC Common Law on Anti -dumping, Countervailing and Safeguard 
Measures (GCC Common Law) and its Implemen tation Rules (amended) remain the key pieces of 
legislation.39,40 These are applied in Saudi Arabia by Royal Decree No. M/7 dated 20/03/1434H 
(22 February 2013).  
3.61.   Under the GCC Common Law, the determination of injury is based on the overall market of 
the GCC member States.41 Under the 2010 amendment to the GCC Common Law, the following 
institutions were established to deal with trade remedy issues within the GCC market: the Ministerial 
Committee, the Permanent Committee, the Cooperation Council for the Ara b States of the Gulf, and 
the Bureau of Technical Secretariat of Anti -injurious Practice in International Trade (GCC -TSAIP).  
3.62.   The GCC-TSAIP is the investigating authority for trade remedy proceedings. A complaint must 
be submitted to the GCC -TSAIP, which r eviews it and submits an initial report to the Permanent 
Committee, with a recommendation on whether to pursue an investigation. Based on the initial 
 
36 Extension of validity may be granted if it is in the public intere st. 
37 The Act of Environment, Royal Decree No. M/165, 10 July 2020.  
38 WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
39 WTO documents G/ADP/N/1/SAU/2; G/SCM/N/1/SAU/2; and G/SG/N/1/SAU/2, 12 November 2014.  
40 WTO documents G/ADP/N/1/SAU/1; G/SCM/N/1/SAU/1; and G/SG/N/1/SAU/1, 11 March 2009.  
41 GCC member States also agreed that the domestic industries eligible to submit complaints are the 
GCC producers of "like products" as a whole, or those whose collective ou tput represents more than 50% of 
the GCC production of those products, i.e. trade remedy investigations examine the GCC market as one 
market, and all GCC producers of the "like products" within the GCC are treated as a single domestic industry.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  report by the GCC -TSAIP, the Permanent Committee may decide whether to initiate an investigation 
and, base d on a preliminary determination report by the GCC -TSAIP, whether to impose provisional 
measures. Based on the final findings of the investigation, the Permanent Committee may propose 
the imposition of definitive measures to the Ministerial Committee.  
3.63.   On 3 January 2019, Ministerial Decree No. 211 established the GAFT. The Trade Remedies 
Deputyship (TRD), under the GAFT, is responsible for all issues related to trade remedies. The 
Deputy Governor of the TRD is a member of the Permanent Committee and partici pates in its 
decisions. The Minister of Industry and Mineral Resources represents Saudi Arabia in the Ministerial 
Committee for final decision -making of trade remedy matters.  
3.64.   During the review period, the GCC -TSAIP conducted several anti -dumping and safeg uards 
proceedings but no countervailing proceedings. Several applications were submitted, and nine were 
accepted to initiate investigations; one self -initiation investigation was also initiated . One safeguards 
investigation was terminated. One anti -dumping  investigation was dismissed, and an applicant 
withdrew his application in one anti -dumping investigation.  
3.65.   Saudi Arabia's definitive anti -dumping measures in force are described in Table 3. 5, while its 
safeguard measures in force refer to imports of flat -rolled products of iron or non -alloy steel42, and 
chemical plasticizers .43 
Table 3.5 Definitive anti -dumping measures in force, 2020  
Country  Product/Investigation ID number  Measure  Date of original 
imposition/Publication  
China  Ceramic flags and paving, hearth, floor 
or wall tiles; whether or not on a 
backing; finishing ceramics (ceramic 
tiles) 
HS: 6907 other than those of subheading 
69073000  
ID: AD -4-9/CH Duties  30 April 2020  
 
Official Gazette , Vol. 27  
India Ceramic flags and paving, hearth, floor 
or wall tiles; whether or not on a 
backing; finishing ceramics (ceramic 
tiles) 
HS: 6907 other than those of subheading 
69073000  
ID: AD -4-9/CH Duties  30 April 2020  
 
Official Gazette , Vol. 27  
Korea,  
Republic of  Electric lead -acid accumulators of 
capacity of 35 up to 115 Amp -hour 
ID: AD -15-5 Duties  25 June 2017  
 
Official Gazette , Vol. 10  
Poland  Uncoated paper and paperboard (Kraft 
Liner of Fluting or test Liner), in rolls or 
sheets (Containerboard)  
ID: AD -3-8/POL  Duties  1 May 2019  
 
Official Gazette , Vol. 20  
Spain  Uncoated paper and paperboard (Kraft 
Liner of Fluting or test Liner), in rolls or 
sheets (Containerboard)  
ID: AD -3-8/ESP  Duties  1 May 2019  
 
Official Gazette , Vol. 20  
Source:  Information provided by the authorities.  
3.2  Measures Directly Affecting Exports  
3.2.1   Export procedures and requirements  
3.66.   Registration and documentation requirements for exports, in general, are similar to those for 
imports ( Section  3.1.1 ). Exporters must register with the Ministry of Commerce and food exporters 
 
42 WTO docum ents G/SG/N/10/SAU/1 and G/SG/N/11/SAU/2, 15 June 2017; G/SG/N/10/SAU/1/Suppl.1 
and G/SG/N/11/SAU/2/Suppl.1, 21 July 2017; and G/SG/N/10/SAU/1/Suppl.2 and G/SG/N/11/SAU/2/Suppl.2, 
14 June 2019.  
43 WTO documents G/SG/N/10/SAU/2 and G/SG/N/11/SAU/3, 5 April 2 019; and 
G/SG/N/10/SAU/2/Suppl.1 and G/SG/N/11/SAU/3/Suppl.1, 14 June 2019.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  must register with the SFDA. Pre -departure declarations for exports must be submi tted to the SCA. 
According to the authorities, all exports are subject to inspection or X -ray scanning.  
3.67.   Exporters must obtain certificates of origin from the Ministry of Commerce  for all exports. In 
addition, some products under export control are subject  to export licensing (Section  3.2.3).  For 
food exports, certificates issued by the SFDA are required.  
3.68.   According to the latest World Bank's Doing Business report, the time and cost (excluding 
tariffs) for exports are lower than the average in the MENA regi on (Table  3.1). 
3.2.2   Export taxes and duties  
3.69.   The 2001 Economic Agreement between the GCC member States and its Implementation 
Procedures contain no provisions regarding the use of export duties and charges or other export 
restrictions in the GCC's external trad e.44  
3.70.   According to the authorities, there are no export taxes.  
3.71.   Saudi exports are zero -rated under the VAT Law and its Implementing Regulations45, while 
exporting goods that are subject to the excise tax directly from a licensed tax warehouse are not 
taxab le (tax is suspended) as per the 2001 Economic Agreement between the GCC member States 
and the Excise T ax Implementing Regulations.46  
3.2.3   Export control  
3.2.3.1   Export prohibitions  
3.72.   According to the SCA, Saudi Arabia does not maintain any export prohibitions/restricti ons that 
target  specific  trading partners.  
3.73.   Saudi Arabia maintains export bans on eight categories of products (Table 3. 6).  
Table 3.6 Export prohibitions, 2020  
Product  
Desert breed, pure -bred horses onlya 
Baby milk of all kinds  
Animal feed, such as barley and Sudanese sorghum , alfalfa and hay such sorghum hay, Rhodes grass, 
Sudanese grass  
Corn, olives, pumpkin, grapes, watermelon, sweet melon, potatoes, dry onions, tomatoes  
(produced locally and their processed products)  
Poultry feed, such as yellow corn and soya beans  
Natural sand and sand containing minerals  
Gas cylinders with the specifications of the National Gas & Industrial Company (GASCO)  
Zamzam water  
a Live animals and other kind of horses, male and female, are allowed.  
Source:  Information provided by the authorities.  
3.74.   In response to the COVID -19 pandemic, Saudi Arabia took some temporary measures to 
prohibit exports of some products. Thes e measures ensure the supply of goods necessary for 
preventing a critical shortage of essential products and for preserving human health. The products 
subject to the temporary export prohibition include personal protective equipment for safeguarding 
agains t the spread of disease, medical equipment, and pharmaceutical products.47 
 
44 WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
45 Enterprises that export goods and services are entitled to get a refund for the VAT charged on their 
purchases as  an input tax, provided they file their tax returns as required.  
46 Exporting goods that were released for consumption entitle the person exporting them to get a refund 
of the excise tax paid upon releasing them for consumption.  
47 These products are listed in WTO document G/MA/QR/N/SAU/1, 18 June 2020.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.2.3.2   Export licensing  
3.75.   As was the case in its last Review, Saudi Arabia has 10 categories of goods subject to export 
licensing requirements (Table 3. 7). Exports of antiques are no longer prohibited but subject to 
approval (licensing) from the Ministry of Tourism . Exports of any wildlife species (animals or plants) 
and their products must be accompanied by a CITES permit from the National Center for Wildlife  
Development. Exports of crude oil and its derivatives are subject to automatic licensing 
requirements.  
Table 3.7 Products requiring export licences, 2020  
HS code  Description  Licensing authority  
01 01 10 10  Horses, pure -bred Equestrian Club  
01 01 10 20  Horses, pure -bred Equestrian Club  
01 01 90 10  Horses, pure-bred Equestrian Club  
01 01 90 20  Horses, pure -bred Equestrian Club  
10 01  Wheat  Saudi Grains Organization  
10 03 00 00  Barley  Saudi Grains Organization  
10 05 90 10  Golden corn  Ministry of Finance  
10 05 90 20  White corn  Ministry of Finance  
11 01 00 10  Wheat flour  Saudi Grains Organization  
12 01  Soya beans  Ministry of Finance  
19 01 10 10  Milk-based infant food  Ministry of Finance  
19 01 10 20  Milk-based infant food  Ministry of Finance  
25 05  Sand Ministry of Industry and Mineral Resources  
25 06 21 10  Sand mixed aggregates  Ministry of Industry and Mineral Resources  
25 06 21 20  Sand mixed aggregates  Ministry of Industry and Mineral Resources  
25 15 11 00  Marble  Ministry of Industry and Mineral Resources  
25 17  Stone mixtures  Ministry of Industry and Mineral Resources  
25 22  Limestone  Ministry of Industry and Mineral Resources  
27 09  Crude oil  Ministry of Energy  
27 10,  
except naphtha  Fuels Ministry of Energy  
27 11  Gases, including liquefied gases  Ministry of Energy  
27 14  Asphalt  Ministry of Energy  
28 44  Radioactive materials  Ministry of Interior  
28 45  Radioactive materials  Ministry of Interior  
90 22 19 10  Radioactive materials  Ministry of Interior  
90 22 19 90  Radioactive materials  Ministry of Interior  
29 03 19 10  
29 03 45  
29 03 49  Ozone -depleting materials  National Center for Environmental Compliance  
30 03  Medicines  Saudi Food and Drug Authority  
30 04  Medicines  Saudi Food and Drug Authority  
73 11 00 30  Filled gas cylinders  Ministry of Energy  
84 07 90 00  
84 08 80 00  
84 11  
84 12 80 00  
84 13 50 00  
84 13 60 00  
84 13 70 00  
84 13 81 00  
84 32  
84 33  
87 01 10 00  
87 01 30 00  
87 01 90 00  Agricultural machinery  Agricultural Development Fund  
85 48 10 00  Scraps of batteries, etc.  National Center for Environmental Compliance  
Different headings  Wild fauna and flora, and 
products thereof  National Center for Wildlife Development  
Source:  Information provided by the authorities.  
3.76.   Exporters must obtain licences from the relevant authorities before submitting export 
declarations. Procedures for export licence applications are similar to those for import licences. There 
are no licence fees.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.2.4   Export finance, insurance, guarantees, and assistance  
3.77.   The 2001 Economic Agreement between the GCC member States has no provisions on export 
subsidies.48 
3.78.   Under Vision 2030, Saudi Arabia aims to increase non-oil exports and, to help in this 
endeavour, the Saudi Export -Import (EXIM) Bank was created by the Council of Ministers in 2019 
and became operational in 2020, with SAR 30 billion in capital to boost exports and support industrial 
and mining projects. Subsequently, in February 2020, the Council of Ministers approved the 
regulations of the EXIM Bank.  The EXIM Bank aims to: (i)  promote the development of Saudi exports 
along with their diversity and competitiveness; (ii)  provide export financing, guarantee s, and export 
credit insurance services on a commercial basis; (iii)  enhance confidence in Saudi exports, support 
their penetration of new markets, and reduce non -payment risk; and (iv)  provide export credit 
facilities. With the launch of the EXIM Bank, tw o financing products were offered (pre -export 
financing and buyers' credit)49; its executive committee approved seven loans worth 
SAR 310 million, in addition to rescheduling three loans valued at nearly SAR 216 million.50 
3.79.   The Saudi Export Program (SEP) is  the official national export credit agency, with the objective 
of diversifying non -oil exports through the provision of financing to Saudi  exporters or importers in 
other countries of non -oil goods from Saudi Arabia.51 The SEP facilitates trade transactio ns through 
local and foreign banks, and develops its own assessment and classification of the political and 
commercial risk of relevant markets. The financing offered by the SEP includes finance (i.e. loans) 
and credit insurance services . According to the authorities, these financial products are made on 
commercial market -based terms. To be eligible for financing facilities /credit insurance services,  the 
application must show local value added of at least 25%. The SEP may provide financing facilities  
for up  to 100% of the transaction value, if the transaction value is SAR 100,000 or more. The 
maximum periods for financing facilities  repayment are two years for consumable goods and raw 
materials, seven years for consumable durables and semi -capital goods, and  15 years for capital 
and durable goods or other long -term projects.  
3.80.   Regarding credit insurance services , the SEP offers to cover up to 90% of non -payment risks, 
including commercial and political risks. In 2019, the SEP approved SAR 5.5 billion in its ope rations, 
including SAR  1.8 billion as financing facilities,  and SAR 3.6 billion as credit insurance services  
(Table  3.8).  
Table 3.8 Export finance and guarantees, 2017 -19 
(SAR million)  
Goods and products  2017  2018  2019  
Finance  Insurance  Finance  Insurance  Finance  Insurance  
Processing industries  – 
manufacturing  1,275  763 14,608  1,703  1,605  2,160  
Construction  0 0 0 0 225 0 
Financial activities  56 453 0 453 11 563 
Agricultural  0 0 0 8 0 0 
Mining  0 383 0 618 0 917 
Other  0 0 0 0 0 0 
Total 1,331  1,598  14,608  2,782  1,841  3,640  
Source:  Information provided by the authorities.  
3.81.   In addition to the SEP, the Islamic Corporation for the Insurance of Investment and Export 
Credit (ICIEC) provides export credit insurance services to member States; it also provides member 
States with investment insurance and guarantees against country risks.52  
3.82.   The Saudi Export Development Authority (Saudi Exports) is an independent national authority 
that provides assistance for the diversification of exports through three strategic themes: enhancing 
 
48 WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
49 Saudi Export Development Authority, The Saudi EXIM Bank . Viewed at: 
https://www.saudiexports.sa/en/eservices/exporter/Pages/Export -Financing.aspx . 
50 Official Gazette , 14 July 2020.  
51 Saudi Fund for Development, Saudi Export Program . Viewed at: http://www.sep.gov.sa .  
52 ICIEC. Viewed at: http://www.iciec.com.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  SMEs' export readiness; generating opportuni ties for export -ready businesses; and advocating 
ecosystem efficiency and international market access. Saudi Exports provides administrative, 
technical, and consultative assistance for marketing exports and attracting foreign investors; it also 
cooperates with trade representatives abroad and chambers of industry and commerce to identify 
best exporting practices, create new opportunities for exporters, and improve the export 
environment.  
3.2.5   Special economic zones  
3.83.   A key element under Vision 2030 and the Nation al Industrial Development and Logistics 
Program (NIDLP) is the creation of special economic zones (SEZs). SEZs form part of a larger effort 
by Saudi Arabia to attract foreign investment and diversify the economy away from oil and gas. 
Prospective SEZs in S audi Arabia provide incentives in competitive locations for "promising" sectors, 
notably ICT, tourism, and financial services. SEZs also offer support for multinationals in a wide 
range of activities including warehousing and fulfilment, inventory manageme nt, maintenance and 
repairs, staging, testing, and assembly.53  
3.84.   On 19 October 2018, Royal Order No. A/17, approving the regulations for the Integrated 
Logistics Bonded Zone (ILBZ), was published in the Official Gazette . It provides a list of activities 
covered under the scope of the special rules and regulations: repair maintenance and processing of 
goods; sorting, repackaging, and similar actions, including simple manufacturing processes; import, 
export, and re -export logistics and after -sales services; an d certain recycling activities.54 
3.85.   Under Royal Order No. A/17, specific tax rules are applied to the activities carried out in the 
SEZ55:  
• Customs duties and VAT are suspended on goods that enter in the zone and are not 
imported into the mainland, including goods in transit and temporary transfer of goods 
into the ILBZ.  
• No VAT is due on the transfer of goods between the mainland and the SEZ for repair and 
maintenance.  
• Non-residents will not have permanent establishment in Saudi Arabia if they transact with 
other non -residents in relation to goods in the ILBZ.  
3.86.   Other incentives offered to entities prior to setting up an SEZ include: no financ ial restrictions 
on borrowing and repatriation of funds; simplified procedures to obtain residence permits and work 
visas for the workforce deployed within the SEZ; and no restrictions on private ownership of assets 
including  intellectual property rights . 
3.87.   Each SEZ is to be regulated autonomously by an SEZ Authority56, with the following functions: 
developing zone -level regulations; implementing a full licensing shop (one -stop shop); and 
coordinating developers. A single SEZ Authority could regulate several SEZs. The National SEZ 
Supervisory Board (NSEZ SB) will drive the approval process, support national policymaking, provide 
back-office services, and act as the central coordinator for the development of SEZs in the country.57  
3.88.   On October 2018 , Saudi Arabia  established its first SEZ, an ILBZ at Riyadh's King Khalid 
International airport. It will be operated by the General Authority for Civil Aviation and regulated by 
 
53 SEZs are intended to capitalize on Saudi Arabia's location, which is fewer than seven hours' flying 
time from major cities across Europe, Asia, and the MENA region. Viewed at: 
https://vision2030.gov.sa/en/programs/NIDLP . 
54 Oxford Business Group, New Special Economic Zones in Saudi Arabia Offer a Range of Logistics 
Benefits . Viewed at: https://oxf ordbusinessgroup.com/analysis/attractive -proposition -new-special -economic -
zones -sezs-offer-range -fiscal-and-logistics -benefits . 
55 Oxford Business Group, New Special Economic Zones in Saudi Arabia Offer a Range of Logistics 
Benefits . Viewed at: https://oxfordbusinessgroup.com/analysis/attractive -proposition -new-special -economic -
zones -sezs-offer-range -fiscal-and-logistics -benefits . 
56 Each SEZ Authority will be headed by its own Board of Directors in charge of overseeing the 
development of the SEZ by conducting performance reviews and supervising company licensing.  
57 The NSEZ SB could leverage the existing boa rd of the ECA, as it is chaired by the Chairman of the 
Council of Economic and Development Affairs (CEDA) and composed of other key members of the Government.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  the Ministry of Investment. This SEZ will offer a wide range of support services, including 
warehousing and fulfilment, inventory management, maintenance and repair, and testing and 
assembly.58  
3.89.   Currently, the Economic Cities Authority (ECA) and the SEZ Authority are in the process of 
approving three SEZs:  
• Jazan City, dedicated for Primary and Do wnstream Industries in the Southern Area, is 
operated by the Royal Commission for Jubail and Yanbu. It provides a wide range of 
support to manufacturing food industries, manufacturing metal industries (iron, titanium, 
etc.), and supporting logistics.  
• Ras A l-Khair Industrial City, located in the Eastern Province and operated by the Royal 
Commission for Jubail and Yanbu. It will create a global complex for marine industries and 
services, including manufacturing and ship servicing and marine oil platforms.  
• King Abdullah Economic City at Rabigh Governorate. It will provide a centre for logistics, 
light industries, pharmaceutical industries (medicines and bio -products), and medical 
appliances. It will be the first SEZ operated by the private sector (Emaar, a rea l-estate 
development company).59 
3.90.   The National Strategy for Special Economic Zones was set up to identify the requirements to 
ensure their competitiveness and provide the governance mechanism and legislative framework.60 
Trial projects for SEZs are being la unched: M anufacturing Free Trade Zones (MFTZs) will aim to 
become global hubs for export, manufacturing, and trade, by supporting export -oriented 
manufacturing activities (e.g. food processing, specialty chemicals)61; and Service Free Trade Zones 
(SFTZs) w ill aim to become the go -to destinations for professional services (e.g.  engineering 
consultancies, ICT) and highly skilled individuals.62  
3.91.   As part of Vision 2030, NEOM, a futuristic city project with significant logistics and high -end 
tourism components, is being developed in Saudi Arabia's sparsely populated northwest.63 It is 
considered the world's largest international SEZ in terms of size and scale of investment (about 
USD 500 billion). NEOM will be built over an area almost the size of Bel gium and will have 
cross-border dimensions, with links to neighbouring Jordan and Egypt. The Public Investment Fund 
(PIF) is providing finance for the first stages of the project (Section  3.3.5). 
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.92.   The Saudi  Industrial Development Fund (SIDF), established in 1974, is the main financial 
enabler of the NIDLP.64 The SIDF used to finance only local manufacturing businesses. However, 
since 2019, the SIDF has started to finance new sectors listed under the NIDLP  (e.g. industry, 
mining, energy, and logistics services), in line with the diversification plans under Vi sion 2030 to 
become a leading industrial powerhouse and a global logistics hub. In FY2019, the SIDF's capital 
increased from SAR 65 billion to SAR 105 billion. In mid -2019, the Council of Ministers approved the 
amendment to the SIDF bylaws, enabling it to expand its financing activity through a new package 
 
58 Oxford Business Group, New Special Economic Zones in Saudi Arabia Offer a Range of Logistics 
Benefits . Viewed at: https://oxfordbusinessgroup.com/analysis/attractive -proposition -new-special -econom ic-
zones -sezs-offer-range -fiscal-and-logistics -benefits . 
59 Oxford Business Group, New Special Economic Zones in Saudi Arabia Offer a Range of Logistics 
Benefits . Viewed at: https://oxfordbusinessgroup.com/analysis/attractive -proposition -new-special -economic -
zones -sezs-offer-range -fiscal-and-logistics -benefits . 
60 Kingdom of Saudi Arabia, Vision 2030, National Industrial Development and Logistics Program . 
Viewed at: https://vision2030.gov.sa/en/programs/NIDLP . 
61 A suitable location for an MFTZ is a duty -free area in direct proximity to an airport or a seaport where 
efficient and cost -competitive logistics solutions can be provided.  
62 A suitable location for an SFTZ is a business park in direct proximity to a large pool of talent and to 
local demand, while o ffering a high quality of life (education, healthcare, entertainment, etc.).  
63 NEOM combines the prefix neo with the Arabic word for future, mustaqbal . 
64 SIDF 2019 Annual report. Viewed at: 
https://www.sidf.gov.sa/en/AboutSIDF/Pages/AnnualReport.aspx . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  of products and services. These new products encompass, inter alia , a working -capital financing 
program that grants short -term facilities to investors with tenures that do not exceed 12 months.65  
3.93.   The SI DF extends loans to eligible Saudi and foreign companies/firms that are registered in 
the commercial registries. An SIDF loan provides a maximum term of 15 years, covering up to 50% 
of the fixed assets, pre -operating expenses, and start -up working capital;  for projects in less 
developed or remote cities, the term may be extended to 20 years, and the loan may be increased 
up to 75%. According to the authorities, the fees paid to the SIDF on loans are similar to or, in some 
cases, higher than the interest cha rged by comparable commercial banks. Furthermore, the SIDF is 
required by law to recover the princip al and to charge loan fees to cover commercial costs.66  
3.94.   In 2019, the SIDF signed twelve agreements with various private companies and government 
agencies.67  
3.95.   In 2019, the SIDF also launched Phase 1 of Acquisition Finance Product (AFP), which aims to 
fund acquisitions for local companies that want to acquire local targets in SIDF -financed sectors with 
a clear added value to Saudi Arabia. The AFP finances spec ific cases, which are the acquisition of: 
(i) a specific technology, a method of manufacture, or intellectual property; (ii)  a supplier or clients 
to achieve integration in cost or revenues; or , (iii) a competitor for integration and development of 
offers.  The SIDF offers pre - and post -acquisition financing, according to the client's needs. The 
product repayment period is up to seven years.68  
3.96.   In FY2019, the SIDF approved SAR 12.5 billion in new loans, the largest amount in its history, 
and 33% more than in  FY2018. Between 2000 and mid -September 2019, the SIDF dispensed 
2,186  loans and credit facilities totalling SAR 132 billion, 81% of which were granted to SMEs. These 
projects combined created 187,000 direct jobs and contributed SAR 189 billion to the GDP.  The SIDF 
also restructured its internal procedures to reduce the funding application processing time by 60%.69  
3.97.   Under Vision 2030, Saudi Arabia aims to increase the contribution of SMEs in GDP from 20% 
to 35% and encourage local financial institutions to allocate up to 20% of overall funding to SMEs 
by 2030.70 With this objective in mind, the SME Authority (Monshaat) was established in 2016 to: 
(i) reform the basic needs of SMEs, and to create an environment that provides prosperity 
opportu nities for all SMEs; (ii)  provide support services and business opportunities to enhance the 
growth of all SMEs and enhance their competitiveness; and (iii)  create a society that supports and 
motivates members to engage in entrepreneurial endeavours and op portunities.71  
3.98.   Other financial incentives may be offered by regional programmes, such as the Arab Fund for 
Economic and Social Development, the Arab Monetary Fund, and the Arab Trade Financing 
Programme.  
3.99.   Saudi Arabia notified the WTO that it did not grant  or maintain any subsidy programmes as 
defined in Article  1.1 of the SCM Agreement during 2018-19.72  
 
65 Including Afaq, Mutjadeda, Tanafusiya, and Tawteen, in addition to various financial products, such as 
the Working Capital Loan, the Multipurpose Finance Loan, the Letter of Credit,  and the Acquisition Finance 
Product . Viewed at: https://www.sidf.gov.sa/en/Pages/Home.aspx . 
66 SIDF 2019 Annual report. Viewed at: 
https://www.sidf.gov.sa/en/AboutSIDF/Pages/AnnualReport.aspx .  
67 SIDF 2019 Annual report. Viewed at: 
https://www.sidf.gov.sa/en/AboutSIDF/Pages/AnnualReport.aspx . 
68 SIDF 2019 Annual report. Viewed at: 
https://www.sidf.gov.sa/en/AboutSIDF/Pages/AnnualReport.aspx . 
69 SIDF 2019 Annual report. Viewed at: 
https://www.sidf.gov.sa/en/AboutSIDF/Pages/AnnualReport.aspx . 
70 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://www.vision2030 .gov.sa . 
71 Monshaat also organizes conferences, seminars, meetings, and local and international exhibitions and 
participates in them to ensure that its recommendations are implemented. It also prepares studies, research, 
statistical surveys, and reports; p roposes regulations and policies for the development and support of SMEs; 
and follows up on their implementation after adoption. Monshaat, About Monshaat . Viewed at: 
https://www.monshaat.gov.sa/en/about . 
72 WTO document G/SCM/N/343/SAU, 15 October 2020.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.3.2   Standards and technical requirements  
3.100.   Although the 2001 Economic Agreement between the GCC member States contains no 
specific provision on technical barrie rs to trade, Article  5.4 provides that GCC member States will 
adopt unified standards and specifications for all products according to the Charter of the GCC 
Standardization Organization. Article  X of the Implementation Procedures provides that GCC 
member States shall mutually recognize national specifications and standards until the GCC has 
created unified standards for all national and imported commodities.73 
3.101.   Saudi Arabia's relevant legislation, notably the Technical Regulation , can be found on the 
SASO's  website, the national notification authority and enquiry point for TBT matters.74 The SASO, 
under the Ministry of Commerce , is the main agency responsible for developing national standards, 
quality control and assurance, conformity assessment, and certifi cation. In 2019, the 
Saudi  Accreditation Center (SAC) was created as the national accreditation body. It is an 
independent public entity, under the supervision of Ministry of Commerce .75  
3.102.   The SAC's main functions are to: (i) ensure the technical competency  of Saudi conformity 
assessment bodies (CABs); (ii)  ensure consumer protection and maintain public health and safety; 
(iii) build confidence in the services of CABs; (iv)  enhance participation of the private sector in 
providing CABs; (v)  raise the level of  quality and conformity of product and services by increasing 
confidence in tests and inspection and calibration certificates; and (vi)  give confidence in certificates 
issued by peer accreditation bodies, through International Laboratory Accreditation Coop eration 
Mutual-Recognition Agreements (ILAC -MRAs).  
3.103.   The SAC also accredits CABs, such as testing laboratories and product certification bodies, 
to internationally recognized standards. Over 100 CABs, mainly for testing, calibration, and 
inspection, have bee n accredited by the SAC since 2019. The SAC offers the following accreditation 
and recognition programs: management systems certification bodies; product, process, and service 
certification bodies; inspection bodies; bodies performing the certification of persons, testing, and 
calibration laboratories; and proficiency testing providers. According to the authorities, 
Saudi  Arabia's accreditation process conforms with international standards and requirements. The 
SAC is member of several international organiz ations such as the ILAC and the Arab Accreditation 
Cooperation  and has already started the process of peer -evaluation in order to sign an ILAC -MRA.76 
3.104.   The SASO adopted ISO/IEC 17065 as a model for assessing the conformity of products and 
services. The SASO made Saber, an electronic platform, available to all economic operators 
importing products to Saudi Arabia.77 In addition, users can write to an email address with questions 
regarding Saber. The Saber platform will be connected to the customs platform in o rder to facilitate 
the recording of customs operations.  
3.105.   The SASO has issued more than 30,000 standards to date, the majority of which were 
adopted from international standards. The SASO notified 211 technical regulations and conformity 
assessment procedure s to the WTO between 1 January 2016 and 31 December 2019 (640  in 
2012-15). In the first nine months of 2020, Saudi Arabia submitted 27 notifications. The notifications 
cover, inter alia , animal and food products, tyres, electric and electronic equipment, a nd plastic 
products. The notifications normally specify a comment period of at least 60 days and a proposed 
date of adoption. The authorities also submitted a number of addenda, providing additional 
information on the adoption, entry into force, extension of the comment period, and contents of the 
final text of previously notified TBT measures.  
3.106.   The SASO, in coordination with the SCA, adopted and validated a procedure for the random 
verification of the conformity of documents and products based on TBT/WTO directives and risk 
assessment. Regarding random product controls at Saudi Customs, and if there is an obligation to 
 
73 WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21 March 2018.  
74 SASO, Laws and Executive Regulations . Viewed at: https://www.saso.gov.sa/en/Laws -And-
Regulations/exeRules/Pages/default.aspx . 
75 The Saudi Board of Ministers issued a decree creating the SAC to have not only the legal statute but 
also a financial and administrative independency. The Minister of Commerce  chairs the Board of Directors, 
which includes representatives of stakeholders and interested parties.  
76 Saudi Accreditation Center. Viewed at: https:// www.saac.gov.sa . 
77 Saber, Saber  Electronic Platform . Viewed at: https://saber.sa . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  carry out prod uct tests, the SASO in coordination with the SCA adopted a simplified procedure to 
facilitate product transits. The SASO provides laboratories, Saudi Customs, and the Ministry of 
Commerce  with an electronic platform dedicated to the verification of product  analysis reports and 
decision -making concerning products' compliance with the SASO and Saudi Customs.  
3.107.   Any interested party (i.e. the public sector, the private sector, academia, and members of 
the public) may submit proposals for national standards to the  SASO. All draft standards, technical 
regulations, and conformity assessments are available on the SASO website for public comment for 
at least 60 days. After the SASO Board of Directors approves a proposed standard, there is usually 
a period of six months  between final publication and entry into force. Technical committees make 
recommendations to the SASO Board of Directors on whether a standard should be voluntary or 
mandatory. According to the authorities, the criteria for adopting a standard as mandator y are based 
on the fulfilment of legitimate objectives, such as protection of health, safety, national security, 
Islamic law, and the environment.  
3.108.   Currently, there are 32 technical regulations in force, of which two Gulf Technical Regulations 
were adopted  during 2016 -20.78 Table A3.2  lists the products affected by standards and technical 
regulations during 2016 -20. 
3.109.   Since Saudi Arabia's last Review, some WTO Members in the TBT Committee expressed 
concerns about technical regulations on animal products, moto r vehicles, vehicle tyres, toys, energy 
drinks, the sugar limit on food products, electrical and electronic equipment, and plastic products.79  
3.110.   Technical r egulations  require the SASO to consider relevant international standards as a 
basis for preparing national standards and technical regulations unless the international standards 
are ineffective (due to a climate or geographical factor, for instance) or inappropriate  to achieve the 
intended, legitimate objectives (e.g. inconsistency with Islamic law). Technical regulations adopted 
by the SASO require the application of standards in all matters concerning technical requirements, 
national standards (which are mainly tra nsposed from international standards), or regional Gulf 
Standards Organization (GSO) standards (which are mainly transposed from international 
standards). As at end -June 2020, there were 2,223 national standards in force. According to the 
authorities, 75% of Saudi standards were aligned with international standards, and 10% were 
developed/modified to suit specific situations in Saudi Arabia.  
3.111.   The GSO is mandated to establish and harmonize standards and technical regulations within 
the GCC member States. GCC -wide standards may be proposed/initiated by a representing body in 
a member State and are prepared by the technical committees of the GSO. In general, GSO 
standards are based on international standards. Once a GSO standard is approved, each GCC 
member Sta te may transpose it into a national standard through domestic legal procedures. 
According to the authorities, Saudi Arabia develops standards and technical regulations at the 
national level only when there is a pressing need.  
3.112.   According to the authorities,  at end -2019, 89% of Saudi standards in force had been adopted 
from GCC standards.  
3.113.   Regarding medical devices/products, the Medical Device Interim Regulation is applied to 
manufacturers, authorized representatives of overseas manufacturers, importers, and distributors. 
It covers all medical devices and their accessories, contact lenses, and laser surgical equipment for 
cosmetic rather than medical purposes and its accessories. Distributors, importers, and authorized 
representatives of medical devices must o btain a licence issued by the SFDA; medical devices must 
obtain SFDA authorization before entering the market.  
3.114.   Products subject to technical regulations must comply with the relevant regulations before 
they are placed on the market. The SASO may grant a c ertificate of conformity, or, for products that 
 
78 For more information, see SASO, Laws and Executive Regulations . Viewed at:  
http://www.saso.gov.sa/en/laws -and-regulations/exerules/pages/default.aspx . 
79 WTO documents G/TBT/M/67, 3 February 2016; G/TBT/M/68, 12 May 2016; G/TBT/M/69, 
22 September  2016; G/TBT/M/70, 17 February 2017; G/TBT/M/71, 2 June 2017; G/TBT/M/72, 
25 September  2017; G/TBT/M/73, 6  March  2018; G/TBT/M/74, 22  May 2018; G/TBT/M/75, 
14 September  2018; G/TBT/M/76, 7  February  2019; G/TBT/M/77, 15  May 2019; G/TBT/M/78, 
23 September  2019; G/TBT/M/79, 30  January  2020; and G/TBT/M/80, 24 April 2020.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  comply with standards and technical requirements, a licence to use the quality mark. The quality 
mark scheme is voluntary, and available for goods either domestically produced or imported.  
3.115.   In order to export  to Saudi Arabia, all consignments of imported goods   and commodities 
must be accompanied by a certificate of conformity, to facilitate the clearance of consignments 
through customs. Saudi Arabia recognizes the certification bodies accredited by the Interna tional 
Accreditation Forum, and accepts the certificates issued by these certification bodies, as long as 
these bodies are notified to the SASO.  
3.116.   Labels must be in Arabic in addition to any other language. A small number of products with 
English -only label s may be approved, on a case -by-case basis, for marketing test purposes. As an 
Islamic country, Saudi Arabia has strict marking and labelling requirements for meat and poultry 
products, including that the product was slaughtered in accordance with Islamic halal procedures. 
The most important specifications related to the labelling of food are: SFDA.FD/GSO 9, " Labelling of 
Pre-packaged Foods "; SFDA.FD 2333, " Food Requirements with Health and Nutrition Cl aims"; and 
SFDA.FD 2233, " Nutritional Data Requirements on the Card ". Labelling information on 
pharmaceutic al, cosmetic, and personal care products are required to appear on the outer pack for 
each product marketed in Saudi Arabia.80  
3.3.3   Sanitary and phytosanitary measures  
3.117.   The 2001 Economic Agreement between the GCC member States contains no specific 
provisions on  SPS measures. However, Article  1(iv) of the Agreement and Article  II.2(e) of the 
Implementation Procedures reiterate the principle that the free movement of goods within the GCC 
member States is subject to the right of GCC members to maintain veterinary a nd agricultural 
quarantine regulations. Article  II.2 of the Implementation Procedures provides that within the GCC 
territory, all customs duties, taxes, and other restrictions on trade in goods are to be abolished, and 
that goods of other member States sha ll enjoy free movement, while taking into consideration the 
implementation of regulations concerning veterinary and agricultural quarantine regulations and 
prohibited and restricted goods.81 
3.118.   The SFDA is the national notification authority and enquiry point  for SPS matters in the 
WTO.82 The SFDA is the competent authority for food and feedstuffs (including animal products for 
human consumption, e.g. meat and poultry meat), medicine, and medical devices, and the Ministry 
of Environment, Water and Agriculture for live animals, plants, and plant products.  
3.119.   Between 1 January 2016 and 31 December 2019, Saudi Arabia made 224 notifications to 
the WTO (167 in 2012 -15). In the first nine months of 2020, it submitted 20 notifications. In addition, 
the authorities submi tted several addenda during the review period, providing additional information 
on previously notified SPS measures. Since the last Review, concerns relating to Saudi Arabia's ban 
on the importation of shrimp83, fish, crustaceans, and other aquatic animal products have been 
discussed in the SPS Committee.84 Table 3. 9 shows products and countries affected by 
SPS measures during 2016 -20.  
Table 3.9 SPS measures: products and countries affected, 2016 -20  
HS No.  Description of 
products  Nature of SPS measure  Affected WTO Members 
and non -WTO members  
01 Live animals (equine)  Temporary ban of importation  Kuwait  
01 Live animals (equine)  Temporary ban of importation  Brazil  
01 Live animals (equine)  Temporary ban of importation  Germany  
01 Live animals (equine)  Temporary ban of importation  Malaysia  
01 Live animals (equine)  Temporary ban of importation  Thailand  
 
80 SFDA, Templates for SPC,  PIL and Labelling Information . Viewed at: 
https://sfda.gov.sa/ar/drug/resources/DocLib2/TemplateSPC -PIL-Labeling.pdf . For l abelling of cosmetic and 
personnel care p roducts, refer to: GSO 1943 /2016: Safety Requirements of Cosmetics and Personal Care 
Products; and GSO 2528 / 2016: Cosmetic Products – Technical Regulation of Cosmetic and Personal Care 
Products Claim.  
81 WTO documents WT/COMTD/RTA/9/1 and WT/REG276/1, 21  March 2018.  
82 WTO documents G/SPS/NNA/16 and G/SPS/ENQ/26, 11 March 2011.  
83 WTO document G/SPS/R/87, 26 September 2017.  
84 WTO document G/SPS/R/90, 9 May 2018.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  HS No.  Description of 
products  Nature of SPS measure  Affected WTO Members 
and non -WTO members  
201  
202 
2060200 
20602001 
2066200 
2062900 
15020010 
16025010 
16025090 
16029010 
16029021 
16029030 
16030010  All types of bovine meat 
and its products  Amendments to the existing 
conditions for importing 
conditions regarding to 
importing beef meat and beef 
meat products from co untries 
recognized as having a BSE 
risk All trading partners  
 All food  Importing food products to 
Saudi Arabia, requirements 
and conditions  All trading partners  
0302 
0303 
0304 
0305 
0306 
0307 
0308 Fish and other aquatic 
products  Approval framework for 
control authorities and 
establishments exporting fish 
and other aquatic products to 
Saudi Arabia  All trading partners  
 All organic products  Organic Agriculture Law and 
Organic Agriculture By -Law in 
Saudi Arabia  All trading partners  
 All food  GCC Guide for Control of 
Imported Foods  All trading partners  
Source:  Information provided by the authorities.  
3.120.   Saudi Arabia is a member of the World Organisation for Animal Health (OIE) and the Codex 
Alimentarius Commission, and a contracting party to the Internatio nal Plant Protection Convention. 
Regarding animals, plants, and their products, SPS measures are harmonized at the GCC level under 
the Veterinary Quarantine Law and the Plant Quarantine Law, and the corresponding Executive 
Regulations provide details of th eir implementation in Saudi Arabia. Saudi Arabia maintains bilateral 
arrangements on SPS matters with Argentina , Belgium, Brazil, Canada, Denmark, Djibouti, Ethiopia, 
France, Hungary, India, Ireland, Italy, Japan, Kenya, the Netherlands, New Zealand, Pakistan, 
Portugal, the Russian Federation, Spain, Sudan, Turkey, Ukraine, the United Arab Emirates, the 
United Kingdom , the United  States, and Uruguay.   
3.121.   All food, including imported food, must comply with the general requirement outlined in the 
Food Law85 and specific standard requirements depending on the product.86  
3.122.   All imports of live animals and biological preparations from anywhere outside the GCC 
territory require import permits from the Ministry of Environment, Water and Agriculture.  
3.123.   All imports of live animals from non -GCC member States must be quarantined at t he point 
of entry for a period of 21 to 30 days, depending on the diseases and exporting countries in question. 
Imported animals for slaughter or breeding may be transported to their final destinations if all 
documentation conditions are met and there is n o suspicion of an epizootic or contagious disease. 
Imported sperm for industrial insemination and foetuses, and hen eggs for hatching, are also 
allowed, subject to sampling and testing.  
3.124.   In addition to obtaining a commercial registration (Section  3.1.1), f ood importers must 
register with the SFDA and specify the food items that they import. All imports of food and animal 
products for human consumption are subject to import permits issued by the SFDA. For imports of 
 
85 SFDA. Viewed at: http://www.sfda .gov.sa/ar/Documents/ssfda.pdf .  
86 SFDA, General Standards for Food . Viewed at: 
http://www.sfda.gov.sa/en/food/about/administra tion/mangement_food/Pages/EDOIFC -
GeneralSpecificationForFood.aspx .  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  meat and poultry meat, a Halal Certificate  and an Islamic slaughter certificate are required for each 
consignment, in addition to other documentation generally required for customs clearance.  
3.125.   Imports of meat and poultry meat must be sourced only from the establishments on the list 
maintained by t he SFDA. This list can be consulted by sector or by country. Establishments that wish 
to supply meat and poultry meat to Saudi Arabia must apply for approval from the SFDA; the 
approval process involves an evaluation including an on -site audit by the SFDA.  If the evaluation 
outcome is satisfactory, the SFDA grants an approval certificate to the establishment in question. 
Since 9 March 2014, the SFDA has delegated to the competent authority of the exporting country to 
approve establishments on the list, prov ided that the competent authority of the exporting country 
signs bilateral minutes with the SFDA and assures compliance with the GSO standards.  
3.126.   Regarding the maximum residue levels (MRLs) of pesticides, Saudi Arabia adopted the GCC 
standards of MRLs. If a n MRL does not exist, a reference must be made to the Codex Alimentarius  
standard; if an MRL is not indicated in the Saudi/GCC/Codex standards, a reference may be made 
to the EU or the US standard, whichever is lower.  
3.127.   All imports of food are subject to risk-based inspection at the border inspection posts. The 
inspection involves documentary, identity, and physical checks. If imported goods  need to be 
sampled, the imported food may be referred to an authorized laboratory for additional tests; under 
this sce nario, the import will be held indefinitely until the final decision is taken. The authorities 
indicate that, in the case of compliance, imported food is usually cleared by Saudi Customs within 
two hours .  
3.128.   The GCC Rapid Alert System for Food (GRASF) operat es to allow food and feed authorities 
of GCC member States to exchange information on existing direct or indirect risks to consumers' 
health.87 According to the authorities, the GRASF functions in a similar way to the European  Union's 
Rapid Alert System fo r Food and Feed.  
3.129.   Under the GCC Plant Quarantine Law and its Executive Regulations in Saudi Arabia, 
phytosanitary requirements are applied to plants, plant products, beneficial organisms, and 
regulated articles. All plants or plant products contaminated wi th pests listed in the "approved united 
pest list of the GCC" are prohibited from importation. The list is published on the Ministry of 
Environment, Water and  Agriculture portal88, and the Ministry has the authority to amend the list. 
In addition, all type s of palm trees and their derivatives (except dates), plants, and products of 
anaesthetic or poisonous types89 are prohibited from importation. Furthermore, natural soil and 
natural organic fertilizers may not be imported.90  
3.130.   Importers of plants and plant products are required to apply for import permits issued by 
the Ministry of Environment, Water and  Agriculture.91 In order to apply for an import permit, 
importers must provide a phytosanitary certificate, as well as a country of origin certificate issued 
by the exporting country. Usually, it can take up to three working days to process the request and 
issue an import permit. The authorities indicate that no applications for import permits were rejected 
if all requirements were met .  
3.131.   All imports of plants a nd their products must be inspected at the point of entry into 
Saudi  Arabia.92 There are no inspection fees or other treatment fees imposed on imports of plants 
and plant products, although the Executive Regulations of the GCC Plant Quarantine Law provide for 
the possibility of such fees. Samples may be taken from suspected consignments and delivered to a 
laboratory for further testing. In practice, it takes two to seven days to complete a lab test, the cost 
of which is borne by the authorities or by the im porter,  based on the imported plant species. 
 
