WT/TPR/M/333/Add.1  
13 June 2016  
(16-3196)  Page: 1/92  
Trade Policy Review Body 
4 and 6 April 2016 Original: English/anglais/inglés  
 
  TRADE POLICY REVIEW 
KINGDOM OF SAUDI ARABIA 
MINUTES OF THE MEETING 
Addendum 
Chairperson: Ms. Irene Young (Hong Kong, China) 
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by Saudi Arabia.1 
 
 
Organe d'examen des politiques commerciales 
4 et 6 avril 2016 
EXAMEN DES POLITIQUES COMMERCIALES 
ROYAUME D 'ARABIE SAOUDITE  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Présidente: Mme Irene Young (Hong Kong, Chine) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Arabie saoudite.1 
 
 
Órgano de Examen de las Políticas Comerciales 
4 y 6 de abril de 2016 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
REINO DE LA ARABIA SAUDITA  
ACTA DE LA REUNIÓN 
Addendum 
Presidenta: Sra. Irene Young (Hong Kong, China) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por 
Arabia Saudita.1 
                                               
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/333/Add.1 
 
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SWITZERL AND ................................................................................................................. 3  
OMAN .......................................................................................................................... ..... 9 
COLOMBIA ..................................................................................................................... 10 
MEXICO .......................................................................................................................... 13  
SINGAPORE .................................................................................................................... 17  
AUSTRALIA .................................................................................................................... 18 
CHINA ......................................................................................................................... ... 26 
CHINESE TAIPEI ............................................................................................................ 27  
EUROPEAN UNION ......................................................................................................... 32  
CANADA ........................................................................................................................ . 48 
TURKEY ........................................................................................................................ .. 52 
DOMINICAN RE PUBLIC .................................................................................................. 61  
UNITED STATES ............................................................................................................. 62  
CHILE ......................................................................................................................... .... 66 
NEW ZEAL AND ............................................................................................................... 69  
KENYA ............................................................................................................................ 73  
DOMINICAN REPUBLIC - A DDITIONAL QU ESTIONS ....................................................... 74  
TURKEY - ADDITION AL QUESTI ONS ............................................................................... 77  
THAILAND ......................................................................................................................  79 
ARGENTINA .................................................................................................................... 81  
MALAYSIA ......................................................................................................................  84 
ECUADOR .......................................................................................................................  85 
CHINA – FOLLOW-UP QUESTIONS .................................................................................. 88  
EUROPEAN UNION – FOLLO W-UP QUESTIONS ............................................................... 91  
 WT/TPR/M/333/Add.1 
 
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  SWITZERLAND 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1 
The Ninth Development Plan described in para 1.4 focuses on diversification of the economy and 
job creation promoting in particular industries such as petrochemicals and other energy-intensive industries.  
 
Could Saudi Arabia share its evaluation on this promotion programme?  Answer 
The Kingdom considers that the diversification of the economy over the past ten years, including the period covered by the Ninth Development Plan (2010-2014), has proceeded satisfactorily. 
Furthermore, the transformation of the economy that is being sought is not yet complete and 
further efforts to encourage diversification are central to the Tenth Development Plan (2015-
2019), as described in paragraph 1.6 of the Secretariat Report.   
Output of the non-oil sector of the economy almo st tripled in nominal terms in the period 2004-
2013, and doubled in real terms. The growth of pr ivate sector and non-oil economic activity has 
been particularly strong and now accounts for well over one-third of GDP, on average, and 
substantially more in the past two years as declining oil prices have reduced the relative 
importance of the value of output from the oil sector (Table 1.2 of the Secretariat Report). 
 Among the most important improvements introduced by the Kingdom to support economic 
diversification have been significant investment s in human capital, particularly education, 
vocational training, physical infrastructure and improvements to the business environment to support and encourage private sector investment. Financial policies are supporting the 
development of small and medium-scale enterprises (SMEs) through better SME access to finance, 
including through the establishment of dedicated SME units in banks, such as; "Kafalah" loan-guarantee programme and better access to credit information through "SIMAH", which is the national credit bureau
2. 
 
Work has started on a new insolvency law and contract enforcement is being strengthened. 
Privatization of state-owned enterprises (SOEs)  i s  a d v a n c i n g  w i t h  t h e  r e c e n t  s a l e  o f  t h e  
Government's stake in the National Commercial Bank. The Kingdom is developing industrial and 
economic "cities" to promote clusters of industry and service activity in a broad range of industries.  
 
Question 2 Up until 2014 fiscal surpluses were robust due to high oil prices and robust government revenues. However, due to the falling of oil prices and government expenditures remaining high  further fiscal 
deficits are to be expect ed in the coming years. 
 What measures does Saudi Arabia in the medium-term envisage in order to put in place a fiscal 
consolidation plan to be able to sustain its growth objectives? 
 Answer 
Saudi Arabia has faced a decline in oil revenue from a comfortable fiscal position of high public reserves and very low public debts. Such a position allowed us to maintain our investments in social programmes. Also, the Government was able to increase non-oil revenue by 29% in 2015 compared with 2014. Saudi Arabia has also und ertaken comprehensive economic, financial, and 
structural reforms, and introduced a number of measures in connection with them. These 
measures include, among others, (i) developing ob jective-fiscal rules consistent with transparent 
tax collection; (ii) strengthening corporate governance and accountability; (iii) privatizing a range 
of economic activities; (iv) streamlining legislat ive and regulatory requirements; (v)and focusing 
on projects in the health, education social and utility sectors. 
                                               
2 For more information about SIMAH: https://www.simah.com/english . WT/TPR/M/333/Add.1 
 
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  Question 3 
Para 1.13. links the currently low oil price and the rise in interest rates in the US with a possibly increase pressure on the Saudi-Arabian Riyal against the U.S. dollar.   
What measures does Saudi Arabia plan to take in view of such a scenario? 
 Answer 
Commodity-exporting countries have recently witn essed different degrees of speculation against 
their currencies, based on speculators' percepti on of a country's economic fundamentals. The 
impact of low oil prices and the U.S. Federal Reserve's move to raise interest rates has been modest on currency speculation. This is due to Saudi Arabia's net creditor position, comfortable FX 
reserves, and its resilient banking system. 
 Speculative activity was confined to the forward market while the spot US$/SAR remained stable. 
SAMA's actions included policy statements upholding the peg, suspension of domestic banks' 
dealings with corporate clients in structured op tions, and sporadic intervention in the forward 
market to contain volatility. These initiatives have helped stabilize the forward market . 
 
As for the U.S. interest rate move, SAMA tends to follow the direction of U.S. policy rates by virtue 
of its pegged exchange rate regime to avoid asset substitution.  
 
Question 4 
Para 2.23 counts 13 outstanding WTO-Notification as by the end of 2015.   
Could Saudi Arabia please explain the reasons for this delay in notifying its measures? 
 Answer 
KSA laws and regulations under Articles 18.5, 32.6 and 12.6 of the Agreements, have already been notified to the WTO on 20 January 2016 and were included in document (G/ADP/N/1/SAU/2/Suppl.1,G/SCM /N/1/SAU/2/Suppl.1, G/SG/N/1/S AU/2/Suppl.1). Saudi Arabia 
is working to provide the remaining notifications in due time. 
 
Question 5 Para 3.17 refers to Saudi Arabia's process of ratifying the WTO Trade Facilitation Agreement.  
 
Could Saudi Arabia indicate when it plans to initiate the ratification process for the TFA and how long this process will take? 
 
Answer 
The ratification of the WTO TFA is in its final stage and the