87 GRASF. Viewed at: http://grasf.sfda.gov.sa/ . 
88 Ministry of Agriculture online portal. Viewed at: www.mewa.gov.sa .  
89 For example, khat, marijuana, milkweed, castor bean, oleander, field poppy, and jimson weed were 
banned from being imported.  
90 Article  20 of the G CC Plant Quarantine Law and Article  6(2) of the Executive Regulations of the GCC 
Plant Quarantine Law in the Kingdom of Saudi Arabia.  
91 Article  15 of the GCC Plant Quarantine Law.  
92 For some perishable products or products packaged in a special condition,  inspection and sampling 
may be carried out at the final destination. See Articles 16 and 17 of the Executive Regulations of the GCC 
Plant Quarantine Law in the Kingdom of Saudi Arabia.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Depending on the test result, the imports may be subject to quarantine treatments, re -export, or 
destruction.  
3.132.   The Department for Organic Agriculture, under the Ministry of  Environment, Water and  
Agriculture, ma intains and regularly updates a positive list of inputs and their characteristics 
(including fertilizers, soil conditioner, plant protection materials, and food additives) that are in 
compliance with the Organic Agriculture Act.93 Agricultural products (in cluding fresh and processed 
products and agricultural production inputs for organic farming activities) that comply with the 
Saudi  organic farming law may be marketed as "organic", using a Saudi national logo for organic 
agricultural products or for organi c production inputs. Producers of organic products are subject to 
compliance checks at least annually; the checks are carried out by private bodies designated by the 
Department. Organic producers may face removal from the authorization list if severe infri ngement 
is found during the check. According to the authorities, imported products may also be marketed as 
"organic" only when they meet the requirements of the law and are approved by the Department.  
3.133.   It is permissible to trade in genetically modified (GM ) foods of plant origin, only if the 
requirements laid down in the relevant national standards and regulations are met, which include, 
but are not limited to, the following:  
• the presence of an official attestation, along with the product certifying that th e product 
is produced and consumed in the country of origin;  
• no reported adverse effects on human or animal or environment health; and  
• a declaration on the label that the product is genetically modified.  
3.134.   Saudi Arabia prohibits trading with GM foods of anim al origin, which are obtained by means 
of biotechnology.  
3.135.   Under the Council of Ministers Decree No. 7/5/2911 dated 16/1/1425H (7  March  2004), 
genetically modified dates, seeds, seedlings, and ornamental plants are banned from importation.  
3.3.4   Competition policy  and price controls  
3.136.   On 5 March 2019, Saudi Arabia issued Royal Decree No. M/75  dated 29/6/1440H, approving 
its new Competition Law, replacing the previous Competition Law enacted by Royal Decree No. M/25 
dated 04/05/1425H (22 June 2004) . The new Competitio n Law came into force on 
23 September  201994, while its Implementing Regulations, issued by Resolution No. 337 of the 
Board of Directors of the General Authority for Competition (GAC), entered into force on 
24 September 2019.95 The Statute of the GAC was issued by Council of Ministers Resolution No.  55 
dated 20/01/1439H (11 October 2017).96 
3.137.   The new Competition Law aims to protect and encourage fair competition and to combat and 
prevent monopolistic practices that affect lawful compet ition or consumer interest, leading to 
improved market environment and economic development.97 It applies to all firms in Saudi Arabia, 
regardless of their nationality or headquarters.98 Table 3.1 0 summarizes some of the most important 
differences between the old and the new competition laws.  
 
93 Royal Decree No. M/5 5 of 1435H dated 16/9 /1435H,   13 July 2014 . 
94 GAC, Competition Law . Viewed at: https://www.gac.gov.sa/pdf/New_comp_law_booklet_03_en.pdf . 
95 GAC, Implementing Regulations  Issued by Resolution No. (337) dated 25/1/1441H of the Board  of 
Directors of the General Authority for Competition Of the Competition Law, promulgated under Royal Decree 
No. (M/75) dated 29/06/1440H . Viewed at: https://www.gac.gov.sa/pdf/comp_la w_regulations_en.pdf . 
96 GAC, Statute . Viewed at: https://gac.gov.sa/FileUpload/authority_statute_english.pdf . 
97 Article  2 of the new Competition Law.  
98 Article  3(1) of the new Competition Law and Article  3 of the Implementing Regulations.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table 3.10 Main changes between the old and new Competition Laws  
Issue  Old Competition Law  New Competition Law  
Categories addressed  Factories, establishments, or 
companie s owned by a natural or 
corporate person and all 
groupings that undertake 
commercial, agricultural, 
industrial, or service activities or 
sell and buy goods or services.  Every natural or corporate person 
who engages in an economic 
activity. Such activity in cludes 
commercial, agricultural, 
industrial, and service activities, 
as well as the purchase and sale 
of goods and services.  
Exceptions  Public institutions and state -
owned corporations are excluded.  Public institutions and state -
owned corporations are excluded 
if the institution or corporation is 
solely authorized by the 
Government to provide 
commodities or services in a 
particular field.  
Exempt practices  None Determining prices based on a 
Council of Ministers resolution or 
under a law . 
Exemption powers  The GAC Board may approve a 
firm's request for exemption from 
only one type of violation:  
Article  4: Illegal Agreements  The Board may approve a firm's 
request for exemption from three 
types of violations:  
1. Article  5: Illegal Agreements  
2. Article  6: Abuse of the Dominant 
Position  
3. Article  7: Failure to Report 
Economic Concentration  
Deadline for objecting to 
Adjudication Committee decisions  Committee decisions may be 
challenged before the 
Administrative Court within 15 
days from the date the violator is 
notified of the decision.  Committee decisions may be 
appealed before the competent 
court within 30  days from the 
date the violator is notified of the 
decision.  
Leniency  None The firm may be exempt from 
punishment if it pre -emptive ly 
submits evidence revealing its 
partners in that violation.  
Settlement  None Settlement with a violating firm 
may be accepted in accordance 
with the controls, conditions, and 
mechanisms for compensating 
aggrieved parties set forth in the 
Implementing Reg ulations.  
Obligatory notification of the 
economic concentration 
transaction  When the market share of the 
parties to the transaction reaches 
40%.  When the total revenues of the 
parties to the transaction exceed 
SAR 100 million.  
Reporting economic 
concentrations  At least 60 days before the 
completion of the transaction.  At least 90 days before the 
completion of the transaction.  
Source:  Information provided by the authorities.  
3.138.   The GAC is the regulatory body in charge of implementation and enforcemen t of the 
Competition Law and the Implementing Regulations. The GAC has primary jurisdiction over any 
matters arising from the application of the Competition Law and the Implementing Regulations, even 
in cases of conflict or overlap with the jurisdiction of  other governmental bodies.99 The GAC Board 
is authorized to amend, repeal, or interpret the Implementing Regulations, or issue supplementary 
guidance and rules.100 The adjudication of violations of the new Competition Law and the 
Implementing Regulations i s assigned to the Committee for Adjudication of Competition Law 
Violations.  
3.139.   The GAC Board may, upon request, exempt an entity from the application of Articles 5 
(anti-competitive practices), 6 (abuse of dominant position), and 7 (economic concentration) of  the 
new Competition Law, if such exemption would lead to improved market performance, or improve 
the performance of entities in terms of: (i) the quality of the product; or (ii) the technological 
 
99 Article  3(3) of the Competition Law and Article  5(2) of the Implementing Regulations.  
100 Article  89 of the Implementing Regulat ions. WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  development or creative efficiency, or both.101 Such a decision would be reached upon a 
recommendation by a technical committee formed for this purpose.  
Anti-competitive practices  
3.140.   The new Competition Law prohibits practices (including contracts, whether written or oral, 
explicit or implicit) if their p urpose or effect prejudices competition.102 Its Implementing Regulations 
set out an expanded definition of anti -competitive practices – all forms of behaviours and practices 
contrary to Article  5 of the Competition Law, including agreements, contracts, arra ngements, or 
understandings between entities shall be prohibited, whether written or oral, explicit or implicit, if 
their purpose or effect undermines competition.103 
3.141.   Article  5 of the Competition Law contains a non -exhaustive list of anti -competitive practi ces: 
price fixing; limiting the free flow of goods and services to and from the market; denying access to 
the market; dividing markets; freezing or limiting manufacturing, development, distribution, 
marketing, and other investment activities; and bid riggi ng.  
3.142.   Article  8(2) of the Implementing Regulations provides that practices among competing or 
potentially competing entities are deemed anti -competitive if such practices involve, for example, 
price fixing or dividing markets (e.g. geographically, or based on distribution centres, customer 
types, and seasons/time periods).  
Abuse of dominant position  
3.143.   The new Competition Law prohibits any entity having a dominant position in the market, or 
an important part thereof, from exploiting such position to undermine or limit competition.104 An 
entity or a group of entities is deemed to have a dominant position if it meets either or both of the 
following tests105: having a market share of 40% or more of the relevant market; and/or having an 
ability to influence  the relevant market, such as by controlling prices, production, or demand.  
3.144.   The new Competition Law also sets out a non -exhaustive list of practices in which entities 
having a dominant position are prohibited from engaging106: (i) selling goods or services  at a price 
lower than the total cost in order to remove other entities from the market or expose them to serious 
losses or impede the entry of potential entities; (ii)  determining the prices or conditions for the 
resale of goods or services or imposition thereof; (iii)  reducing or increasing the available quantities 
of products to control prices and create false abundance or deficit; (iv)  discriminating in the 
treatment of entities with similar contracts in relation to the prices of goods and service fees or the 
conditions of sale and purchase; (v)  refusing to deal with another entity without an objective reason, 
in order to restrict its entry into the market; (vi)  requiring an entity to refrain from dealing with 
another entity107; and (vii)  making the sale of goods or the provision of services conditional upon 
bearing of obligations or acceptance of goods or services, which by their nature or by commercial 
use are not related to the goods or services subject to the original contract or transaction.  
Economic  concentration (merger control)  
3.145.   The new Competition Law uses economic concentration to deal with merger control. 
Economic concentration is defined as "any action that results in a total or partial transfer of 
ownership of assets, rights, equity, stocks, sh ares, or liabilities of a firm to another by way of merger, 
acquisition, takeover, or the merging of two or more managements, or any other form that leads to 
the control of a firm, including influencing its decisions, the organization of its administrative  
structure, or its voting system".108 This definition addresses asset and share purchases, joint 
ventures, mergers, and takeovers.  
 
101 Article  8 of the new Competition Law.  
102 Article  5 of the new Competition Law.  
103 Article  8(1) of the Implementing Regulations.  
104 Article  6 of the new Competition Law.  
105 Article  10 of the Implementing Regulations.  
106 Article  6 of the new Competition Law.  
107 This prohibition targets exclusivity and non -compete undertakings granted in favour of dominant 
entities.  
108 Article  1 of the Implementation Regulations.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.146.   The new Law provides that entities seeking to participate in an economic concentration 
transaction must inform the GAC at lea st 90 days before completion, if the total annual sales value 
of the entities seeking to participate in the economic concentration exceeds the amount determined 
by the Implementing Regulations.109 The requirement to report economic concentration transaction s 
to the GAC is based on a turnover condition set out in Article  12 of the Implementing Regulations. 
Notification must be made to the GAC if the annual sales value of all entities intending to participate 
in the economic concentration exceeds SAR 100 milli on (about USD  26.6 million).  
3.147.   The 90 -day review period starts from the date the applicant is notified by the GAC that it 
received all required documents and information regarding the application and payment of the 
prescribed fee.110 Such review period may a lso be extended by the GAC if additional information or 
documents are requested from the parties, until such information or documents are provided.111 
3.148.   The GAC Board set s the application fee at 0.0002 of the aggregate value of the turnover of 
all parties par ticipating in the transaction that is the subject of the economic concentration 
application.112 The application fee is capped at SAR 400,000 (around USD  106,000). Parties may 
approach the GAC for pre -screening discussions before formally reporting the trans action.113 
3.149.   Article  23 of the Implementing Regulations requires the GAC to issue and notify its decision 
(approval, conditional approval, or refusal) to the applicant before the expiry of the 90 -day review 
period. The GAC may announce its decision to the public114, and it usually publishes its decisions on 
its website.115 
3.150.   The GAC has discretion to examine an economic concentration transaction (whether before 
or after its completion), even if the parties failed to report the transaction.116 If the parties comp leted 
the economic concentration transaction after reporting it to the GAC but before the issuance of a 
GAC decision or the end of the 90 -day review period, the GAC Board may require the parties to 
restore their previous (pre -completion) status and termina te the economic concentration transaction 
within a specified period. In such a case, the parties are liable for any damages arising from the 
completion of the economic concentration.  
Penalties  
3.151.   The new Competition Law and its Implementing Regulations have g ranted the GAC Board 
and GAC enforcement officers and investigators wide -ranging enforcement powers (e.g. searching 
premises, accessing books and records, issuing summons, and instigating criminal proceedings). 
The new Competition Law provides for the foll owing penalties (which are in addition to any other 
applicable penalties under other laws and regulations of Saudi Arabia):  
• The violation of any of the provisions of Articles 5 (anti -competitive practices), 6 (abuse 
of dominant position), 7 (economic conc entration), or 11 (completion of economic 
concentration before GAC approval or the expiry of the 90 -day review period without GAC 
notifying its approval or refusal) of the Competition Law is punishable by a fine not 
exceeding 10% of the annual sales value of the subject of the violation. When it is 
impossible to estimate the sales value, the fine will not exceed SAR 10 million 
(USD 2.6 million). The GAC Committee may, at its discretion, impose a fine not exceeding 
three times the gains made by the violator as a result of the violation.117  
• The violation of any provision of Article  16 of the Competition Law is punishable by a fine 
not exceeding 5% of the annual sales value of the subject of the violation.118 When it is 
 
109 Article  7 of the new Competition Law.  
110 Article  14 of the Implementing Regulations.  
111 Article  15(2) of the Implementing Regulations.  
112 GAC, Board of Directors of the General Authority for Competition Holds its 59th Meeting and Issues a 
Number of Resolutions , 04/02/1441 H. Viewed at: https://gac.gov.sa/PageNews_en.aspx?id=2323 . 
113 Article  18 of the Implementing Regulations.  
114 Article  24 of the Implementing Regulations.  
115 GAC. Viewed at: www.gac.gov.sa . 
116 Article  17 of the Implementing Regulations.  
117 Article  19(1) of the new Competition Law.  
118 Article  16(1) states: "An entity may not prevent the law enforcement officer or investigator from 
performing a task assigned to him in ac cordance with the powers conferred upon him by the Law, nor withhold WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  impossible to estimate the sales value, the fine will not exceed SAR 5 million (around 
USD 1.3 million).119  
• The violation of any other provision of the Competition Law or the Implementing 
Regulations is punishable by a fine not exceeding SAR 2 million (around USD  533,000).120  
3.152.   Any of the f ines imposed above may also be doubled if the violator repeats the same violation 
within three years of the date of resolution of the first violation.121 The GAC Board may also take 
one or more of the following measures122: 
• Require the violator to dispose of  certain assets, shares, or property rights, or to perform 
any other act to ensure the removal of the violation.  
• Require the violator to pay a daily fine not exceeding SAR 10,000 (around USD  2,600) 
until the violation is removed within the period specifie d by the GAC Board. If such period 
elapses without removing the violation, the fine will be doubled until it is removed.  
• If the violation continues, the entity will be temporarily closed for a period not exceeding 
30 days as of the expiry of 90 days from the GAC Board's notification to the entity stating 
removal of the violation.  
Price control  
3.153.   Under the new Competition Law, prices of goods and services are determined according to 
market rules and principles of free competition.123 However, prices for the g oods and services 
specified by a Council of Ministers resolution or under a law are excluded and are subject to 
regulations that set maximum prices (Table 3.1 1).  
Table 3.11 Price regulation, 2020  
(SAR)  
1. Goods subject to price regulation  
Item  HS Code  Current regulated price  
Wheat flour  1101 0010  22 per 45  kg 
Infant milk   29 per 400 gm can   
70 per kg for cans > 400 gm  
Barley   49.35 per 50  kg bag  
Cement   Consumer price 14.5 per 50  kg bag bulk  
Crude oil   0.15 per litre  
Sales gas   4.7 per MMBtu  
Ethane   6.6 per MMBtu  
Propane   
Pursuant to Council of Ministers Resolution 
No. 95  Butane   
Natural gasoline   
LPG  0.79 per litre  
Diesel   0.47 per litre  
Kerosene   0.64 per litre  
Fuel oil   0.34 per bbl  
Asphalt   300 per tonne  
NGL is calculated using an equation based on export price.  
 
information from him, provide misleading information, or conceal or destroy documents that benefit the 
investigation".  
119 Article  19(2) of the new Competition Law.  
120 Article  20 of the new Competition Law.  
121 Article  19(3) of the new Competition Law.  
122 Article  21(2) of the new Competition Law.  
123 Article  4 of the new Competition Law.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  2. Pharmaceuticals  
Item  HS Code  Current price controls  
Pharmaceuticals  Chapter 30  Based on several factors, including 
therapeutic importance, price of similar 
products, pharma -economic studies, price in 
country of origin, price in reference 
countries, proposed price, number of 
registered generic products, etc.  
3. Price regulation in services  
Services  Current regulated price  
Energy transportation services, including 
pipeline transportation services  Tariffs established based on cost of services provided and 
administered in a non -discriminatory manner. Current 
single pipeline tariff: 539 per 1,000 barrel s. 
Port – general cargo    35 per tonne or part thereof  
Port – vehicles and equipment  35 per tonne or part thereof  
Port – bagged cargo and foodstuff  20 per tonne or part thereof  
Port – bagged cement  10 per tonne or part thereof  
Port – bulk cargo (including bulk handled at 
the cement silos, grains, oils, or similar; 
excluding crude oil, gas, and liquefied 
petroleum products)  6 per tonne or part thereof  
Port – exported bulk cement and clinker  3 per tonne or part thereof  
Port – container up to 20 feet long  270 per unit  
Port – container over 20 feet long  415 per unit  
Port – sheep goat  2 per head  
Port – other livestock  5 per head  
 
(a) Electricity consumption for household purposes  
1 kW-6,000 kW/hour/month    0.18 per kW  
More than 6,001 kW/hour/month  0.30 per kW  
  
(b) Electricity consumption for governmental purposes  
1 or more kW/hour/month  0.32 per kW  
  
(c) Electricity consumption for commercial purposes  
1 kW-6,000 kW/hour/month  0.20 per kW  
More than 6,001 kW/hour/month  0.30 per kW  
(d) Electricity consumption for agricultural purposes  
1 kW-6,000 kW/hour/month  0.16 per kW  
More than 6,001 kW/hour/month  0.20 per kW  
(e) Electricity consumption for industrial purposes in consumption period  
1 or more kW/hour/month  0.18 per kW  
Source:  Information provided by the authorities.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.154.   Saudi Arabia notified the WTO that it does not maintain any state -trading enterprises within 
the meaning of Article  XVII of the GATT  1994 and the Understanding on the Interpretation of 
Article  XVII.124 
3.155.   In addition to direct holdings by the Government in some undertakings, government 
agencies, such as the General Organization of Social Insurance (GOSI), the Public Pension Agency 
(PPA), and notably the PIF, have holdings in a number of businesses (Table  3.12).  
 
124 WTO documents G/STR/N/16/SAU and G/STR/N/17/SAU, 11 April 2018; and G/STR/N/18/SAU, 
6 March 2020.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table 3.12 Selected publicly lis ted companies with state investments, 2020  
(SAR million)  
Enterprise  Main activities  State holding  Total assets  
 
SAR mn  Net profit  
 
SAR mn  
Saudi Telecom  Telecoms  PIF 70%  118,326  
 10,665  
Samba Financial Group  Finance  PIF 22.91%  
PPA 11.54%  
GOSI 7.09%  255,604  3,991  
Riyad Bank  Finance  PIF 21.75%  
GOSI 16.72%  265,789  5,602  
Saudi Investment Bank  Finance  GOSI 16.56%  
PPA 13.99%  100,815  239 
National Commercial Bank  Finance  PIF 44.29%  
PPA 5.36%  
GOSI 5.18%  507,264  11,401  
Company for Cooperative 
Insurance  Insurance  PPA 18.89%  
GOSI 17.88%  2,668  402 
Saudi Electricity Co.   PIF 74.3%  
Saudi Arabian Oil Co. 6.92%  479,830  1,388  
National Shipping Co. of 
Saudi Arabia  Shipping  Public Investments Fund 22.55%  
Saudi Arabian Oil Co. 20%  20,561  621 
Saudi Real Estate Co.  Real estate  Public Investments Fund 64.57%  7,199  -186 
Saudi Arabian Mining Co. 
(MA'ADEN)  Minerals  Public Investments Fund 67.18%  97,658  -739 
Southern Province Cement 
Co. Cement  Public Investments Fund 37.43%  
GOSI 10.87%  4,200  463 
Saudi Basic Industries 
Corporation (SABIC)   Saudi Arabian Oil Co. 70%  310,366  5,560  
Saudi Arabian Fertilizers 
Co. Fertilizer  Saudi Basic Industries Corp. 42.99%  
GOSI 8.85%  9,663  1,474  
Saudi Ground Services Co.  Airline ground 
services  Saudi Arabian Airlines 52.5 0% 4,323  423 
Saudi Airlines Catering Co.  Airline catering  Saudi Arabian Airlines 35.7 0% 
 2,504  464 
Source:  Information provided by the authorities.  
3.156.   The GOSI was established to implement the Social Insurance Law issued under Royal Decree 
No. M/22 of 1969 as amended by Royal Decree No. M/33 of 2000. Its responsibilities include 
managing the investment fund, which is invested in Saudi real estate and com panies.  
3.157.   The PPA was created by Cabinet Decision No. 277 of 2003, taking over from the Retirement 
Pension Directorate as the administrator of civil and military services pension schemes. Under 
Cabinet Decision No. 3 of 2004, the PPA is an independent entit y chaired by the Minister of Finance.   
3.158.   The PIF was established by Royal Decree No. M/24 of 1971 to finance commercial projects 
that are strategically significant to the economy and that the private sector could not implement. In 
June 2008, the PIF launched  a sovereign wealth fund in global assets (SAR 20 billion, about 
USD 5 billion at the time). Since March 2015, the PIF has reported to the newly created Council of 
Economic and Development Affairs. Under Vision 2030, Saudi Arabia aims to transform the PIF into 
a global industrial conglomerate and the world's largest sovereign wealth fund. The goal is to 
increase the PIF's assets from SAR 600 billion to over SAR 7 trillion. The PIF is not expected to 
compete with the private sector, but instead help unlock s trategic sectors requiring intensive capital 
inputs.125  
3.159.   The Government is promoting the listing of private Saudi companies and state -owned 
enterprises.126 Notably, o n 11 December 2019, Saudi Aramco was listed on the Tadawul and became 
the world's largest pu blicly traded company.127 In line with the objectives of Vision 2030, the capital 
 
125 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://www.vision2030.gov.sa . 
126 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://www.vision2030.gov.sa . 
127 Saudi Aramco, Saudi Aramco Has Officially Listed on the Saudi Stock Exchange (Tadawul) , 
11 December  2019. Viewed at: https://www.saudiaramco.com/en/news -media/news/2019/saudi -aramco -
listed -on-tadawul . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  raised for the PIF through the initial public offering (IPO) of Saudi Aramco is to be channelled into 
new economic ventures, supporting the growth of the private and non-oil sectors.128  
3.160.   The state budget also includes approval for budgetary revenue and expenditure of public 
institutions connected to the state budget. Some of these are commercial or quasi -commercial 
entities, including the national flag carrier Saudi Ara bian Airlines (Saudia), the Saudi Ports Authority, 
and the Saudi Credit and Savings Bank.  
3.161.   Under Vision 2030, the privatization of state -owned assets is being further encouraged to 
increase the participation of the private sector in the economy from less th an 40% to 65% of GDP.129 
Saudi Arabia is in the process of determining additional sectors suitable for privatization and creating 
a comprehensive privatization programme. The C ouncil of Economic and Development Affairs is 
responsible for overseeing the priv atization programme and monitoring its implementation.  
3.3.6   Government procurement  
3.162.   Saudi Arabia is an observer to the WTO plurilateral Agreement on Government Procurement 
(GPA).130  
3.163.   During the last few years, Saudi Arabia's annual spending on public procurement was in the 
range of 28% to 38% of the government public budget. Based on the 2019 and 2020 budgets, this 
percentage represents around SAR 300 billion annually, i.e. around  13% of GDP.  
3.164.   On 16 July 2019, the Council of Ministers approved the new G overnment Tenders and 
Procurement Law (GTPL) by Royal Decree No. M/128 of 1440H. It supersedes most of the previous 
GTPL issued under Royal Decree No. M/58 dated 04/09/1427H. The key objective of the new Law, 
which came into force on 1 December 2019, is to  strengthen government procurement activities 
while protecting public funds and enhancing economic development, with an emphasis on integrity, 
fair competition, and transparency.131  
3.165.   The new GTPL also aims to support SMEs and increase local content in gover nment 
procurement contracts.  The conditions to benefit from local content and SMEs' preferences are 
generally to supply locally made products, hire locals, conduct R&D, and include other elements of 
local content, as well as to be registered as a n SME for SMEs' preferences.132  
3.166.   According to the authorities, preferences related to local content are currently under 
discussion as to whether to apply them to commercial companies in which the State owns more than 
51% of the share capital.  
3.167.   The Executive Regulation s of the new GTPL, in effect from 1 December 2019, were drafted 
by the Ministry of Finance in coordination with the newly created Local Content and Government 
Procurement Authority  (LCGPA), the Small and Medium Enterprises General Authority, and the 
Capita l Market Authority.133 These regulations include mechanisms for giving preference to local 
content, SMEs, and listed companies . They also include fines to be imposed on contractors that do 
not comply with the local content requirements.  
3.168.   The basic legislati on on government procurement is shown in Table 3.1 3.  
 
128 The IPO, which was made in November 2019, raised USD 25.6 billion. The PIF is also set to benefit 
from stagge red payments from the fund's sale of its 70% stake in Saudi Basic Industries Corporation (SABIC) 
to Saudi Aramco, valued at SAR 259 billion (around USD 69 billion). Saudi Aramco is reportedly starting early 
preparations for a second listing overseas. Oxfor d Business Group, Saudi Arabia's Vision 2030 Attracts 
Attention in the New Decade . Viewed at: https:// oxfordbusinessgroup.com/overview/bright -future -kingdom -
attracts -international -attention -its-vision -2030-economic -development -plan. 
129 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://www.vision2030.gov.s a. 
130 In its WTO accession commitments, Saudi Arabia indicated that it would initiate negotiations for GPA 
membership (WTO document WT/ACC/SAU/61, 1 November 2005, para. 231).  
131 Article  2 of the new GTPL.  
132 Article  96 of the new GTPL.  
133 Article  96 of the ne w GTPL.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table 3.13 Legislation on government procurement, 2020  
Title Reference  Date  
Government Tenders and Procurement Law 
(New Law)  Royal Decree No. M/128  13/11/1440H 
(16/07/2019)  
New Implementing Regulations  Minister of Finance Decision No. 1242  
 21/03/1441H  
(19/11/2019)  
Amended Implementing Regulations  Minister of Finance Decision No. 3479  
 11/08/1441H  
(05/04/2020)  
GCC Unified Rules on Granting Priority in 
Government Procurements to National 
Products and Products of National Origin  Council of Ministers Resolution No.  167 24/04/1435H  
(25/02/2014)  
Source:  Information provided by the authorities.  
3.169.   While preserving certain practices from the old GTPL, the new GTPL represents a substantial 
reworking of the framework for government procurement and incorporates the core principles of 
Vision 2030. Under the new GTPL, government procurement should be used to sp ur development of 
the non -oil sector of the economy and increase non -oil government revenue from SAR 163 billion to 
SAR 1 trillion, in line with Vision 2030.134 Preferences in government tenders should be given to 
SMEs, listed companies, and local content.135 
3.170.   Also, in line with Vision 2030, the new GTPL empowers the LCGPA to enter into contracts on 
its own volition for the Saudization of an industry or for knowledge transfer. Further, procurement 
contracts entered into under the new GTPL may include provision s on knowledge transfer, training, 
and the transfer of operating skills to employees of the government entity. The new GTPL also 
reflects some core principles of Vision 2030 in providing for a new form of government contract to 
encourage the best idea, des ign, or other form of intellectual property right through competition. 
This approach is consistent with Saudi Arabia's goal to become a hub for R&D activities to help grow 
the non -oil sector.  
3.171.   The new GTPL applies to procurements by: (i) ministries and gov ernment agencies; 
(ii) public organizations; (iii) departments and institutions; and (iv) independent public entities with 
a legal structure. Certain elements of the new GTPL, in particular the principles of fairness, 
transparency, and competitiveness,  are applicable to commercial companies in which the State owns 
more than 51% of the share capital.136  
3.172.   The Ministry of Finance is creating and implementing a unified web -based portal, called the 
ETIMAD, for government procurement efforts. The procedures for al l tenders and procurement by 
governmental entities are to be posted on the ETIMAD, along with electronic versions of the tender 
documents, except for reasons relating to national security or technical reasons that prevent such 
posting. The Ministry of Fina nce will also compile and publish on the ETIMAD a list of "blocked" or 
"blacklisted" persons. The ETIMAD is expected to enable greater integration through the sharing of 
data on procurement activities among governmental bodies including the LCGPA, the Gene ral 
Authority for Zakat and Tax, and the Ministry of Human Resource and Social Development.  
3.173.   Under the new GTPL, the Council of Ministers is authorized to determine the  Entity in Charge 
of Unified Procurement (ECUP), and it appointed the Center of Spending  Efficiency (CSE) as the 
ECUP. The ECUP is tasked with identifying those works or purchases required by more than one 
governmental entity. The ECUP is to develop standardized technical requirements for such items, 
initiate tender procedures for their purch ase, and receive and evaluate offers to sell such items to 
the Government. The ECUP is then expected to enter into a framework agreement with the supplier, 
which is to be used by all governmental bodies requiring a particular item. The ECUP is to publish 
on its portal a list of all framework agreements it has entered into with suppliers. The ECUP is 
designed to centralize procurement of commonly used items (e.g. desks and computers ), and 
thereby reduce the cost to the Government. Notably, the General Author ity for Military Industries, 
the body in charge of procurement in the defence sector, is partly exempt from the ECUP 
procurement regime.  
 
134 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://www.vision2030.gov.sa . 
135 Article  9 of the new GTPL.  
136 The PIF is tasked with drafting the regulations in this regard.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.174.   The new GTPL uses the same three contracting methods as its predecessor: (i) public tenders 
(the default option); (ii)  limited tenders (the number of providers is limited, or for consulting 
services); and (iii) direct procurement (for military/national security, or for low -value tenders). 
Two other methods were added: (i) two -stage tenders (for complex matters/projects th at may 
develop over time); and (ii) electronic reverse auction (where a competitive market for the products 
exists).  
3.175.   The procurement regime under the new GTPL largely follows that of its predecessor 
regarding bid submission, validity of bids, bid bonds, b id opening, and performance bonds. The new 
GTPL eliminates the requirement to post a bid bond in direct procurements, tenders applying the 
competition technique, contracts between government entities, and contracts with domestic SMEs, 
NGOs, or non -profit o rganizations.  
3.176.   The new GTPL  introduced the concept of bid protest to the government procurement process. 
Once the government entity announces a contract award, it must observe a "standstill" period of 
5 to 10 working days before finalizing  the contract. Th is period affords other bidders the right to 
protest the award decision before one of the tender review committees, which are to be established 
by the Minister of Finance. To file a protest, a bidder must post a financial guarantee equal to 50% 
of the valu e of the bid bond for the tender at issue, which will be returned if the grievance is found 
to be valid. Requiring the bidder to post financial security for a protest should eliminate ill -considered 
protests to adverse bid awards, while providing a path to  challenge an award where the bidder 
believes that the award was not made in a manner consistent with the requirements of the new 
GTPL and its Executive Regulations.  
3.177.   The new GTPL  reaffirms that government contracts are to be priced in riyals but may also 
be in another currency with approval from the Ministry of Finance. The contract price must be for 
the full cost of contract implementation, including any charges and taxes due from the contractor. 
Moreover, the new GTPL  provides that the contract may inclu de no exemptions from tax on the 
profits of the contractor or the income of its employees.137 The tax provision establishes the 
supremacy of the Ministry of Finance on all matters related to government contracts. The new GTPL  
preserves the unilateral right of the government body to increase the contract price by up to 10% 
or to decrease it by as m uch as 20%.  
3.178.   Similar to provisions in the previous  GTPL, a contract may be assigned with the express 
approval of the contracting government body and the Ministry of Finance. Subcontracting is 
permitted with the prior written approval of the contracting gov ernment body; the primary 
contractor is jointly liable with the subcontractor for the subcontracted works. The Government may 
now pay the approved subcontractor directly, contrary to the  prior practice.  
3.179.   The new GTPL  maintained the capped delay penalty for  the late delivery of goods at 6% but 
increased it on contracts for services/works and on continuous performance contracts to 20% (from 
10%).  
3.180.   Under the new GTPL, domestically produced products still qualify for a price preference of 
10%, which can be incr eased upon agreement between the LCGPA and the CSE. Also, under the 
GCC Unified Rules on Granting Priority in Government Procurements to National Products and 
Products of National Origin,  products from other GCC member States qualify for a price preference 
of 10%.  
3.3.7   Intellectual property rights  
3.3.7.1   Overview  
3.181.   In 2020, Saudi Arabia ranked 66th among the 131 countries in the World Intellectual Property 
Organization's (WIPO) Global Innovation Index 2020 with particular strengths in, for example, 
research and  development, ICT access and use, and knowledge impact, such as computer software 
spending.  
 
137 Article  65 of the new GTPL.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.182.   The Saudi  Authority for Intellectual Property (SAIP) was established under the Council of 
Ministers Decision No. 410 of 27 March 2017. The Decision transfers dutie s and responsibilities from 
the Saudi Patent Office (King Abdulaziz City for Science and Technology), Copyright Department 
(under the Ministry of Culture and Media), and Trademark Department (under the Ministry of 
Commerce) and unifies them under the SAIP.  The Council of Ministers Decision No. 496 of 
11 June 2018 sets forth the SAIP's main roles and responsibilities as: (i)  preparing the national 
strategy for intellectual property ( IP), following up on implementation after its adoption, and 
developing work plans and programmes in coordination with the relevant authorities; (ii)  proposing 
laws and regulations relating to intellectual property rights ( IPRs); (iii) managing the registration, 
grant, and enforcement of IPRs; (iv)  providing information to the publ ic; (v)  raising awareness 
regarding IP and IPR protection; (vi)  representing Saudi  Arabia in international and regional 
organizations and defending its interests; (vii) providing opinions on international agreements 
related to IPRs; (viii) following up on the implementation of the obligations resulting from 
Saudi  Arabia's accession to international conventions relating to IP; (ix)  promoting the use of IP to 
build an advanced knowledge -based economy; (x) establishing databases related to the SAIP's work 
and exchanging information with local, regional, and international authorities; and (xi) licensing of 
related activities.138 
3.183.   Under Vision 2030, Saudi Arabia is building innovation labs and platforms, and engaging in 
initiatives to encourage entrepreneurship.139 This approach was underpinned by the reforms 
undertaken in the IP administrative regime during the review period. For example, in 2020, the SAIP 
requested public consultations on a draft regulation for IP licensing140, and launched a network of 
33 IP suppor t centres, and, in 2019, it began preparations for the development of a national IP 
strategy.141  
3.184.   Since the declaration of the precautionary and preventive measures against COVID -19 in 
2020, the SAIP has delivered 19,990 different actions via its virtual pl atforms and provided 
17,546  actions to its individual and institutional customers. The SAIP also organized 44 sessions of 
quasi -judicial committees to adjudicate violations of IPRs. Additionally, it provided training courses 
for more than 500 beneficiaries  from 28 government and private sectors. SAIP also provided a 
package of exceptions to support its clients in accordance with rules stipulated in international 
treaties and national regulations. For example, the SAIP extended deadlines of some services unt il 
3 May 2020, due to the COVID -19 pandemic, which supplemented its statement regarding business 
continuity due to the crisis.142 
3.185.   On 26 October 2020, the SAIP organized the Global Intellectual Property Challenges Forum 
(IP20+) as an initiative in response t o IP priorities in the times of global pandemics and emergencies. 
Participants of the Forum included the heads of IP offices operating in the G20 countries, WIPO, the 
World Health Organization, and a number of guests from other IP offices and international  
organizations.  
3.186.   Saudi Arabia acceded  to three IP treaties: (i)  the Marrakesh Treaty to Facilitate Access to 
Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled 
(Marrakesh VIP Treaty) in 2019; (ii) the Vienna Agreement Establishing an International 
Classification of the Figurative Elements of Marks (Vienna Agreement) in 2020; and (iii) the Locarno 
 
138 Information provided by the authorities.  
139 WIPO, "Saudi Arabia Embraces AI -driven Innovation", WIPO Magazine , September 2018. Viewed at: 
https://www.wipo.int/wipo_magazine/en/2018/05/article_0002.html . More information on Vision 2030 is 
Kingdom of Saudi Arabia, Vision 2030 . Viewed at: https://vision2030.gov.sa/en .  
140 SAIP, The SAIP Requests Public Consultation on a Draft Regulation for Licensing the Practice of 
Intellectual Property Business , 10 August 2020. Viewed at: 
https://www.saip.gov.sa/en/%d8%a7%d9%84%d9%87%d9%8a%d8%a6%d8%a9 -
%d8%a7%d9%84%d8%b3%d8%b9%d9%88%d8%af%d9%8a%d8%a9 -
%d9%84%d9%84%d9%85%d9%84%d9%83%d9%8a%d8%a9 -
%d8%a7%d9%84%d9%81%d9%83%d8%b1%d9%8a%d8%a9 -%d8%aa%d8%b7%d9%84%d8%a8/ .  
141 SAIP, Start of National Strategy of Intellectual Property Work , 6 November 2019. Viewed at: 
https://www.saip. gov.sa/en/%d8%a8%d8%af%d8%a1 -%d8%a3%d8%b9%d9%85%d8%a7%d9%84 -
%d8%a7%d9%84%d8%a7%d8%b3%d8%aa%d8%b1%d8%a7%d8%aa%d9%8a%d8%ac%d9%8a%d8%a9 -
%d8%a7%d9%84%d9%88%d8%b7%d9%86%d9%8a%d8%a9 -
%d9%84%d9%84%d9%85%d9%84%d9%83/ .  
142 Saudi Press Agency, Saudi Authority for Inte llectual Property Provides 17,546 Actions and 44 Quasi -
Judicial Sessions via Virtual Network , 17 May 2020. Viewed at: 
https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=20 87521 . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Agreement Establishing an International Classification for Industrial Designs (Locarno Agreement) 
in 2020.143  
3.187.   Council of Ministers Decision No. 536 of 10/19/1439H (3 July 2018)144 was issued to amend 
the Copyright Law (promulgated by Royal Decree No. M/41 of 02/07/1424H (30  August  2003)) and 
the Law on Patents, Layout -Designs of Integrated Circuits, Plant Varieties, and Indus trial Designs 
(promulgated by Royal Decree No. M/27 of 29/05/1425H (17 July 2004))145, in order to replace 
entities mentioned therein with the SAIP.  
3.188.   Similarly, the Decision of the Board of Directors of the Saudi Intellectual Property Authority 
No. 04/08/20 19 dated 04/09/1440H (9 May 2019) was issued to amend the Implementing 
Regulations of the Copyright Law (issued by Minister ial Decision No.  1688/1 of 10/04/1425H 
(29 May 2004))146 and the Implementing Regulations of the Law on Patents, Layout -Designs of 
Integrated Circuits, Plant Varieties, and Industrial Design, Ministerial Decision No.  118828/M/10 of 
14/11/1425H (26 December 2004)147, in order to replace entities mentioned therein with the SAIP.  
3.189.   Table 3.1 4 shows the number of patent, trademark , and industri al design applications filed 
at the SAIP and former Saudi Patent Office from 2015 –19 by resident and non -resident applicants.  
Table 3.15 shows the number of patent, trademark , and industrial design registrations and grants 
from 2015 -19 by resident and non -residents.  
Table 3.14 Annual statistics on IPR protection – applications , 2015 -19 
IPR 2015  2016  2017  2018  2019  
Resident  Non-
resident  Resident  Non- 
resident  Resident  Non- 
resident  Resident  Non- 
resident  Resident  Non-
resident  
Patents  715 1,691  1,070  2,196  909 2,282  1,078  2,321  1,188  2,463  
Trademarks  7,423  10,831  13,643  861 17,092  16,233  18,563  13,329  23,411  14,258  
Industrial designs  321 503 386 551 461 540 345 572 348 456 
Source:  SAIP IP Data Center.  
Table 3.15 Annual statistics on IPR protection – registrations/grants , 2015 -19 
IPR 2015  2016  2017  2018  2019  
Resident  Non-
resident  Resident  Non- 
resident  Resident  Non- 
resident  Resident  Non- 
resident  Resident  Non-
resident  
Patents  163 600 124 471 90 411 123 446 86 394 
Trademarks  7,482  11,149  23,902  1,033  22,227  1,118  23,383  1,214  10,210  12,270  
Industrial designs  348 521 337 457 336 585 279 507 195 369 
Source:  SAIP IP Data Center.  
3.190.   Saudi Arabia has been a member of WIPO since 1982.148 It is a party to the Convention 
Establishing the World Intellectual Property Organization (22 May 1982), the Berne Convention for 
 
143 WIPO IP Portal, WIPO -Administered Treaties, Saudi Arabia . Viewed at : 
https://www.wipo.int/treaties/en/ShowResults.jsp?country_id=149C . 
144 SAIP. Viewed at: https://www.saip.gov.sa/wp -
conte nt/uploads/2019/10/%D9%86%D8%B8%D8%A7%D9%85 -
%D8%AD%D9%85%D8%A7%D9%8A%D8%A9 -%D8%AD%D9%82%D9%88%D9%82 -
%D8%A7%D9%84%D9%85%D9%88%D9%94%D9%84%D9%81L -LA-041-01.pdf .  
145 SAIP. Viewed at: https://www.saip.gov.sa/wp -
content/uploads/2019/06/%D9%86%D8%B8%D8%A7%D9%85 -
%D8%A8%D8%B1%D8%A7%D8%A1%D8%A7%D8%AA -
%D8%A7% D9%84%D8%A7%D8%AE%D8%AA%D8%B1%D8%A7%D8%B9 -
%D8%A7%D9%84%D8%B5%D8%A7%D8%AF%D8%B1 -%D8%B9%D8%A7%D9%85 -
1425%D9%87%D9%80 -%D8%A7%D9%84%D9%85%D8%B9%D8%AF%D9%84 -
%D8%A8%D9%82%D8%B1%D8%A7%D8%B1 -%D9%85%D8%AC%D9%84%D8%B3 -
%D8%A7%D9%84%D9%88%D8%B2%D8%B1%D8%A7%D8%A1 -%D8%B 1%D9%82%D9%85 -536-
%D9%88%D8%AA%D8%A7%D8%B1%D9%8A%D8%AE -1439%D9%87%D9%80 -.pdf. 
146 Information provided by the authorities.  
147 Information provided by the authorities.  
148 WIPO, Saudi Arabia . Viewed at: https://www.wipo.int/members/en/details.jsp?country_id=149 .  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  the Protection of Literary and Artistic Works (11 March 2 004), the Paris Convention for the Protection 
of Industrial Property (11 March 2004), the Patent Cooperation Treaty (3 August 2013), the Patent 
Law Treaty (3 August 2013), the Marrakesh VIP Treaty  (21 February 2019), the Locarno Agreement 
(3 December 2020), and the Vienna Agreement (3  December 2020).  
3.3.7.2   Copyright and related rights  
3.191.   Under the Copyright Law, protection applies equally to domestic and foreign right holders. 
Copyright holders benefit from all moral and economic rights, and protection s as stipulated in the 
Berne Convention for the Protection of Literary and Artistic Works, and in Article 18 (Scope of 
Protection) of the Implementing Regulations of the Copyright Law, and amended by Board of 
Directors of the Saudi Intellectual Property Au thority Decision No. 04/08/2019 of 04/09/1440H 
(9 May 2019)).149 Parallel imports of copyrighted materials are prohibited in Saudi Arabia.  
3.192.   The Regulations of Optional Copyright s Registration issued by the SAIP's Board of Directors 
Decision No. 03/07/2019 da ted 07/06/1440H (12 February 2019) 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 of copyrighted works by a  decision of 
the Chief Executive of the SAIP.  
3.193.   Saudi Arabia's copyright laws and procedures apply to copyright infringement on the 
Internet. Accordingly, any person within the territorial jurisdiction of Saudi Arabia who infringes 
copyrighted works on the Internet shall be subject to one or more of the following penalties: 
(i) a warning; (ii)  a fine not exceeding SAR 250,000; (iii)  closure of the establishment that 
participated in the infringement for a period not exceeding two months; (iv)  confiscation of all copies 
of the work in addition to the materials used, or intended for use, in the infringing acts; or 
(v) imprisonment for a period not exceeding six months (Article  22 of the Copyright Law).  
3.3.7.3   Industrial property  
3.3.7.3.1   Overview  
3.194.   Industrial property protection and enforcement in Saudi Arabia is regulated by: (i)  the Law 
on Patents, Layout -Designs of Integrated Circuits, Plant Varieties, and Industrial Designs; (ii)  the 
Implementing Regulations of the Law of Patents, Layout -Designs of Integrated Circui ts, Plant 
Varieties, and Industrial Designs; (iii)  the Law o f Trademarks, Royal Decree No. M/21 dated 
29/05/1423H (7 August 2002); (iv)  the Implementing Regulations of Trademark Law, Ministerial 
Order No. 1723 dated 26/07/1423H (4 October 2002), as amended  by Ministerial Resolution 
No. 1147H dated 30/11/1433H (17 October 2012); (v)  the GCC Trademark Law, approved by Royal 
Decree No. 51 dated 26/07/1435H (25 May 2014)150; and (vi) the GCC Trademark Law Implementing 
Regulations, issued by a decision of GCC Tra de Cooperation Committee in its meeting No.  51 dated 
03/08/1436H (21 May 2015)151. With regard to patents and trademarks, the concepts of exhaustion 
of rights and parallel importation are subject to general rules and principles determined by the 
judiciary. Since its previous Review, Saudi Arabia made no significant amendments to its industrial 
property laws, aside from those mentioned in paragraphs 3.186 -3.187 .152 
3.195.   The SAIP issued a public consultations request to gather feedback from the public on the 
current  patent law, collect issues, and address them in a new draft of law, in accordance with a 
July 2020 deadline. It also requested feedback from interested stakeholders in the Government, the 
private sector, and individuals regarding the development of its le gal frameworks for industrial 
designs, patents, plant variety protection, and layout -designs of integrated circuits.153 
3.196.   With respect to industrial property , the 2001 Economic Agreement requires GCC member 
States to, inter alia , develop programmes to encoura ge innovation, cooperate in the field of industrial 
 
149 Information provided by the authorities.  
150 Viewed at: http://ncar.gov.sa/Documents/Detail s?Id=CUkPtCD1Ts7lBL7Vymjw6A%3D%3D .  
151 Viewed at: http://ncar.gov.sa/Documents/Details?Id=bDbVZQa0oRVv2beQElpTDw%3D%3D .  
152 WTO document WT/TPR/S/333/Rev.1, 21 June 2016.  
153 SAIP. Viewed at: https://www.saip.gov.sa/ar/law -of-patents -layout -designs -of-integrated -circuits -
plant-varieties -and-industrial -designs -2/?preview=true .  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  property and develop regulations and procedures to ensure the protection of IPRs, and coordinate 
their policies with other countries and regional and international organizations.154  
3.3.7.3.2   Trademarks and geograp hical indications (GIs)  
3.197.   The GCC Trademark Law155 entered into force for Saudi Arabia on 2 October 2016. It sets 
out provisions regarding the registrability, registration, and enforcement of trademark rights in GCC 
member States. The IP offices of each GCC m ember State register trademarks on a national basis; 
the GCC Trademark Law does not establish a unified registration or enforcement mechanism.156 The 
GCC Trademark Law allows 90 days from the filing date for the rejection or approval of the 
application for publishing. Generally, the process takes approximately 18 days, followed by a 
publishing period of 60 days. The registration is granted after the period of publication, if there is 
no opposition. Article  2 of the GCC Trademark Law expressly includes certai n non -traditional marks, 
such as sounds and smells, in its definition of the term trademark . In 2020, the SAIP issued the first 
certificate for a sound trademark.157 The GCC Trademark Law provides for the protection of 
well-known trademarks, regardless of w hether the trademark is registered domestically.  
3.198.   GIs may be protected as trademarks. According to the authorities, the period of time from 
the filing of an application to the date of rejection or approval is similar to that of trademarks. As 
part of the Pr oject for the Protection of GIs, and in cooperation with related national authorities, the 
SAIP compiled a list of agricultural and food products, handicrafts, and national industrial products 
that may be registered as GIs. The SAIP requested all intereste d parties to submit written opinions 
or notes in accordance with a July 2020 deadline.158 
3.3.7.3.3   Industrial designs  
3.199.   The protection period for industrial design certificates shall be 10 years from the date of 
filing the application (Article  19 of the Law on Patents , Layout -Designs of Integrated Circuits, Plant 
Varieties, and Industrial Designs; and the Implementing Regulations of the Law of Patents, 
Layout -Designs of Integrated Circuits, Plant Varieties, and Industrial Designs).  
3.3.7.3.4   Patents  
3.200.   The patent protection period  shall be 20 years from the date of filing the application 
(Article  19 of the Law on Patents, Layout -Designs of Integrated Circuits, Plant Varieties, and 
Industrial Designs; and the Implementing Regulations of the Law of Patents, Layout -Designs of 
Integrat ed Circuits, Plant Varieties, and Industrial Designs). According to the authorities, on average, 
a patent application takes between 30 and 36 months from the date of filing to the decision of the 
SAIP. The duration depends on a number of factors, including  the field of technology, the applicant's 
response time to questions on examination matters, and extension of time limits.  
3.201.   There were no significant changes to the legal provisions and administrative procedures 
concerning compulsory licensing, except the transfer of the competent authority to issue compulsory 
licences from King Abdulaziz City for Science and Technology to the SAIP (per Articles 24 -30 of the 
Law on Patents, Layout -Designs of Integrated Circuits, Plant Varieties, and Industrial Designs).  
 
154 WIPO IP Portal, The Economic Agreement Between the GCC States  (translation). Viewed at: 
https://wipolex.wipo.int/en/text/227910 .  
155 WIPO IP Portal, Trademarks Law of the Gulf Cooperation Council States (the GCC Trademarks Law) . 
Viewed at: https://wipolex.wipo.int/en/legislation/details/16702 .  
156 WIPO, "GCC Trademark Law Coming Soon",  WIPO Magazine , September 2014. Viewed at: 
https://www.wipo.int/wipo_magazine/en/2014/05/article_0010.html .  
157 SAIP, SAIP Issues the First Certificate for a Sound Trademark in the Kingdom and Invites Those 
Wishing to Register to Apply Through Its Portal , 25 August 2020. Viewed at: https://www.saip.gov.sa/en/الملكية-
لفكريةا-تصدر-أول-دةشها-لعلامة/ . 
158 SAIP. Viewed at: 
https://www.saip.gov.sa/ar/%d8%a7%d9%84%d9%85%d9%84%d9%83%d9%8a%d8%a9 -
%d8%a7%d9%84%d9%81%d9%83%d8%b1%d9%8a%d8%a9 -%d8%aa%d8%ad%d8%b5%d8%b1 -
%d8%a7%d9%84%d9%85%d8%a4%d8%b4%d8%b1%d8%a7%d8%aa -
%d8%a7%d9%84%d8%ac%d8%ba%d8%b1%d8%a7/ . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  3.202.   The Patent Office of the GCC grants patents that are valid in all GCC member States.159 
Table 3.1 6 shows the number of patent applications and patent grants filed at the Patent Office of 
the GCC.  
Table 3.16 Paten t Office of the GCC, patent applications and patent grants, 2015 -19 
 
2015  2016  2017  2018  2019  
Resident  Non-
resident  Resident  Non-
resident  Resident  Non-
resident  Resident  Non-
resident  Resident  Non-
resident  
GCC patent 
applications  247 1,735  286 1,663  371 1,475  667 1,553  707 1,513  
GCC patent grants  44 618 65 608 298 1,942  353 2,307  346 2,314  
Note:  "Resident" refers to a resident of a GCC member State.  
Source:  SAIP IP Data Center.  
3.3.7.3.5   Plant variety protection  
3.203.   The period of plant patent protection is 20 years from the date of filing the application; for 
trees and vines, the period of protection is 25 years (Article  19 of the Law on Patents, Layout -Designs 
of Integrated Circuits, Plant Varieties, and Industrial Designs; and the Implementin g Regulations of 
the Law of Patents, Layout -Designs of Integrated Circuits, Plant Varieties, and Industrial Designs).  
3.3.7.3.6   Layout -designs of integrated circuits  
3.204.   The term of protection for the design certificate is 10 years from the date of filing the 
applicatio n, or 10 years from the date of beginning its commercial exploitation anywhere in the 
world. The period of protection may not exceed 15 years from the date of the creation of the design 
(Article  19 of the Law on Patents, Layout -Designs of Integrated Circui ts, Plant Varieties, and 
Industrial Designs; and the Implementing Regulations of the Law of Patents, Layout -Designs of 
Integrated Circuits, Plant Varieties, and Industrial Designs).  
3.3.7.4   Enforcement  
3.205.   Article  16(6) of the Law of Commercial Courts, Royal Decree No . (M/93) dated 15/08/1441H 
(8 April 2020)160 provides the commercial courts with subject matter jurisdiction over all criminal 
and civil IP cases. In 2020, Saudi Arabia notified the TRIPS Council that the SAIP is its contact point 
for cooperation on the eli mination of trade in infringing goods.161 
3.206.   On 30  September 2020, Saudi Arabia launched the IP Respect Officer initiative, which aims 
to qualify and train employees in most government agencies to advise on all matters related to IP 
in terms of software usage and publications in the entity they represent. These employees also 
monitor their agency, helping to eliminate any violations of IP laws and regulations. Seventy officers 
from different government agencies were registered as IP Respect Officers.162 
3.207.   Saudi Ar abia established the National Committee for Enforcing Intellectual Property Rights, 
which is governed by Resolution No. 3 -12-2020 dated 30/08/2020. The committee aims to improve 
and strengthen the IP enforcement ecosystem .  
3.208.   According to the authorities, au thorized customs officials can seize infringing material in an 
ex officio  capacity. Subsequently, customs officials must confirm with the right holder whether the 
seized goods are infringing  material . Table 3.1 7 shows the number of copyright enforcement ac tions 
from 2015 –20, including the number of inspection campaigns, number of cases, sanctions, amount 
of penalties, amount of compensation and number of seized goods or websites blocked. Table 3.1 8 
shows the number of trademark cases referred to the public prosecution from 2017 –20. 
 
159 Patent Offi ce of the GCC. Viewed at: https://www.gccpo.org .  
160 Viewed at: https://www.uqn.gov.sa/articles/1587045967380860700/ .  
161 WTO document IP/N/3/SAU/1, 30  April 2020.  
162 Saudi Press Agency, Initiative of Intellectual Property Respect Officer Launched with Participation of 
More Than 70 Government Agencies , 30 September 2020. Viewed at: 
https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2139972 . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table 3.17 Enforcement actions: copyright, 2015 -20 
2020  2019  2018  2017  2016  2015   
1,000 online 
inspection  8 66 143 n.a. 517 Inspection 
campaigns  
79 58 107 200  186 690  Number of 
cases  
8 8 n.a.  477  511 1438  Sanctions  
1,356,150  383,645  1,240  ,300  2,634,300  2,395  ,800  5,731,700  Penalties 
(SAR)  
38,972,700  298,016  3,980  ,188  4,326  ,454  17 ,502 ,885  2,434  ,300  Compensation 
(SAR)  
308 websites 
were blocked  5,269  n.a.  187,660  319 ,670 262 ,631  Number of 
seized  goods  
Source:  SAIP IP Respect Department.  
Table 3.18 Number of trademark cases referred to the public prosecution, 2017 -20 
 2017  2018  2019  2020  Total  
Number of cases  157 158 178 32 525 
Source:  SAIP IP Respect Department.  
 WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Features  
4.1.  Agriculture, forestry, and fishing contributed nearly SAR 66 billion, or 2.2%, to GDP in 2019, 
broadly unchanged from 2014, following a trend decline in the sector's contribution to GDP from 5% 
two decades ago. Agriculture, forestry, and  fishing currently account for about 3.5% of total 
employment.1 
4.2.  Following declines until 2013 to 700,000 hectares, agricultural land use increased again and 
stabilized at around 1 million hectares in 2018 before declining in 2019, according to official da ta.2 
The area under production for cereals declined by more than 22% between 2015 and 2019, as the 
Government phased out the purchase of domestic wheat production by 2016 before reintroducing it 
in 2018 to mitigate the impact of restrictions on planting green fodder ( Section 4.1.3.2 ). Areas for 
growing vegetables increased slightly until 2018 but fell in 2019, while those for dates increased 
overall. Barley is primarily used for feed, while wheat is primarily for human consumption. Virtually 
all agricultural la nd is under irrigation. In line with government policy to reduce water use in 
agriculture (see below), the production of green fodder began to be phased out in late 2018, a 
process set to be complete by 2022.  
4.3.  Total crop production overall remained stable at nearly 15 million metric tonnes between 2015 
and 2018 before falling in 2019. It remains significantly higher than between 2008 and 2013, 
according to data provided by the Government during the last Review, although changes in data 
collection and correc tions resulting from the agricultural census in 2014 limit data comparability. 
Overall, land use and production of cereals decreased, while land use and production of vegetables 
increased before declining in 2019. Yields per hectare of date palms increased  more than 35% 
between 2015 and 2019, although the area planted expanded only modestly ( Table 4.1) . In 2018, 
Saudi  Arabia was the world's second -largest producer of dates.3  
Table 4.1 Crop production, 2014 -19 
(Production in '000 tonnes, area in '000 ha)    
2014  2015  2016  2017  2018  2019  
Total crops  Production  13,947.3  14,920.7  15,310.9  15,114.7  14,861.8  11,912.8   
Area 1,047.8  1,038.1  1,026.9  1,017.1  994.8  857.8  
Cereals  Production  1,595.1  1,630.1  1,524.8  1,509.2  1,459.7  966.5   
Area 321.2  305.9  291.4  277.9  268.6  237.4  
 Wheat  Production  718.5  693.8  618.7  620.9  586.4  426.2   
Area 122.2  113.0  104.4  96.5 89.8 83.8  
 Barley  Production  596.4  678.0  648.6  637.6  624.7  414.7   
Area 101.3  99.2 97.2 95.2 93.9  91.9  
Vegetables  Production  1,802.2  1,847.1  1,924.6  1,939.4  1,974.9  1,398.4   
Area 80.1 83.3 83.9 85.0 86.0 71.8  
 Tomato (field)  Production  184.2  196.8  207.5  207.1  210.6  157.4   
Area 10.5 11.8 11.9 12.1 12.2 9.4  
 Potato  Production  429.3  459.2  466.4  476.4  482.3  402.7   
Area 17.1 17.6 18.2 18.8 19.1 18.2  
 Watermelon  Production  494.6  505.7  574.7  606.2  634.5  478.9   
Area 24.6 26.2 27.9 29.7 31.0 29.8  
 Tomato (greenhouse)  Production  96.1 91.8 97.7 99.3 101.7  102.5  
 Area 1.1 1.2 1.2 1.2 1.3  1.3  
Fodder  Production  9,619.1  10,124.7  10,399.7  10,146.6  9,824.7  7,810.0  
 Area 501.2  501.7  502.2  502.7  486.6  418.9  
 
1 Data provided by the authorities.  
2 According to the authorities, changes to the data collection process and th e completion of an 
agricultural census in 2014 limit the comparability of data before and after 2014.  
3 FAOSTAT, Food and Agriculture Data . Viewed at: www.fao.org/faostat/en/ . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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2014  2015  2016  2017  2018  2019  
Fruits  Production  931.0  1,318.8  1,461.8  1,519.5  1,602.5  1,737.8  
 Area 145.2  147.2  149.3  151.4  153.6  129.5  
 Dates  Production  656.8  1,038.5  1,153.0  1,224.2  1,302.9  1,521.7  
 Area 107.3  109.4  111.6  113.8  116.1  117.2  
Note:  Estimated data.  
Source:  General Authority for Statistics, Statistical Yearbook 2018 ; and 2019 data provided by the 
authorities.  
4.4.  Between 2014 and 2019, livestock numbers increased across the board. Production of related 
meat products, as well as milk and eggs, also increased between 2014 and 2018 ( Table 4.2) . 
Table 4.2 Livestock and animal products, 2014 -19 
 
2014  2015  2016  2017  2018  2019  
Livestock number ('000)  
 Camels  472 476 481 486 491 495 
 Chicken  772,393  792,037  807,854  827,707  837,131  861,851  
 Cows 354 358 361 365 368 405 
 Goats  3,563  3,598  3,634  3,670  3,707  3,723  
 Sheep  9,055  9,146  9,237  9,328  9,409  9,565  
Animal products ('000 tonnes)  
 Meat 705 721 757 747 762 .. 
 Poultry  508 518 554 541 554 .. 
 Sheep  85 86 86 88 89 .. 
 Milk 2,378  2,399  2,422  2,446  2,489  .. 
 Cow milk  2,100  2,117  2,138  2,159  2,200  .. 
 Eggs 255 275 280 283 286 .. 
.. Not available.  
Note:  Estimated data.  
Source:  General Authority for Statistics, Statistical Yearbook 2018 ; data provided by the authorities; and 
FAOSTAT, Food and Agricultural Data . Viewed at: http://www.fao.org/faostat/en/#home . 
4.1.2   Trade  
4.5.  Saudi Arabia remains a major net importer of agricultural products (WTO definition4). 
Agricultural exports decreased overall between 2014 and 2019  in nominal terms but increased 
slightly as a share of exports. Dairy products are the largest export product at the HS2 level. While 
dairy exports remained broadly stable over 2014 -19, exports  of milk and cream, dates (a traditional 
export), and pasta increased over the last few years, reflecting surplus production of milk, eggs, and 
dates, according to authorities ( Table 4.3 ). Agricultural exports are primarily shipped to other Arab 
countries,  predominantly other GCC member States.  
Table 4.3 Exports of agricultural products, 2014 -19 
(USD million)  
HS Code and product description  2014  2015  2016  2017  2018  2019  
Exportsa  3,672  3,694  3,654  3,557  3,387  3,369  
 (% of total exports)  1.1%  1.8%  2.0%  1.6%  1.2%  1.3%  
HS 04   Dairy produce; birds' eggs; natural 
honey; edible products of animal 
origin, n.e.s. or included  1,140  1,197  1,215  1,136  1,094  1,113  
 HS 0402 Milk and cream, concentrated or 
containing added sugar or other 
sweetening matter  224 235 220 317 325 297 
 HS 0406 Cheese and curd  334 353 269 289 309 320 
 HS 0403 Buttermilk, curdled milk and cream, 
yogurt, kephir  and other fermented or 
acidified milk and cream  220 292 296 259 238 233 
 
4 For the purposes of this sectio n, the definition of agriculture product is that set out in Annex 1 of the 
Agreement on Agriculture, where fish and fish products are taken to include HS Headings 020840, 03, 051191, 
1504, 1603, 1604, 1605, and 230120.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  HS Code and product description  2014  2015  2016  2017  2018  2019  
 HS 0401 Milk and cream, not concentrated nor 
containing added sugar or other 
sweetening matter  222 212 344 184 167 210 
HS 2009 Fruit juices and vegetable juices  437 450 384 346 346 326 
HS 1905 Bread, pastry, cakes, biscuits and other 
bakers' wares  339 359 348 329 289 326 
HS 0804 Dates, figs, pineapples, avocados, 
guavas, mangoes and mangosteens, 
fresh or dried  131 143 159 198 209 236 
HS 1701 Cane or beet sugar and chemically pure 
sucrose, in solid form  195 154 200 180 153 165 
HS 2202 Waters, including mineral waters and 
aerated waters  217 223 178 157 129 144 
HS 1902 Pasta  125 111 102 109 129 164 
a Including re -exports. Major items according to 2019 data.  
Note:  WTO definition of agriculture: HS Chapters 01 -24 less fish and fishery products (HS Chapter 03, 
0508, 0511.91, 1504.10, 1504.20, 1603 -1605, and 2301.20), plus some selected products 
(HS 2905.43 -2905.45, 3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 
5101-5103, 5201 -5203, and 5301 -5302).  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
4.6.  Between 2014 and 2019, imports of agricultural products decreased from USD  23.8 billion to 
USD 19.7 billion, and across all major import items (with the exception of bread and pastry)  
(Table  4.4). The most important import product is rice (primarily from India), followed by poultry 
meat (mostly from Brazil), and barley for animal feed (mostly from Argentina, the European Union,  
the Russian Federation, and Ukraine, and declining significantly after 2017).5 According to official 
data, wheat imports declined during the review period from more than USD  1 billion in 2014 to 
around USD  123 million in 2019.  
Table 4.4 Imports of agricultural products, 2014 -19 
(USD million)  
HS Code and product description  2014  2015  2016  2017  2018  2019  
Importsa 23,760
0 23,873
3 22,001
1 21,354
4 19,447
7 19,661
1 
  (% of total imports)  14.1%  13.7%  15.7%  15.9%  14.4%  13.6%  
HS 1006 Rice  1,769  1,555  1,012  1,063  1,315  1,415  
HS 0207 Meat and edible offal, of the 
poultry  1,709  1,935  1,537  1,241  1,218  1,302  
HS 1003 Barley  1,993  2,022  1,680  1,655  1,033  542 
HS 2106 Food preparations n.e.s. or 
included  1,088  1,138  1,013  963 771 754 
HS 0402 Milk and cream, concentrated 
or containing added sugar or 
other sweetening matter  1,137  849 778 767 713 760 
HS 1005 Maize (corn)  681 610 692 748 641 715 
HS 1905 Bread, pastry, cakes, biscuits 
and other bakers' wares  480 570 544 523 633 671 
HS 0406 Cheese and curd  736 687 662 662 626 660 
HS 1901 Malt extract; food preparations 
of flour, groats, meal, starch 
or malt extract  723 788 797 681 598 664 
 
5 Regarding reports that the Saudi Gr ains Organization (SAGO) stopped buying Canadian wheat and 
barley in 2018, the authorities note that purchase decisions are taken at SAGO's discretion. They further 
indicate that the Kingdom is currently not a party to the WTO Agreement on Government Procu rement.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  HS Code and product description  2014  2015  2016  2017  2018  2019  
HS 0104 Live sheep and goats  861 974 753 654 585 634 
HS 1001 Wheat and meslin  1,024  725  545  618  223  123 
a Major items according to 2019 data.  
Note:  WTO definition of agriculture: HS Chapters 01 -24 less fish and fishery products (HS Chapter 03, 
0508, 0511.91, 1504.10, 1504.20, 1603 -1605, and 2301.20), plus some selected products 
(HS 2905.43 -2905.45, 3301, 3501 -3505, 3809.10, 3823, 3824.60, 4101 -4103, 4301, 5001 -5003, 
5101-5103, 5201 -5203, and 5301 -5302).  
Source:  WTO Secretariat calculations, based on U N Comtrade database.  
4.1.3   Policies  
4.7.  The Ministry of Agriculture was integrated into the new Ministry of Environment, Water and 
Agriculture in May 2016, and is now responsible for developing and implementing policies in these 
three closely related fields. The Agr icultural Development Fund (ADF) provides interest -free loans 
that include a repayment subsidy for most loans that are repaid on time; and the Saudi Grains 
Organization (SAGO) (which replaced the Grain Silos and Flourmills Organization (GSFMO) in 
November 2015) purchases and stores wheat and barley (including strategic stockpiles for wheat), 
currently privatizes its mills, and acts as regulator for the wheat and barley sector.  
4.8.  Following major government investments in the 1970s, particularly in irrigation in a harsh 
desert climate, and a land distribution program me, Saudi Arabia increased agricultural production 
and was a major wheat exporter for several years around 1990. As awareness of unsustainable 
natural resource use (especially use of water from non -renewable aquifers) increased, agricultural 
policy started to shift in 2005 under Development Plans. Sustainable production became increasingly 
important at the expense of supporting domestic production, with policies encouraging 
Saudi  agricultural investm ent abroad and imports starting to play a bigger role in food security 
considerations.  
4.9.  Agricultural policy priorities are linked to Vision 2030, which aims to reposition Saudi Arabia in 
the regional economy and to build a well -governed, thriving, and incr easingly outward -oriented 
economy with inclusive economic opportunities and stronger private -sector participation. In this 
framework, making the use of natural resources (i.e. water) more sustainable remains a key 
objective of agricultural policy (see belo w). The policy framework also aims to increase agricultural 
productivity through technology, using best practices and better agricultural services. These 
objectives are complemented by the objective to strengthen sustainable rural development, in 
particula r building capacity of small farmers, assisting with the selection of crops (and through AFD 
loans), and protecting plant and animal health. Thirteen Vision Realization Programs support 
Vision  2030 and set out key performance indicators. Among the Programs  are the National 
Transformation Program (NTP)6 and the Sustainable Agricultural Rural Development Program under 
the NTP.  
4.10.   Water is provided to the agriculture sector at regulated prices and comes primarily from 
non-renewable groundwater sources; urban households are primarily supplied with desalinated 
water. While water and energy price reforms are part of the Fiscal Balance Program, challenges with 
the implementation of the first (minor) phase of water price increases in 2016 resulted in the wate r 
price reforms being put on hold until water metering and billing issues are resolved at a yet unknown 
time.7 The authorities indicate that these reforms might be reviewed as part of the broader ongoing 
revision of Vision 2030. Electricity tariffs are al so regulated, with tariffs for agricultural users 
comparable to those of industrial users but lower than those for other groups ( Section 4.2.2.4).   
4.11.   The overall 2020 budget allocated to the economic resources sector, which includes funding 
for the environme ntal, water, and agriculture sector, is SAR  98 billion. Of this amount, 
 
6 Under the NTP, for example, more than 1600 hectares of terraces have been rehabilitated since 2018 
and contribute to rationalized and more efficient water use in crops that are profitable for farmers.  
7 It was stated in the context of the Fiscal  Balance Program that "[e]nergy and water dominate 
government subsidies". Fiscal Balance Program 2017 , p. 36. Viewed at: 
www.vision2030.gov.sa/en/programs/FBP . The authorities indicated that they  consider that water is not 
provided at subsidized prices. For more information on energy price reforms, see also Section  4.2.2.5.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  SAR 11.5 billion is allocated to the Ministry of Environment, Water and Agriculture, while financial 
allocations to SAGO in 2020 are about SAR  630 million. Over its 2018 -25 horizon, th e Sustainable 
Agricultural Rural Development Program has been approved with SAR  8.75 billion.  
4.1.3.1   Trade policies  
4.12.   According to its notifications to the WTO Committee on Agriculture, Saudi Arabia did not 
provide export subsidies for agricultural products.8  
4.13.   Bound tariffs on agricultural goods vary from as low as 0% to as high as 40%, with some 
tobacco -related bound at  least at  200%. Imports of some products are prohibited (any product 
containing alcohol, and pig meat products). Applied tariffs vary generally fr om duty free to 25%, 
with dates attracting 40% and mixed tariffs for tobacco products having an ad valorem  part of 100% 
(Section 3.1.4.1 ). As part of the COVID -19 response, the authorities also increased tariffs on certain 
agricultural products, such as da iry products, juices, and vegetable and olive oils, in June  2020.9 
4.1.3.2   Domestic policies  
4.14.   Access to renewable water remains the biggest constraint to agricultural production. 
Agriculture accounted for 82% of the nearly 26 billion m3 of water consumption in 2018. Of the 
water consumed by agriculture, most (also 82%) comes from non -renewable groundwater. While 
no disaggregated data for the sector are available, agriculture is primarily under irrigation with water 
from deep wells tappin g non -renewable aquifers, as surface and renewable groundwater is limited. 
Vision 2030 aims to prioritize the use of water in agriculture to those areas with natural and 
renewable water sources, adjust the crop mix towards crops with lower water use, and r ebalance 
the mix of imports and domestic production for food security. With these policies, the Government 
aims to reduce agriculture's consumption of non -renewable groundwater from 19  billion  m3/year in 
2016 to 6.5 billion m3/year in 2030. According to th e authorities, demand for non -renewable 
groundwater in agriculture declined to 10.5 billion m3 in 2019.  
4.15.   In November 2018, in an effort to reduce water consumption, the Government started to 
implement a Green Fodder Ban policy that had been under developmen t since 2015. The policy aims 
to reduce production of green fodder significantly and help reduce water consumption by 9  billion  m3 
as part of the Vision 2030 objectives. As a result, the production of green fodder started to decline 
from 2018, and the area  under cultivation was between 16.7% and 43.1% lower in 2019 compared 
with 2017, depending on varying government estimates. Over the medium term, private firms are 
expected to produce up to 3.8 million tonnes of processed fodder per year, in addition to th e 
3.8 million  tonnes of processed feed from publicly owned feed factories.  
4.16.   In November 2015, the GSFMO was restructured into SAGO, effectively becoming a regulator 
for the wheat and flour sector while also being the sole authorized importer of barley (unt il 2019) 
and subsidized milling wheat (see below), and the sole buyer for domestic wheat. In line with the 
privatization strategy for the sector approved in 2011, SAGO established four milling companies in 
2017 and transferred assets and staff into them. T he implementing regulations of the Flour Mills Law 
were issued by the Board of Directors in August 2019 (amended in June 2020). In July 2020, 
divestment of the first two milling companies was completed, accounting for about 50% of the total 
milling capacit y of 4.55  million  metric tonnes per year. Privatization of all companies is expected to 
be complete by 2021.10 Companies will directly buy wheat for milling from SAGO before selling flour 
at subsidized prices in the Kingdom (Table 3.1 1). Based on the final  regulated price of wheat flour, 
SAGO determines prices for the sale of imported and domestic wheat to mills, considering 
"acceptable profit margins" of milling companies.11 
4.17.   SAGO is the only authorized buyer for domestic wheat and the sole authorized impor ter of 
wheat, although private flour mills will be able to apply for import licences from SAGO in the future. 
Support for the production of domestic wheat ended in 2016, but to mitigate the impact of the green 
 
8 WTO documents G/AG/N/SAU/10, G/AG/N/SAU/11, 15 April 2019; and G/AG/N/SAU/19, 
G/AG/N/SAU/20, 9 March 2020.  
9 See WTO docume nt, WT/TPR/OV/23, 30 November 2020.  
10 Saudi Press Agency, Ownership of Flour Milling Companies Transferred to National Center of 
Privatization , 11 June 2020. Viewed at: www.spa.gov.sa/2097226 . 
11 No information on recent actual prices paid was available.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  fodder ban on small farmers, Saudi Arabia rein troduced purchases of domestic wheat production in 
2018, offering farmers an alternative to green fodder production. Small farmers (holding less than 
100 hectares) who want to grow wheat on not more than 50 hectares of their land need to obtain a 
licence f rom the Ministry of Environment, Water, and Agriculture. SAGO is directed to buy up to 
700,000 metric tonnes of domestic wheat annually  (increasing to 1.5 million tonnes from 2021)12, 
and it purchased around 200,000 metric tonnes of domestic wheat in 2019 at SAR 1,250 per tonne. 
In 2019, SAGO imported 3.36 million metric tonnes of wheat (an increase from the 2.63 million 
metric tonnes it imported in 2013 ), using five international tenders. SAGO continues to operate most 
silos in the country, with a capacity  of 2.6 million tonnes in addition to the four milling companies' 
capacity of 745,000 tonnes. SAGO does not publish data on strategic reserves held, but it maintains 
wheat stocks of no less than four months of domestic consumption, according to the authori ties.  
4.18.   In January 2020, the Ministry of Environment, Water and Agriculture issued a new animal 
feed policy, replacing most subsidies to poultry farmers for imported feed (of corn and soybeans)13 
with direct support to licensed (small) poultry farmers and p er-head payments to small livestock 
farmers.14 Administered prices for barley feed were increased in early 2020, while import subsidies 
for hay remain in place.15 In 2016, SAGO became the sole importer of barley for feed, but since 
2019, private firms have  again been allowed to import barley, although they imported only small 
amounts in 2020. SAGO imported 5.2 million metric tonnes of feed barley in 2019 through 
international tenders, and then private -sector distributors sold it at administered prices to li vestock 
producers.16  
4.19.   The ADF provides interest -free loans17, including repayment subsidies18: (i) to small farmers 
and medium -sized enterprises growing specialty products; (ii)  to importers of products related to 
food security through the Agricultural Pro ducts Import Finance Program19; and (iii) for 
Saudi  investments in priority crops abroad under the Agricultural Investment Abroad (AIA) Program. 
Loans cover investment costs to varying degrees, depending on the size of the investment and with 
projects usin g modern technologies or those implemented by joint -stock companies being eligible 
for a higher financing share.20 As a result of the COVID -19 pandemic, additional funds were allocated 
to food -security -related import programmes, to support SMEs with workin g capital loans, and to 
reschedule existing loans to SMEs to alleviate liquidity issues. The number and value of ADF loans 
have declined since 2015, while overall subsidies increased and approved loans in 2019 increased 
sharply ( Table 4.5) .  
Table 4.5 Agricultural Development Fund lending, 2006 -19 
(Number of loans, and SAR million)  
 Medium -term loans  
approved  Short -term loans  
approved  Total loans  
approved  Total subsidies  
 Number  Value  Number  Value  Number  Value  Value  
2006 3,179  792 1,124  177 4,303  968 258.6  
2007 3,159  975 611 69 3,770  1,044  32.9 
 
12 The ceiling for wheat purchases from qualified farmers was increased by Council of Ministers Decision 
No. 765 dated 30/11/1441H (21/07/2020).  
13 WTO document G/AG/N/SAU/18, 27 February 2020.  
14 "Ministry to Pay Poultry Subsidy to Beneficiaries Directly", Saudi Gazette , 31 December 2019. Viewed 
at: www.Saudigazette.com.sa/article/586 030/SAUDI -ARABIA/Ministry -to-pay-poultry -subsidy -to-beneficiaries -
directly . 
15 According to the authorities, import subsidies for hay vary from SAR 121 per MT of barley straw to 
SAR 304 per MT of alfalfa hay. The latter increased from USD 59 per MT in 2017,  according to the 
United  States Department of Agriculture, Foreign Agricultural Service. Viewed at: www.fas.usda.gov . 
16 According to the authorities, the administered maximum price is periodically adjusted to reflect global 
prices, transportation, and handling costs. The current administered maximum price for a 50 kg bag of barley 
feed stands at SAR 54, and actual market p rices are very close to this maximum price.  
17 Loans for projects exceeding SAR 1 million incur a loan application fee, as well as ongoing fees for 
monitoring and evaluation.  
18 Repayment subsidies cover 25% of the value of eligible loans. With some exceptio ns, most loans are 
eligible for instalments that are paid back on a timely basis.  
19 The Agricultural Products Import Finance Program consists of a combination of direct and indirect 
loans in cooperation with commercial banks to finance the imports of prod ucts related to food security. 
According to the authorities, the products targeted by the Program are fodder, alfalfa, rice, sugar, corn, 
soybeans, edible oil, firewood, and red meat.  
20 According to the authorities, this targets modern technologies to rat ionalize water, reduce energy use, 
and increase production efficiency.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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   Medium -term loans  
approved  Short -term loans  
approved  Total loans  
approved  Total subsidies  
 Number  Value  Number  Value  Number  Value  Value  
2008 2,397  761 304 31 2,701  792 32.8 
2009 2,236  844 124 12 2,360  856 41.8 
2010 2,712  742 145 11 2,857  753 42.8 
2011 3,025  899 266 17 3,291  916 55.7 
2012 3,278  909 312 15 3,590  924 42.8 
2013 4,193  1,034  331 15 4,524  1,048  41.4 
2014 4,450  1,280  221 12 4,671  1,292  50.5 
2015 2,714  1,336  191 20 2905 1356 56.1 
2016 1,286  437 97 19 1,383  456 62.3 
2017 589 615 68 2 657 618 62.6 
2018 351 600 257 15 608 614 70.5 
2019 399 1,636  1,886  115 2,285  1,751  65 
Source:  Information provided by the authorities.  
4.20.   The AIA Program was set up in June 2019 to support the goal of enhancing food security 
outlined under Vision 2030. It builds on King Abdullah's Initiative for Saudi Agricultural Investment 
Abroad and provides long -term loans to Saudi nationals investing abroad in priority crops21 with the 
objective of importing them into the Kingdom for enhanced food security. The Agricultural 
Information Cent er, founded in 2013 and described in the last Secretariat Report, is no longer 
operational.  
4.1.3.3   WTO notifications  
4.21.   The most recent notification to the WTO on agriculture support is for calendar year 2017.22 
Important changes to support programmes s ince 2018 are therefore not yet covered. The total 
notified support to agriculture in 2017 comprises the Amber Box including de minimis  support (75%) 
and Green Box support (25%). It varied each year due to changes in programmes, although the 
annual varianc e became smaller compared with the last review period (Chart 4.1).  
4.22.   Notified Green Box support increased from SAR 860 million in 2012 to SAR 1.1 billion in 2015, 
before falling again to SAR 780 million in 2017, driven primarily by changes in expenditures fo r 
infrastructure services and to a lesser degree for pest and disease control (Chart 4.2).  
4.23.   Saudi Arabia's Current Total AMS varied between SAR 1,185 million and SAR 2,782 million, 
well below its bound Total AMS commitment level of SAR 3,218 million. Support notified under the 
Amber Box (including de minimis support ) fluctuated but has fallen ove rall since 2012. The 
notifications show that input subsidies for imported feed in the poultry sector increased (and support 
as a share of the value of production increased) between 2012 and 2017, before being replaced by 
a new scheme in 2020 ( Section 4.1.3 .2), while market price support for wheat ended in 2016. In 
2017, the feed subsidies for poultry sectors accounted for all of the Current Total AMS 
(SAR 1,876  million), with the rest of the Amber Box support notified in terms of de minimis  support 
for date s and non -product -specific AMS via the ADF (general agricultural subsidies, opportunity costs 
for interest -free loans, and bad debts). Saudi Arabia also notified  applied  administered prices  for 
barley used as li vestock  feed. With the administered price being above the external reference price 
since 2013, the implicit input support  is recorded as negative AMS ( Charts 4.1 and 4.3). 
 
21 These include green fodder, corn, edible oil, sugar, soya beans, and barley.  
22 WTO documents G/AG/N/SAU/13, G/AG/N/SAU/14, G/AG/N/SAU/15, G/AG/N/SAU/16, 
G/AG/N/SAU/17, and G/AG/N/SAU /18, 27 February 2020.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Chart 4.1 Total domestic support for agriculture, 2012 -17 
 
Source:  WTO notifications.  
Chart 4.2 Green Box support for agriculture, 2012 -17 
 
Source:  WTO notifications.  
05001,0001,5002,0002,5003,0003,500
2012 2013 2014 2015 2016 2017 Green Box  Current Total AMS  De minimisChart 4. [SAU] Support for agriculture in Saudi Arabia, 2012 -17
(SAR million)
Source: WTO notifications.
02004006008001,0001,200
 2012  2013  2014  2015  2016  2017Research
Pest and disease control
Training services
Extension and advisory services
Inspection services
Infrastructural services
Public stockholding for food security purposesChart 4. [SAU] Green Box support for agriculture in Saudi Arabia, 2012 -17
(SAR million)
Source: WTO notifications.WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Chart 4.3 Composition of Amber Box support, 2012 -17 
 
Source:  WTO notifications.  
4.2  Mining and Energy  
4.2.1   Mining23 
4.24.   The total value of mineral resources in Saudi Arabia is estimated at around SAR  5 trillion. The 
country has over 48 minerals and metal resources, of which at least 15 are considered commercially 
viable . Table 4.6 shows the evolution of the production of key minerals during 2015 -19. Table 4.7 
provides data on the volume of mineral ores extracted during the same period.  
Table 4.6 Production of minerals, 2015 -19 
 2015  2016  2017  2018  2019  
Gold (kg)  5,089  6,946  10,333  11,765  12,353  
Silver (kg)  4,500  4,710  5,069  5,322  5,588  
Copper (tonnes)  46,253  110,000  67,097  60,340  63,357  
Zinc (tonnes  39,008  41,610  21,787  18,000  18,900  
Source:  Saudi Arabia Monetary Authority  (SAMA) (2020) , 56th Annual Report, 1441H -2020, Riyadh.   
Table 4.7 Mineral ores extracted, 2015 -19 
(1,000 tonnes ) 
Types of exploited ores  2015  2016  2017  2018  2019a 
Limestone  60,000  63,300  66,150  69,457  72,930  
Mud 8,800  9,240  9,702  10,187  10,696  
Salt 2,000  2,400  2,520  2,646  2,778  
Silica sand  1,230  1,300  1,365  1,433  1,505  
Crushers materials (pebbles)  330,000  347,000  364,000  382,200  401,310  
Sand  31,800  22,155  23,000  24,000  25,000  
Iron sands  672 706 741 778 817 
Gypsum  2,780  3,000  3,150  3,307  3,472  
Marble for industrial purposes  2,700  2,800  2,940  2,947  3,094  
Marble masses  13 12 13 13 14 
Granite masses  1,100  1,053  1,105  1,160  1,218  
Limestone masses  1,320  104 109 114 120 
 
23 Not including hydrocarbons.  
05001,0001,5002,0002,5003,0003,500
2012 2013 2014 2015 2016 2017Wheat Poultry Livestock Dates Non-product-specificChart 4. [SAU] Amber Box support for agriculture in Saudi Arabia, 2012 -17
(SAR million)
Source: WTO notifications.WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Types of exploited ores  2015  2016  2017  2018  2019a 
Kaolin  187 196 206 216 227 
Barite  43 41 .. .. .. 
Feldspar  179 188 197 206 216 
Basalt  .. 30 32 33 35 
Bozlan  480 504 529 555 583 
Dolomite  203 2,131  2,237  2,348  2,465  
Schist  576 604 634 665 600 
Pyrophyllite  40 42 44 46 48 
Low-percentage bauxite  922 968 1,016  438 297 
Bauxite  2,100  3,800  3,990  4,623  4,830  
Diammonium Phosphate  5,100  5,400  5,670  5,444  5,716  
.. Not available.  
a Estimated.  
Source:  SAMA, Annual Statistics 2019 . Viewed at: http://www.sama.gov.sa/en -
US/EconomicReports/Pages/YearlyStatistics.aspx . 
4.25.   The mining and metal s processing industry contributes about USD 17 billion to GDP per year ; 
mining accounts for 15% and midstream and downstream processing account s for 85%.24 The sector 
employs about 250,000 people.  
4.26.   The Government considers that the mining sector offers consi derable scope for import 
substitution , as Saudi Arabia is a large importer of mineral products. Tables 4.8 and 4.9  provide data 
on the volumes of imports and exports of minerals  between 2015 and 2019.   
Table 4.8 Major imports of minerals, 2015 -19 
(tonnes) 
Minerals  2015  2016  2017  2018  2019a 
Barium  912,202  1,232,370  707,725  907,023  632,854  
Bentonite  189,730  190,179  124,250  123,712  146,718  
Coal 70,417  106,411  118,328  95,852  115,931  
Feldspar  71,349  81,812  17,868  17,977  10,561  
Gypsum  11,487  12,675  13,206  8,667  8,580  
Kaolin  152,735  89,649  106,475  117,849  101,015  
Manganese  101,968  123,862  226,052  171,256  188,858  
Titanium  160,527  126,343  138,642  147,578  135,406  
Clay 209,372  203,529  156,534  168,233  168,326  
Marble  13,240  3,851  6,450  10,504  105,515  
Iron ore  7,471,375  6,596,022  6,684,565  6,848,942  6,328,481  
Cement  643,283  513,102  409,332  331,837  246,860  
Chalk  392 389 343 132,607  143,844  
Pumice stone  60,000  88,813  102,748  97,275  80,510  
Salts 13,993  15,522  22,887  42,327  58,591  
a Estimated.  
Source:  Information provided by the authorities.  
Table 4.9 Major exports of minerals, 2015 -19 
(tonnes) 
Minerals  2015  2016  2017  2018  2019a 
Clay 1,579  3,055  1,430  2,329  4,048  
Copper  53,395  80,032  107,905  278,459  266,030  
Feldspar  58,150  61,445  38,565  18,590  13,955  
Gypsum  156,781  160,292  124,379  104,349  92,783  
 
24 Invest Saudi, Mining and Metals . Viewed at: https://investsaudi.sa/en/sectors -opportunities/mining -
metals/ . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Minerals  2015  2016  2017  2018  2019a 
Limestone  15,492  31,829  77,326  153,950  182,457  
Silica sand 905,997  917,941  884,677  937,313  886,707  
Zinc 37,561  23,973  13,718  51,231  38,494  
Cement  578,700  660,811  184,118  3,683,841  6,570,513  
Perlite  16,399  15,421  21,757  21,777  18,942  
Salts 177,327  200,611  184,743  175,835  192,382  
Chalk  48,575  65,652  84,490  89,968  123,158  
Magnesite  31,990  21,438  53,537  61,625  41,827  
Dolomite  .. .. .. .. 17,395  
.. Not available.  
a Estimated.  
Source:  Information provided by the authorities.  
4.27.   The Saudi Arabian Mining Company (Ma'aden) is the largest extractor of non -hydrocarbon 
minerals in Saudi Arabia. In the context of its WTO accession, Saudi Arabia indicated that Ma'aden 
has no monopoly on mineral rights or on export of mineral products.25 Currently, more than 
1,700  companies with a  mining licen ce operat e in the sector. Ma'aden is 67% owned by the Public 
Investment Fund. It mainly produces phosphates, aluminium , and gold.26 Ma'aden grew rapidly in 
recent years, as reflected in a more diverse product portfolio and substantial increase s in its 
contribution to GDP, production and sales, and profit and earnings.27 Ma'aden has several joint 
ventures with foreign partners, including Barrick (copper), Mosaic (phosphate) , and Alcoa 
(aluminium). Under Saudi Arabia's  mining and investment legis lation , foreign companies can have 
100% ownership of mining upstream and downstream operations. The review period witnessed the 
inauguration of two industrial cities developed by the Government : Ras Al-Khair Industrial City in 
the Eastern Province (2016) a nd Wa'ad Al Shamal Industrial City in the Northern Borders Region 
(2018).  
4.28.   The Vision 2030 strategy provides that one of the means to achieve the strategic objective of 
growing and diversifying the economy is to unlock the potential of non -oil sectors, incl uding by 
growing and capturing maximum value from the mining sector.28 The objective is "a mining sector 
contributing to the national economy at full potential" . While the Kingdom  has rich mineral resources 
and improvements were made in the mining sector t o cater to the needs of industries, the sector's 
contribution to GDP has yet to meet expectations. In this respect, Vision 2030 announces several 
structural reforms, including stimulating private sector investments by intensifying exploration, 
building a c omprehensive database of the Kingdom's mineral resources, reviewing the licensing 
procedures for extraction, investing in infrastructure, developing funding methods, and establishing 
centres of excellence. It also mentions the need to form strategic intern ational partnerships and 
raise the competitiveness and productivity of Saudi companies in order to boost their contribution 
to the sector's growth and to the localization of knowledge and experience.29 
4.29.   In 2017, the Council of Ministers approved the Compreh ensive Mining and Mining Industries 
Strategy, which aims to address several challenges confronting the sector. These include: (i)  the 
below global average amount of spending on exploration; (ii) the lengthy process to obtain 
exploration and mining licences ; (iii) the limited social impact of the mineral value chains; 
(iv) inadequate compliance with environmental protection standards; (v) the small role of the mining 
sector as a source of revenue compared with the oil and gas sectors; and (vi) strong competi tion 
from imports of low -quality, mineral -based products. At the same time, as discussed in the National 
Industrial Development and Logistics Program  (NIDLP) , the Government considers that Saudi Arabia 
 
25 WTO documen t WT/ACC/SAU/61, 1 November 2005, p.  21. 
26 In 2018, the revenue contributions of its three main business segments were: phosphate fertilizer, 
ammonia, and industrial minerals: 46%; aluminium: 40%; and gold and base metals: 14%. Ma'aden, Ma'aden 
Annual Repo rt 2018,  p. 5. Viewed at: https://www.maaden.com.sa/download/2018 -Annual -Report -En.pdf . 
27 Ma'aden, Ma'aden Annual Report 2018,  pp. 10-13. Viewed at: 
https://www.maaden.com.sa/download/2018 -Annual -Report -En.pdf . 
28 Kingdom of Saudi Arabia, KSA Vision 2030: Strategic Objectives and Vision Realization Programs, 
p. 22. Viewed at: 
https://vision2030.gov.sa/sites/default/files/report/Vision%20Realization%20Programs%20Overview.pdf . 
29 Kingdom of Saudi Arabia, Vision 2030 , p. 49. Viewed at: https://vision2030.gov.sa/en/node/135 . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  has three main  sources of competitive advantage to dev elop mineral value chains: a large and 
growing domestic demand; a rich mineral endowment; and competitive energy costs.30  
4.30.   The Government set a number of quantitative objectives to be attained by 2030: (i) to make 
the mining sector the third major pillar o f Saudi industry, alongside oil and petrochemicals, by more 
than tripling its contribution to GDP; (ii) to reduce imports by about SAR 37 billion; (iii) to create 
more than 200,000 direct and indirect jobs in the mining sector; and (iv) to nearly double th e 
contribution of the sector to government revenue.31 So far, the Government has achieved progress 
in three key initiatives focusing on enhancing the sector investment environment to attract foreign 
and local investors: (i) launching the geological survey program, an ambitious and wide -ranging 
exploration program that will continue over the next five years, to provide detailed information on 
the mineral landscape ; (ii) a comprehensive revision of the Saudi regulatory environment, including 
the issuance of t he new Mining Investment Law; and (iii)  launching Tad'adin , a new web -based 
platform that will soon be the single point of access for information seekers and mining licence 
applicants.  
4.31.   During most of the review period, the agency responsible for the regulation of the 
non-hydrocarbon mineral extraction sector was the Ministry of Energy, Industry and Mineral 
Resources. Since January 2020, the mining sector has been supervised by the Ministry of Industry 
and Mineral Resources , which was  created in 2019 ( Section 2 ). The Ministry's mission  is the 
sustainable industrial development and optimal utilization of mineral resources; its vision is to 
increase the sector's contribution to GDP to become the third pillar of Saudi industries. Among the 
Ministry's tasks are encouraging mining investments, providing services and consultations, and 
issuing mining licences and concessions.  
4.32.   The Mining Investment Law , 200432, 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, and that title to the minerals shall 
transfer from the State to the licensee upon extraction of such minerals from the licence area within  
the duration of the licence.33 Subject to certain exceptions, a licence is required for a natural or 
corporate person to have the right to undertake reconnaissance, exploration, exploitation , or 
collection of materials. The Mining Investment Law distingui shes between reconnaissance licences, 
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 l icences, and building materials quarry licences.34 The mining sector is open to private 
investors, without discrimination between domestic and foreign firms.35 Thus, in contrast to the 
hydrocarbons sector, no restriction exists on foreign participation in mining. Licences are granted on 
a first -come , first-serve d basis, subject to technical and financial evaluation.36  
4.33.   Table 4.10 provides  data on the number of valid mining licences at the end of each year 
between 2015 and 2019.  
 
30 The mining sector is one of the four key sectors (industry, logistics, mining, and energy) in the 
NIDLP.  Kingdom of Saudi Arabia, NIDLP, Delivery Plan, 2018 -2020, pp.  222-249. Viewed at: 
https://vision2030.gov.sa/sites/default/file s/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . The NIDLP is currently being reviewed.   
31 See, for example, Rahman, F., "Saudi Arabia Approves New Mining Law to Boost Investments", The 
National, 10 June 2020. Viewed at: https://www.thenational.ae/business/saudi -arabia -approves -new-mining -
law-to-boost -investments -1.1031651 . "New Mining Investment Law Set to Generate ov er 200,000 jobs", 
Saudi  Gazette, 10 June 2020. Viewed at: https://saudigazette.com.sa/article/594064/SAUDI -ARABIA/New -
Mining -Investment -Law-set-to-generate -over-200000 -jobs. Alaqili, S., "Mining Vast Potential", Mining Beacon, 
27 October 2019. Viewed at: https://www.miningbeacon.com/posts/55330 -mining -vast-potential . 
32 Royal Decree No. M/140 of 20/08/1425H (4 October 2004). The Mining Investment Law does not 
apply to petroleum, natural gas and derivatives thereof, and to pearls, corals, and similar organic marine 
substances.  
33 Mining Investment Law, 2 004, Article  2.  
34 Mining Investment Law, 2004, Articles 5 and 6  
35 Mining Investment Law, 2004, Articles 5 and 11.  
36 The Mining Investment Law, 2004, also provides that all imported equipment and spare parts 
necessary for the execution of any licensed pr oject under this Law shall be exempt from customs duties. Mining 
Investment Law, Article  53.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table 4.10 Number of valid minin g licences at the end of the year, 2015 -19 
 2015  2016  2017  2018  2019  
Exploration licences  517 546 542 545 536 
Licences for small -sized mines  72 70 70 69 68 
Licences of mining and raw material 
quarries for various metal ores  87 94 94 94 92 
Licences of construction material quarries  1,355  1,211  1,288  1,342  1,399  
Total  2,031  1,921  1,994  2,050  2,095  
Source:  SAMA, Annual Reports 1437H -2016, 1438H -2017, 1439H -2018, 1440H -2019, and 1441H -2020.  
4.34.   A new Mining Investment Law37 was approved by the Saudi Cabinet , published in the 
Official  Gazette  on 3 July 2020 , and entered into force on 28 December 2020. The new law is 
designed, inter alia , to encourage investment, including by small firms, through changes to the 
licensing regulations and procedures. The key changes made by the new law are: (i) an increase in 
the maximum duration of exploration licences to 15 years; (ii) the introduction of online application 
submissions and automated processing procedures; (iii) streamlined reporting requirements 
according to known international standards; (iv) modified clauses to enhance investor protection; 
(v) mandatory rehabilitation and mining closure guarantees; and (vi) a streamlin ed approval process 
for exploration and mining licen ces. 
4.35.   The Ministry of Industry and Mineral Resources issued seven decisions relating to the 
allocation process for mining reserve sites , including 54 sites covering an area of approximately 
4,000 square kilometres. The decisions are part of the goal to develop the mining sector. The sites, 
which contain a variety of ore s, including gold, copper, s ilver, zinc, lead, iron, quartz , and tin, are in 
the regions of Asir, Hail , Makkah, Madinah, Najran , and Riyadh. The identification of these mining 
sites comes as the Ministry aims to offer an attractive environment for local and international 
businesses t o invest in the sector, and provide the data needed to attract the interest of the private 
sector. The Saudi Geological Survey plans to carry out a thorough study of the mining reserves in 
these sites, the results of which will be used to promote investmen t opportunities soon after the 
geological data have obtained.  
4.36.   The Industrial Development Fund was amended in 2019 to provide for the possibility of 
financ ing projects in the energy and mining sector s.  
4.2.2   Energy  
4.2.2.1   General  
4.37.   In order to grow and diversify the ec onomy, which is one of the strategic objectives of 
Vision  2030 ( Section 2 ), Saudi Arabia aims to maximize the value captured from the energy sector 
through: (i) increased localization of the oil and gas sector38; (ii) increased gas production and 
distribut ion capacity; (iii) development of oil - and gas -adjacent industries; (iv) increased 
contribution of renewables to the national energy mix; and (v) enhancement of the competitiveness 
of the energy market.39 Specific plans to achieve this objective of maximi zing the value from the 
energy sector were defined in the NIDLP, one of the Vision Realization Programs adopted in 2017 to 
implement Vision 2030. Energy is one of four key sectors addressed by the NIDLP.40  
4.38.   In 2016, the Ministry responsible for developing and implementing policies in the energy and 
mining sectors (the Ministry of Petroleum and Mineral Resources) was renamed as the Ministry of 
 
37 See Royal Decree No. M/140 of 19/10/1441H, 11 June 2020.  
38 The Vision 2030 document indicates that the goal is "to increase the localization of oil and gas sec tors 
from 40 to 75%". Kingdom of Saudi Arabia, Vision 2030 , p. 47. Viewed at: 
https://vision2030.gov.sa/en/node/135 . Vision 2030 is currently being reviewed.  
39 Kingdom of Saudi Arabia, KSA Vision 2030: Strategic Objectives and Vision Realization Programs, p.  21. 
40 The NIDLP aims to maintain Saudi Arabia's leading position as a producer of hydrocarbon materials by 
enhancing the productivity and competitiveness of  the local energy sector and focusing on both the supply and 
demand sides. It also aims to: (i) increase the contribution of renewable energy to the energy mix; (ii)  enhance 
the competitiveness of the energy sector; (iii) create jobs and work opportunities  in renewable energy by 
increasing local content and training and qualifying the workforce; (iv) boost gas production and distribution 
capacity to match growth in demand; and (v) reduce emissions from burning fuel. Kingdom of Saudi Arabia, 
NIDLP, Delivery Plan, 2018 -2020, p. 202. Viewed at: https://vision2030.gov.sa/en/programs/NIDLP . The NIDLP 
is currently under review.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Energy, Industry and Mineral Resources. Its mandate was to oversee the oil, gas and petrochemicals, 
electricity , and industrial41 sectors of the economy. In 2019, this Ministry was divided into a Ministry 
of Energy and a Ministry of Industry and Mineral Resources (Section 2). The Ministry of Energy 's 
mission is to discover and exploit the Kingdom's resources of oil and gas and achieve  the highest 
returns from them; its vision is the sustainable development of the integrated oil and gas industry 
in all its stages to achieve the highest added value to the national economy. The Ministry of Energy 
has general regulatory authority over the hydrocarbons and electricity sectors. It also regulates 
investments that fall under the jurisdiction of the Hydrocarbons Law.  
4.2.2.2   Oil and petroleum products  
4.39.   Saudi Arabia's economic grow th, fiscal revenues , and export revenues depend very heavily 
on oil  (Section 1) . Significant policy challenges42 are posed by expected longer -term changes in the 
world oil market43 and the volatility of oil markets in the period since the last Review44, especially in 
the context of the largest contraction in oil demand in history that occurred in 2020 caused by the 
COVID -19 pandemic.45 
4.40.   Oil exploration, drilling , and production are included on Saudi Arabia's negative list of activities 
closed to foreign inve stment ( Section 2 ). Saudi Arabia undertook  market access and national 
treatment commitments under the GATS with respect to services incidental to mining and services 
incidental to energy distribution.46 
4.41.   Saudi Arabia holds the world's second -largest amount of proven crude oil reserves and 17% 
of the world's total proven reserves of crude oil. Its proven oil reserves stood at 267.0  billion barrels 
in 2019.47  
4.42.   The Saudi Arabian Oil Company (Saudi Aramco), the sole concessionaire producing crude oil 
in Saudi Ar abia, is a publicly listed company on the Saudi Stock Exchange (Tadawul) with majority 
shareholding by the Government. The authorities note that Saudi Aramco operates on a commercial 
basis with complete autonomy regarding operational decisions, in complian ce with the production 
policies established by the Government. The Government sets the oil production levels within its 
territory.  
4.43.   During the review period , several changes occurred with respect to Saudi Aramco's 
governance and legal status. First, in 201 5, a new Supreme Council for Saudi Aramco was 
established, and its Board of Directors restructured.48 Second, in 2018, Saudi Aramco became a 
 
41 Responsibility for the industrial sector previously was vested in the Minist ry of Commerce and 
Investment.  
42 See, for example, The Oxford Institute for Energy Studies, Diversification Strategy Under Deep 
Uncertainty for MENA Oil Exporting Countries , May 2020. Viewed at: 
https://www.oxfordenergy.org/publications/diversification -strategy -under -deep-uncertainty -for-mena -oil-
exporting -countries/ . Arab Petroleum Investments Corporation (APICORP), MENA Energy Investment Outlook 
2020-2024,  2020. Viewed at: https://www.apicorp.org/wp -content/uploads/2020/06/MENA -Energy -
Investment -Outlook -2020-2024_FINAL_Final.pdf . 
43 An IMF study reports that recent econometric analysis reveals a strong and sustained declining trend 
in the global demand for oil. IMF, The Future of Oil and Fiscal Sustainability in the GCC Region , 2020. Viewed 
at: https://www.imf.org/en/Publications/Departmental -Papers -Policy -Papers/Issues/2020/01/31/The -Future -
of-Oil-and-Fiscal -Sustainability -in-the-GCC-Region -48934 . 
44 The global oil price fell dramatically in 2014 -16, recovered subsequently, but remained below its 
pre-2014 level, and fell to below USD  25, a historic low, in the  first half of 2020 (Section 1). Export revenue 
from oil fell by 21.9% in the first quarter of 2020.  Economist Intelligence Unit, Saudi Arabia: First Quarter 
Export Revenue Slumps , 11 June 2020. Viewed at: 
http://country.eiu.com/(F(nSAQMtZHQzmLa 0FH_byAQpiMQELPJCVBQjIbn_O4 -
3QSA4vUEAAce59YXLEEWO1BP_16Sha_p04wwv790hJ5JMy_zy5_h8V2YjcTYQfrc -
I1))/article.aspx?articleid=679699851&Country=Saudi+Arabia&topic=Economy&subtopic=Forecast&subsubtopi
c=External+sector . 
45 Global oil demand fell by 16.4 mb/d year -on-year in the second quarter of 2020. International Energy 
Agency, Oil Market Report: Highlights , July 2020. Viewed at: https://www.iea.org/reports/oil -market -report -
july-2020. 
46 WTO document GATS/SC/141, 29 March 2006, p.  13.  
47 Information provided by the authorities.  
48 The Board of Directors is composed of high -ranking government officials and former senior executives 
from the international gas, chemical, petroleum refining, petroc hemical, and finance industries. Saudi  Aramco, WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  joint-stock company.49 Third, in 2019, Saudi Aramco issued USD 12.0 billion of senior unsecured 
notes listed on the London Stock Exchange and became a public company, with shares listed on the 
Tadawul. The Initial Public Offering completed in December 2019 resulted in the sale of 
USD 3.45 billion ordinary shares or 1.73% of Saudi Aramco's share capital.  
4.44.   Saudi Aramco's up -midstream activities consist of exploring, developing , and producing crude 
oil, condensate, natural gas , and natural gas liquids. Its downstream activities foc us on refining and 
petrochemical manufacturing, supply and trading, distribution , and power generation.50 
Saudi  Aramco's vision is to be the world's preeminent integrated energy and chemicals company. 
Its business strategy aims to: (i) maintain its positio n as the world's leading crude oil producer by 
production volumes and its position as one of the world's most reliable crude oil suppliers; (ii) capture 
value from further strategic integration and diversification of its operations; (iii) expand gas activi ties 
domestically and internationally; (iv) expand global recognition of Saudi Aramco's brands; 
(v) efficiently allocate capital and maintain a prudent and flexible balance sheet; (vi) operate 
sustainably by leveraging technology and innovation; and (vii) deliver sustainable and growing 
dividends through crude oil price cycles.51 Vision 2030 aims to "transform Aramco from an oil 
producing company into a global industrial conglomerate".52 
4.45.   Saudi Aramco's downstream segment consumes 37% of its crude oil production.53 
Saudi  Aramco's domestic and international refinery capacity significantly expanded in recent years. 
In 2019, it had a net refining capacity of 3.6  mb/d54, as compared with 2.9 mb/d in 2014.55 
Saudi  Aramco also expanded its petrochemicals busi ness.56 Important developments during the 
review period in this regard were the completion, in 2017, of the Sadara complex in Jubail (a joint 
venture between Saudi Aramco and Dow Chemical Company of the United States) and the 
acquisition, in 2019 -20, of a 70% stake in Saudi Basic Industries Corporation. As a result of this 
acquisition, Saudi Aramco is expected to become one of the world's largest petrochemical 
producers.57  
4.46.   Saudi Arabia was the world's third -largest crude oil producer in 2018, and the world 's 
second -largest crude oil producer in 2019. Crude oil production decreased from 3,765.1 million 
barrels in 2018 to 3,580.0 million barrels in 2019, which was slightly lower than the volume of crude 
oil production in 2015 (Table 4.11).  
Table 4.11 Production of crude oil , refined products,  and natural gas, 2015 -19 
(Million barrels)   
2015  2016  2017  2018  2019  
Crude oil  3,720.3  3,828.4  3,635.3  3,765.1  3,580.0  
Refined products  905.4  1,034.3  1,048.9  1,028.3  924.9  
 
Annual Report 2019 , pp. 108-111. Viewed at: https://www.saudiaramco.com/ -/media/publications/corporate -
reports/saudi -aramco -ara-2019-english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
49 Council of Ministers Resolution No. 180 of 1/4/1439H, 19 December 2017.  
50 Saudi Aramco, Annual R eport 2019, pp. 30-33. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
51 Saudi Aramco, Annual Report 2019 , p. 29. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
52 Kingdom of Saudi Arabia, Vision 2030 , p. 7. Viewed at: https://vision2030.gov.sa/en/node/135 . 
53 Saudi Aramco, Annual Report 2019 , p. 56. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pd f?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
54 Saudi Aramco, Annual Report 2019 , p. 55. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
55 WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia , Geneva, para.  4.44. The company 
owns four domestic refineries and participates in four refineries in the Kingdom that are joint ventures with 
international partners. The international refinery operations take place with partners in China, India, Indonesia, 
the Republic of Korea, Malaysia, and the United States.  
56 Saudi Aramco conducts this business through affiliates in the Kingdom, China, Japan, the Republic of 
Korea, and the Netherlands.  
57 Saudi Aramco, Second Quarter Interim Report for the Three Months and Half Year Ended 30  June 2020, 
p. 3. Viewed at: https://www.aramco.com/ -/media/publications/corpora te-reports/saudi -aramco -q2-2020-
interim -report -english.pdf?la=en&hash=685B19F49DB6067247E33B425043D18FA6A77004 . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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2015  2016  2017  2018  2019  
 Fuel oil 163.2  168.3  170.1  166.2  154.5  
 Diesel  351.5  384.6  393.9  391.5  385.8  
 Gasoline  179.9  202.4  203.6  199.1  193.6  
 Naphtha  68.8 75.8 74.3 60.1 50.9 
 LPG 16.8 15.6 15.6 17.1 14.7 
 Kerosene, aviation fuels  77.0 89.5 90.5 95.8 84.7 
 Asphalt & others 21.6 18.2 16.8 14.1 14.3 
 Coke 26.8 79.9 84.1 84.5 26.5 
Saudi Aramco production of natural gas liquids  474.4  497.5  488.0  495.0  481.0  
Source:  SAMA , Annual Statistics 2019 . Viewed at: http://www.sama.gov.sa/en -
US/EconomicReports/Pages/YearlyStatistics.aspx . 
4.47.   Daily crude oil production during most of the period 2015 -19 was around 10 mb/d 
(Table  4.12). It declined slightly in 2018 -19 from 10.3 mb/d to 9.8  mb/d.58 Average crude oil 
production was 9.8  mb/d in the first quarter of 2020 and 9.3 mb/d in the second quarter. However, 
there were very sharp fluctuations in crude oil production during this period; from 9.73  mb/d in 
March, production increased to 11.6 mb/d in April, declined to 8.5 mb/d in May and 7.5 mb/d in 
June, and increased again in July 2020, to 8.4 mb/d.59 The decline from April to May  occurred as a 
consequence of production adjustments agreed  between OPEC and non -OPEC producers in an 
attempt to rebalance the global oil market following the collapse of demand caused by the COVID -19 
pandemic.60 Year-to-date crude oil production in 2020 is 9.3 mb/d.61  
Table 4.12 Daily crude oil production, 2015 -19 
(Million barrels)  
 2015  2016  2017  2018  2019  
Daily production  10.20  10.46  9.96 10.32  9.81 
Source:  Information provided by the authorities.  
4.48.   Output of refined products increased between 2015 and 2017 but declined by more than 10% 
from 2017 to 2019 ( Table 4.1 1).  
4.49.   While domestic consumption or crude oil is very high compared with the global average62, it 
declined significantly during the review p eriod, from 209.4 million barrels in 2015 to 155.2 million 
barrels in 2019 (Table 4.13 ). 
Table 4.13 Domestic consumption of refined products, crude oil, and natural gas, 
2015 -19 
(Million barrels)  
Product  2015  2016  2017  2018  2019  
Public consumption       
 Liquefied petroleum gas  12.6 13.4 12.9 13.2 12.6 
 Premium gasoline  204.0  203.4  208.0  194.5  194.1  
 Jet fuel and kerosene  31.4 32.1 36.1 37.9 36.7 
 Diesel  276.1  248.5  207.9  182.8  187.9  
 
58 Between May and November 2018, Saudi Arabia's production of crude oil rose by 1 mb/d to a record 
11.1 mb, but it declined to 9.8 mb/d in April  2019. IMF (2019), Saudi Arabia: 2019 Article IV Consultation –
Press Release and Staff Report , IMF Country Report No. 19/290, p.  4. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2019/09/09/Saudi -Arabia -2019-Article -IV-Consultation -Press -
Release -and-Staff-Report -48659 . 
59 OPEC, Monthly Oil Market Report –March 2020 , p.53; Monthly Oil Market Report–May 2020 , p. 46; 
Monthly Oil Market Report –August 2020 , p. 50.  
60 Saudi Arabia also implemented voluntary restrictions that went beyond these agreed production cuts.  
61 Information provided by the authorities.  
62 See, for example, Krane, J., Energy Go vernance in Saudi Arabia: An Assessment of the Kingdom's 
Resources, Policies, and Climate Approach , Center for Energy Studies, Rice University's Baker Institute for 
Public Policy, January 2019, pp.  14-15. Viewed at: https://www.bakerinstitute.org/media/files/research -
document/09666564/ces -pub-saudienergy -011819.pdf . A major factor explaining high consumption of crude 
oil is Saudi Arabia's hea vy reliance on crude oil for power -generation purposes.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Product  2015  2016  2017  2018  2019  
 Fuel oil 140.4  166.1  180.3  174.0  168.6  
 Crude oil  209.4  182.4  167.4  149.7  155.2  
 Asphalt  29.1 19.1 20.4 20.7 20.7 
 Lubricating oil  1.7 1.5 1.3 1.5 27.6 
 Natural gas  506.1  557.4  573.8  581.4  579.7  
 Naphtha  .. 1.8 11.2 8.9 0.8 
 Reformate  .. .. 10.5 10.2 6.2 
 Sub-total 1,410.7  1,425.7  1,429.7  1,374.7  1,389.9  
 Oil industry consumption       
 Liquefied petroleum gas  3.5 4.6 4.4 3.9 4.1 
 Fuel oil  5.2 6.1 6.6 7.0 8.4 
 Diesel  8.0 8.0 7.7 7.7 4.7 
 Fuel gas  31.8 34.3 34.4 34.0 29.6 
 Crude oil  0.0 0.0 0.0 0.0 0.0 
 Natural gas  121.3  106.0  121.5  127.3  128.5  
 Others  5.6 5.5 5.6 7.7 0.9 
 Sub-total 175.5  164.6  180.2  187.6  176.2  
Grand total  1,586.2  1,590.3  1,609.9  1,562.3  1,566.1  
.. Not available.  
Source:  SAMA, Annual Statistics 2019 . Viewed at: http://www.sama.gov.sa/en -
US/EconomicReports/Pages/YearlyStatistics.aspx . 
4.50.   Saudi Arabia is the world's largest exporter of crude oil.63 The volume of expor ts of crude oil 
products was slightly less in 2017 -19 than in 2012 -14 (Table 4.14 ).64 Asia and Far East remain s the 
largest market for crude oil; the share of Asia and Far East in exports of crude oil from Saudi Arabia 
was 73.4% in 2019, compared with 62% in 2014.65 In 2020, exports of crude oil fell more than 40% 
from 10.2  mb/d in April to 6.0  mb/d in June, a 10-year low.66 
4.51.   The volume of exports of refined products was considerably higher in 2017 -19 than in 2012 -14 
(Table 4.14 ).67 Western Europe is now the  largest market for refined products, accounting for 31% 
of exports of refined products in 2019, compared with 11% in 2014.68 The share of Asia and Far 
East in exports of refined products in 2019 (26.5%) was significantly smaller than in 2014 (56%).   
Table  4.14 Exports of crude and refined products, by region, 2017 -19 
(Million barrels)  
Destination  2017  2018  2019  % share  
in 2019  
Crude  
oil Refined 
products  Crude  
oil Refined 
products  Crude  
oil Refined 
products  Crude  
oil Refined 
products  
North America  366.3  2.7 372.4  16.7 204.6  10.0 8.0  2.1  
South America  26.0 0.0 25.7 0.7 24.3 1.6 0.9  0.3  
Western Europe  283.8  98.4 317.3  150.9  291.1  147.2  11.3  31.0  
Middle East  56.6 182.6  97.4 337.0  97.1 71.6 3.8  15.1  
Africa  59.8 125.3  59.8 83.7 64.6 116.6  2.5  24.6  
Asia and Far East  1,748.0  249.1  1,815.6  129.1  1,885.7  125.9  73.4  26.5  
 
63 See, for example, BP, Statistical Review of World Energy 2020 , p. 31. Viewed at: 
https://www.bp.com/content/dam/bp/business -sites/en/global/corporate/pdfs/energy -economics/statistical -
review/bp -stats-review -2020-full-report.pdf . 
64 The volume of crude oil exports in 2012 -14 was 2,765.8, 2,7 63.3, and 2,611.1 million barrels, 
respectively. WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia , Geneva, Table 4.7.  
65 WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia , Geneva, Table 4.7.  
66 Joint Organisations Data Initiative, JODI Oil – Saudi Arabia . Viewed at: 
https://www.jodidata.org/oil/database/customisable -charts.aspx#cdSaudiArabia .  
67 The volume of exports of refined products  in 2012 -14 was 315.6, 289.8, and 360.6 million barrels, 
respectively. WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia , Geneva, Table 4.7.  
68 WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia , Geneva, Table 4.7.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Destination  2017  2018  2019  % share  
in 2019  
Crude  
oil Refined 
products  Crude  
oil Refined 
products  Crude  
oil Refined 
products  Crude  
oil Refined 
products  
Oceania  3.0 .. 2.3 1.5 1.5 1.5 0.1  0.3  
Total  2,543.4  658.0  2,690.6  719.5  2,568.9  474.4  100.0  100.0  
.. Not available.  
Note:  Including LPG/NG.  
Source:  Information provided by the authorities.  
4.52.   In value terms, exports of crude oil in 2019 amounted to SAR 626.5 billion or 63.9% of total 
exports of goods. Exports of refined products in 2019 amounted to SAR 132.4 billion or 13.5% of 
total exports of goods. The value of exports of crude oil and refined products in 2019 
(SAR 758.9  billion) was significantly lower than in 2018 (SAR 868.44 billion).69 
4.53.   Apart from the Basic Law of Governance70, the main aspects of the  legal and regulatory 
framework governing Saudi Aramco's activities with respect to the exploration, development , and 
production of oil and gas include the following.  
4.54.   First, the new Hydrocarbons Law, enacted in December 2017, lays down the conditions for 
the granting of licences to conduct hydrocarbon activities in the Kingdom.71 The Ministry of Energy 
is the body responsible for implementing this law and overseeing all aspects of a licensee's 
operations, including its technical operations and the review of all the licensee's revenues and 
expenses. It is also responsible for prepa ring and overseeing the national strategies and policies 
related to hydrocarbons to ensure the implementation, development , and appropriate use of 
hydrocarbon resources, and conservation of the Kingdom's hydrocarbon reserves for future 
generations.  
4.55.   Under the Hydrocarbons Law, the Kingdom has the sovereign exclusive and binding authority 
to make production decisions related to both the maximum level of hydrocarbons that a licensee can 
produce at any given time and the level of maximum sustainable capacity t hat a licensee must 
maintain. Hydrocarbon operations must be managed and maintained in a professional, adequate , 
and effective manner in accordance with international industry standards  and the Hydrocarbons Law 
and regulations . Operations also must be cond ucted  in an economically feasible and efficient manner 
that promotes the long -term productivity of reservoirs in the licensed area and supports the prudent 
stewardship of hydrocarbon resources and hydrocarbons, and limits their abandonment.72  
4.56.   Second, in D ecember 2017, Saudi Aramco and the Government (Ministry of Energy) entered 
into a revised Concession Agreement, which replaced and superseded the original Concession as at 
17 September 2019.73 Unlike the original Concession, the duration of the revised Con cession 
Agreement is limited to a specified period. The Concession will remain effective for a period of not 
more than 40  years, which can be extended if certain conditions are met.74 
 
69 SAMA (2020), 56th Annual Report 1441H -2020, Riyadh , p. 114. 
70 According to Article  14 of the Basic Law of Governance, "[a]ll  natural resources that God has 
deposited underground, above ground, in territorial waters or within the land and sea domains under the 
authority of the State, together with revenues of these resources, shall be the property of the State, as 
provided by th e Law. The Law shall specify means for exploitation, protection and development of these 
resources in the best interest of the State, and its security and economy".  
71 Royal Decree No. M/37 of 02/04/1439H (20 December 2017). An amendment to the revised 
Concession Agreement became effective on 1  January 2020.  
72 Saudi Aramco, Annual Report 2019, p. 208. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
73 The revised concession Agreement was adopted by Royal Decree No. M/12 of 18/01/1441H, 
17 September 2019.  
74 For a brief summary of key features of the revised Concession Agreement, see Saudi Aramco, Annual 
Report 2019, p. 214. Viewed at: https://www.aramco.com/ -/media/publications/corporate -reports/saudi -
aramco -ara-2019-english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD .  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.57.   Third, changes were made recently to the fiscal regime applicable to Sau di Aramco's 
operations, to the Price Equalization regime , and to the conditions under which Saudi Aramco sells 
hydrocarbon products to the Government.  
• Pursuant to the revised Concession Agreement , changes were made with respect to the 
royalty rates paid b y Saudi Aramco, effective on 1 January 2020.75  
• Prices of domestic sales of crude oil, natural gas (including ethane), natural gas liquids 
(propane, butane , and natural gasoline) , and certain refined products (kerosene, diesel, 
heavy fuel oil, gasoline , and asphalt) are regulated by the Government (Section 3). A Price 
Equalization regime established in 2017 provides that Saudi Aramco is entitled to 
compensation from the Government if it sells crude oil and certain refined products 
domestically at prices bel ow the corresponding equalization prices.76 The amount of 
compensation is equal to the cost of the revenue forgone  by Saudi Aramco by complying 
with the Government's pricing mandates. The Price Equalization regime is administered 
by the Ministry of Energy.  In September 2019, the regime was amended to expand its 
scope to include LPGs and certain other products as at 1 January 2020.77  
• Effective 1 January 2017, the Government guaranteed amounts paid to Saudi Aramco for 
its sales of hydrocarbon products to var ious government and semi -government al entities. 
This guarantee is subject to a limit to the amount of guarantee for each individual entity.78  
4.58.   The authorities indicate that there were no changes during the review period to 
Saudi  Aramco's procurement of goods and services. In this regard, the Secretariat Report prepared 
for the last Review observed that:  
• According to the authorities, Saudi Aramco follows market -based procurement policies. 
Under its procurement policies, the major objectives are: completion of work on schedule, 
conformance with demanding technical standards, and lowest overall cost to 
Saudi  Aramco. The procurement opportunities are offered to all qualified suppliers of 
goods and services from all WTO Members through competitive bidding. Nonetheless, 
Saudi Aramco also seeks to encourage the development of a reliable local contractor base 
in the company's areas of operation. Saudi Aram co selects the most technically and 
financially qualified contractor whose bid represents the least overall cost.79 
4.59.   Saudi Aramco's In -Kingdom Value Added Program aims to achieve 70% localization of its 
spending by 2021.80 
4.2.2.3   Natural gas  
4.60.   Saudi Arabia's proven reserves of natural gas stood at 237.4 trillion s tandard cubic feet as at 
31 December  2019.81 
4.61.   As stated in the Secretariat Report prepared for the last Review, Saudi Aramco enjoys certain 
exclusive rights and privileges in the gas sector, and foreign inves tors participate in the gas upstream 
sectors (e.g. extractions) through joint ventures with Saudi Aramco. Major foreign partners for these 
 
75 Saudi Aramco, Annual Report 2019, p. 40. Viewed  at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD .  
76 Council of Ministers Resolution No. 406 of 28/06/1438H, 27 March 2017, and Ministerial Resolution 
No. 1/2465/1439 of 10/04/1439H (28 December 2017).  
77 Saudi Aramco, Annual Report 2019, p. 209. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
78 Saudi Aramco, Annual Report 2019, p. 212. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD .  
79 WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia , Geneva , para.  4.47.  
80 IKTVA. Viewed at: https://iktva.sa/ . 
81 Pinheiro, J. E., "Strategy Flows Towards Natural Gas", Saudi Aramco Magazine , July 2020. Viewed at: 
https://www.saudiaramco.com/en/magazine/elements/2020/strategy -flows-toward -natural -gas. WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  joint ventures include Shell, Total, Lukoil, Sinopec, Reposol, and Eni. Large -scale gas projects are 
operated in Hard h, Hawiyyah, and Khurasaniyah.82  
4.62.   The production of natural gas rose from 474.4 million barrels in 2015 to 495.0 million barrels 
in 2018 but declined to 481.0 million barrels in 2019 ( Table 4.11) . Domestic consumption of natural 
gas increased from 121.3 mi llion barrels in 2015 to 128.5 million barrels in 2019 (Table  4.13).   
4.63.   Saudi Arabia does not import or export natural gas.  
4.64.   As noted above, increasing gas production and distribution capacity is one of the objectives 
of Vison 2030. The Government set the tar get of increasing the share of natural gas in the domestic 
energy mix to 70%.83 Saudi Aramco's business strategy aims to expand its gas activities in the 
Kingdom and to increase its natural gas production during the next decade. The expansion of gas 
production is expected to be achieved both through the incremental expansion of current projects 
and the exploitation of untapped gas reserves not associated wit h oil production.84 Increased 
production of natural gas is seen as critically important to the country's Kingdom's diversification 
and energy transition strategy in that it provides low -cost and clean feedstock to the petrochemical 
and power -generation sec tors. By 2030, Saudi Aramco aims to be among the world's top three 
natural gas producers and to export natural gas for the first time.85  
4.65.   The Gas Supply and Pricing Regulations (GSPR)86, enacted in 2003 and administered by the 
Ministry of Energy, require a  licence for the conduct of any regulated activity concerning any gaseous 
or liquid hydrocarbons produced in the Kingdom. Saudi Aramco owns and operates the Master Gas 
System  (MGS) , a network of pipelines connecting its key gas production and processing sites. 
Pursuant to the GSPR, Saudi Aramco performs all domestic marketing and sales of natural gas and 
natural gas liquids  from the MGS, subject to certain exceptions. The Ministry o f Energy determines 
the tariffs for transportation, processing , fractionation , and other terms and conditions of access to 
the MGS. It also determines the necessary allocation of natural gas and natural gas liquids  to 
different sectors of the economy based  on individual demand estimates for each sector.87 
4.66.   Natural gas is among the products subject to price regulation . In March 2018, the Government 
established the price (Blended Price) for the domestic sale of regulated gas products to ensure that 
licensees r ealize a commercial rate of return suitable for the development and exploitation of gas 
resources in the Kingdom. In September 2019, the requirement that the domestic price be no less 
than the Blended Price was eliminated and replaced with a provision that  licensees are entitled to 
compensation if the domestic price is not set at least at the Blended Price. The Ministry of Energy is 
responsible for the administration of this regime.88 
4.67.   In order to increase production of gas, the Government decided not to col lect royalties from 
Saudi Aramco on condensate products for a grace period of five years starting on 1  January  2018. 
In September 2019, this period was extended for an additional 10 year s, which may be further 
 
82 WTO (2016), Trade Policy Review of the Kingdom of Saudi Arabia,  Geneva, para.  4.49.  
83 A recent report submits that this target may be difficult to meet "given the time and especially the 
cost involved in developing the unconventional gas deposits on which such hopes are increasingly based. 
Economist Intelligence Unit , Industry Report Energy: Saudi Arabia , 3rd Quarter 2020, p.  2. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=650217848&mode=pdf . 
84 Saudi Aramco's unconventional deve lopments focus on three areas: North Arabia, South Ghawar, and 
Jafurah. The North Arabia development is in production while South Ghawar and Jafurah are in various stages 
of development.  
85 Pinheiro, J. E., "Strategy Flows Toward Natural Gas", Saudi Aramco  Magazine , July 2020. Viewed at: 
https://www.saudiaramco.com/en/magazine/elements/2020/strategy -flows-toward -natural -gas. 
86 Royal Decree No. M/36 of 25/ 06/1424H (23 August 2003). There were no changes to the GSPR 
during the review period.  
87 Saudi Aramco, Annual Report 2019 , p. 209. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
88 Saudi Aramco, Annual Report 2019 , p. 210. Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco-ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  extended for subsequent 10 -year periods unless  the Government determines that the economics 
impacting gas field development do not warrant such an extension.89  
4.2.2.4   Electricity  
4.68.   Saudi Arabia experienced a very high rate of growth of electricity consumption in recent 
decades90, but this growth stalled durin g the review period. Electricity consumption increased slightly 
between 2015 and 2018 and declined in 2019 (Table 4.15 ) Among the factors explaining the slower 
growth, and decline, in 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 for electricity is expected to grow, albeit at a slower rate than 
in the years before 2016.  
4.69.   Saudi Arabia significantly expanded i ts electricity -generation capacity, including by relying 
more on Independent Power Producers  (IPPs) . Installed generation capacity at the end of 2019 was 
84.5 GW and could soon reach close to 100  GW.  
Table 4.15 Electricity generation, consumption exports, and capacity, 2015 -19 
 2015  2016  2017  2018  2019  
Electricity generation during peak load (MW)  69,200  74,708  69,169  68,794  63,710  
Electricity consumption ( '000 kWh) 294,612  296,672  298,439  299,188  288,598  
Electricity, net (exports -imports) ( '000 kWh)  .. .. .. 33.9 30.1 
Electricity lost in transmission and distribution (%)  7.7 7.8 9.4 9.5 10.0 
Electricity, licensed installed capacity (MW)  81,603  87,754  88,685  85,556  85,185  
.. Not available.  
Source:  Information provided by the authorities.  
4.70.   The GCC Interconnection Authority, based in Dammam, is responsible for managing an 
integrated grid owned and operated by GCC member States. Agreements are under way with Egypt, 
Iraq, and Jordan to explore these countries' possible connection to this grid. Notwithstanding the 
physical linking of the national grids, the extent of cross -border electricity trade among GCC member 
States remains very limited, although there has been an upwa rd trend since 2016. Saudi Arabia's 
net exports of electricity amounted to 36 GWh and 33 GWh in 2018 and 2019, respectively.  
4.71.   Reform of the electricity sector was a priority in the economic transformation envisaged by 
Vision 2030. The NIDLP points to the f ollowing key problems in this sector: (i) inefficient power 
consumption; (ii) supply side inefficiency; (iii) low private sector participation; (iv) fiscal burden on 
the State; and (v) limited reliance on renewable energy.91  
4.72.   Until the restructuring of ministries that took place in 2016, the competent authority for the 
regulation of the electricity sector was the Ministry of Water and Electricity. This Ministry was 
abolished in 2016 , and its responsibilities in relation to the electricity sector were transf erred to the 
Ministry of Energy, Industry and Mineral Resources . Following its division in 2019 into the Ministry 
of Energy and the Ministry of Industry and Mineral Resources, responsibility for the electricity sector 
now rests with the Ministry of Energy.  
4.73.   The Electricity and Cogeneration Regulatory Authority (ECRA), a financially and 
administratively independent organization, is the regulator of Saudi Arabia's electricity industry. Its 
mission is to develop and pursue a regulatory framework, in accordance with government laws, 
regulations, policies, and standards, as well as  with international best practices , in order to 
guarantee the provision of safe, reliable , and efficient electric power and desalinated water to 
 
89 Saudi Aramco, Annual Report 2019 , p. 214. Viewed at: Viewed at: https://www.aramco.com/ -
/media/publications/corporate -reports/saudi -aramco -ara-2019-
english.pdf?la=en&hash=FDBFE7887B74E816C493F09DA188F1151839A4CD . 
90 Between 2005 and 2018, electricity consumption rose a t an average annual rate of 5.48%. KAPSARC, 
Saudi Arabia's Unfolding Power Sector Reform: Features, Challenges and Opportunities for Market Integration , 
May 2020, p.  7. Viewed at: https://www.kapsarc.org/research/publications/saudi -arabias -unfolding -power -
sector -reform/ . 
91 Kingdom of Saudi Arabia, NIDLP, Delivery Plan 2018 -2020, p. 206. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . The NIDLP is currently under review.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Saudi  consumers. The ECRA issues licences  to operators for generation/cogeneration, transmission, 
and distribution; in coordination with the Energy and Water Price Reform Executive Committee, the 
ECRA develops proposals on electricity tariffs for review and approval by the Council of Ministers. 
The legal and regulatory framework within which the ECRA operates comprises, in particular, the 
ECRA Charter and its Implementing Regulations, and the Electricity Law and its Implementing 
Regulations.  
4.74.   The electricity market is characterized by a bundled, v ertically integrated single -buyer market 
structure. Saudi Electricity Company (SEC) is a dominant operator in the electricity industry, 
engaged in generation, transmission, and distribution. The SEC is publicly traded on the Saudi capital 
market, and the G overnment owns 74.3% of the share s through the Public Investment Fund. In 
2019, the SEC generated 54% of all electrical power generated in Saudi Arabia. In 2017, the 
Saudi  Power Procurement Company, a limited liability company wholly owned by the SEC, was 
named as the principal buyer. Independent power -generation plants also supply electricity directly 
to larger consumers, including to the SEC for distribution. The Saudi aut horities aim to increase the 
level of competition in the electricity market by allowing multiple IPPs to participate in the generation 
of electricity , while the transmission and distribution will be retained by the SEC. 
4.75.   Because  more than 99% of electricity  is generated using fossil fuels, the development of 
alternative sources of energy to diversify the sources of electricity generation features prominently 
in the Vision 2030 strategy . The diversification of the energy mix is being pursued for various 
econo mic, security , and environmental reasons. The Government defined ambitious objectives for 
the creation of a renewable energy sector and is considering the development of a nuclear energy 
capacity.  
4.76.   The National Renewable Energy Programme (NREP) was launched  in 2017 by the Ministry of 
Energy to substantially increase the share of renewable energy in the national power energy mix92, 
to promote and facilitate private sector participation by attracting foreign and domestic investment, 
and to grow the Kingdom's m anufacturing capability in renewable energy.93 The Ministry of Energy 
has the primary responsibility for the pre -development of renewable energy projects. Projects are 
tendered in a series of rounds each year and are accessible for local and international companies to 
qualify for and bid on through a dedicated e -procurement portal. Energy produced by the IPPs under 
this programme will be bought by the Saudi Power Procurement Company via 20 - to 25-year P ower 
Purchase Agreement s awarded to qualified bids with  the lowest levelized cost of electricity per 
project. To date, there have been three rounds of open tenders under the NREP. Round 1 comprised 
700 MW across two projects : the Sakaka 300  MW Solar PV project; and the Dumat Al Jandal 400  MW 
onshore wind proje ct. Combined, these two projects attracted SAR 3 billion  in private sector 
investment. Rounds 2 and 3 of the NREP are currently at the tendering stage and will see an 
additional 2,670 MW of renewable energy across 10 projects be awarded before the end of 2 021.94 
4.77.   Apart from diversifying the electricity mix, the development of renewable energy capacity is 
also designed to promote domestic industrial capacity and job creation.95 The authorities formulated 
detailed localization requirements that firms must meet to be able to bid for renewable energy 
projects.96 
4.78.   No nuclear plants are currently installed in Saudi Arabia. The main objective of introducing 
nuclear energy is to diversi fy the energy strategy across the Kingdom. This is addressed by the 
National Atomic Energy Project that was launched in 2017. The project  had three main 
developments. First, work was done to develop the required National Nuclear Power Infrastructure 
in acc ordance with the International  Atomic  Energy Agency's Milestones Approach. Second, steps 
were taken to identify and prepare sites in the Kingdom suitable for building the first nuclear power 
 
92 The Government defined certa in quantitative targets in this respect.  
93 In addition to the NREP managed by the Ministry of Energy, the Public Investment Fund also has a 
programme for creating renewable energy capacity.  
94 Information provided by the authorities.  
95 Vision 2030 states,  in this regard, that "[w]e will also seek to localize a significant portion of the 
renewable energy value chain in the Saudi economy, including research and development, and manufacturing, 
among other stages". Kingdom of Saudi Arabia, Vision 2030 , p. 49. Viewed at: 
https://vision2030.gov.sa/en/node/135 . Vision 2030 is currently under review.  
96 Saudi Arabia National Renewable Energy Program . Viewed at: 
https://www.ief.org/_resources/files/events/third -ief-eu-energy -day/turki -al-shehri -24.02 -repdo ---
ief_riyadh_v2 -2.pdf. WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  plant contain ing two large reactors. Third, a request for informa tion was sent to all potential vendors 
from five countries for building the first nuclear power plant in late 2017. Responses were received 
for developing the required request for proposal to be sent ultimately to all five vendors in 
accordance with the te ndering process.  
4.2.2.5   Energy price reform  
4.79.   Reform of domestic energy prices was an important component of Saudi Arabia's economic 
transformation policies during the review period. Saudi Arabia provid ed energy products to its 
domestic consumers at prices that are  usually lower than export prices. In the context of the Fiscal 
Balance Program, the total amount of energy benefits resulting from these low energy prices was 
estimated at close to SAR 300 billion in 2015, given the oil export price at that time, and it w as 
observed that energy and water subsidies together typically accounted for the vast majority of the 
overall subsidies in Saudi Arabia.97 In this regard, one of Vision 2030's objectives is to increase the 
competitiveness of the energy sector by raising th e efficiency of the government support system 
and making the best use  of its benefits by redirecting it and targeting eligible citizens and economic 
sectors. Vision 2030 also provides that , in the long  term, free market prices shall stimulate 
productivity and competitiveness among utility companies and open the door to investment and 
diversification of the energy mix.98 
4.80.   Energy price reform is one of the most important elements of the Fiscal Balance Program, 
which was established in 2016.99 It defines the ob jective s of energy price reform as  to: (i) stimulate 
rational consumption; (ii) encourage the establishment of competitive investments in the industrial 
sector; (iii) redirect and rationalize support provided to eligible segments ; and (iv)  strengthen the 
general fiscal position.100 The energy price reform program originally envisioned a first phase (2016) 
of marginal increases to current energy prices , followed by a second phase (2018) of gradual price 
increases towards international market prices. The progr am was amended in 2018.101 An Executive 
Committee for the Governance of Energy and Water Prices Reform was established to oversee the 
development of the energy and water price reform plan , considering its economic, social , and 
sector al impact and to develop  the necessary support mechanism during the transition period.  
4.81.   In 2016, a  first wave of energy price reform s involved increases in prices of fuel and 
electricity; a second wave of price reforms was implemented at the start of 2018, focusing on 
gasoline and  electricity102 (Table s 4.16 and 4.17 ). 
 
97 Kingdom of Saudi Arabia, Fiscal Balance Program: Balanced Budget 2020 , p. 36. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/ Fiscal%20Balance%20Program%202017.pdf . It is 
important to note that, notwithstanding the use of the term "subsidies" in this document, the Saudi authorities 
indicated in this Review that the regulation of prices of energy and water does not involve subsidi es as prices 
are above costs.  
98 Kingdom of Saudi Arabia, Vision 2030 , p. 51. Viewed at: https://vision2030.gov.sa/en/node/135 . 
99 Kingdom of Saudi Arabia, Fiscal Balance Program: Balanced Budget 2020 , p. 36. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/Fiscal%20Balance%20Program%202017.pdf . The 
programme was amended in s everal respects in 2018, including with respect to the date on which the objective 
of a balanced budget had to be achieved, which was changed from 2020 to 2023. Kingdom of Saudi Arabia, 
Fiscal Balance Program: 2018 Update. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/Fiscal%20Balance%20Program%202018%20update.
pdf. 
100 Kingdom of Saudi Arabia, Fiscal Balance Program: 2018 Update , p. 10. Viewed at: 
https://mof.gov.sa/en/budget/Documents/Fiscal%20Balance%20Program%202018%20update.pdf . 
101 Kingdom of Saudi Arabia, Fiscal Ba lance Program: 2018 Update , p. 11. Viewed at: 
https://mof.gov.sa/en/budget/Documents/Fiscal%20Balance%20Program%202018%20update.pdf . 
102 IMF (2017), Saudi A rabia: 2017 Article  IV Consultation –Press Release and Staff Report , IMF Country 
Report No. 17/316, p.  10. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2017/10/05/Saudi -
Arabia -2017-Article -IV-Consultation -Press -Release -and-Staff-Report -45312 ; IMF (2018), Saudi Arabia: 2018 
Article  IV Consultation –Press Release and Staff Report , IMF Country Report No. 18/263, Appendix IV: Energy 
Price Reform and the Citizens' Accounts. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2018/08/24/Saudi -Arabia -2018-Article -IV-Consultation -Press -
Release -and-Staff-Report -46195 ; Krane, J., Too Much of a Good Thing: Subsidy Reform and Tax Increases 
Defy Academic Theory on the Rentier Middle East , Center for Energy Studies, Rice University's Baker Institute 
for Public Policy, September 2019, p.  10. Viewed at: 
https://www.bakerinstitute.org/media/files/files/3b9e6e0a/ces -pub-subsidyreform -101019.pdf . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 101 - 
 
  • The price of natural gas was raised by 67% in 2016. Starting in 2020, there was to be 
"a targeted and gradual transition to the linked Reference Price with an applied price 
ceiling".  
• Prices of gasoline  were raised  in 2016 by 50% for octane 95 and by 67% for octane 91. 
In 2018, gasoline prices were linked to export prices for both grades of ga soline. Gasoline 
prices were revised on a quarterly basis and , since February 2020 , on a monthly basis, to 
align them with export prices.103 
• Diesel prices were raised for transport by 79% in 2016. Diesel prices for utilities and 
industry were raised by 55% in 2016 and by 15% in 2018.  
• Prices of Arab Light Crude and Arab Heavy Crude were raised by 50% and 65%, 
respectively, in 2016. Over the period 2019 -25, there was to be "a targeted and gradual 
transition to the linked Reference Price".  
4.82.   Notwithstanding the  recent price increases, domestic fuel prices are still far below the global 
average.104  
Table 4.16 Increases in energy commodity and service prices since 2015  
Product  Unit 2015  2016  Increase  2018  Increase  
Natural gas  USD/mmbtu  0.75 1.25 67% unchanged  0% 
Ethane  USD/mmbtu  0.75 1.75 133%  unchanged  0% 
Gasoline, high -grade  USD/litre  0.16 0.24 50% 0.544  127%  
Gasoline, low -grade  USD/litre  0.12 0.2 67% 0.365  83% 
Diesel transport  USD/litre  0.07 0.12 79% unchanged  0% 
Diesel industry  USD/barrel  9.11 14.1 55% 16.15  15% 
Arab Light Crude  USD/barrel  4.24 6.35 50% unchanged  0% 
Arab Heavy Crude  USD/barrel  2.67 4.4 65% unchanged  0% 
Kerosene  USD/barrel  16.54  25.7 55% unchanged  0% 
Source:  APICORP Research, "Saudi Energy Price Reform Getting Serious", APICORP Energy Research, Vol.  3, 
No. 5, February 2018, p.  1. Viewed at: http://www.apicorp -
arabia.com/Research/EnergyReseach/2018/APICORP_Energy_Research_V03_N05_2018.pdf , and 
information provided by the authorities . 
4.83.   Electricity prices charged to residential customers were raised in 2016 for some consumption 
brackets above 4,000  kWh per month , but consumption brackets below 4,000  kWh were not 
affected. In 2018, electricity tariffs were revised for residential custome rs in the 0 -2,000  kWh and 
the 2,001 -4,000 kWh consumption bracket s. The changes made in 2016 and 2018 did not affect 
electricity tariffs charged to industry and the G overnment.105 
Table 4.17 Electricity tariffs  (SAR/kWh)  
Sector  End-2015  Start -2018  % change  
Residential: 1 -2000 kWh/month  0.05 0.18 260 
Residential – 2001-4000 kWh/month  0.10 0.18 80 
Residential – 4001-6000 kWh/month  0.20 0.18 -10 
Residential – above 6000 kWh/month  0.30 0.30 0 
 
103 Thus, while gasoline prices were reduced significantly in May 2020 to a level cl ose to that prevailing 
at the time of the price reform of 2018, it has been argued that this "simply reflects the current linkage 
between Saudi domestic and international prices". Gasim, A. and Al Dubyan, M., "Why Did Domestic Gasoline 
Prices Fall in Saudi  Arabia?", KAPSARC, Instant Insight, 2 June 2020, p.  3. Viewed at: 
https://www.kapsarc.org/research/publications/why -did-domestic -gasoline -prices -fall-in-saudi -arabia/ . 
104 IEA, World Energy Prices: Overview , 2020, pp.  6 and 8. Viewed at: 
https://www.iea.org/reports/energy -prices -2020. According to one source, "[e]ven after the pric e rises, local 
fuel prices are still only slightly over half of the global average". Economist Intelligence Unit, Industry Report 
Energy: Saudi Arabia , 1st Quarter 2020, p.  3. Viewed at: 
http://www.eiu.com/FileHandler.ashx?issue_id=2029395586&mode=pdf . 
105 The authorities indicated that the revision of electricity tariffs in 2018 also included the commercial 
and agricultural tariffs.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Sector  End-2015  Start -2018  % change  
Industry  0.18 0.18 0 
Government  0.32 0.32 0 
Source:  APICORP Research, "Saudi Energy Price Reform Getting Serious", APICORP Energy Research, Vol.  3, 
No. 5, February 2018, p.  2. Viewed at: http://www.apicorp -
arabia.com/Research/EnergyReseach/2018/APICORP_Energy_Research_V03_N05_2018.pdf  and 
information provided by the authorities.   
4.84.   The Citizen s' Account Program was launched in 2018 in order to compensate low -income 
groups for the effects of the energy price increases through monthly cash transfers.  
4.3  Manufacturing  
4.85.   Measured in constant prices for 2010, the contribution of the manufacturing sector (including 
oil refining) to GDP increased from SAR 298 .4 billion in 2015 to SAR 318 .5 billion in 2018  but declined 
to SAR 313 .5 billion in 2019. The annual growth rate of the manufacturing sector's GDP was 6.59% 
in 2015, 3.20% in 2016,  1.3% in 2017, 2.10% in 2018 , and -3.18% in 2019. During the review 
period, the share of manufacturing (including oil refining) in GDP, in constant prices for 2010, 
fluctuated around 12%: 11.73% in 2015, 11.90% in 2016, 12.15% in 2017, 12.11% in 2018 , and 
11.88% in 2019.106 
4.86.   The sector's main segments are the oil refining (3.5% of GDP in 2019), petrochemicals , and 
heavy metal industries. Notwithstanding efforts to accelerate the development of new industrial 
sectors, the industrial sector remains heavily concentrated on basic industries in which Saudi Arabia's 
advantages in natural resources play a key role.107 
4.87.   Table  4.18 provides data on the number of manufacturing establishments by size in 2018.  
Table 4.18 Number of manufacturing establishments by size, 2018  
 Micro  
(1-5) Small  
(6-49) Medium  
(50-249)  Large  
(250+)  Total  
(no.)  % of 
total  
Manufacturing  85,521  16,903  5,098  541 108,063  100.0  
 Food products  9,318  1,564  598 80 11,560  10.7  
 Beverages  653 251 122 21 1,047  1.0  
 Tobacco products  73 10 2 0 85 0.1  
 Textiles  2,050  285 80 18 2,433  2.3  
 Wearing Apparel  31,214  2,173  101 23 33,511  31.0  
 Leather and related products  115 22 10 3 150 0.1  
 Wood and of products of wood 
 and cork  3,227  1,448  136 11 4,822  4.5  
 Paper and paper products  96 137 109 22 364 0.3  
 Printing and reproduction of 
 recorded media  832 450 170 11 1,463  1.4  
 Coke and refined petroleum 
 products  34 77 19 8 138 0.1  
 Chemicals and chemical products  359 568 496 39 1,462  1.4  
 Pharmaceutical products and 
 preparations  26 20 46 8 100 0.1  
 Rubber and plastics products  225 330 214 42 811 0.8  
 Other non -metallic mineral 
 products  1,789  1,721  1,138  75 4,723  4.4  
 Basic metals  113 204 268 22 607 0.6  
 Fabricated metal products  15,104  5,289  724 34 21,151  19.6  
 Computer, electronic and optical 
 products  70 63 15 4 152 0.1  
 
106 General Authority for Statistics, Gross Domestic Product . Viewed at: 
https://www.stats.gov.sa/en/823 . In current prices, the manufacturing sector's share of GDP was 12.8 2% in 
2015, 13.05% in 2016, 13.01% in 2017, 12.89% in 2018, and 12.63% in 2019.  
107 Kingdom of Saudi Arabia, NIDLP, Delivery Plan 2018 -2020, p. 92. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . The NIDLP is currently under review.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 103 - 
 
   Micro  
(1-5) Small  
(6-49) Medium  
(50-249)  Large  
(250+)  Total  
(no.)  % of 
total  
 Electrical equipment  329 106 165 37 637 0.6  
 Machinery and equipment n.e.c.  125 146 107 22 400 0.4  
 Motor vehicles, trailers and semi -
 trailers  88 169 75 5 337 0.3  
 Other transport equipment  26 14 7 4 51 0.0  
 Furniture  8,146  1,091  276 33 9,546  8.8  
 Other manufacturing  348 86 51 11 496 0.5  
 Repair and installation of 
 machinery and equipment  11,161  679 169 8 12,017  11.1  
Memo:      
  
% of total by size of 
establishment  79.1 15.6 4.7 0.5   
Note:  The classification of the establishments' economic activity is based on ISIC R ev.4 with limited 
modifications to suit the institutions operating in Saudi Arabia.  The size of establishments is based 
on the number of employees.  
Source:  General Authority for Statistics, Survey of Industrial Activity 2018 . Viewed at: 
https://www.stats.gov.sa/en/988 . 
4.88.   Manufacturing activity decreased significantly in 2020 as a result of the reduction in 
production caused by the COVID -19 pandemic. In June 2020, manufacturing activity had declined 
by 22.3% compared with June 2019.108  
4.89.   Total employment in the manufacturing sector was 986,799 in 2016, 1,013 ,006 in 2017, 
1,117,050 in 2018 , and 1,290,393 in 2019.109  
4.90.   Imports of manufactured goods in 2019 amounted to SAR 401.6 billion, accounting for 74.2% 
of total imports.  Imports of partly manufactured or semi -finished goods amounted to 
SAR 123.3  billion and represented 22.8% of total imports. The value of exports of manufactured 
goods in 2019 was SAR 175.3 billion, representing 17.9% of total exports, while the value of p artly 
manufactured (semi -finished) goods in 2019 was SAR 165.4 billion , or 16.9% of the value of total 
exports.110 As shares in exports of manufactured products, the two most important HS categories 
are products of the chemical or allied industries , and pla stics and articles thereof and rubber and 
articles thereof.111  
4.91.   The Ministry of Industry and Mineral Resources is the agency responsible for regulating the 
manufacturing sector (Section 2). Establishing an industrial project in Saudi Arabia is subject to 
regulation under the Foreign Investment Law, in the case of projects that involve foreign capital112, 
and the Unified Industrial Law of GCC member States in the case of projects exclusively involving 
Saudi capital . Both laws include a requirement to obtain an  industrial licen ce. The authorities note 
that there are no foreign ownership restrictions in manufacturing. As at September  2020, 
1,467 foreign enterprises were licensed to operate in the manufacturing sector .113  
4.92.   In 2019, the Ministry of Industry and Mineral Resources issued industrial licen ces for 515 new 
factories in various industrial activities.114 The number of industrial licen ces issued was 576 in 2015, 
578 in 2016, 593 in 2017 , and 419 in 2018.115  
 
108 General Authority for Statistics, Industrial Production: June 2020 . View ed at: 
https://www.stats.gov.sa/sites/default/files/industrial_production_june_2020_en.pdf .  
109 Information provided by the authorities.  
110 Saudi Arabia Mone tary Authority (SAMA), Annual Report 2020 , pp. 122-123.  
111 General Authority for Statistics, International Trade: 2019.  Viewed at: 
https://www.stats.gov.sa/sites/default/files/ ft_y_2019_en_0.pdf . 
112 See Section 2 of this Report for recent developments regarding licensing under the Foreign 
Investment Law.  
113 Information provided by the authorities.  
114 SAMA, Annual Report 2020 , p.53.  
115 SAMA, Annual Report 2016 , p. 20; Annual Report 2017 , p.35; Annual Report 2018 , p. 46; and 
Annual Report 2019 , p. 53.   WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.93.   The Government recently initiated a comprehensive  review of the industrial licensing system 
under the National Licensing Reform Program with a view to simplifying the regime by substantially 
reducing the number of activities for which an industrial licen ce is required.  
4.94.   Industry is one of the four key sec tors addressed by the National Industrial Development and 
Logistics Program (NIDLP), one of the Vision 2030 Vision Realization Programs launched in 
January  2019. The NIDLP aims "to transform the Kingdom of Saudi Arabia into a leading industrial 
powerhouse and a global logistics hub in promising growth sectors (with focus on Industry 4.0), 
which would generate ample job opportunities for Saudis, enhance the trade balance and maximize 
local content"116 and to invest SAR 1.4 trillion and create 1.6 million jobs  in industry, energy, mining, 
and logistics. The Government regards a vibrant , competitive, sustainable , and export -oriented 
manufacturing sector as critical to the realization of Vision 2030 as the primary driver of non -oil 
exports, foreign investment, in novation, and higher -quality jobs.  
4.95.   The N IDLP envisions a "second wave of industrial development" or "second growth wave", 
based on four strategic pillars: (i) leverage/maximize natural resources revenues; (ii) support 
demand and status to empower strategi c competitive sectors; (iii) provide companies with an 
enabling system to compete effectively at the regional and international levels; and (iv) support 
technological innovation and the spread of Industry 4.0 to improve productivity and maintain priority 
sectors' competitiveness.117 The key guidelines under the new approach are that growth must focus 
on a diversified portfolio of sectors that are based on a sustainable competitive advantage; the 
private sector (foreign or local) must lead the growth process, as the Government plays t he role of 
the enabler; and growth must generate clear socio -economic benefits in terms of its contribution to 
GDP and employment.118 
4.96.   The NIDLP's approach to industrial development leverages high domestic and regional 
demand to catalyse growth in clusters o f promising industrial sectors, optimizes the economic value 
captured from Saudi Arabia's natural resources, and involves the development of new clusters of 
transformative industries. The new industrial policy is reflected in a comprehensive and detailed 
National Industrial Strategy (NIS) focusing on nine sectors: (i) equipment and machinery; 
(ii) renewable energy supplies; (iii) pharmaceutical manufacturing; (iv) medical supplies; (v)  the 
automotive sector; (vi) oil - and gas - adjacent industries; (vii) foo d processing; (viii)  the aviation 
industry; and (ix) military industries.119 The selection of these sectors appears to be motivated by, 
inter alia , the fact that because of high domestic demand and dependence on imports they offer 
substantial opportunities to attract foreign and local investors  to develop local manufacturing 
capacity.120 In each sector covered by the NIS, the NIDLP sets out in detail the existing situation 
and context, objectives and strategy, specific initiatives, and relevant agencies invol ved in the 
implementation of the NIS. The authorities note that the NIS is currently being updated. 
Implementation of the NIS is one of the main mandates of the recently created Ministry of Industry 
and Mineral Resources. In this regard, a new entity, the National Industrial Development Center, 
was established in August 2020.  
4.97.   Vision 2030 provides that the strategic objective of growing and diversifying the economy will 
be achieved  through,  inter alia , measures to unlock the potential of non -oil sectors, in cluding through 
 
116 Kingdom of Saudi Arabia, NIDLP, Delivery Plan 2018 -2020, p. 8. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . The NIDLP is currently under review.  
117 Kingdom of Saudi Arabia, NIDLP, Delivery Plan 2018 -2020, p. 26. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . 
118 Kingdom of Saudi Arabia, NIDLP, Delivery Plan 2018 -2020, pp. 26 and 30. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachmen ts/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . 
119 Kingdom of Saudi Arabia, NIDLP, Delivery Plan 2018 -2020, p. 98. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . 
120 For example, in respect of the automotive sector and medical supplies, the NIDLP observes, 
respectively, that Saudi  Arabia "is the only country among the top 20 (with the highest demand on vehicles) 
which does not have a regional production centre" and "there is great opportunity in the Kingdom to localize 
medical supplies given its great dependence on imports (90%)". Kingdom of Saudi  Arabia, NIDLP, Delivery Plan 
2018-2020, pp. 37 -38. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP% 20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf .  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  localization of promising manufacturing industries .121 In addition to initiatives aimed at promoting 
local content in specific sectors of the industry122 through procurements made by the Government , 
the NIDLP sets out a cross -cutting, horizon tal local content strategy.123 The Local Content and Private 
Sector Development Unit, established in 2016, was replaced in early 2019 by the Local Content and 
Government Procurement Authority (LCGPA) , whose mandate is to develop local content in 
government procurement and to enhanc e its efficiency.  
4.98.   While the NIDLP appear s to provide for several incentives to promote the enhancement of 
local content by the private sector124, the authorities note that the NIDLP is currently being reviewed 
and that in practice there are no incentives to promote local content other than the use  of price 
preferences for local goods and services in the context of government contracts.  
4.99.   As the authority responsible for local content policy, the LCGPA established strategic 
partnerships with companies to assist them in the implementation of their own , self-initiated local 
content programmes. The LCGPA is also involved in training and advising on the methodology for 
calculating local content. Companies represented on the Local Content Coordination Council 
developed specific programmes to increase local  content in line with the objectives of Vision 2030 
and the NIDLP. For example, Saudi Aramco's In -Kingdom Total Value Add (IKTVA) Program was 
self-initiated and launched in December 2015, and is designed to drive domestic value creation and 
maximize long -term economic growth and diversification.125 It aims to increase significantly the 
domestic value added created by Saudi Aramco's suppliers. In this respect, its objective is that 70% 
of all Saudi Aramco's spending will be localized by 2021. To meet this obj ective, an IKTVA baseline 
score is established for each supplier, followed by the development of an action plan to increase the 
IKTVA score and measurement of performance progress. Saudi Aramco maintains a central 
procurement database through which it moni tors and evaluates the total level of domestic value 
added by a supplier or operator. There are currently 400 local and international companies engaged 
in the IKTVA Program. In relation to the Program, Saudi Aramco concluded agreements with several 
domesti c and foreign firms to develop local manufacturing capacity for goods used in the oil and gas 
industry and to conduct research and development. Examples of localization programmes of other 
major Saudi companies are SABIC's Nusaned initiative126 and the Saud i Electricity Company's (SEC) 
BENA program.127  
4.100.   The NIDLP includes several initiatives with respect to financial enablement, including the 
transformation of the Saudi Industrial Development Fund (SIDF) to become "the main financial 
source for the industrial ization in the Kingdom"128 and the establishment of the Saudi Export -Import 
(EXIM) Bank.  
 
121 Kingdom of Saudi Arabia, KSA Vision 2030: Strategic Objectives and Vision Realization Programs , 
p. 23. Viewed at: 
https://vision2030.gov.sa/sites/default/files/report/Vision%20Realization%20Programs%20Overview.pdf . 
122 For a list of "localization opportunities" in specific sectors, see Kingdom of Saudi Arabia, NIDLP, 
Delivery Plan, 2018 -2020, p. 310. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%2020 19.pdf .  
123 Local content is defined as "the total spending in the Kingdom of Saudi Arabia through the 
participation of the Saudi elements in the labor force, goods and services, assets, and technology", and it is 
calculated "by taking into account the tota l amount of money spent on several elements including employees' 
salaries, research and development, local goods and services and others". Kingdom of Saudi Arabia, NIDLP, 
Delivery Plan, 2018 -2020, p. 312. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . 
124 Kingdom of Saudi Arabia, NIDLP, Delivery Plan, 2018 -2020, p. 306. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan %202019.pdf . 
125 IKTVA. Viewed at: https://iktva.sa/ . 
126 See SABIC, SABIC's National Initiative Nusaned™ to Contribute SR6.1B to GDP, Create Over 
3,000  Jobs, 9 July 2020. Viewed at: https://www.sabic.com/en/news/23879 -sabic-s-national -initiative -
nusaned -create -over-3-000-jobs. 
127 SEC, Localization Electricity Industry . Viewed at : https://www.se.com.sa/en -
us/business/Pages/LEILocalContentDevelopmentStrategic.aspx . 
128 Kingdom of Saudi Arabia, NIDLP, Delivery Plan, 2018 -2020, p. 323. V iewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.101.   The S IDF was established in 1974 , and its mission is to support and diversify the economy 
by promoting industrial sectors, competitive enterprises , and strategic initi atives.129 The authorities 
indicated that SIDF charges fees on its loans that are similar to, and in some cases higher than, the 
interest charged by comparable commercial banks, that SIDF does not finance projects that are not 
commercially viable , and that its loans  are not contingent upon export performance. As a result of 
the transformation of its role under the NIDLP to become "the main financial source for the 
industrialization in the Kingdom"130, the SIDF's capital was increased from SAR 65 billion to 
SAR 105 billion. In this context, the SIDF also launched several major integrated program mes to 
promote local content.131 The Energy Efficiency Program aims to support the existing industrial 
foundation to increase efficiency and reduce operational costs. The aim of t he Digital Transformation 
Program is to improve the productivity of existing projects by adopting modern technologies and 
automation. The Afaq program me aims to support small and medium -sized enterprises and promote 
their roles in the local economy. In FY 2019, the SIDF approved SAR 12.5 billion in new loans.132  
4.102.   The EXIM Bank was established by the Saudi Exports Development Authority in 2019 and 
became operational in early  2020 (Section 3 .2.4). 
4.103.   The authorities indicated in the context of this trade policy review that there have been no 
changes in laws, regulations , and rules/orders/notices with respect to taxation and incentives 
provided to the manufacturing sector.  
4.4  Services  
4.4.1   Financial services  
4.104.   As part of Vision 2030, the Financial Sector Development Program (FSDP)133 aims to develop 
a strong, innovative, and stable financial sector, able to support private -sector growth through 
lending, new services, and an advanced capital market, while promoting and enabling financial 
planning in society more broadly . In this role, the financial sector is seen as essential, allowing the 
private sector to drive the diversification and development of the economy. Therefore, the authorities 
consider financial -sector development critical to achieving the Vision 2030 objec tives.  
4.105.   The Saudi Central Bank (SAMA) regulates and supervises financial services, while the Capital 
Market Authority (CMA) regulates capital markets.134 During the review period, the regulators 
implemented a large number of reforms, aimed at increasing the use of electronic payments, 
supporting the development of the FinTech sector, and deepening capital markets . These reforms  
resulted in the inclusion of the Saudi Stock Exchange in three emerging market indices 
(Section  4.4.1.3).  In 2019, financial services (comprising the banking sector, the insurance sector, 
and non -bank financial institutions) and business services jointly accounted for 5.6% of GDP at 
current prices, and financial services alone employed nearly 64,000 people.135 
 
129 SIDF, About Us . Viewed at: https://www.sidf.gov.sa/en/AboutSIDF/Pages/AboutUs.aspx#12 .  
130 Kingdom of Saudi Arabia, NIDLP, Delivery Plan, 2018 -2020, p. 323. Viewed at: 
https://vision2030.gov.sa/sites/default/files/attachments/NIDLP%20Delivery%20Plan%20 -
%20English%20Jan%202019.pdf . 
131 The Tawteen  Program aims to promote local content by financing and supporting opportunities to 
localize supply chains. SIDF, Annual Report 2018 , pp. 22-23. Viewed at: 
https://www.sidf.gov.sa/_vti_bin/SidfService.svc/DownloadFile?language=en&itemId=18&listName=Annual%2
0Report&subSite=/MediaCenter . 
132 Information provided by the authorities.  
133 Kingdom of Saudi Arabia, Vision 2030 . Viewed at: www.vision2030.gov.sa . 
134 Banking Control Law No. M/5 of 22/02/1386H (11 June 1966) and Capital Markets Law No. M/30 of 
02/06/1424H (31 July 2003).  
135 Available GDP data do not allow for the separation of financial and business services. Accor ding to 
the SAMA's 2020 Financial Stability Report , at the end of 2019, employment in banking stood at 47,181; in the 
insurance sector at 11,213; and among finance companies at 5,498.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.4.1.1   Banking  
Structure  
4.106.   With 97% of the financial sector assets, the banking sector dominates the financial services 
sector; banking sector assets represented 88.4% of GDP at the end of 2019136, increasing from 
76.2% in 2014. The number of banks licensed in Saud i Arabia increased from 23 in 2014 to 29 in 
2020. There are currently 12 commercially licensed domestic banks and 17 licensed foreign  bank 
branches , after the State Bank of India asked for the cancellation of its licence.137 Six of these 
17 banks are branch es of banks from other GCC  member  State s. Four of the six banks that obtained 
licences over the review period have not yet started operations.138 Following the merger of the Saudi 
British Bank and the Alawwal Bank in 2019, the National Commercial Bank (64.3 % state -controlled) 
and the Samba Financial Group (49.6% state -controlled) agreed to a merger in late 2020 , which 
would create the Middle East's third -largest lender in asset terms.  
4.107.   The sector remains concentrated, with the six largest banks still accounti ng for 75% of the 
total assets of the banking system, the same as five years ago ( Table 4.19 ). Average return on 
equity was 13.9% in 2018. Financial services are increasingly imported and exported 
(Section  1.6.1.2), indicating an  increase in effective comp etition and the ability of Saudi banks to 
compete.  
Table 4.19 Banking sector 2014 -18 
 
2014  2015  2016  2017  2018  
Structure  
 Number of licensed banks  23 23 24 25 29 
 Number of banks accounting for:  
 25% of total assets  2 2 2 2 2 
 75% of total assets  6 6 6 6 6 
Total assets (% of GDP)  75.2 90.0 93.3 89.9 80.5 
Total loans (% of GDP)  44.1 55.5 57.9 54.1 48.6 
Credit to private sector (% of GDP)  42.5 53.9 55.9 52.2 47.0 
Total deposits, excluding interbank (% of GDP)  55.6 65.4 66.9 63.1 56.6 
Capital adequacy  
 Regulatory capital to risk -weighted assets  17.9 18.1 19.5 20.4 20.3 
Asset quality  
 Net loans to total assets  60.3 62.4 62.8 62.2 62.6 
 Gross NPLs to net loans  1.1 1.2 1.4 1.6 2.0 
 Total provisions to gross NPLs  182.9  164.4  177.0  151.9  157.2  
 Net NPLs to total capitala  -4.1 -3.7 -4.7 -3.4 -4.8 
 Total provisions for loan losses (% of total loans)  2.1 2.2 2.6 2.6 3.2 
 Contingent and off -balance -sheet accounts to total assets  100.2  100.8  84.2 76.2 71.3 
Profitability  
 Profits (% change)  12.5 6.3 -5.4 8.2 10.7 
 Average pre -tax return on assets  2.0 2.0 1.8 2.0 2.1 
 Return on equity  14.8 14.4 12.5 12.9 13.9 
 Non-interest expenses to total income  45.5 37.1 38.0 36.6 36.3 
 Average lending spread  3.5 3.4 3.5 3.5 3.9 
a The negative sign reflects that provisions exceed gross NPLs.  
Source:  IMF (2019), Saudi Arabia: 2019 Article IV Consultation –Press Release and Staff Report, IMF Country 
Report No. 19/290 .  
 
136 Information provided by the authorities.  
137 Under its terms of accessio n, Saudi Arabia undertook broad commitments in the area of banking, 
including allowing commercial presence of banks in the form of locally incorporated joint -stock companies 
(including joint ventures) or as branches of international banks. Non -Saudi partic ipation in a joint venture is 
permitted up to 60%. WTO document WT/ACC/SAU/61/Add.2, 1 November 2005.  
138 These four banks are the Trade Bank of Iraq (July 2018), Standard Chartered Bank (February 2019), 
Credit Suisse Bank (December 2019), and Bank of China Limited (January 2020). The Mitsubishi UFJ Financial 
Group (January 2017) and the First Abu Dhabi Bank (March 2018) started operations.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.108.   Following strong growth in the share of credit to the private sector to GDP between 2011 
and 2016 from 30% to nearly 56%, credit growth has been more subdued since, with the share 
falling back to 47% in 2018 (Table 4. 19). The structure of bank lending shifted over the review  
period, with the share of credit to manufacturing falling from 13.2% in 2 014 to 10.5% in 2019, and 
that of lending to mining and quarrying also declining. Lending for "commerce " fell slightly to 19.3% 
of total lending in 2019, while that for "other miscellaneous services" increased to 45.9% 
(Table  4.20). To "enhance productiven ess and productive financing", the FSDP aims to increase the 
share of SME financing by banks from 2% in 2016 to 5% by 2020. According to the authorities, the 
share of bank financing to SMEs reached 8% in the third quarter of 2020. Finance companies lent 
19% of their portfolio to SMEs in 2019, but these loans accounted for 44.2% of non -performing 
loans (NPLs), possibly reflecting the inherently risk ier nature of SME lending.139  
Table 4.20 Bank credit to private sector, by economic activity, 2017 -19  
(SAR million)  
 2017  2018  2019  
Amount  Share  Amount  Share  Amount  Share  
Agriculture and fishing  12,249  0.9 14,780  1.1 14,653  1.0 
Manufacturing and 
production  162,939  12.1 172,858  12.4 156,754  10.5 
Mining and quarrying  14,849  1.1 19,354  1.4 19,707  1.3 
Water, electricity, gas and 
health services  51,836  3.8 52,171  3.8 61,049  4.1 
Building and construction  89,642  6.6 97,326  7.0 92,850  6.2 
Commerce  315,138  23.3 282,344  20.3 287,923  19.3 
Transport and 
communications  48,388  3.6 43,282  3.1 51,237  3.4 
Finance  35,608  2.6 37,313  2.7 41,465  2.8 
Services  72,737  5.4 78,860  5.7 81,217  5.4 
Other miscellaneous 
services  547,741  40.5 590,652  42.5 683,977  45.9 
Total  1,351,127  100.0  1,388,940  100.0  1,490,833  100.0  
Source:  SAMA (2020), 56th Annual Report  1441H -2020, Riyadh.   
4.109.   While overall credit to the private sector increased by 10% between 2015 and 2019, retail 
and corporate real estate loans increased by 60%, from SAR 185 billion in 2015 to nearly  
SAR 300 billion in 2019140; increased lending to retail customers accounted for the bulk of the 
increase.141 Real estate lending by non -bank institutions also increased, from less than SAR  12 billion 
in 2015 to more than SAR 20 billion in 2019 (around 41% o f the total non -bank financial -sector 
credit).142 The FSDP explicitly targets strong growth in mortgages issued by the financial sector to 
SAR 500 billion in 2020.143  
4.110.   Banks remain well capitalized overall. The capital adequacy ratio (CAR) increased from 
17.9% to 19.3% in 2019, well exceeding Basel III minimum requirements and indicating resilience 
across banks, although it did decline slightly since 2017. Banks at the lower end of the distribution 
still had CARs in excess of 16.0%.144 Gross NPLs, however, inc reased from 1.1% of gross loans in 
2014 to 1.9% in 2019, trending up across all major loan categories even prior to the COVID -19 
crisis. In particular, NPLs in the construction sector increased significantly from below 3.0% in 2014 
to more than 7.6% in 201 9. In parallel, total provisions for loan losses increased from 2.1% of loans 
to 2.8% between 2014 and Q4 of 2019 (Table 4.19, and information provided by the authorities). 
 
139 SAMA, 2020 Financial Stability Report . Viewed at: www.sama.gov.sa . 
140 SAMA (202 0), 56th Annual Report 1441H -2020, Riyadh.  
141 According to the IMF, the share of mortgage lending in total lending to the private sector increased 
from 8% to 18% between 2011 and 2019.  
142 Information provided by the authorities; and SAMA, 2020 Financial Stab ility Report . Viewed at: 
www.sama.gov.sa . 
143 The IMF indicated that housing prices had been falling, potentially generating fiscal and financial risks 
from mortgage lending in the future. IMF (2019), Saudi Arabia: 2019  Article IV Consultation –Press Release and 
Staff Report, IMF Country Report No. 19/290.  
144 SAMA, 2020 Financial Stability Report . Viewed at: www.sama.gov.sa . The ratio of risk -weighted 
assets to total assets also decr eased from 87% in 2015 to 79% at the end of 2019.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  The implementation of the net stable funding ratio (NSFR) was assessed by the Basel  Committee on 
Banking Supervision as "compliant" in 2018145; the NSFR stood at 126.6% at the end of Q3 2020.  
4.111.   During  the review  period, the use of electronic payments increased significantly, in line with 
government objectives spelled out in the FSDP. As sole supervisory authority for payment systems 
and services146, the SAMA issued payment service provider regulations in January 2 020 and updated 
them in August 2020. With eight companies licensed to provide payment services, cashless 
payments in the retail sector increased to 36% by July 2019147, surpassing the FSDP target of 28% 
in 2020.  
Regulatory changes  
4.112.   Over the reporting period, the SAMA further developed the regulatory framework for the 
banking sector in the areas of governance and transparency, improved prudential regulations, and 
reviewed the licensing of banks. In October 2017, the Government adopted  the new Anti -Money 
Laundering Law and its Implementing Regulation, replacing an earlier framework148, and the SAMA 
issued Business Continuity and Cyber Security Frameworks in the first half of 2017.149 In 2019, the 
SAMA also issued the Code of Conduct and W ork Ethics in Financial Institutions to increase consumer 
protection. It also approved the Whistle -blowing Policy for Financial Institutions, requiring such 
institutions to put in place mechanisms for reporting non -compliance.150 Saudi Arabia's ranking in 
indicators of shareholder governance and investor protection improved greatly during  the review  
period.151 
4.113.   Foreign banks continue to be allowed to operate in Saudi Arabia, either as a locally 
incorporated joint -stock company or as a branch of an internationa l bank. In 2019, the SAMA issued 
revised licensing guidelines for banks under the Banking Control Law, 1966, which remains the main 
legislative text governing the banking sector.152 Under the guidelines, foreign bank branches are, in 
principle, subject to t he same prudential requirements as locally incorporated banks.153 Foreign bank 
branches are not required to maintain capital in Saudi Arabia but, under certain circumstances, the 
SAMA reserves the right to impose such capital requirements. The guidelines re quire preliminary 
discussions prior to submitting a  licence  application for review to the SAMA. The Regulations for 
Foreign Bank Branches were published in September 2019 in Circular No. 4922/67, and the SAMA 
also regulated "agent banking" in 2019. In 2020 , the SAMA issued additional guidelines for 
digital -only banks, requiring such banks to be set up as incorporated join t-stock companies, to have 
a physical presence in the country, and to put in place adequate customer support.154 
4.114.   To increase transparency, the SAMA updated disclosure requirements in July 2020, requiring 
banks to publish information on retail financing and savings products (for individuals and SMEs) in 
a detailed manner online and to provide clear information on all commissions and fees; it a lso 
requires that marketing information not be presented in a misleading way.155 
 
145 BIS, Basel Committee Assesses Saudi Arabia's Implementation of the NSFR Regulation and the Large 
Exposures Framework . Viewed at: www.Bis.org/press/p180 927.htm . 
146 As confirmed in Council of Ministers Resolution No. 226 (dated 02/05/1440H, 9 January 2019).  
147 SAMA, 2020 Financial Stability Report . Viewed at: www.sama.gov.sa . 
148 Saudi Arabia approved the Anti -Money Laundering Law according to Royal Decree No. M/20 of 
25 November 2017 and Ministerial Decision No. 80 of 24 October 2017 for the implementing regulations.  
149 The SAMA issued the Business Continuity Framework under Circ ular No. 381000058504, 
28 February  2017 and the Cyber Security Framework under Circular No. 381000091275, 24 May 2017.  
150 The Code of Conduct and Work Ethics in Financial Institutions and the Whistle -blowing Policy for 
Financial Institutions were issued on 5 August 2019.  
151 According to the World Economic Forum, the "strength of investor protection" and (after a change in 
variable) the "shareholder governance" increased strongly, with Saudi Arabia ranked 2nd in this category in the 
2019 Global Competitiveness  Report. Saudi Arabia also increased its ranking in the World Bank's Doing 
Business indicator for "Protecting Minority Investors", and was ranked 3rd in the 2020 Doing Business report.  
152 SAMA, SAMA Banking Licensing Guidelines and Minimum Criteria , 7 Janua ry 2019. The Banking 
Control Law remains unchanged.  
153 The guidelines state that "except as explicitly stated in SAMA's Prudential Standards, foreign bank 
branches are subject to the same legislative and prudential requirements as locally incorporated banks ". 
154 The Additional Licensing Guidelines and Criteria for Digital -Only Banks in Saudi Arabia, issued 
February 2020, apply in addition to the applicable general Banking Licensing Guidelines and Minimum Criteria.  
155 SAMA, Disclosure of Interest Rates on Finan cing and Savings Products , July 2020. Viewed at: 
http://www.sama.gov.sa/en -us/laws/pages/bankingrulesandregulations.aspx . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.115.   In January 2020, the SAMA issued Rules on the Management of Problem Loans, to support 
the rehabilitation of viable borrowers, ensure fair treatment of customers, and ensure ban ks have 
control over NPLs by developing NPL strategies. The Rules require banks to report all restructuring 
cases to the SAMA on a quarterly basis. The Deposit Insurance System has been in place since 2016 
and is primarily funded through premi ums paid by b anks. The aim is to achieve a target size of 3% 
of total insured deposits over 10 years.156 The SAMA became a member of the International 
Association of Deposit Insurers in 2019.  
4.116.   Following the establishment of CMA's FinTech Lab initiative in December 2017, the SAMA 
launched a "regulatory sandbox" in 2018 to facilitate the testing of innovative FinTech products. By 
September 2020, 32 Fin Tech companies had joined and, by March 2020, FinTech licences had been 
issued to four companies, all of which had participa ted in the sandbox. With the objective of 
expanding the variety of financial services available, the FSDP aimed to increase the number of 
licensed FinTech players to at least three by 2020, a target that was exceeded.  
Islamic banking  
4.117.   From a regulatory poi nt of view, banks assess and approve the Shariah-compliance of their 
products and services. In practice, this is done by internal (Sharia h) boards within each bank. As a 
result, all banks are regulated using the same reporting requirements and, in principl e, all banking 
activity is Islamic or Sharia h-compliant.157 While there is no official classification of banks into 
Sharia h-compliant and conventional, four banks are run completely in accordance with Sharia h, with 
other banks offering both conventional and  Sharia h-compliant products. Approximately 71.5% of 
banking sector assets were Shariah-compliant in 2019, an increase from 51.0% in 2016.158  
4.118.   The General Authority of Zakat and Tax issued guidelines for Shariah-compliant financial 
products, and the y are broadly comparable with those of conventional banks, ensuring similar rules 
for all banks.159 In February 2020, the SAMA issued the "Sharia h governance framework banks 
operating in the Kingdom". According to the authorities, the framework aims to establish minimum 
requirements for Sharia h governance practices related to Islamic banking activities, and enhance 
banks' Sharia h compliance practices.  
4.4.1.2   Insurance  
Structure  
4.119.   The SAMA regulates and supervises the insurance sector in accordance with the Cooperative 
Insurance Companies Control Law, 2003 , and its regulations.160 Insurance follows a "cooperative 
model" in Saudi Arabia161, a Sharia h-compliant mechanism.162 In 2019, 32 insurance companies 
were operating in the market (less than in 2014), with the most important types of insurance , those 
related to health and motor veh icles, accounting for 82% of the market.163 There is one 
Saudi  reinsurance company.  
4.120.   Following three years of minimal or negative growth, the insurance sector expanded again 
in 2019, driven primarily by the health sector following the phasing -in of the mand atory unified 
health insurance scheme between 2016 and 2018. Gross written premium (GWP) reached 
SAR 37.8 billion in 2019, up from SAR 30.5 billion in 2014. Insurance accounted for 1.3% of GDP in 
2019. The five largest insurance companies generated around 67% of GWP overall, but concentration 
 
156 IMF (2017), Saudi Arabia: Financial System S tability Assessment, IMF Country Report 17/318, p. 23.  
157 For an overview of Islamic banking, see Box 4.1 of WTO (2016), Trade Policy Review of the Kingdom 
of Saudi Arabia , Geneva.  
158 Information provided by the authorities.  
159 Fitch Ratings, Saudi Islamic B anking Dominant; Asset Quality Weakened and Profitability Improved. 
Viewed at: https://www.fitchra tings.com/research/islamic -finance/saudi -islamic -banking -dominant -asset-
quality -weakened -profitability -improved -04-09-2019. 
160 SAMA, Insurance . Viewed at: www.sama.gov.sa/en -US/Laws/Pages/insurance.aspx .  
161 For a detailed description of Saudi Arabia's cooperative insurance market, see WTO document 
WT/ACC/SAU/61, 1 November 2005, paras. 289 -295. 
162 The cooperative model is a Shariah -compliant form of insurance based on the cooperative sharing of 
risks, with contributions being repaid in case of loss; conventional insurance contracts transfer risks to the 
policy issuer.  
163 SAMA, 2020 Financial Stability Report . Viewed at: www.sama.gov.sa .  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  varied across insurance activities, indicating varying levels of competition by insurance products.164 
Eighty  insurance or reinsurance brokers accounted for 34% of premi ums in 2019, as insurance 
aggregators expanded in that year, particularly for motor insurance where three licensed 
aggregators accounted for 15% of GWP.165  
4.121.   Overall, profitability in the insurance sector remains "unsustainably low" , according to the 
SAMA166, as loss ratios remain high, particularly among sm aller insurers and in the health sector, 
where prices for health services are increasing rapidly. On aggregate, returns on assets (equity) 
varied during  the review  period, and stood at 1.34% (5.27%) in 2019, with a large variation across 
firms.167 As part o f the FSDP under Vision 2030, the authorities aim to develop a sustainable and 
thriving insurance sector through enhancing and better enforcing the regulatory environment to 
drive consolidation and strengthen balance sheets.168  
4.122.   While the insurance sector o verall remains in a strong solvency position above regulatory 
requirements (continuing initial improvements reported in the last Secretariat report), six companies 
did not meet  solvency requirements by the end of 2019. According to the authorities, the reg ulator 
has requested these companies to take remedial action.  
4.123.   The authorities consider that there are too many small insurance companies in the market, 
and are discussing increasing the minimum capital requirements. A first merger in the 
Saudi  insurance se ctor took place in 2020, and others are under discussion. As part of the FSDP, the 
authorities committed to enhancing the existing merger rules to simplify the closure and merger of 
companies.  
Regulatory changes  
4.124.   In December 2018, the SAMA issued new rules for the licensing and supervision of branches 
of foreign insurance and/or reinsurance companies in Saudi Arabia, to support the development of 
a stable and resilient financial sector as part of Vision 2030. Forei gn insurance and reinsurance firms 
are now allowed to open a branch if they meet some , primarily prudential , conditions; some 
applications to open a branch have been received and are under review.169 The SAMA also updated 
its requirements for appointments t o senior positions in September  2019.  
4.125.   The SAMA updated the unified motor insurance policy in September 2019 to improve the 
protection of policy holders and beneficiaries of the insurance coverage, and complemented the 
policy with rules for leased vehicles  in 2020 . In December 2016, the SAMA issued instructions 
requiring insurance companies to offer no -claims discounts under certain conditions when pricing 
individual motor insurance policies. These offers seem part of broader efforts by the SAMA to ensure 
"fair treatment" of policy holders and to encourage the development of more widespread risk -based 
pricing in the industry.  
4.126.   In February 2020, t o further develop the insurance sector, the SAMA issued rules governing 
insurance aggregation activities that spel led out requirements and controls for joint -stock or limited 
liability companies to obtain a licence to carry out online insurance aggregation activities . There are 
no foreign ownership limitations on such companies. This built on earlier efforts to facili tate access 
to insurance products in May 2015, when the SAMA issued rules governing bancassurance activities.  
 
164 According to the SAMA's 2020 Financial Stability Report , the five largest companies accounted for 
85% of GWPs in the health sector, but only 49% in the motor segment.  
165 SAMA, the Saudi  Insurance Market Report  2019. Viewed at: www.sama.gov.sa . Insurance 
aggregators are considered InsurTech, and are encouraged as part of Vision 2030 and through the regulatory 
sandbox.  
166 SAMA , 2020 Financial Stability Report , p. 5. Viewed at: www.sama.gov.sa . 
167 SAMA, the Saudi  Insurance Market Report  2019. Viewed at: www.sama.gov.sa . 
168 Kingdom of Saudi Arabia, Vision  2030,  Financial Sector Development Program . Viewed at: 
www.vision2030.gov.sa . 
169 Saudi Arabia undertook broad commitments on protection and savings insurance; non -life insurance 
(general and health insurance); r einsurance and retrocession; insurance intermediation (brokerage and 
agency); and services auxiliary to insurance (consultancy, actuarial, risk assessment, and claims settlement 
services) as part of its terms of accession. WTO document WT/ACC/SAU/61/Add.2,  1 November  2005.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.4.1.3   Capital markets  
4.127.   As part of Vision 2030, the FSDP's second pillar aims to develop an advanced capital market 
for equity and debt, including a marke t for derivatives. Key activities under the Program include: 
(i) enhancing access by Qualified Foreign Investors (QFIs)170 through the simplification of processes 
and increases in foreign equity caps; (ii) privatizing state -owned enterprises through initial  public 
offerings (IPOs) (in some cases including to foreign investors); (iii) deepening debt markets; and  
(iv) improving the quality of audits of public companies.  
4.128.   The CMA regulates capital markets, and licenses financial market institutions, i.e. firms 
dealing in capital markets, managing funds, or providing ancillary services (including investment 
banks).171 During  the review  period, the CMA undertook a number of reforms to protect investors, 
open trading to non -resident foreigners, and deepen capital ma rkets. As a result of these reforms, 
Saudi Arabia achieved inclusion of its main stock market (Tadawul) in three internationally renowned 
emerging market indices in 2019.172  
4.129.   Since its establishment in 2007, the Tadawul has grown. Market capitalization incr eased 
from SAR 1.8 trillion in 2014 to SAR 9.0 trillion in 2019, primarily as a result of the Saudi Aramco 
IPO and the listing of additional companies, bringing the total number of listed companies to 202 in 
October  2020.173 As a result, the stock market capitalization as a share of GDP increased from 
around 65% during most of the reporting period to 303% in 2019174, with the Tadawul among the 
10 largest stock markets in the world at the end of 2019. However, the stock market remains highly 
concentrated, with Saudi Aramco accounting for 79% of the total market capitalization, and the 
banking and materials sectors accounting for 57% or the remaining market capitalization by October 
2020.175 While capitalization increased, the num ber of transactions, traded shares, and value traded 
had been declining over the years prior to the Saudi Aramco IPO. They all increased by more than 
100% during the first nine months of 2020 compared with the same period in 2019, although some 
of this inc rease could be attributable to the market turmoil in the wake of the COVID -19 pandemic. 
Saudi Aramco accounted for less than 5% of each.  
4.130.   Investment in Saudi capital markets continues to face restrictions, despite recent efforts to 
increase access by non -resident foreign investors to capital markets. While investment in equity 
markets is open to Saudi citizens, GCC nationals, and foreign residents, direct investment in the 
main market for non -residents remains primarily restricted to QFIs, ultimate beneficia ries in swap 
agreements, and Foreign Strategic Investors.176 Non-GCC nationals that hold shares in public 
joint-stock companies traded on the equity market must still obtain permission from the CMA prior 
to buying or selling their shares.  
4.131.   Recent reforms fur ther opened investment in equity markets. In February 2017, the CMA 
and the Tadawul launched a new parallel market with less stringent listing requirements, to simplify 
access to capital markets for SMEs in line with the Vision 2030 objective of increasing  the share of 
SMEs in GDP. By October 2020, five companies were listed on the parallel market. Certain 
 
170 According to the amended Rules for Qualified Foreign Financial Institution Investment in Listed 
Securities (Resolution of the CMA Board 3 -65-2019 of 14/10/1440H (17 June 2019), only licensed financial 
institutions with assets under mana gement of more than USD 500 million can apply to become a QFI. Once 
approved, QFIs remain limited to owning 10% of shares or convertible debt instruments of one issuer, while all 
foreign investors  jointly cannot own more than 49% of the shares of each issu er. 
171 These financial market institutions were formally known as "authorized persons" prior to CMA Board 
Resolution No. 2 -75-2020 of 22/12/1441H (12 August 2020), which amended and renamed the Authorized 
Persons Regulations to the Financial Market Institut ions Regulation.  
172 They are the MSCI Emerging Markets Index, the FTSE Russell Emerging Markets Index, and the S&P 
Emerging Broad Market Index.  
173 On 11 December 2019, Saudi Aramco's IPO, valued at USD 1.7 trillion, was the largest IPO ever 
completed; it li sted shares amounting to 1.5% of its value on the Tadawul.  
174 World Bank, World Development Indicators . Viewed at: wdi.worldbank.org.  
175 Tadawul, Statistical Report First Nine Months 2020 . Viewed at: 
https://www.tadawul.com.sa/wps/portal/tadawul/markets/reports -%26-publications/periodical -
publications?locale=en . 
176 Instructions for the Foreign Strategic Investors Ownership in Listed Companies were issued by the 
CMA as Resolution No. 3 -65-2019 in June 2019. Foreign Strategic Investors can invest directly via their 
investment account, and do not face general limitations on ownership of Saudi firms; however, sector -specific 
limita tions remain in place (for example, in banking or insurance). Strategic investors can sell shares only after 
holding them for at least two years.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  non-resident foreign investors with net assets of at least SAR  5 million are allowed to invest in this 
parallel market, according to CMA Board Resolution  4-95-2017 of 26/01/1439H (16 October 2017). 
In line with the amendments to the Investment Fund Regulations in 2016 that increased investor 
protection and diversified the type of available investment funds, non -resident foreign investors are 
also allowed t o invest in ETFs, investment funds, and real estate investment traded funds (launched 
in 2016 ).177  
4.132.   The CMA also undertook further regulatory reforms to deepen debt markets. In 2018, it 
started trading local currency bonds on the Tadawul. In 2019, it reduce d the minimum trading size, 
to allow retail investors to participate. In August 2020, it issued a board resolution, allowing all 
foreign legal and natural persons to directly invest in debt instruments.178 Prior to this change, only 
Saudi citizens, GCC nati onals, foreign residents, and QFIs were permitted to trade in debt 
instruments.179 Trading in bonds and sukuk s (deeds and financial certificates) continued to grow, 
and 75  bonds and  sukuks  with a face value of nearly SAR 400 billion were listed in October  2020.  
4.133.   To develop capital markets further, the CMA introduced derivatives trading to the Tadawul 
in August 2020, initially only for futures on the Tadawul -30. All derivatives traded on the Tadawul 
are centrally cleared by the Securities Clearing Center  Company  (Muqassa ). 
4.4.2   Telecommunications  
4.134.   Vision 2030 identifies information and communication technology (ICT) infrastructure as 
critical to enhancing the competitiveness of the Saudi economy, an d the Government aims to partner 
with the private sector to further develop the telecommunications sector. Supporting Vision 2030, 
the ICT Sector Strategy 2023 further outlines key strategic initiatives to transform the ICT sector, 
support technology local ization, and grow the IT and emerging tech market.180 According to the 
Strategy, the ICT sector is one of the major enablers of Vision 2030 and serves as the foundation 
for digitizing the Kingdom. The Strategy is linked to nine of the Vision Realization Pro grams, but 
most directly contribute to goals outlined in the National Transformation Program (NTP) and the 
National Industrial Development and Logistics Program (NIDLP). While the NTP focuses on improving 
the quality, sustainability, and size of the ICT se ctor and making access more inclusive, the NIDLP 
primarily aims to develop the enabling environment for "Industry 4.0" developments, with cloud 
computing and networking (among devices and for the Internet of Things) identified as key enablers.  
4.135.   Telecom comp anies operating in this well -developed sector181 created revenues of 
SAR 78.8 billion in 2019.182 Following the start of biometric SIM card registration in 2016, the 
number of mobile subscriptions and pre -paid cards per 100 inhabitants fell from 166 to aroun d 121 
in 2017, representing SIM cards actually in use.183 At the same time, subscription rates for fixed -
line telephony and Internet access increased between 2015 and 2019 (Table 4.21), and almost all 
(95.7% ) of Saudi residents use  the Internet .184 The avera ge download speed of mobile Internet 
increased significantly to 84.6  Mbps by October 2020185, and Saudi  Arabia was ranked 32nd in terms 
of cost for fixed -broadband telephony in 2019 by the International Telecommunication Union (ITU). 
A universal access and service policy is in place. The Universal Service Fund financed telecom 
infrastructure and service in rural and remote areas inhabited by 4.8 million people until 2017, when 
 
177 Investment in real estate funds in the cities of Mecca and Medina remains restricted to 
Saudi  nationals.  
178 CMA, Allowing Foreigners to Invest Directly in Debt Instruments. Viewed at: 
https://cma.org.sa/en/Market/NEWS/Pages/CMA_N_2770.aspx . However, converting such instruments into 
shares is subject to the same restrictions as directly investing in shares.  
179 The 2019 IMF Article IV report states that the "first foreign investor had been permitted into the debt 
market". IMF (2019), Saudi Arabia: 2019 Article IV Consultation –Press Release and St aff Report, IMF Country 
Report No. 19/290.  
180 Ministry of Communications and Information Technology, ICT Sector Strategy 2023: Saudi Arabia . 
Viewed at https://www.mcit.gov.sa/s ites/default/files/strategy_summary.pdf . 
181 Saudi Arabia ranks 45/121 in the Network Readiness Index (NRI) and 38/141 in "ICT adoption" in 
the World Economic Forum's 2019 Global Competitiveness Report.  
182 Information provided by the authorities.  
183 Not all SI M cards that had been issued before were registered.  
184 ITU World Telecommunication/ICT Indicators Database.  
185 Speedtest, Speedtest Global Index: Saudi Arabia . Viewed at: https://www.speedtest.net/global -
index/saudi -arabia#mobile . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  it was replaced by new initiatives as part of the NTP.186 High-speed mobile broadba nd covered 70% 
of the population in rural areas at the end of 2020.  
4.136.   The provision of telecom services is competitive overall, with three mobile operators 
(Saudi  Telecommunications Company (STC), Etihad Etisalat (Mobily), and Mobile Telecommunication 
Compan y Saudi Arabia (Zain)) holding unified licences and owning mobile networks, and 
two additional mobile virtual network operators (MVNOs) (Virgin Mobile and Lebara) providing 
services. In early 2020, the regulator (the Communications and Information Technolo gy Commission  
(CITC)) issued a request for applications for two additional MVNO licences, open to consortia having 
a foreign partner187, and later extended the deadline for applications by seven months in total. The 
number of fixed -line operators increased from two  in 2016 to five in 2019188, while seven operators 
provide Internet services. The market share of the top (as well as of the top three) mobile and 
Internet service providers declined during the review period, indicating competition. Saudi  Arabia 
(like other GCC member States) was an early adopter of 5G, and two operators (STC and Zain) 
launched 5G networks in 2019, while the third (Mobily) launched one in 2020.  
Table 4.21 Telecommunications indicators, 2015 -19 
 
2015  2016  2017  2018  2019  
Subscriptions (including pre -paid) per 100 
inhabitants       
 Fixed -line telephony  11.81  13.07  14.08  15.99  15.95  
 Mobile telephony  166.46  147.74  121.48  122.57  120.51  
 Internet  125.23  93.34  109.68  131.33  134.5  
Number of active providers       
 Fixed -line 2 2 4 4 5 
 Mobile  5 5 5 5 5 
 Internet  7 7 7 7 7 
Market share of top provider       
 Fixed -line 98.7%  97.1%  97.2%  97.4%  98.7%  
 Mobile  58.6%  49.6%  53.0%  48.3%  50.0%  
 Internet  44.5%  48.9%  48.9%  43.2%  40.9%  
Market share of top three providers       
 Fixed -line 100%  100%  100%  100%  100%  
 Mobile  97.0%  92.9%  92.1%  89.3%  89.3%  
 Internet  98.6%  93.4%  93.1%  90.1%  89.5%  
Source:  Information provided by the authorities.  
4.137.   According to the ITU, prices for service bundles are affordable, with prices for an 
internationally comparable mobile data basket at 1% of GNI per capita and for a fixed -broadband 
basket at 1.2% of GNI per capita. Compared with peers, Saudi Ar abia ranks between 41st and 58th 
in terms of cost relative to per capita income (Table 4 .22). For the STC, a dominant service provider 
in the market189, tariff increases and price changes that do not pass a cost -related test require retail 
tariff approval b y the CITC, while other price changes by the dominant service provider and all 
changes by other providers need to be notified to and can be rejected by the CITC for reasons of 
price discrimination or anti -competitive pricing.190 Wholesale tariff changes by the dominant service 
provider require approval as well.  
 
186 The NTP contains an initiative to stimulate deployment of ICT services in remote areas.  
187 The largest foreign partner is required to own at least 15% of a consortium's share capital.  
188 Zain and Mo bily entered the market in 2016 after obtaining unified licences, and in 2019, the CITC 
issued a fixed telecommunication licence to Integrated Telecom Company.  
189 The CITC designated the STC as a dominant service provider, according to CITC Decision 
No. 277/1431 from 2010. Viewed at: www.citc.gov.sa/en/Decisions/Pages/277 -1431.aspx . 
190 The CITC adopted revised Retail Telecommunications Tariff Regulations on 15/10/1441H 
(7 June 2020).  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table 4.22 Pricing data for mobile telephony, 2019  
Type of basket  Rank  as % 
of 
GNI 
p.c. USD PPP$ Monthly 
voice call 
allowance 
(in 
minutes)  Monthly 
SMS 
allowance  Monthly 
data 
allowance 
(in MB)  Tax rate 
included  
High consump -
tion mobile data 
and voice basket  41 1.2 22.00  45.14  500 70 2,000 5.0 
Low consump -
tion mobile data 
and voice basket  52 1.0 18.67  38.30  500 20 2,000  5.0 
Mobile voice 
basket  46 0.7 11.87  24.35  n.a. n.a. n.a. 5.0 
Mobile data 
basket  58 1.0 17.33  35.57  n.a. n.a. 2.0 5.0 
n.a. Not applicable.  
Source:  ITU (2019), Measuring Digital Development: ICT Price Trends 2019 . 
4.138.   The Telecommunications Act, 2001, and its Bylaws remain unchanged and set out the 
regulatory framework for the telecommunications sector, with the CITC as the ICT regulator 
according to the CITC Ordinance (last amended in 2003).191 The Ministry of Communications and 
Information Technology sets the overall policy framework for the communications and ICT sector. 
During the review period,  the CITC introduced many regulatory changes aimed at increasing 
competition and attracting investment (see below). In 2018, royalty fees for telecommunication 
service s were also adjusted in a deal that saw telecom operators commit to additional investment in 
infrastructure.  
4.139.   The CITC manages the radio spectrum based on a national frequency plan, making it 
available to users through licensed (exclusive use) or unlicense d (non -exclusive use) spectrum. 
Since 2017, the CITC licensed an additional 800 MHz of frequency bands (largely for 5G), and with 
1110 MHz of IMT spectrum licensed to five operators. Saudi Arabia is ranked second among G20 
countries for total spectrum allo cated for telecommunication services.192 As outlined in the NTP under 
Vision 2030, the CITC issued its 2020 -25 National Spectrum Strategy in early 2020, aiming to 
increase access to radio spectrum to support innovation and competition in the sector. In July  2020, 
the CITC launched public consultations to establish a roadmap for what, when, and how different 
frequency bands will be available for release and use in the future, a process ongoing at the time of 
writing.  
4.140.   The licensing framework consists of two t ypes of telecommunication licen ces: Facility -Based 
Provider (FBP) individual licences and multiple "class licences". Individual licences include a 
technology - and service -neutral unified licence193 (introduced in 2016, three issued194), a fixed 
services licence (two issued), and a data service provider licence (one issued). Class licences are 
issued to authorize more than one service -based provider to offer specific services, imposing 
identical condi tions on all licensees for the specific service authorized. Where specific telecom 
services are covered by class licen ces, FBPs are also required to obtain relevant class licences before 
offering such service(s). The CITC is permitted to limit the number o f some class licen ces and allocate 
them using defined procedures (Class A)195, while other licences (Class B) may not be restricted in 
 
191 In 2019, the CITC also assumed the regulatory and supervisory functions of the postal sector. CITC, 
About CITC, Roles and Responsibilities . Viewed at: www.citc.gov.sa/en/aboutus/pages/visionandmission.aspx . 
192 CITC, KSA Ranked 2nd of G20 Countries in Allocation of Globally Identified Frequency Banks for 
Providing Public Mobile Telecommunica tion Services , 10 July 2019. Viewed at: 
www.Citc.gov.sa/en/mediacenter/pressreleases/pages/2019071001.aspx . 
193 A unified license allows FBPs to provide a wide range of fixed, mobile, data, and other services.  
194 In 2016, the CITC issued unified licences and extended their duration to two operators other than the 
incumbent.  
195 Class A licences are required for MVNOs and Internet -of-Things Virtual Network Operators. The Rules 
and Conditions for MVNO Services and IoT -NVO Services Provision document was approved on 
27 October  2018 under Decision No. 399/1440.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  number or allocated competitively.196 Given technical developments and past incremental changes 
to the licensing framework,  the CITC started to review the licensing regime more generally in 2018 
in order to align it with international best practices. Following public consultations in 2019197, the 
CITC aims to introduce a new licensing framework in 2021, which would consist of: (i) individual 
licences (including unified, wholesale, and carrier service provider licences); and (ii) a general class 
licence. Existing licences will be transferred to the new framework. Portability has been available for 
mobile numbers since 2006 and fo r fixed numbers since the third quarter of 2020.  
4.141.   General provisions for interconnection and access are defined in the CITC statutes and 
interconnection rules (last updated in 2016198), aiming to ensure fair and non -discriminatory 
provision of interconnectio n services to support competition. They also require the STC, as dominant 
service provider, to prepare a reference interconnection offer (RIO) defining a standard set of 
commercial, technical, and operational conditions through which interconnection servic es are 
provided. In 2020, the CITC approved an updated RIO issued by the STC. During the review period, 
the CITC complemented the interconnection rules with a Regulatory Framework on Interconnection 
for IP Based Networks, International Cable Landing Points , and Leasing of Dark Fiber. To promote 
fair competition, the CITC significantly reduced the maximum price for termination fees for both 
fixed and mobile calls in 2017 and 2020.  
4.142.   The regulatory environment provides for the sharing of physical infrastructure199, and in 
January  2016, the CITC issued revised guidelines for access to physical facilities.200 The guidelines 
provide the basis for mutually agreed access agreements and set out rules for requesting access to 
telecom infrastructure and passive network el ements. Facility owners are required to respond to 
such requests and provide negotiated access with few exceptions, and the guidelines also require 
the dominant service provider to provide a Reference Access Offer if requested by the CITC. In 2018, 
the CIT C issued Rules for ICT Infrastructure Provision and Deployment in New Developments, 
encouraging coordination among stakeholders for the roll -out of ICT infrastructure and promoting 
competition in the provision of ICT infrastructure and service s.201 The CITC  also launched a new 
licence for the provision of wholesale infrastructure services in 2018202, and issued guidelines and 
rules for Fiber Wholesale Bitstream Access Agreements in 2019.203 In mid -2020, based on these 
guidelines, an open access agreement among  all telecom service providers for the provision of fibre -
to-the-home broadband services independent of fibre infrastructure ownership entered into force, 
covering over 3.5 million households.204  
4.143.   Other regulatory changes during the review period were based  on priorities outlined in 
Vision  2030 and the ICT Sector Strategy, and include establishing regulatory frameworks: (i) for 
cloud computing (including localization requirements for certain sensitive data) in 2019 and the 
Internet of Things in September 201 9; (ii) that revised the Quality of Service Framework in 2018 to 
ensure minimum acceptable levels of service; (iii) for mergers and acquisitions in 2018; and (iv)  that 
updated regulations to reduce spam in 2018.205 
 
196 Investors can currently apply for 15 Class B licences to pro vide communication and information 
technology services. CITC, Investors Guide for Class B Licenses . Viewed at: 
www.citc.gov.sa/ar/services/licensing/documents/invest orguideen.pdf . 
197 CITC, A Public Consultation Document on the Proposed Regulatory and Licensing Framework , 
April 2019. Viewed at: www.Citc.gov.sa/en/new/publicConsulta tion/Documents/144006_1_E.pdf . 
198 See Decision No. 333/1437 from 18 January 2016, approving the Interconnection Rules document.  
199 See Article 36 of the Telecom Act and Article 28 of the Telecom Bylaw.  
200 See Decision No. 333/1437 from 18 January 2016, approv ing the Rules for Access to Physical 
Facilities document.  
201 See Decision No. 392/1439 from 27 June 2018 approving the Rules for ICT Infrastructure Provision 
and Deployment in New Developments. "New Developments" refers to new real estate developments.  
202 CITC, Communications and Information Technology Commission Launches a New License for 
Wholesale Infrastructure Services , 19 July 2018. Viewed at: 
https://www.citc.gov. sa/en/mediacenter/pressreleases/Pages/2018071901.aspx . 
203 See Decision No. 412/1441 from 27 November 2018, approving the Fiber Bitstream Rules and 
Guidelines.  
204 CITC, Broadband Services in Saudi Arabia Set to Receive Significant Boost from New Open Access 
Initiative , 23 February 2020. Viewed at: 
https://www.citc.gov.sa/en/mediacenter/pressreleases/Pages/2020022301.aspx . 
205 See Cloud Computing Regulatory Framework (Versi on 2) adopted 12 February 2019; CITC Decision 
No. 391/1439 from 27 June 2018, replacing the Quality of Service Framework; Procedural Rules for Mergers WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  4.144.   As part of its accession to the WTO, Saudi Arabia committed to the telecom reference paper, 
while reserving the right to limit the foreign equity share of commercially present telecom service 
suppliers to between 60 and 70%, following a transition period until 2008. There are no limitations 
on national treatment for cross -border supply, consumption abroad, or commercial presence. Since 
2016, there have been no foreign equity limitations for retail and wholesale operations (including in 
the telecommunications sector), although requirements for the share of Saudi  employees ( Nitiqat ) 
are in place and depend on the size of the firm in the telecom sector.  
E-commerce  
4.145.   The Ministry of Commerce and Investment (MOC) issued an E -Commerce Law that became 
effective in October 2019 with implementing regulati ons adopted and implemented from 
31 January  2020.206 The Law regulates e -commerce between consumers in Saudi Arabia and service 
providers based anywhere in the world (including transactions between individuals), and contains 
clauses on consumer data protect ion, transparency in contracting and electronic advertisements, 
consumer rights (including returns and cancellations under certain circumstances), and 
licensing/registration requirements for traders and electronic platforms. According to the authorities, 
the new framework increased trust in online transactions and facilitated consumers raising cases 
related to e -commerce to the authorities as a result of a strengthened consumer protection 
framework.  
 
 
and Acquisitions in Communications and Information Technology Sector adopted 1439H (2018); and Decision 
No. 395/1439 from 16  July 2018 approving the Regulation for Reduction of SPAM, respectively.  
206 The Electronic Commerce Law was issued by Royal Decree No. M/126 on 10 July 2019 and entered 
into force on 24  October 2019.  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS sections and major HS chapters/subheadings, 
2015 -19 
HS Section  2015  2016  2017  2018  2019  
Total exports (USD million)  203,550.2  183,579.5  221,835.0  294,373.5  261,603.3  
  (% of total)  
01 Live animals and products  0.8 0.9 0.8 0.5 0.6 
02 Vegetable products  0.2 0.2 0.2 0.1 0.2 
03 Fats and oils  0.1 0.1 0.1 0.1 0.1 
04 Prepared food, beverages and tobacco  0.8 0.9 0.7 0.5 0.6 
05 Mineral products  75.3 74.4 77.0 79.0 77.0 
06 Chemicals and products thereof  7.7 7.3 6.4 6.8 7.1 
07 Plastics and rubber  7.6 8.1 7.8 7.2 7.4 
08 Raw hides and skins; leather, fur  skins 
and articles thereof  0.0 0.0 0.0 0.0 0.0 
09 Wood, cork, straw  0.0 0.0 0.0 0.0 0.0 
10 Pulp of wood; paper and paperboard  0.4 0.4 0.3 0.3 0.3 
11 Textiles and textile articles  0.3 0.3 0.2 0.2 0.2 
12 Footwear, headgear, etc.  0.0 0.0 0.0 0.0 0.0 
13 Articles of stone, plaster, cement  0.3 0.3 0.2 0.2 0.2 
14 Precious stones and metals  0.3 0.7 0.5 0.3 0.6 
15 Base metals and articles thereof  2.0 2.1 1.9 1.9 1.7 
16 Machinery, electrical equipment  1.4 1.5 1.2 1.1 1.2 
17 Transport equipment  2.3 2.3 2.1 1.4 2.3 
18 Precision equipment  0.1 0.1 0.1 0.1 0.1 
19 Arms and ammunition  0.2 0.1 0.0 0.0 0.0 
20 Miscellaneous manufactured articles  0.2 0.2 0.2 0.1 0.2 
21 Works of art, etc.  0.0 0.1 0.1 0.1 0.2 
Source:  WTO Secretariat's calculations, based on General Authority for Statistics  data. Viewed at: 
https://www.stats.gov.sa/en . WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table A1. 2 Merchandise imports by HS sections and major HS chapters/subheadings, 
2015 -19 
HS Section  2015  2016  2017  2018  2019  
Total exports (USD million)  174,675.6  140,169.6  134,519.1  137,064.7  153,163.1  
  (% of total)  
01 Live animals and products  3.7 3.8 3.7 3.6 3.4 
02 Vegetable products  5.2 5.8 6.3 6.5 5.4 
03 Fats and oils  0.5 0.7 0.7 0.7 0.6 
04 Prepared food, beverages and tobacco  4.7 5.9 5.6 5.1 4.8 
05 Mineral products  1.4 2.0 3.3 4.2 3.1 
06 Chemicals and products thereof  8.4 9.2 10.0 10.2 9.4 
07 Plastics and rubber  3.4 3.5 3.4 3.5 3.6 
08 Raw hides and skins; leather, fur  skins 
and articles thereof  0.3 0.4 0.4 0.4 0.4 
09 Wood, cork, straw  1.0 0.9 0.8 0.8 0.8 
10 Pulp of wood; paper and paperboard  1.3 1.3 1.4 1.4 1.2 
11 Textiles and textile articles  3.3 3.8 3.8 3.6 4.0 
12 Footwear, headgear, etc.  0.6 0.8 0.7 0.7 0.7 
13 Articles of stone, plaster, cement  1.4 1.4 1.4 1.3 1.3 
14 Precious stones and metals  3.3 2.1 2.2 2.2 2.4 
15 Base metals and articles thereof  9.8 9.0 8.7 8.6 8.5 
16 Machinery, electrical equipment  27.2 24.6 24.1 22.0 20.9 
17 Transport equipment  18.4 17.9 15.9 16.7 20.6 
18 Precision equipment  2.6 2.5 2.8 3.1 2.9 
19 Arms and ammunition  1.3 2.0 2.1 2.1 1.7 
20 Miscellaneous manufactured articles  2.3 2.3 2.4 2.3 2.4 
21 Works of art, etc.  0.0 0.0 0.0 0.9 1.9 
Source:  WTO Secretariat's calculations, based on General Authority for Statistics  data. Viewed at: 
https://www.stats.gov.sa/en . 
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  Table A1. 3 Merchandise exports by destination, 2015 -19 
 
2015  2016  2017  2018  2019  
Total exports (USD million)  203,550.2  183,579.5  221,835  294,373.5  261,603.3   
(% of total)  
Americas  12.4 11.4 10.1 10.7 6.9 
 United States  10.5 9.7 8.3 8.7 5.0 
 Other America  1.9 1.8 1.8 2.0 1.9 
 Canada  0.8 0.7 0.9 1.0 1.0 
Europe  13.5 13.4 13.1 14.9 14.5 
 EU-28 12.1 11.9 11.7 13.5 13.1 
 Netherlands  1.7 2.0 2.4 3.2 2.8 
 Belgium  1.9 2.4 1.9 2.7 2.2 
 Spain  1.8 1.6 1.7 1.7 1.7 
 France  2.1 1.9 1.5 1.8 1.6 
 Italy 1.6 1.5 1.6 1.7 1.5 
 EFTA 0.1 0.2 0.2 0.2 0.2 
 Other Europe  1.4 1.2 1.1 1.2 1.1 
 Turkey  1.4 1.2 1.2 1.2 1.1 
Commonwealth of 
independent states (CIS)  0.0 0.0 0.0 0.1 0.1 
Africa  6.1 6.2 7.1 6.1 6.9 
 Egypt  2.0 2.0 2.3 1.8 2.6 
 South Africa  1.3 1.6 1.8 1.6 1.5 
Middle East  12.7 13.9 13.5 11.3 11.0 
 United Arab Emirates  5.3 6.6 6.9 5.6 5.2 
 Bahrain, Kingdom of  2.7 2.6 2.6 2.5 2.8 
 Jordan  1.5 1.3 1.2 1.1 1.0 
Asia 55.2 55.1 56.2 57.0 60.5 
 China  12.1 11.7 11.7 13.3 18.3 
 Japan  10.6 10.6 12.1 11.2 10.2 
 Other Asia  32.5 33.0 32.4 32.6 32.0 
 India 9.4 9.4 8.9 8.9 10.3 
 Korea, Republic of  8.7 8.3 8.9 8.8 8.0 
 Singapore  3.8 4.8 4.2 3.9 3.3 
 Chinese Taipei  3.1 2.9 2.6 2.5 2.7 
 Thailand  1.8 2.1 2.1 2.0 1.9 
 Indonesia  1.3 1.2 1.2 1.2 1.3 
 Malaysia  1.0 1.0 1.0 1.1 1.2 
 Pakistan  1.3 1.2 1.3 1.1 1.0 
Other  0.0 0.0 0.0 0.0 0.0 
Memo:       
Gulf Cooperation Council (GCC)  10.4 11.7 11.3 9.3 9.1 
Source:  WTO Secretariat's calculations, based on General Authority for Statistics data. Viewed at: 
https://www.stats.gov.sa/en ; and information provided by the authorities.   
  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table A1. 4 Merchandise imports by origin, 2015 -19 
 
2015  2016  2017  2018  2019  
Total imports (USD million)  174,675.6  140,169.6  134,519.1  137,064.7  153,163.1  
  (% of total)  
Americas  17.8 19.1 17.9 18.5 17.5 
 United States  13.7 14.8 13.5 13.7 12.4 
 Other America  4.0 4.3 4.3 4.7 5.1 
 Canada  1.0 0.8 0.8 1.2 1.7 
 Brazil  1.8 2.0 2.0 1.7 1.5 
Europe  30.0 30.1 30.7 29.5 27.6 
 EU-28 25.6 25.9 27.0 25.8 23.5 
 Germany  7.0 6.5 5.9 5.5 4.8 
 France  3.1 3.5 4.3 3.8 3.5 
 Italy 3.0 3.3 3.4 3.1 2.9 
 United Kingdom  2.9 2.4 2.3 2.3 2.1 
 Netherlands  1.0 1.1 1.1 1.3 1.5 
 Spain  1.5 1.9 1.9 1.8 1.4 
 EFTA 2.5 1.9 1.4 1.6 2.0 
 Switzerland  2.3 1.7 1.3 1.4 1.2 
 Other Europe  2.0 2.3 2.3 2.0 2.1 
 Turkey  1.9 2.3 2.2 2.0 2.1 
Commonwealth of independent states (CIS)  1.3 1.1 1.3 1.7 1.6 
Africa  3.5 3.6 3.8 3.0 3.6 
 Egypt  1.3 1.5 1.7 1.1 1.8 
Middle East  8.5 9.0 10.0 12.1 10.9 
 United Arab Emirates  5.1 5.5 6.5 8.5 6.9 
 Oman  0.7 0.8 1.0 1.1 1.2 
 Bahrain, Kingdom of  1.1 1.0 1.0 1.2 1.1 
Asia 38.8 37.0 36.3 35.2 38.8 
 China  14.1 14.4 15.3 15.9 18.4 
 Japan  5.7 5.3 4.1 4.0 4.4 
 Other Asia  19.0 17.4 16.9 15.3 16.0 
 India 3.4 3.7 4.0 4.1 4.3 
 Korea, Republic of  5.7 4.4 3.9 3.2 2.7 
Source:  WTO Secretariat's calculations, based on General Authority for Statistics data. Viewed at: 
https://www.stats.gov.sa/en . 
 
  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Table A3. 1 Import licensing regime, 2020  
HS code  Description  Licensing authority  
25 01 00 30  Sodium chloride  
Ministry of Interior  27.12, except  
27 12 10 00  Paraffin, Vaseline  
31 02 30 00  Explosives, fireworks, gunpowder, propellant 
powders, prepared explosives, detonating fuses, 
percussion or detonating caps, igniters, electric 
detonators, safety fuses, sulphate turpentine oils, 
polymethyl methacrylate, cellulose nitrates, 
aluminium powders and flakes, magnesium 
powder and flakes  31 02 50 00  
36 01 00 00  
36 02 00 00  
36 03 00 10  
36 03 00 90  
25 01 00 30  
35 03 00 10  
38 05 10 00  
39 06 10 00  
39 12 20 00  
76 03 20 00  
81 04 30 00  
36 04 10 00  Lighting fireworks for occasions  
Chapter 93  Arms and ammunitions  
Chapters 28 and 29  Chemicals used in explosives  
ex 87.03  Armoured vehicles  
ex 58 07 10 00  Military uniforms, military badges, etc.  
 
 ex 58 07 90 00  
ex 61 01  
ex 61 03  
ex 62 01  
ex 62 03  
65 05 90 94  Peak caps  
65 06 10 30  Helmets, for military use  
ex 73 26 90 99  Other items of iron and steel, for military use  
83 01 40 20  Security equipment such as security surveillance  
85 25 40 00  Security cameras, CTV systems, anti -theft alarm 
systems  
85 43 89 20  Metal detectors not for use in civil aircraft  
85 31 10 00 Magnetic card or thumb impression operated  
90 22 19 90  Access/exit doors and equipment, metal  
90 22 19 10  Detecting doors and equipment, baggage 
screening equipment  
84 59 61 00  Key cutting, copying and repairing machines and 
instruments of any type  
84 59 69 00  Key cutting, copying and repairing machines and 
instruments of any type  
 Public bid insurance samples  
 Early warning sirens  
 Surveillance systems "K9"  
 Traffic safety devices  
 Chemicals imported by commercial facilities  
Ministry of Commerce   Chemicals regulated under the Convention on the 
Prohibition of Chemical Weapons imported by 
commercial facilities  
 Distillation equipment imported by commercial 
facilities  
 Chemicals imported by oil and electricity 
companies  Ministry of Energy  
Chapter 27  All petroleum products items  
 Chemicals imported by industrial plants  
Ministry of Industry and 
Mineral Resources   Chemicals regulated under the Convention on the 
Prohibition of Chemical Weapons imported by 
industrial plants  
 Distillation equipment imported by industrial 
plants  
84 24 81 10  
84 24 81 20  
84 24 81 30  
84 24 81 90  Irrigation equipment  
Ministry of Environment, 
Water and Agriculture  82.01  Agricultural tractors  
84 13 19  
84 13 19 90 Water pumps  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  HS code  Description  Licensing authority  
84 13 80  
84 38 11 00  
84 38 20 00  
84 32 10 00  
84 32 21 00  
84 32 29 00  Ploughing machinery  
84 32 30 00  
84 32 40 00  
84 32 80 00  Seeders  
84 33 11 00  
84 33 20 00  
84 33 30 00  
84 33 40 00  
84 33 51 00  
84 33 52 00  
84 33 59 00  
84 33 60 00  Harvesting machinery  
31.02  Chemical fertilizers  
31.03  Chemical fertilizers  
31.04  Chemical fertilizers  
31.05, except  
31 02 30 00 and  
31 02 50 00  Chemical fertilizers  
06 02 20 10  Date palm, and seedlings thereof  
38 08 30 00  Herbicides, anti-sprouting products, plant -growth 
regulators  
 Live animals and horses, doves, terrestrial birds, 
rabbits, and animal semen  
Chapters 26, 28, and 29 
Different headings,  
in addition to any other 
relevant headings  Chemical materials used in the preparation or 
composition of agricultural pesticides, soil 
conditioners, fertilizers, veterinary medicines 
Chemicals used by agricultural research centers 
or wastewater research laboratories and centers, 
also chemicals used in water and wastewater 
treatment and the relevant stations  
Chemicals used in desalination of salt water and 
materials used in drilling wells  
Chapters 28 and 29  Chemicals involved in the remanufacturing of 
medical preparations, required by health 
organizations and non -radioactive reagents, and 
precursors  
Saudi Food and Drug 
Authority  ex 30.03  Medicines, for veterinary use  
ex 30.04  Medicines, for veterinary use  
23 09 90 50  Preparations for the animal forage  
 Chemical precursors  
 Unregistered epidermal medicaments  
 Pharmaceutical preparations and supplies for 
clinical studies  
 Unregistered (or pending registration) veterinary 
preparations  
 Distillation equipment imported by medical 
facilities  
 Equipment and products of public medical 
emergency cases  
 Cosmetics  
 Poultry, fish and table egg products  
 Epidermal medicines for personal use  
 Fodder and fodder products  
 Primary products/materials used in 
manufacturing local medical equipment and 
products  
 Laboratory and diagnostic devices "reagents"  
 Medical devices and products, and non -medical 
laboratory reagents for education or non-clinical 
research purposes  
 Imports of medical devices or products for the 
sole purpose of display or training  
 Imported or manufactured to order medical 
devices and products for personal use  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 124 - 
 
  HS code  Description  Licensing authority  
 Medical international samples for quality and 
proficiency testing  
 Medical imaging materials  
 Biomedical products  
 Public health pesticides  
85 25 20 11  Transmission apparatus for military purposes  
Ministry of Communications 
and Information Technology  85 25 20 19  Transmission apparatus whose  operation requires 
a frequency assignment from MCIT  
85 25 20 30  Transmission apparatus whose  operation requires 
a frequency assignment from MCIT  
85 25 20 40  Transmission apparatus whose  operation requires 
a frequency assignment from MCIT  
85 25 20 50  Transmission apparatus whose  operation requires 
a frequency assignment from  MCIT 
85 25 20 60  Transmission apparatus whose  operation requires 
a frequency assignment from MCIT  
85 25 20 90  Video boosters whose operation requires a 
frequency assignment from MCIT  
85.26 in addition to any 
other relevant heading  Transmission apparatus whose  operation requires 
a frequency assignment from MCIT  
85 42 10 00  Mobile telephone chips and prepaid mobile phone 
cards  
 Distribution, sale, and rental of audiovisual media 
content  General Commission for 
Audiovisual Media   Cinematic films, videos and television programs  
 Media content receivers and their accessories 
destined for distribution or retail sale  
01 01 10 10  Arabian breed, pure -bred horses  
Equestrian Club  01 01 10 20  
01 01 90 10  
01 01 90 20  
84 72 30 00  Postage franking machines  Saudi Post  
89 02 00 00  Fishing vessels  Border Security  
 Cultural and archaeological property  General Directorate of 
Archaeology and Museums  
 Products containing currency pictures, models or 
wrappers in shape of currency or otherwise  Saudi Arabia Monetary 
Authority  
 Wild animals, plants and their products thereof, 
according to CITES  National Center for W ildlife 
Development  
 
 Refrigerant devices, technologies and 
instruments  National Center for 
Environmental Compliance   Hazardous waste  
Chapters 26, 28, and 29 
Different headings,  
in addition to any other 
relevant headings  Chemical materials used in the preparation or 
composition of agricultural pesticides, soil 
conditioners, fertilizers, veterinary medicines 
Chemicals used by agricultural research centers 
or wastewater research laboratories and centers, 
also chemicals used in water and wastewater 
treatment and the relevant stations  
Chemicals used in desalination of salt water and 
materials used in drilling wells  
 National Center for 
Environmental Compliance  
(for chemicals falling within 
its competence ) 
Source:  Information provided by the authorities.  
  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 125 - 
 
  Table A3. 2 Products affected by standards and technical regulations, 2016 -20 
Technical regulation and items  International HS Code  
Group 1: Low -voltage electrical equipment and appliances  
Air or vacuum pumps, air or other gas compressors 
and fans; ventilating or recycling hoods 
incorporating a fan, whether or not fitted with filters  841451 / 841459 / 841460 / 841480 / 841490 / 
841581 / 841582 / 841583 / 841590  
Centrifuges, including centrifugal dryers; filtering or 
purifying machinery and apparatus, for liquids or 
gases  842111 / 842112 / 842119 / 842139 / 842191 / 
842199  
Dish washi ng machines; machinery for cleaning or 
drying bottles or other containers; machinery for 
filling, closing, sealing, or labelling bottles, cans, 
boxes, bags, or other containers; machinery for 
capsuling bottles, jars, tubes, and similar containers  842211 / 842219 / 842220  
Electric instantaneous or storage water heaters and 
immersion heaters; electric space heating apparatus 
and soil heating apparatus; electro -thermic hair -
dressing apparatus (for example, hair dryers, hair 
curlers, curling tong heaters) and hand dryers  851610 / 851660 / 851671 / 851679 / 851680  
Electric motors and generators (excluding 
generating sets)  850110 / 850120 / 850131 / 850132 / 850133 / 
850134 / 850140 / 850151 / 850152 / 850153 / 
850161 / 850162 / 850163 / 850164  
Electric filament or discharge lamps, including sealed 
beam lamp units and ultra -violet or infra -red lamps; 
arc-lamps; light -emitting diode (LED) lamps  853910 / 853921 / 853922 / 853929 / 853931 / 
853932 / 853939 / 853941 / 853949 / 853950 / 
853990  
Electrical appa ratus for switching or protecting 
electrical circuits, or for making connections to or in 
electrical circuits (for example, switches, fuses, 
lightning arresters, voltage limiters, surge 
suppressors, plugs, junction boxes)  853510 / 853521 / 853529 / 853530 / 853610 / 
853620 / 853630 / 853641 / 853649 / 853650 / 
853661 / 853690  
Electrical machines and apparatus, having individual 
functions, not specified or included elsewhere in this 
Chapter  854370  
Electrical transformers, static converters (for 
example, re ctifiers) and inductors  850410 / 850431 / 850432  
Electro -mechanical domestic appliances, with self -
contained electric motor, other than vacuum 
cleaners of heading 85.08  850980  
Household or laundry -type washing machines, 
including machines which both wash  and dry  845020 / 845090  
Insulated (including enamelled or anodised) wire, 
cable (including co -axial cable) and other insulated 
electric conductors, whether or not fitted with 
connectors; optical fibre cables, made up of 
individually sheathed fibres, whet her or not 
assembled  with electric conductors or fitted with 
connectors  854411 / 854420 / 854442 / 854449  
Lamps and lighting fittings including searchlights and 
spotlights and parts thereof, not elsewhere specified 
or included; illuminated signs, illuminated 
nameplates and the like, having a permanently fixed 
light source, and parts thereof  940510 / 940520 / 940530 / 940540 / 940599  
Liquid crystal devices not constituting articles 
provided for more specifically in other headings; 
lasers, other tha n laser diodes; other optical 
appliances and instruments, not specified or included 
elsewhere in this Chapter  901380  
Machinery (other than machines of heading 84.50) 
for washing, cleaning, wringing, drying, ironing, 
pressing (including fusing presses), bl eaching, 
dyeing, dressing, finishing, coating or impregnating 
textile yarns, fabrics or made up textile articles   845129 / 847960 / 847989  
Printing machinery used for printing by means of 
plates, cylinders and other printing components of 
heading 84.42; o ther printers, copying machines 
and facsimile machines, whether or not combined; 
parts and accessories thereof  844339  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 126 - 
 
  Technical regulation and items  International HS Code  
Pumps for liquids, whether or not fitted with a 
measuring device; liquid elevators  841350 / 841360 / 841370 / 841381 / 841382  
Refrigerat ors, freezers and other refrigerating or 
freezing equipment, electric or other; heat pumps 
other than air conditioning machines of heading 
84.15  841829 / 841850 / 841861 / 841869  
Vacuum cleaners  850811 / 850819 / 850860 / 850870  
Group 2: Low -voltage electrical equipment and appliances – GMARK  
Air or vacuum pumps, air or other gas compressors 
and fans; ventilating or recycling hoods 
incorporating a fan, whether or not fitted with filters  841451 / 841459 / 841510  
Electrical appara tus for switching or protecting 
electrical circuits, or for making connections to or in 
electrical circuits (for example, switches, relays, 
fuses, surge suppressors, plugs, sockets, lamp -
holders and other connector, junction boxes)  853669 / 853690  
Electri cal transformers, static converters (for 
example, rectifiers) and inductors  850440 / 851610 / 851629 / 851631 / 851632 / 
851633 / 851640 / 851650 / 851660 / 851672 / 
851679 / 851690  
Household or laundry -type washing machines, 
including machines which both  wash and dry  845011 / 845012 / 845019  
Insulated (including enamelled or anodised) wire, 
cable (including co -axial cable) and other insulated 
electric conductors, whether or not fitted with 
connectors; optical fibre cables, made up of 
individually sheathed fibres, whether or not 
assembled  with electric conductors or fitted with 
connectors  854442  
Machinery (other than machines of heading 84.50) 
for washing, cleaning, wringing, drying, ironing, 
pressing (including fusing presses), bleach ing, 
dyeing, dressing, finishing, coating or impregnating 
textile yarns, fabrics or made up textile articles   845121  
Refrigerators, freezers and other refrigerating or 
freezing equipment, electric or other; heat pumps 
other than air conditioning machines of heading 
84.15  841810 / 841821 / 841830 / 841840  
Group 3: Children's toys  
Bicycles and other cycles (including delivery 
tricycles), not motorized  871200  
Modelling pastes, including those put up for 
children's amusement  340700  
Tricycles, scooters, pedal cars and similar wheeled 
toys; doll carriages; dolls; other toys; reduced -size 
(scale) models and similar recreational models, 
working or not; puzzles of all kinds  950300  
Video game consoles and machines, articles for 
funfair, table or parlour games, including pintables, 
billiards, special tables for casino games and 
automatic bowling alley equipment  950490  
Group 4: Tyres  
New pneumatic tyres, of rubber of a kind used on 
motor cars (including station wagons and racing 
cars) 401110 / 401120 / 401140  
Group 5: Auto spare parts  
Anti-freezing preparations and prepared de -icing 
fluids  382000  
Base metal mountings, fittings and similar articles 
suitable for furniture, doors, staircases, windows, 
blinds, coachwork, saddlery, trunks, chests, caskets 
or the like; base metal hat -racks, hat -pegs, brackets 
and similar fixtures; castors with mountings  830230  
Centrifuges, including centrifugal dryers; filtering or 
purifying machinery and apparatus, for liquids or 
gases  842123 / 842131  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 127 - 
 
  Technical regulation and items  International HS Code  
Electric filament or discharge lamps, including sealed 
beam lamp units and ultra -violet or infra -red lamps; 
arc-lamps; light -emitting diode (LED) lamps  853921  
Electrical ignition or starting equipment of a kind 
used for spark -ignition or compression -ignition 
internal combustion engines (for example, ignition 
magnetos, magneto -dynamins, ignition coils, 
sparking plugs and glow plugs, starter motors); 
generators  851110 / 851120 / 851130 / 851140 / 851150 / 
851180  
Electrical  lighting or signalling equipment (excluding 
articles of heading 85.39), windscreen wipers, 
defrosters and demisters, of a kind used for cycles 
or motor vehicles  851220 / 851230 / 851240 / 851290  
Endless synchronous belts, of an outside 
circumference exce eding 60 cm but not exceeding 
150 cm  401035 / 401036  
Endless transmission belts of trapezoidal cross -
section (V -belts), V -ribbed, of an outside 
circumference exceeding 60 cm but not exceeding 
180 cm  401031 / 401032 / 401033 / 401034  
Friction material and  articles thereof (for example, 
sheets, rolls, strips, segments, washers, pads), not 
mounted, for brakes, for clutches or the like, with a 
basis of asbestos, of other mineral substances or of 
cellulose, whether or not combined  681381  
Gaskets, washers and other seals  401693  
Glass mirrors, whether or not framed, including 
rear-view mirrors  700910  
Insulated (including enamelled or anodised) wire, 
cable (including co -axial cable) and other insulated 
electric conductors, whether or not fitted with 
connectors; optical fibre cables, made up of 
individually sheathed fibres, whether or not 
assembled  with electric conductors or fitted with 
connectors  854430  
Mixtures and preparations, radiator coolant 
containing ethyl glycol  382499  
Padlocks and locks (k ey, combination or electrically 
operated), of base metal; clasps and frames with 
clasps, incorporating locks, of base metal; keys for 
any of the foregoing articles, of base metal  830120  
Parts and accessories of the motor vehicles of 
headings 87.01 to 87.0 5 870810 / 870821 / 870830 / 870870 / 870880 / 
870891 / 870894 / 870895 / 870899  
Safety glass, consisting of toughened (tempered) or 
laminated glass  700711 / 700721 / 700729  
Seats (other than those of heading 94.02), whether 
or not convertible into beds,  and parts thereof  940120  
Group 6: Biodegradable plastic products  
Sacks and bags (including cones) of polymers of 
ethylene  392321  
Sacks and bags, of a kind used for the packing of 
goods  630533  
Self-adhesive plates, in rolls of a width not 
exceeding 20 cm  391910  
Group 7: Building materials - part 1 : sectors of metals and their alloys for buildings and 
constructions  
Aluminium bars, rods and profiles  760410 / 760421 / 760429  
Aluminium plates, sheets and strip, of a thickness 
exceeding 0.2 mm  760611 / 760612 / 760691 / 760692  
Aluminium structures (excluding prefabricated 
buildings of heading 94.06) and parts of structures 
(for example, bridges and bridge -sections, towers, 
lattice masts, roofs, roofing frameworks, doors and 
windows and their frames and thresholds for doors)  761090  
Aluminium wire  760511 / 760519 / 760521 / 760529  
Angles, shapes and sections of iron or non -alloy 
steel 721610 / 721621 / 721622 / 721631 / 721632 / 
721633 / 721640 / 721650 / 721661 / 721691  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 128 - 
 
  Technical regulation and items  International HS Code  
Bars a nd rods, hot -rolled, in irregularly wound coils  721310 / 721320 / 721391 / 721399 / 721410 / 
721420 / 721430 / 721491 / 721510 / 721550 / 
721590  
Bars and rods, hot -rolled, in irregularly wound coils, 
of other alloy steel  722710 / 722720 / 722790  
Bars and  rods, hot -rolled, in irregularly wound coils, 
of stainless steel  722100  
Flat-rolled products of iron or non -alloy steel  720810 / 720825 / 720826 / 720827 / 720836 / 
720837 / 720838 / 720839 / 720840 / 720851 / 
720852 / 720853 / 720854 / 720890 / 720915 / 
720916 / 720917 / 720918 / 720925 / 720926 / 
720927 / 720928 / 721011 / 721012 / 721020 / 
721030 / 721041 / 721049 / 721050 / 721061 / 
721070 / 721090 / 721113 / 721114 / 721123 / 
721210 / 721220 / 721230 / 721240 / 721250 / 
721260  
Flat-rolled pr oducts of other alloy steel, of a width of 
600 mm or more  722511 / 722530 / 722540 / 722550 / 722591 / 
722592  
Flat-rolled products of other alloy steel, of a width of 
less than 600 mm  722611 / 722620 / 722691 / 722692  
Flat-rolled products of stainless st eel, of a width of 
less than 600 mm  722011 / 722012 / 722020 / 722090  
Flat-rolled products of stainless steel, of a width of 
600 mm or more  721911 / 721912 / 721913 / 721914 / 721921 / 
721922 / 721923 / 721924 / 721931 / 721932 / 
721933 / 721934 / 721935 / 721990  
Other alloy steel in ingots or other primary forms; 
semi-finished products of other alloy steel  722410 / 722490  
Other articles of iron or steel  732599  
Other bars and rods of other alloy steel; angles, 
shapes and sections, of other alloy steel; hollow drill 
bars and rods, of alloy or non -alloy steel  722810 / 722820 / 722830 / 722840 / 722850 / 
722860 / 722870 / 722880  
Other bars and rods of stainless steel; angles, 
shapes and sections of stainless steel  722211 / 722219 / 722220 / 722230 /  722240  
Prefabricated buildings  940690  
Railway or tramway track construction material of 
iron or steel, the following: rails, checkrails and rack 
rails, switch blades, crossing frogs, point rods and 
other crossing pieces, sleepers (crossties), fish -
plates, chairs, chair wedges, sole plates  730210 / 730230 / 730240  
Sheet piling of iron or steel, whether or not drilled, 
punched or made from assembled elements; welded 
angles, shapes and sections, of iron or steel  730110 / 730120  
Stainless steel in ingots o r other primary forms; 
semi-finished products of stainless steel  721810 / 721899  
Structures (excluding prefabricated buildings of 
heading 94.06) and parts of structures (for example, 
bridges and bridge sections, lock gates, towers, 
lattice masts, roofs, r oofing frame works, doors and 
windows and their frames and thresholds for doors)  730810 / 730820 / 730840 / 730890  
Tin bars, rods, profiles and wire  800300  
Wire of iron or non -alloy steel  721710 / 721720 / 721730  
Wire of other alloy steel  722920  
Wire of stainless steel  722300  
Wire, rods, tubes, plates, electrodes and similar 
products, of base metal or of metal carbides, coated 
or cored with flux material, of a kind used for 
soldering, brazing, welding or deposition of metal or 
of metal carbides; wire and rods  831110 / 831120 / 831130  
Group 8: Building materials - part 2: insulation and cladding materials  
Articles of asbestos -cement, of cellulose fibre -
cement or the like  681182  
Articles of asphalt or of similar material (for 
example, petroleum bitumen or coal tar pitch)  680710 / 680790  
Articles of cement, of concrete or of artificial stone, 
whether or not reinforced  681019 / 681091 / 681099  
Articles of plaster or of compositions based on 
plaster  680911 / 680919 / 680990  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 129 - 
 
  Technical regulation and items  International HS Code  
Drawn glass and blown glass, in sheets, whether or 
not having an absorbent, reflecting or non -reflecting 
layer, but not otherwise worked  700420 / 700490  
Float glass and surface ground or polished glass, in 
sheets, whether or not having an absorbent - 
reflecting or non -reflecting layer, but not otherwise 
worked  700510 / 700521 / 700529 / 700530  
Glaziers putty, grafting putty, resin cements, 
caulking compounds and other mastics; painter 
fillings  321490  
Multiple -walled insulating units of glass  700800  
Other doors, windows and their frames and 
thresholds for doors  761090  
Other plates, sheets, film, foil and strip, of plastics, 
non-cellular and not reinforced, laminated, of 
polymers of styrene  392030 / 392043 / 392051 / 392061 / 392062 / 
392063 / 392069 / 392071 / 392073 / 392079 / 
392091 / 392092 / 392093 / 392094 / 392099 / 
392111 / 392112 / 392113 / 392114  
Panels, boards, tiles, blocks and similar articles of 
vegetable fibre, of straw or of shavings, chips, 
particles, sawdust or other waste, of wood, 
agglomerated with cement, plaster or other mineral 
binders  680800  
Plates, sheets and strip  400811 / 400821  
Slag wool, rock wool and similar mineral wools 
(including intermixtures thereof), in bulk, sheets or 
rolls 680610 / 680620 / 680690  
Tarred, bituminised or asphalted paper and 
paperboard  481110  
Wallpaper and similar wall coverings, consisting of 
paper coated or covered, on the face side, with a 
grained, embossed, coloured, design -printed or 
otherwise decorated layer of plastics  481120 / 481130  / 481420 / 481490  
Group 9: Building materials - part 3: hydraulic bonding and related products  
Articles of asphalt or of similar material (for 
example, petroleum bitumen or coal tar pitch)  680790  
Articles of cement, of concrete or of artificial stone, 
whether or not reinforced  681011 / 681019  
Articles of plaster or of compositions based on 
plaster  680919  
Exfoliated vermiculite, expanded clays, foamed slag 
and similar expanded mineral materials (including 
intermixtures thereof)  680690  
Gypsum; anhydrite; plasters (consisting of calcined 
gypsum or calcium sulphate) whether or not 
coloured, with or without small quantities of 
accelerators or retarders  252010 / 252020  
Limestone flux; limestone and other calcareous 
stone, of a kind used f or the manufacture of lime or 
cement  252100  
Pebbles, gravel, broken or crushed stone, of a kind 
commonly used for concrete aggregates, for road 
metalling or for railway or other ballast, shingle and 
flint, whether or not heat -treated  251710  
Portland ceme nt, aluminous cement, slag cement, 
super -sulphated cement and similar hydraulic 
cements, whether or not coloured or in the form of 
clinkers  252321  
Prepared additives for cements, mortars or 
concretes  382440 / 382450  
Quicklime, slaked lime and hydraulic lime, other 
than calcium oxide and hydroxide of heading 28.25  252210 / 252220 / 252230  
Refractory cements, mortars, concretes and similar 
compositions, other than products of heading 38.01  381600  
Group 10: Building materials - part 4: bricks, t iles, ceramics, sanitaryware and related products  
Baths, shower -baths, sinks and washbasins  392210  
Bricks, blocks, tiles and other ceramic goods of 
siliceous fossil meals (for example, kieselguhr, or 
diatomite) or of similar siliceous earths  690100  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 130 - 
 
  Technical regulation and items  International HS Code  
Ceramic building bricks, flooring blocks, support or 
filler tiles and the like  690410 / 690490  
Ceramic flags and paving, hearth or wall tiles; 
ceramic mosaic cubes and the like, whether or not 
on a backing; finishing ceramics  690721 / 690722 / 690723 / 69 0730 / 690740  
Ceramic sinks, wash basins, wash basin pedestals, 
baths, bidets, water closet pans, flushing cisterns, 
urinals and similar sanitary fixtures  691010 / 691090  
Lavatory seats and covers  392220  
Machinery, plant or laboratory equipment, whether  
or not electrically heated (excluding furnaces, ovens 
and other equipment of heading 85.14), for the 
treatment of materials by a process involving a 
change of temperature such as heating, cooking  841919  
Marble and travertine, crude or roughly trimmed  251511 / 251512  
Other articles of nickel  750890  
Other baths, shower -baths, washbasins, bidets, 
lavatory pans, seats and covers, flushing cisterns 
and similar sanitary ware, of plastics  392290  
Prefabricated buildings  940690  
Refractory bricks, blocks, tiles and similar refractory 
ceramic constructional goods, other than those of 
siliceous fossil meals or similar siliceous earths  690210 / 690220 / 690290  
Roofing tiles, chimney -pots, cowls, chimney liners, 
architectural ornaments and other cerami c 
constructional goods  690510 / 690590  
Sanitary ware and parts thereof, of iron or steel  732410 / 732421 / 732429 / 732490  
Seats (other than those of heading 94.02), whether 
or not convertible into beds, and parts thereof  940179  
Setts, curb stones and flagstones , of natural stone 
(except slate)  680100  
Table, kitchen or other household articles and parts 
thereof, of aluminium; pot scorers and scouring or 
polishing pads, gloves and the like, of aluminium; 
sanitary ware and parts th ereof, of aluminium  761520  
Table, kitchen or other household articles and parts 
thereof, of copper; pot scorers and scouring or 
polishing pads, gloves and the like, of copper; 
sanitary ware and parts thereof, of copper  741820  
Taps, cocks, valves and simi lar appliances for pipes, 
boiler shells, tanks, vats or the like, including 
pressure -reducing valves and thermostatically 
controlled valves  848180 / 848190  
Worked monumental or building stone (except slate) 
and articles thereof, other than goods of headin g 
68.01; mosaic cubes and the like, of natural stone 
(including slate), whether or not on a backing; 
artificially coloured granules, chippings and powder  680210 / 680221 / 680223 / 680229 / 680291 / 
680292 / 680293 / 680299 / 680300 / 681011 / 
681019 / 681 099 
Group 11: Building materials - part 5: tubes and pipes used in water, electricity and gas networks  
Aluminium tube or pipe fittings (for example, 
couplings, elbows, sleeves)  760900  
Aluminium tubes and pipes  760810 / 760820  
Backed aluminium foil  750720  
Check valves  848130  
Copper tube or pipe fittings (for example, couplings, 
elbows, sleeves)  741210 / 741220  
Copper tubes and pipes  741110 / 741121 / 741122  
Flexible tubes pipes and hoses, having a minimum 
burst pressure of 27.6 MPa  391731  
Flexible tubing of base metal, with or without fittings  830710 / 830790  
Other tubes, pipes and hollow profiles (for example, 
open seam or welded, riveted or similarly closed), of 
iron or steel  730630 / 730640 / 730650 / 730660 / 730661 / 
730669  
Pressure -reducing valves  848110  
Structures (excluding prefabricated buildings of 
heading 94.06) and parts of structures (for example, 
bridges and bridge -sections, lock -gates, towers, 730890  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 131 - 
 
  Technical regulation and items  International HS Code  
lattice masts, roofs, roofing frameworks, doors and 
windows and their frames and thresholds for doors)  
Tube or pipe fittings (for example, couplings, 
elbows, sleeves) of iron or steel  730711 / 730721 / 730722 / 730723 / 730791 / 
730792 / 730793  
Tubes and pipes  750711 / 750712  
Tubes, pipes and hollow profiles, seamless, of iron 
(other than cast iron) or steel  730431 / 730441 / 730451  
Tubes, pipes and hoses, rigid   391729 / 391721 / 391722 / 391723  
Tubes, pipes and hollow profiles, of cast iron  730300  
Tubes, pipes and hoses, of vulcanised rubber other 
than har d rubber, with or without their fittings (for 
example, joints, elbows, flanges)  400912 / 400911 / 400922 / 400921 / 400932 / 
400931 / 400942 / 400941  
Group 12: Detergents  
Finishing agents  380910 / 380991  
Hypochlorites; commercial calcium hypochlorite; 
chlorites; hypobromites  282890  
Organic surface -active agents, whether or not put up 
for retail sale cationic  340212 / 340211 / 340213  
Other organic surface -active agents  340219 / 340290  
Other polishes  340590 
Other soap  340119  
Pickling preparations for metal surfaces; soldering, 
brazing or welding powders and pastes consisting of 
metal and other materials  381010  
Polishes, creams and similar preparations  340510 / 340520 / 340530  
Preparations put up for retail sale  340220  
Scouring pastes and powders and other scouring 
preparations  340540  
Soap in other forms  340120  
Group 13: Doors and windows  
Aluminium structures (excluding prefabricated 
buildings of heading 94.06) and parts of structures 
(for example, bridges and bridge -sections, towers, 
lattice masts, roofs, roofing frameworks, doors and 
windows and their frames and thresholds for doors)  761010  
Base metal mountings, fittings and similar articles 
suitable for furniture, doors, staircases, wind ows, 
blinds, coachwork, saddlery, trunks, chests, caskets 
or the like; base metal hat -racks, hat -pegs, brackets 
and similar fixtures; castors with mountings  830249 / 830260  
Doors and their frames and thresholds  441820  
Doors, windows and their frames and thresholds for 
doors  392520  
Other ceramic articles  691410  
Padlocks and locks (key, combination or electrically 
operated), of base metal; clasps and frames with 
clasps, incorporating locks, of base metal; keys for 
any of the foregoing articles, of base metal  830110  
Shutters, blinds (including Venetian blinds) and 
similar articles and parts thereof  392530  
Structures (excluding prefabricated buildings of 
heading 94.06) and parts of structures (for example, 
bridges and bridge -sections, lock -gates, to wers, 
lattice masts, roofs, roofing frameworks, doors and 
windows and their frames and thresholds for doors)  730830 / 730890  
Windows, French -windows and their frames  441810  
Group 14: Electric self -balancing boards (scooters)  
Tricycles, scooters, pedal cars and similar wheeled 
toys; dolls carriages; dolls; other toys; reduced -size 
(scale) models and similar recreational models, 
working or not; puzzles of all kinds  950300  
Group 15: Electric vehicles  
Motor cars and other motor vehicles pr incipally 
designed for the transport of persons (other than 
those of heading 87.02), including station wagons 
and racing cars  870310  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
Motor vehicles for the transport of 10 or more 
persons, including the driver  870220 / 870230 / 870240  
Group 16: Electrical batteries  
Containing mainly zinc  262019  
Electric accumulators, including separators thereof, 
whether or not rectangular (including square)  850710 / 850720 / 850730 / 850740 / 850750 / 
850760 / 850780 / 850790  
Primary cells and primary batteri es 850610 / 850630 / 850640 / 850650 / 850660 / 
850680 / 850690  
Group 17: Electrical lifts used in buildings and facilities  
Other lifting, handling, loading or unloading 
machinery (for example, lifts, escalators, conveyors, 
cableways)  842810  
Parts suitable for use solely or principally with the 
machinery of headings 84.25 to 84.30  843131  
Group 18: Electronic devices used in electronic smoking systems  
Electrical machines and apparatus, having individual 
functions, not specified or included elsewher e in this 
Chapter  854370  
Group 19: Firefighting equipment and materials  
Mechanical appliances (whether or not hand -
operated) for projecting, dispersing or spraying 
liquids or powders; fire extinguishers, whether or 
not charged; spray guns and similar app liances; 
steam or sand blasting machines and similar jet 
projecting  machines  842410  
Other articles of iron or steel  732510  
Preparations and charges for fire -extinguishers; 
charged fire -extinguishing grenades  381300  
Pumps for liquids, whether or not fitted with a 
measuring device; liquid elevators  841319  
Structures (excluding prefabricated buildings of 
heading 94.06) and parts of structures (for example, 
bridges and bridge -sections, lock -gates, towers, 
lattice masts, roofs, roofing frameworks, doors and 
windows and their frames and thresholds for doors)  730890  
Taps, cocks, valves and similar appliances for pipes, 
boiler shells, tanks, vats or the like, including 
pressure -reducing valves and thermostatically 
controlled valves  848180  
Textile hose piping and similar textile tubing, with or 
without lining, armour or accessories of other 
materials  590900  
Tubes, pipes and hoses, of vulcanised rubber other 
than hard rubber, with or without their fixings (for 
example, joints, elbows, flanges)  400911 / 4 00912 / 400921 / 400922 / 400931 / 
400932 / 400941 / 400942  
Group 20: Fireworks  
Fireworks  360410 / 360490  
Group 21: Food safety in tools and appliances used in the kitchen  
Aluminium casks, drums, cans, boxes and similar 
containers (including rigid or collapsible tubular 
containers), for any material (other than 
compressed or liquefied gas), of a capacity not 
exceeding 300 l, whether or not lined or heat -
insulated  761290  
Cartons, boxes, cases, bags and other packing 
containers, of paper, paperboard, ce llulose wadding 
or webs of cellulose fibres; box files, letter trays, 
and similar articles, of paper or paperboard of a kind 
used in offices, shops or the like  481190 / 481920  
Ceramic tableware, kitchenware, other household 
articles and toilet articles, other than of porcelain  691200 / 691490  
Filter paper and paperboard  482320  
Glassware of a kind used for table, kitchen, toilet, 
office, indoor decoration or similar purposes (other 
than that of heading 70.10 or 70.18)  701310 / 701322 / 701328 /  701333 / 701337 / 
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Hand tools (including glaziers diamonds), not 
elsewhere specified or included; blow lamps; vices, 
clamps and the like, other than accessories for and 
parts of, machine tools or waterjet cutting 
machines; anvils;  portable forges; hand or pedal -
operated  grinding wheels with frameworks   820551  
Hand-operated mechanical appliances, weighing 
10 kg or less, used in the preparation, conditioning 
or serving of food or drink  821000  
Knives and cutting blades, for machines  or for 
mechanical appliances  820830  
Knives with cutting blades, serrated or not (including 
pruning knives), other than knives of heading 82.08, 
and blades thereof  821191 / 821192 / 821193  
Machinery, not specified or included elsewhere in 
this Chapter, for the industrial preparation or 
manufacture of food or drink, other than machinery 
for the extraction or preparation of animal or fixed 
vegetable fats or oils  843860  
Other articles of nickel  750890  
Other articles of tin  800700  
Presses, crushe rs and similar machinery used in the 
manufacture of wine, cider, fruit juices or similar 
beverages  843510 / 843590  
Spoons, forks, ladles, skimmers, cake -servers, fish -
knives, butter -knives, sugar tongs and similar 
kitchen or tableware  821510 / 821520 / 82 1591 / 821599  
Stoppers, caps and lids (including crown corks, 
screw caps and pouring stoppers), capsules for 
bottles, threaded bungs, bung covers, seals and 
other packing accessories, of base metal  830910 / 830990  
Table, kitchen or other household articl es and parts 
thereof, of aluminium; pot scourers and scouring or 
polishing pads, gloves and the like, of aluminium; 
sanitary ware and parts thereof, of aluminium  761510  
Table, kitchen or other household articles and parts 
thereof, of iron or steel; iron or steel wool; pot 
scourers and scouring or polishing pads, gloves and 
the like, of iron or steel  732391 / 732392 / 732393 / 732394 / 732399/ 
741810  
Tableware and kitchen ware 392410  
Tableware and kitchenware, of wood  441911 / 441912 / 441990  
Tableware, kitchenware, other household articles 
and toilet articles, of porcelain  691110  
Tanks, casks, drums, cans, boxes and similar 
containers, for any material (other than comp ressed 
or liquefied gas), of iron or steel, of a capacity not 
exceeding 300 l, whether or not lined or heat -
insulated, but not fitted with mechanical or thermal 
equipment  731010 / 731021  
Trays, dishes, plates, cups and the like, of paper or 
paperboard, of  bamboo  482361 / 482369  
Vacuum flasks and other vacuum vessels, complete 
with cases; parts thereof other than glass inners  961700  
Group 22: Games and devices of amusement parks  
Articles and equipment for general physical exercise, 
gymnastics, athletics, other sports (including table 
tennis) or outdoor games, not specified or included 
elsewhere in this Chapter; swimming pools and 
paddling pools  950620 / 950662 / 950669 / 950691  
Roundabouts, swings, shooting galleries and other 
fairground amusem ents; travelling circuses and 
travelling menageries; travelling theatres  950890  
Tricycles, scooters, pedal cars and similar wheeled 
toys; dolls carriages; dolls; other toys; reduced -size 
(scale) models and similar recreational models, 
working or not; puzz les of all kinds  950300  
Video game consoles and machines, articles for 
funfair, table or parlour games, including; pintables, 950430 / 950450  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
billiards, special tables for casino games and 
automatic bowling alley equipment  
Yachts and other vessels for pleasure or sports; 
rowing boats and canoes  890310 / 890399  
Group 23: Gas appliances and their accessories  
Aluminium containers for compressed or liquefied 
gas 761300  
Automatic regulating or controlling instruments and 
apparatus  903220  
Containers for c ompressed or liquefied gas, of iron 
or steel  731100  
Furnace burners for liquid fuel, for pulverised solid 
fuel or for gas; mechanical stokers, including their 
mechanical grates, mechanical ash dischargers and 
similar appliances  841610 / 841620 / 841630 / 841690  
Glass fibres (including glass wool) and articles 
thereof (for example, yarn -woven fabrics)  701990  
Liquid or liquefied -gas fuels in containers of a kind 
used for filling or refilling cigarette or similar lighters 
and of a capacity not exce eding 300 cm3  360610  
Machinery, plant or laboratory equipment, whether 
or not electrically heated (excluding furnaces, ovens 
and other equipment of heading 85.14), for the 
treatment of materials by a process involving a 
change of temperature such as heati ng, cooking  841911  
Other articles of copper  741999  
Stoves, ranges, grates, cookers (including those 
with subsidiary boilers for central heating), 
barbecues, braziers, gas -rings, plate warmers and 
similar non -electric domestic appliances, and parts 
thereo f, of iron or steel  732111 / 732112 / 732181 / 732182 / 732189 / 
732190  
Taps, cocks, valves and similar appliances for pipes, 
boiler shells, tanks, vats or the like, including 
pressure -reducing valves and thermostatically 
controlled valves  848180  
Group 24: Lubricating oils  
Hydraulic brake fluids and other prepared liquids for 
hydraulic transmission, not containing or containing 
less than 70% by weight of petroleum oils or oils 
obtained from bituminous minerals  381900  
Lubricating preparations cont aining petroleum oils or 
oils obtained from bituminous minerals  340319  
Other preparations for the treatment   340399  
Petroleum oils and oils obtained from bituminous 
minerals, other than crude; preparations not 
elsewhere specified or included, containing by 
weight 70% or more of petroleum oils or biodiesel or 
waste  271012 / 271019  
Group 25: Machinery safety - part 1: portable and oriented machines  
Agricultural, horticultural or forestry machinery for 
soil preparation or cultivation; lawn or sports -ground 
rollers  843210 / 843221 / 843229 / 843231 / 843239 / 
843241 / 843242 / 843280 / 843290  
Apparatus based on the use of X -rays or of alpha - 
beta or gamma radiations, whether or not for 
medical, surgical, dental or veterinary uses, 
including rad iography or radiotherapy apparatus, 
X-ray tubes and other X -ray generators, high 
tension generators  902219 / 902290  
Automatic goods -vending machines (for example, 
postage stamp, cigarette, food or beverage 
machines), including money -changing machines  847621 / 847629 / 847681 / 847689 / 847690  
Auxiliary machinery for use with machines of 
heading 84.44, 84.45, 84.46 or 84.47 (for example, 
Jacquards, automatic stop motions, shuttle changing 
mechanisms); parts and accessories suitable for use 
solely or princi pally with the machines  844811 / 844819 / 844820 / 844831 / 844832 / 
844833 / 844839 / 844842 / 844849 / 844851 / 
844859  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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Ball or roller bearings  848210 / 848220 / 848230 / 848240 / 848250 / 
848280 / 848291 / 848299  
Book-binding machinery, including book -sewing 
machines  844010 / 844090  
Calculating machines and pocket -size data 
recording, reproducing and displaying machines with 
calculating functions; accounting machines, postage -
franking machines, ticket -issuing machines and 
similar machine s, incorporating a calculating device  847010 / 847021 / 847029 / 847030 / 847050 / 
847090  
Calendaring or other rolling machines, other than for 
metals or glass, and cylinders thereof  842010 / 842091 / 842099  
Centrifuges, including centrifugal dryers; fil tering or 
purifying machinery and apparatus, for liquids or 
gases  842111 / 842119 / 842121 / 842122 / 842129 / 
842139 / 842191 / 842199  
Converters, ladles, ingot moulds and casting 
machines, of a kind used in metallurgy or in metal 
foundries  845410 / 8454 20 / 845430 / 845490  
Dish washing machines; machinery for cleaning or 
drying bottles or other containers; machinery for 
filling, closing, sealing or labelling bottles, cans, 
boxes, bags or other containers; machinery for 
capsuling bottles, jars, tubes and  similar containers  842230 / 842240 / 842290  
Duplicating machines  847230 / 847290  
Electric (including electrically heated gas), laser or 
other light or photon beam, ultrasonic, electron 
beam, magnetic pulse or plasma are soldering, 
brazing or welding machines and apparatus, whether 
or not capable of cutting; electric machines  851511 / 851519 / 851521 / 851529 / 851531 / 
851539 / 851580 / 851590  
Electric generating sets and rotary converters  850211 / 850212 / 850213 / 850220 / 850231 / 
850239 /  850240  
Electric instantaneous or storage water heaters and 
immersion heaters; electric space heating apparatus 
and soil heating apparatus; electro -thermic hair -
dressing apparatus (for example, hair dryers, hair 
curlers, curling tong heaters) and hand dry ers 851621 / 851629  
Electric sound or visual signalling apparatus (for 
example, bells, sirens, indicator panels, burglar or 
fire alarms), other than those of heading 85.12 or 
85.30  853180 / 853190  
Electrical ignition or starting equipment of a kind 
used for spark -ignition or compression -ignition 
internal combustion engines (for example, ignition 
magnetos, magneto -dynamins, ignition coils, 
sparking plugs and glow plugs, starter motors); 
generators  851190  
Electrical lighting or signalling equipment (e xcluding 
articles of heading 85.39), windscreen wipers - 
defrosters and demisters, of a kind used for cycles 
or motor vehicles  851220  
Electrical signalling, safety or traffic control 
equipment for railways, tramways, roads, inland 
waterways, parking facilities, port installations or 
airfields (other than those of heading 86.08)  853010 / 853080 / 853090  
Electrical transformers, static converters (for 
example, rectifiers) and inductors  850421 / 850422 / 850423 / 850433 / 850434 / 
850440 / 850450 / 8504 90 
Electro -magnets; permanent magnets and articles 
intended to become permanent magnets after 
magnetisation; electromagnetic or permanent 
magnet chucks, clamps and similar holding devices; 
electro -magnetic couplings, clutches and brakes; 
electro -magnetic lift 850511 / 850519 / 850520 / 850590  
Electro -mechanical domestic appliances, with self -
contained electric motor, other than vacuum 
cleaners of heading 85.08  850980 / 850990  
Fishing rods, fishhooks and other line fishing tackle; 
fish landing nets, butte rfly nets and similar nets; 
decoy "birds" (other than those of heading 92.08 or 
97.05) and similar hunting or shooting requisites  950730  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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Fork-lift trucks; other works trucks fitted with lifting 
or handling equipment  842710 / 842720 / 842790  
Gaskets and s imilar joints of metal sheeting 
combined with other material or of two or more 
layers of metal; sets or assortments of gaskets and 
similar joints, dissimilar in composition, put up in 
pouches, envelopes or similar packings; mechanical 
seals 848410 / 848420  / 848490  
Harvesting or threshing machinery, including straw 
or fodder balers; grass or hay mowers; machines for 
cleaning, sorting or grading eggs, fruit or other 
agricultural produce, other than machinery of 
heading 84.37  843311 / 843319 / 843320 / 843330 / 843340 / 
843351 / 843352 / 843353 / 843359 / 843360 / 
843390  
Industrial or laboratory electric (including induction 
or dielectric) furnaces and ovens; other industrial or 
laboratory induction or dielectric heating equipment  851410 / 851420 / 8514 30 / 851440 / 851490  
Knitting machines, stitch -bonding machines and 
machines for making gimped yarn, tulle, lace, 
embroidery, trimmings, braid or net and machines 
for tufting  844711 / 844712 / 844720 / 844790  
Lathes (including turning centres) for removi ng 
metal  845811 / 845819 / 845891 / 845899  
Machinery (other than machines of heading 84.50) 
for washing, cleaning, wringing, drying, ironing, 
pressing (including fusing presses), bleaching, 
dyeing, dressing, finishing, coating or impregnating 
textile yarn s, fabrics or made up textile articles   845110 / 845130 / 845140 / 845150 / 845180 / 
845190  
Machinery and apparatus for soldering, brazing or 
welding, whether or not capable of cutting, other 
than those of heading 85.15; gas -operated surface 
tempering mac hines and appliances  846880 / 846890  
Machinery for making pulp of fibrous cellulosic 
material or for making or finishing paper or 
paperboard  843910 / 843920 / 843930 / 843991 / 843999  
Machinery for preparing or making up tobacco, not 
specified or included elsewhere in this Chapter  847810 / 847890  
Machinery for preparing, tanning or working hides, 
skins or leather or for making or repairing footwear 
or other articles of hides, skins or leather, other than 
sewing machines  845310 / 845320 / 845380 / 845390  
Machinery for sorting, screening, separating, 
washing, crushing, grinding, mixing or kneading 
earth, stone, ores or other mineral substances, in 
solid (including powder or paste) form; machinery 
for agglomerating, shaping or moulding solid mineral 
fuels 847410 / 847420 / 847431 / 847432 / 847439 / 
847480 / 847490  
Machinery for the manufacture or finishing of felt or 
nonwovens in the piece or in shapes, including 
machinery for making felt hats; blocks for making 
hats 844900  
Machinery for working ru bber or plastics or for the 
manufacture of products from these materials, not 
specified or included elsewhere in this Chapter  847710 / 847720 / 847730 / 847740 / 847751 / 
847759 / 847780 / 847790  
Machinery, not specified or included elsewhere in 
this Chap ter, for the industrial preparation or 
manufacture of food or drink, other than machinery 
for the extraction or preparation of animal or fixed 
vegetable fats or oils  843810 / 843820 / 843830 / 843840 / 843850 / 
843880 / 843890  
Machinery parts, not contain ing electrical 
connectors, insulator, coils, contacts or other 
electrical features, not specified or included 
elsewhere in this Chapter  848710 / 848790  
Machinery, apparatus and equipment (other than the 
machine of headings 84.56 to 84.65) for preparing 
or making plates, cylinders or other printing 
components; plates, cylinders and other printing 
components; plates, cylinders and lithographic stone  844230 / 844240 / 844250  
Machinery, plant or laboratory equipment, whether 
or not electrically he ated (excluding furnaces, ovens 841960 / 841981 / 841989 / 841990  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
and other equipment of heading 85.14), for the 
treatment of materials by a process involving a 
change of temperature such as heating, cooking  
Machines and apparatus of a kind used solely or  
principally for the manufacture of semiconductor 
boules or wafers, semiconductor devices, electronic 
integrated circuits or flat panel displays; machines 
and apparatus specified in Note 9(C) to this Chapter  848610 / 848620 / 848630 / 848640 / 848690  
Machines and mechanical appliances having 
individual functions, not specified or included 
elsewhere in this Chapter  847910 / 847920 / 847930 / 847940 / 847950 / 
847971 / 847979 / 847981 / 847982 / 847989 / 
847990  
Machines for assembling electric or electronic  lamps, 
tubes or valves or flashbulbs, in glass envelopes; 
machines for manufacturing or hot working glass or 
glassware  847510 / 847521 / 847529 / 847590  
Machines for cleaning, sorting or grading seed, grain 
or dried leguminous vegetables; machinery used in 
the milling industry or for the working of cereals or 
dried leguminous vegetables, other than farm -type 
machinery  843710 / 843780 / 843790  
Machines for extruding, drawing, texturing or cutting 
manmade textile materials  844400 / 844511 / 844512 / 844513  / 844519 / 
844520 / 844530 / 844540 / 844590  
Machine -tools (including machines for nailing, 
stapling, gluing or otherwise assembling) for 
working wood, cork, bone, hard rubber, hard plastics 
or similar hard materials  846510 / 846520 / 846591 / 846592 / 846593 / 
846594 / 846595 / 846596 / 846599  
Machine -tools (including presses) for working metal 
by forging, hammering or die -stamping; machine -
tools (including presses) for working metal by 
bending, folding, straightening, flattening, shearing, 
punching or notching; presses for working metal  846210 / 846221 / 846229 / 846231 / 846239 / 
846241 / 846249 / 846291 / 846299  
Machine -tools including way -type unit head 
machines for drilling, boring, milling, threading or 
tapping by removing metal, other t han lathes 
(including turning centres) of heading 84.58  845910 / 845921 / 845929 / 845931 / 845939 / 
845941 / 845949 / 845951 / 845959 / 845961 / 
845969 / 845970  
Machine -tools for deburring, sharpening, grinding, 
honing, lapping, polishing or otherwise fi nishing 
metal or cermets by means of grinding stones, 
abrasives or polishing products, other than gear 
cutting, gear grinding or gear finishing machines  846012 / 846019 / 846022 / 846023 / 846024 / 
846029 / 846031 / 846039 / 846040 / 846090  
Machine -tools for planning, shaping, slotting, 
broaching, gear cutting, gear grinding or gear 
finishing, sawing, cutting -off and other machine -
tools working by removing metal or cermets, not 
elsewhere specified or included  846120 / 846130 / 846140 / 846150 / 846190  
Machine-tools for working any material by removal 
of material, by laser or other light or photon beam, 
ultrasonic, electro -discharge, electro -chemical, 
electron beam, ionic -team or plasma are processes  845611 / 845612 / 845620 / 845630 / 845640 / 
845650 / 845 690 
Machine -tools for working stone, ceramics, concrete, 
asbestos -cement or like mineral materials or for cold 
working glass  846410 / 846420 / 846490  
Machining centres, unit construction machines 
(single station) and multi -station transfer machines, 
for working metal  845710 / 845720 / 845730  
Mechanical appliances (whether or not hand -
operated) for projecting, dispersing or spraying 
liquids or powders; fire extinguishers, whether or 
not charged; spray guns and similar appliances; 
steam or sa nd blasting machines and similar jet 
projecting  842420 / 842430 / 842449 / 842482 / 842489 / 
842490  
Metal -rolling mills and rolls thereof  845510 / 845521 / 845522 / 845530 / 845590  
Microphones and stands thereof  851810 / 851822 / 851829 / 851890  
Milking  machines and dairy machinery  843410 / 843420 / 843490  
Moulding boxes for metal foundry; mould bases; 
moulding patterns; moulds for metal (other than 
ingot moulds), metal carbides, glass, mineral 
materials, rubber or plastics  848010 / 848020 / 848030 / 84 8041 / 848049 / 
848050 / 848060 / 848071 / 848079  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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Other agricultural, horticultural, forestry, poultry -
keeping or bee -keeping machinery, including 
germination plant fitted with mechanical or thermal 
equipment; poultry incubators and brooders  843610 / 8436 21 / 843629 / 843680 / 843691 / 
843699  
Other lifting, handling, loading or unloading 
machinery (for example, lifts, escalators, conveyors, 
cableways)  842810 / 842820 / 842831 / 842832 / 842833 / 
842839 / 842840 / 842860 / 842890  
Other machinery for making up paper pulp, paper or 
paperboard, including cutting machines of all kinds  844110 / 844120 / 844130 / 844140 / 844180 / 
844190  
Other machine -tools for working metal or cermets, 
without removing material  846310 / 846320 / 846330 / 846390  
Other moving, grading, levelling, scraping, 
excavating, tamping, compacting, extracting or 
boring machinery, for earth, minerals or ores; pile -
drivers and pile -extractors; snowploughs and snow -
blowers  843010 / 843020 / 843031 / 843039 / 843041 / 
843049 / 8 43050 / 843061 / 843069  
Parts and accessories (other than covers carrying 
cases and the like) suitable for use solely or 
principally with machines of headings 84.70 to 84.72  847321 / 847329 / 847330 / 847340 / 847350  
Parts and accessories suitable for us e solely or 
principally with the apparatus of headings 85.19 to 
85.21  852210 / 852290  
Parts and accessories suitable for use solely or 
principally with the machines of headings 84.56 to 
84.65, including work or tool holders, self -opening 
die heads, dividi ng heads and other special 
attachments for the machines; tool holders  846610 / 846620 / 846630 / 846691 / 846692 / 
846693 / 846694  
Parts suitable for use solely or principally with the 
machinery of headings 84.25 to 84.30  843110 / 843120 / 843131 / 843139 / 843141 / 
843142 / 843143 / 843149 / / 852990  
Parts suitable for use solely or principally with the 
machines of heading 85.01 or 85.02  850300  
Portable electric lamps designed to function by their 
own source of energy (for example, dry batteries, 
accumulators, magnetos), other than lighting 
equipment of heading 85.12  851310 / 851390  
Printing machinery used for printing by means of 
plates, cylinders and other printing components of 
heading 84.42; other printers, copying machines 
and facsimile machi nes, whether or not combined; 
parts and accessories thereof  844311 / 844312 / 844313 / 844314 / 844315 / 
844316 / 844317/ 844319 / 844331 / 844391 / 
844399  
Pulley tackle and hoists other than skip hoists; 
winches and capstans; jacks  842511 / 842519 / 8425 31 / 842539 / 842541 / 
842542 / 842549  
Radio -broadcast receivers capable of operating 
without an external source of power  852719 / 852729 / 852791 / 852799 / 852691  
Self-propelled bulldozers, angledozers, graders, 
levellers, scrapers, mechanical shovels,  excavators, 
shovel loaders, tamping machines and road rollers  842911 / 842919 / 842920 / 842930 / 842940 / 
842951 / 842952 / 842959  
Semiconductor media  852359 / 852380  
Sewing machines, other than book -sewing machines 
of heading 84.40; furniture, bases and covers 
specially designed for sewing machines; sewing 
machine needles  845210 / 845221 / 845229 / 845230 / 845290  
Shavers, hair clippers and hair -removing appliances, 
with self -contained electric motor  851010 / 851020 / 851030 / 851090  
Ships derricks; cranes, including cable cranes; 
mobile lifting frames, straddle carriers and works 
trucks fitted with a crane  842611 / 842612 / 842619 / 842620 / 842630 / 
842641 / 842649 / 842691 / 842699  
Sound recording or reproducing apparatus  851989  
Taps, cocks, valves and similar appliances for pipes, 
boiler shells, tanks, vats or the like, including 
pressure -reducing valves and thermostatically 
controlled valves  848120 / 848140 / 848180  
Telephone sets, including telephones for cellular 
networks or  for other wireless networks; other 
apparatus for the transmission or reception of voice, 
images or other data including apparatus for 
communication in a wired or wireless network   851711 / 851761 / 851762  
Tools for working in the hand, pneumatic, hydraulic 
or with self -contained electric or non -electric motor  846711 / 846719 / 846721 / 846722 / 846729 / 
846781 / 846789 / 846791 / 846792 / 846799  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
Transmission shafts (including cam shafts and crank 
shafts) and cranks; bearing housings and  plain shaft 
bearings; gears and gearing; ball or roller screws; 
gear boxes and other speed changers, including 
torque converters; flywheels and pulleys  848310 / 848320 / 848330 / 848340 / 848350 / 
848360 / 848390  
Weaving machines (looms)  844610 / 844621 / 844629 / 844630  
Weighing machinery (excluding balances of a 
sensitivity of 5 cg or better), including weight 
operated counting or checking machines; weighing 
machine weights of all kinds  842310 / 842320 / 842330 / 842381 / 842382 / 
842389 / 842390  
Grou p 26: Motorcycles  
Motorcycles (including mopeds) and cycles fitted 
with an auxiliary motor, with or without sidecars; 
sidecars  871110 / 871120 / 871130 / 871140 / 871150 / 
871160 / 871190  
Group 27: Paints (pigments) and varnishes  
Colour lakes; preparations as specified in Note 3 to 
this chapter based on colour lakes  320500  
Dyes and preparations based thereon  320411 / 320412 / 320413 / 320414 / 320415 / 
320416 / 320417 / 320419  
Organic composite solvents and thinners, not 
elsewhere specified or  included; prepared paint or 
varnish removers  381400  
Paints and varnishes  320810 / 320820 / 320890 / 320910 / 320990  
Pigments and preparations  320611 / 320619 / 320620 / 320641 / 320642 / 
320650 / 320710 / 320730  
Group 28: Personal protective equipment and clothing  
Articles of apparel  420310  
Articles of yarn, strip or the like of heading 54.04 or 
54.05, twine, cordage, rope or cables, not elsewhere 
specified or included  560900  
Footwear with outer soles of rubber, plastics, leather 
or composition leather and uppers of leather  640340  
Gloves, mittens and mitts  401590  
Headbands, linings, covers, hat foundations, hat 
frames, peaks and chinstraps, for headgear  650700  
Other articles of apparel and clothing accessories  401519  
Other breathi ng appliances and gas masks, 
excluding protective masks having neither, 
mechanical part nor replaceable filters  902000  
Other headgear, whether or not lined or trimmed  650610  
Other made up articles, including dress patterns  630720  
Spectacles, goggles and the like, corrective, 
protective or other  900490  
Stranded wire, ropes, cables, plaited bands, slings 
and the like, of iron or steel, not electrically 
insulated  731290  
Group 29: Trailers and semi -trailers  
Trailers and semi -trailers; other veh icles, not 
mechanically propelled; parts thereof  871610 / 871620 / 871639 / 871640  
Group 30: Truck barriers  
Parts and accessories of the motor vehicles of 
headings 87.01 to 87.05  870810  
Group 31: Textile products  
Articles of a kind normally carried in the pocket or in 
the handbag with outer surface of plastic sheeting or 
of textile materials  420232  
Articles of yarn, strip or the like of heading 54.04 or 
54.05, twine, cordage, rope or cables, not elsewhere 
specified or included  560900  
Artificial filament tow  550210 / 550290  
Artificial filament yarn (other than sewing thread), 
not put up for retail sale, including artificial 
monofilament of less than 67 decitex  540310 / 540331 / 540332 / 540333 / 540339 / 
540341 / 540342 / 540349  
Artificial monofilament of 67 decitex or more and of 
which no cross -sectional dimension exceeds 1 mm; 540500  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
strip and the like (for example, artificial straw) of 
artificial textile materials of an apparent width not 
exceeding 5 mm  
Artificial staple fibres, carded, combed or otherwise 
processed for s pinning  550700  
Artificial staple fibres, not carded, combed or 
otherwise processed for spinning  550410 / 550490  
Artificial flowers, foliage and fruit and parts thereof; 
articles made of artificial flowers, foliage or fruit  670290  
Babies garments and clo thing accessories, knitted or 
crocheted  611120 / 611130 / 611190  
Babies garments and clothing accessories  620920 / 620930 / 620990  
Bed linen, table linen, toilet linen and kitchen linen  630210 / 630221 / 630222 / 630229 / 630231 / 
630232 / 630239 / 630240 / 630251 / 630253 / 
630259 / 630260 / 630291 / 630293 / 630299  
Blankets and travelling rugs  630110 / 630120 / 630130 / 630140 / 630190  
Braids in the piece; ornamental trimmings in the 
piece, without embroidery, other than knitted or 
crocheted; tas sels, pompons and similar articles  580810 / 580890  
Brassieres, girdles, corsets, braces, suspenders, 
garters and similar articles and parts thereof, 
whether or not knitted or crocheted  621210 / 621220 / 621230 / 621290  
Buttons, press -fasteners, snap -fasteners and press -
studs, button moulds and other parts of these 
articles; button blanks  960629  
Carded wool ; fine animal hair, carded or combed  510510 / 510521 / 510529 / 510531 / 510539  
Carpets and other textile floor coverings, knotted, 
whether or not mad e up 570110 / 570190 / 570210 / 570220 / 570231 / 
570232 / 570239 / 570241 / 570242 / 570249 / 
570250 / 570291 / 570292 / 570299 / 570310 / 
570320 / 570330 / 570390 / 570410 / 570420 / 
570490  
Coarse animal hair, or combed  510540  
Coconut, abaca (Manila hemp or Musa textil is Nee), 
ramie and other vegetable textile fibres, not 
elsewhere specified or included, raw or processed 
but not spun; tow, oils and waste of these fibres 
(including yarn waste and garneted stuck)   530500  
Cotton sewing thread, w hether or not put up for 
retail sale  520411 / 520419 / 520420  
Cotton waste (including yarn waste and garneted 
stock)  520210 / 520291 / 520299  
Cotton yarn (other than sewing thread), containing 
85% or more by weight of cotton, not put up for 
retail sale  520511 / 520512 / 520513 / 520514 / 520515 / 
520521 / 520522 / 520523 / 520524 / 520526 / 
520527 / 520528 / 520531 / 520532 / 520533 / 
520534 / 520535 / 520541 / 520542 / 520543 / 
520544 / 520546 / 520547 / 520548  
Cotton yarn (other than sewing thread), containing 
less than 85% by weight of cotton, not put up for 
retail sale  520611 / 520612 / 520613 / 520614 / 520615 / 
520621 / 520622 / 520623 / 520624 / 520625 / 
520631 / 520632 / 520633 / 520634 / 520635 / 
520641 / 520642 / 520643 / 520644 / 520 645 
Cotton yarn (other than sewing thread) put up for 
retail sale  520710 / 520790  
Cotton, carded or combed  520300  
Cotton, not carded or combed  520100  
Curtains (including drapes) and interior blinds; 
curtain or bed valances  630312 / 630319 / 630391 / 630392  
Embroidery in the piece, in strips or in motifs  581010 / 581091 / 581092 / 581099  
Fabricated asbestos fibres; mixtures with a basis of 
asbestos or with a basis of asbestos and magnesium 
carbonate; articles of such mixtures or of asbestos 
(for example, thread, woven fabric, clothing, 
headgear, footwear, gaskets), whether or not 
reinforced  681291 / 681292 / 681299  
Felt, whether or not impregnated, coated, covered 
or laminated  560210 / 560221 / 560229 / 560290  
Flax, raw or processed but not  spun; flax tow and 
waste (including yarn waste and garneted stock)  530110 / 530121 / 530129 / 530130  
Flax yarn  530610 / 530620  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
Footwear with outer soles of rubber, plastics, leather 
or composition leather and uppers of leather  640319  
Garments, made up of fabrics of heading 56.02, 
56.03, 59.03, 59.06 or 59.07; of fabrics of heading 
56.02 or 56.03  621010  
Garments, made up of knitted or crocheted fabrics 
of heading 59.03, 59.06 or 59.07  611300  
Gauze, other than narrow fabrics of heading 58.06  580300  
Gimped yarn, and strip and the like of heading 54.04 
or 54.05, gimped (other than those of heading 56.05 
and gimped horsehair yarn); chenille yarn (including 
flock chenille yarn); loop wale -yarn 560600  
Glass fibres (including glass wool) and articles 
thereof (for example, yarn, woven fabrics)  01911 / 701912 / 701919 / 701931 / 701932 / 
701939 / 701940 / 701951 / 701952 / 701959 / 
701990  
Gloves, mittens and mitts, knitted or crocheted  11610 / 611691 / 611692 / 611693 / 611699  
Gloves, mittens and mitts 621600  
Handbags, whether or not with shoulder strap, 
including those without handle with outer surface of 
plastic sheeting or of textile materials  420222  
Handkerchiefs  621320 / 621390  
Hand-woven tapestries of the type Gobelins, 
Flanders, Aubusson,  Beauvais and the like, and 
needle -worked tapestries (for example, petit point, 
cross stitch), whether or not made up  580500  
Hat-forms, hat bodies and hoods of felt, neither 
blocked to shape nor with made brims; plateaux and 
manchons (including slit manch ons), of felt  650100  
Hats and other headgear, knitted or crocheted, or 
made up from lace, felt or other textile fabric, in the 
piece (but not in strips), whether or not lined or 
trimmed; hair -nets of any material, whether or not 
lined or trimmed  650500  
Hats and other headgear, plaited or made by 
assembling strips of any material, whether or not 
lined or trimmed  650400  
Hat-shapes, plaited or made by assembling strips of 
any material, neither blocked to shape, nor with 
made brims, nor lined, nor trimmed  650200  
Headbands, linings, covers, hat foundations, hat 
frames, peaks and chinstraps, for headgear  650700  
Human hair, dressed, thinned, bleached or otherwise 
worked; wool or other animal hair or other textile 
materials, prepared for use in making wigs or the 
like 670300  
Jerseys, pullovers, cardigans, waistcoats and similar 
articles, knitted or crocheted  611011 / 611012 / 611019 / 611020 / 611030 / 
611090  
Jute and other textile fibres (excluding flax, true 
hemp and ramie), raw or processed but not spun; 
tow and waste of these fibres (including yarn waste 
and garneted stock)  530310 / 530390  
Knitted or crocheted fabrics of a width not exceeding 
30 cm, containing by weight 5% or more of 
elastomeric yarn or rubber thread, other than those 
of heading 60.01  600240 / 600290 / 600310 / 600320 / 600330 / 
600340 / 600390 / 600410 / 600490  
Knotted netting of twine, cordage or rope; made up 
fishing nets and other made up nets, of textile 
materials  560811 / 560819 / 560890  
Labels, badges and similar articles of textile 
materials, in the piece, in strips or cut to shape or 
size, not embroidered  580710 / 580790  
Linoleum, whether or not cut to shape; floor 
coverings consisting of a coating or covering applied 
on a textile backing, whether or not cut to shape  590410  / 590490  
Man-made filament yarn (other than sewing thread), 
put up for retail sale  540600  
Mattress supports; articles of bedding and similar 
furnishing (for example, mattresses, quilts, 
eiderdowns, cushions, pouffes and pillows) fitted 940429 / 940430 / 940490  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
with springs or s tuffed or internally fitted with any 
material or of cellular rubber or plastics  
Men or boy overcoats, car -coats, capes, cloaks, 
anoraks (including ski -jackets), wind -cheaters, wind -
jackets and similar articles, knitted or crochete d- 
other than those of heading 61.03  610120 / 610130 / 610190  
Men or boy overcoats, car -coats, capes, cloaks, 
anoraks (including ski -jackets), windcheaters, wind -
jackets and similar articles, other than those of 
heading 62.03  620111 / 620112 / 620113 / 62 0119 / 620191 / 
620192 / 620193 / 620199  
Men or boy shirts, knitted or crocheted  610510 / 610520 / 610590  
Men or boy shirts  620520 / 620530 / 620590  
Men or boy singlets and other vests, underpants, 
briefs, nightshirts, pyjamas, bathrobes, dressing 
gowns and similar articles  620711 / 620719 / 620721 / 620722 / 620729 / 
620791 / 620799  
Men or boy suits, ensembles, jackets, blazers, 
trousers, bib and brace overalls, breeches and shorts 
(other than swimwear), knitted or crocheted  610310 / 6103 22 / 610323 / 610329 / 610331 / 
610332 / 610333 / 610339 / 610341 / 610342 / 
610343 / 610349  
Men or boy suits, ensembles, jackets, blazers, 
trousers, bib and brace overalls, breeches and shorts 
(other than swimwear)  620311 / 620312 / 620319 / 620322 / 620 323 / 
620329 / 620331 / 620332 / 620333 / 620339 / 
620341 / 620342 / 620343 / 620349  
Men or boy underpants, briefs, nightshirts, pyjamas, 
bathrobes, dressing gowns and similar articles, 
knitted or crocheted  610711 / 610712 / 610719 / 610721 / 610722 / 
610729 / 610791 / 610799  
Metallised yarn, whether or not gimped, being textile 
yarn, or strip or the like of heading 54.04 or 54.05, 
combined with metal in the form of thread, strip or 
powder or covered with metal  560500  
Napkins  961900  
Narrow woven fabrics, other than goods of 
heading58.07; narrow fabrics consisting of warp 
without weft assembled by means of an adhesive 
(bolducs)  580610 / 580620 / 580631 / 580632 / 580639 / 
580640  
Nonwovens, whether or not impregnated, co ated, 
covered or laminated  560311 / 560312 / 560313 / 560314 / 560391 / 
560392 / 560393 / 560394  
Other carpets and other textile floor coverings, 
whether or not made up  570500  
Other furnishing articles, excluding those of heading 
94.04  630411 / 630419 / 630420 / 630491 /  630492 / 
630493 / 630499  
Other garments, knitted or crocheted  611420 / 611430 / 611490  
Other garments, of the type described in 
subheadings 62 01 11 to 62 01 19  621020  
Other garments, of the type described in 
subheadings 62 02 11 to 62 02 19  621030  
Other knitted or crocheted fabrics  600610 / 600621 / 600622 / 600623 / 600624 / 
600631 / 600632 / 600633 / 600634 / 600641 / 
600642 / 600643 / 600644 / 600690  
Other made up articles, including dress patterns  630710 / 630790  
Other made up clothing  accessories, knitted or 
crocheted; knitted or crocheted parts of garments or 
of clothing accessories  611710 / 611780 / 611790  
Other made up clothing accessories; parts of 
garments or of clothing accessories, other than 
those of heading 62.12  621710 / 621 790 
Other men or boy garments  621040  
Other trunks, suit -cases, vanity -cases, executive -
cases, brief -cases, school satchels and similar 
containers  420292 / 420299  
Other women or girl garments  621050  
Other woven fabrics of cotton  521211 / 521212 / 521213 / 521214 / 521215 / 
521221 / 521222 / 521223 / 521224 / 521225  
Other woven fabrics of synthetic staple fibres  551511 / 551512 / 551513 / 551519 / 551521 / 
551522 / 551529 / 551591 / 551599  
Panty hose, tights, stockings, socks and other 
hosiery, in cluding graduated compression hosiery 
(for example, stockings for varicose veins) and 
footwear without applied soles, knitted or crocheted  611510 / 611521 / 611522 / 611529 / 611530 / 
611594 / 611595 / 611596 / 611599  
Photographic plates, film, paper, pap erboard, 
exposed but not developed  370400  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
Pile fabrics, including "long pile" fabrics and terry 
fabrics, knitted or crocheted  600110 / 600121 / 600122 / 600129 / 600191 / 
600192 / 600199  
Quilted textile products in the piece, composed of 
one or more laye rs of textile materials assembled 
with padding by stitching or otherwise, other than 
embroidery of heading 58.10  581100  
Rubber thread and cord, textile covered; textile 
yarn, and strip and the like of heading 54.04 or 
54.05, impregnated, coated, covered or sheathed 
with rubber or plastics  560410 / 560490  
Rubberised textile fabrics, other than those of 
heading No. 59.02  590691 / 590699  
Sacks and bags, of a kind used for the packing of 
goods  630510 / 630520 / 630532 / 630539 / 630590  
Sanitary tow els and tampons, napkins and napkin 
liners for babies and similar sanitary articles  481890  
Seats (other than those of heading 94.02), whether 
or not convertible into beds, and parts thereof  940171  
Sets consisting of woven fabric and yarn, whether or 
not with accessories, for making up into rugs, 
tapestries, embroidered tablecloths or serviettes, or 
similar textile articles, put up in packings for retail 
sale 630800  
Sewing thread of man -made filaments, whether or 
not put up for retail sale  540110 / 540120  
Sewing thread of man -made staple fibres, whether 
or not put up for retail sale  550810 / 550820  
Shawls, scarves, mufflers, mantillas, veils  621410 / 621420 / 621430 / 621440 / 621490  
Shorn wool, greasy, including fleece -washed wool  510111 / 510119 / 510121 / 510129 / 510130 / 
510211 / 510219 / 510220 / 510310 / 510320 / 
510330 / 510400  
Silk-worm cocoons suitable for reeling  500100 / 500200 / 500300 / 500400 / 500500 / 
500600 / 500710 / 500720 / 500790  
Slide fasteners and parts thereof  960711 / 96071 9 / 960720  
Synthetic filament tow  550110 / 550120 / 550130 / 550140 / 550190  
Synthetic filament yarn (other than sewing thread), 
not put up for retail sale, including synthetic 
monofilament of less than 67 decitex  540211 / 540219 / 540220 / 540231 / 5402 32 / 
540233 / 540234 / 540239 / 540244 / 540245 / 
540246 / 540247 / 540248 / 540249 / 540251 / 
540252 / 540253 / 540259 / 540261 / 540262 / 
540263 / 540269  
Synthetic monofilament of 67 decitex  or more and of 
which no cross -sectional dimension exceeds 1 mm; 
strip and the like (for example, artificial straw) of 
synthetic textile materials of an apparent width not 
exceeding 5 mm  540411 / 540412 / 540419 / 540490  
Synthetic staple fibres, carded, c ombed or otherwise 
processed for spinning  550610 / 550620 / 550630 / 550640 / 550690  
Synthetic staple fibres, not carded, combed or 
otherwise processed for spinning  550311 / 550319 / 550320 / 550330 / 550340 / 
550390  
Tarpaulins, awnings and fibres sun bl inds; tents; 
sails for boats, sailboards or land craft; camping 
goods  630612 / 630619 / 630622 / 630629 / 630630 / 
630640  
Terry towelling and similar woven terry fabrics, 
other than narrow fabrics of heading 58.06; tufted 
textile fabrics, other than produ cts of heading 57.03  580211 / 580219 / 580220 / 580230  
Textile fabrics coated with gum or substances, of a 
kind used for the outer covers of books or the like; 
tracing cloth; prepared painting canvas; buckram 
and similar stiffened textile fabrics of a kin d used for 
hat foundations  590110 / 590190  
Textile fabrics impregnated, coated, covered or 
laminated with plastics, other than those of heading 
59.02  590310 / 590320 / 590390  
Textile fabrics otherwise impregnated, coated or 
covered  590700  
Textile hose piping and similar textile tubing, with or 
without lining, armour or accessories of other 
materials  590900  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
Textile products and articles, for technical uses 
specified in Note 7 to this Chapter  591110 / 591120 / 591131 / 591132 / 591140 / 
591190  
Textile wall coverings.  590500  
Textile wicks, woven, plaited or knitted, for lamps, 
stoves, lighters, candles or the like; incandescent 
gas mantles and tubular knitted gas mantle fabric 
thereof, whether or not impregnated  590800  
Ties, bow ties and cravats  621510 / 621520 / 621590  
Track suits, ski suits and swimwear, knitted or 
crocheted  611211 / 611212 / 611219 / 611220 / 611231 / 
611239 / 611241 / 611249  
Track suits, ski suits and swimwear; other garments  621111 / 621112 / 621120 / 621132 / 621133 / 
621139 / 621142 / 621143 / 621149  
Transmission or conveyor belts or belting, of textile 
material, whether or not impregnated, coated, 
covered or laminated with plastics, or reinforced 
with metal or other material  591000  
True hemp ( Cannabis sativ a L.), raw or processed 
but not spun; tow and waste of true hemp (including 
yarn waste and garneted stock)  530210 / 530290  
Trunks, suit -cases, vanity -cases, executive -cases, 
brief-cases, school satchels and similar 
containers  with outer surface of plastic s or of textile 
materials  420212  
T-shirts, singlets and other vests, knitted or 
crocheted  610910 / 610990  
Tulles and other net fabrics, not including woven - 
knitted or crocheted fabrics; lace in the piece, in 
strips or in motifs, other than fabrics of he adings 
60.02 to 60.06  580410 / 580421 / 580429 / 580430  
Twine, cordage, ropes and cables, whether or not 
plaited or braided and whether or not impregnated, 
coated, covered or sheathed with rubber or plastics  560721 / 560729 / 560741 / 560749 / 560750 / 
560790 
Typewriter or similar ribbons, inked or otherwise 
prepared for giving impressions, whether or not on 
spools or in cartridges; ink -pads, whether or not 
inked, with or without boxes  961210 / 961220  
Tyre cord fabric of high tenacity yarn of nylon or 
other polyamides, polyesters or viscose rayon  590210 / 590220 / 590290  
Umbrellas and sun umbrellas (including walking -
stick umbrellas, garden umbrellas and similar 
umbrellas)  660110 / 660191 / 660199  
Used or new rags, scrap twine, cordage, rope and 
cables and worn out articles of twine, cordage, rope 
or cables, of textile materials  631010 / 631090  
Wadding of textile materials and articles thereof; 
textile fibres, not exceeding 5 mm in length (flock), 
textile dust and mill nets  560121 / 560122 / 560129 / 560130  
Walking -sticks, seat -sticks, whips, riding -crops and 
the like  660200  
Warp knit fabrics (including those made on galloon 
knitting machines), other than those of headings 
60.01 to 60.04  600521 / 600522 / 600523 / 600524 / 600535 / 
600536 / 600537 / 600538 / 600539 / 600541 / 
600542 / 600543 / 600544 / 600590  
Waste (including yarn waste and garneted stock) of 
manmade fibres  550510 / 550520  
Watch straps, watch bands and watch bracelets, and 
parts thereof  911390  
Wigs, false beards, eyebrows and eyelashes, 
switches and the like, of human or animal hair or of 
textile materials; articles of human hair not 
elsewhere specified or included  670411 / 670419 / 670420  
Women or girl blouses, shirts and shirt -blouses, 
knitted or crocheted  610610 / 61062 0 / 610690  
Women or girl blouses, shirts and shirt -blouses  620610 / 620620 / 620630 / 620640 / 620690  
Women or girl overcoats, carcoats, capes, cloaks, 
anoraks (including ski -jackets), windcheaters, wind 
jackets and similar articles, knitted or crocheted , 
other than those of heading 61.04  610210 / 610220 / 610230 / 610290  WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
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  Technical regulation and items  International HS Code  
Women or girl overcoats, car -coats, capes, cloaks, 
anoraks (including ski -jackets), wind -cheaters, wind -
jackets and similar articles, other than those of 
heading 62.04  620211 / 620212 / 620213 / 620219 / 620291 / 
620292 / 620293 / 620299  
Women or girl singlet and other vests, slips, 
petticoats, briefs, panties, nightdresses, pyjamas, 
bath robes, dressing gowns and similar articles  620811 / 620819 / 620821 / 620822 / 620829 / 
620891 / 620892 / 620899  
Women 's or girl 's slips, petticoats, briefs, panties, 
nightdresses, pyjamas, bathrobes, dressing gowns 
and similar articles, knitted or crocheted  610811 / 610819 / 610821 / 610822 / 610829 / 
610831 / 610832 / 610839 / 610891 / 610892  / 
610899  
Women or girl suits, ensembles, jackets, blazers, 
dresses, skirts, divided skirts, trousers, bib and 
brace overalls, breeches and shorts (other than 
swimwear), knitted or crocheted  610413 / 610419 / 610422 / 610423 / 610429 / 
610431 / 610432 / 6 10433 / 610439 / 610441 / 
610442 / 610443 / 610444 / 610449 / 610451 / 
610452 / 610453 / 610459 / 610461 / 610462 / 
610463 / 610469  
Women or girl suits, ensembles, jackets, blazers, 
dresses, skirts, divided skirts, trousers, bib and 
brace overalls, breech es and shorts (other than 
swimwear)  620411 / 620412 / 620413 / 620419 / 620421 / 
620422 / 620423 / 620429 / 620431 / 620432 / 
620433 / 620439 / 620441 / 620442 / 620443 / 
620444 / 620449 / 620451 / 620452 / 620453 / 
620459 / 620461 / 620462 / 620463 / 6204 69 
Woven fabrics of artificial filament yarn, including 
woven fabrics obtained from materials of heading 
54.05  540810 / 540821 / 540822 / 540823 / 540824 / 
540831 / 540832 / 540833 / 540834  
Woven fabrics of artificial staple fibres  551611 / 551612 / 551613 / 551614 / 551621 / 
551622 / 551623 / 551624 / 551631 / 551632 / 
551633 / 551634 / 551641 / 551642 / 551643 / 
551644 / 551691 / 551692 / 551693 / 551694  
Woven fabrics of coarse animal hair or of horsehair  511300  
Woven fabrics of combed wool or of combed fine 
animal hair  511211 / 511219 / 511220 / 511230 / 511290  
Woven fabrics of cotton, containing 85% or more by 
weight of cotton, weighing not more than 200 g/m2  520811 / 520812 / 520813 / 520819 / 520821 / 
520822 / 520823 / 520829 / 520831 / 520832  / 
520833 / 520839 / 520841 / 520842 / 520843 / 
520849 / 520851 / 520852 / 520859 / 520911 / 
520912 / 520919 / 520921 / 520922 / 520929 / 
520931 / 520932 / 520939 / 520941 / 520942 / 
520943 / 520949 / 520951 / 520952 / 520959  
Woven fabrics of cotton, cont aining less than 85% 
by weight of cotton, mixed mainly or solely with 
man-made fibres, weighing not more than 200 g/m2  521011 / 521019 / 521021 / 521029 / 521031 / 
521032 / 521039 / 521041 / 521049 / 521051 / 
521059 / 521111 / 521112 / 521119 / 521120 / 
521131 / 521132 / 521139 / 521141 / 521142 / 
521143 / 521149 / 521151 / 521152 / 521159  
Woven fabrics of flax  530911 / 530919 / 530921 / 530929 / 531010  
Woven fabrics of jute or of other textile fibres of 
heading 53.03  531090  
Woven fabrics of metal thread and woven fabrics of 
metallized yarn of heading 56.05, of a kind used in 
apparel, as furnishing fabrics or for similar purposes, 
not elsewhere specified or included  580900  
Woven fabrics of other vegetable textile fibres; 
woven fabrics of paper yarn  531100  
Woven fabrics of synthetic filament yarn, including 
woven fabrics obtained from materials of heading 
54.04  540710 / 540720 / 540730 / 540741 / 540742 / 
540743 / 540744 / 540751 / 540752 / 540753 / 
540754 / 540761 / 540769 / 540771 / 540772 / 
540773 / 540774 / 540781 / 540782 / 540783 / 
540784 / 540791 / 540792 / 540793 / 540794  
Woven fabrics of synthetic staple fibres, containing 
85% or more by weight of synthetic staple fibres  551211 / 551219 / 551221 / 551229 / 551291 / 
551299  
Woven fabric s of synthetic staple fibres, containing 
less than 85% by weight of such fibres, mixed 
mainly or solely with cotton, of a weight not 
exceeding 170 g/m2  551311 / 551312 / 551313 / 551319 / 551321 / 
551323 / 551329 / 551331 / 551339 / 551341 / 
551349 / 55141 1 / 551412 / 551419 / 551421 / 
551422 / 551423 / 551429 / 551430 / 551441 / 
551442 / 551443 / 551449  
Woven pile fabrics and chenille fabrics, other than 
fabrics of heading 58.02 or 58.06  580110 / 580121 / 580122 / 580123 / 580126 / 
580127 / 580131 / 58013 2 / 580133 / 580136 / 
580137 / 580190  
Yarn (other than sewing thread) of synthetic staple 
fibres, not put up for retail sale  550911 / 550912 / 550921 / 550922 / 550931 / 
550932 / 550941 / 550942 / 550951 / 550952 / 
550953 / 550959 / 550961 / 550962 / 550969 / WT/TPR/S/ 407 • The Kingdom of Saudi Arabia  
 
- 146 - 
 
  Technical regulation and items  International HS Code  
550991 / 550992 / 550999 / 551011 / 551012 / 
551020 / 551030 / 551090 / 551110 / 551120 / 
551130  
Yarn of carded wool, no t put up for retail sale 
Containing 85% or more by weight of wool  510610 / 510620  
Yarn of coarse animal hair or of horsehair (including 
gimped horsehair yarn), whether or not put up for 
retail sale  511000 / 511111 / 511119 / 511120 / 511130 / 
511190  
Yarn of combed wool, not put up for retail sale. 
Containing 85% or more by weight of wool  510710 / 510720  
Yarn of fine animal hair – Carded  510810 / 510820  
Yarn of jute or of other textile fibres of heading 
53.03  530710 / 530720  
Yarn of other vegetable text ile fibres; paper yarn  530810 / 530820 / 530890  
Yarn of wool or of fine animal hair – containing 85% 
or more by weight of wool or of fine animal hair  510910 / 510990  
Group 32: Small -scale solar PV systems  
Diodes, transistors and similar semiconductor 
devices; photosensitive semiconductor devices, 
including photovoltaic cells whether or not 
assembled in modules or made up into panels; light 
emitting diodes (LED); mounted piezo -electric 
crystals  854140  
Electrical transformers, static conve rters (for 
example, rectifiers) and inductors  850440  
Insulated (including enamelled or anodised) wire, 
cable (including co -axial cable) and other insulated 
electric conductors, whether or not fitted with 
connectors; optical fibre cables, made up of 
indivi dually sheathed fibres, whether or not 
assembled  854449  
Machinery, plant or laboratory equipment, whether 
or not electrically heated (excluding furnaces, ovens 
and other equipment of heading 85.14), for the 
treatment of materials by a process involving a 
change of temperature such as heating, cooking  841919  
Group 33: Tanks – part 1: tanks for the transport of petroleum products  
Trailers and semi -trailers; other vehicles not 
mechanically propelled; parts thereof  871631  
Source:  Information provided by the authorities.  
 
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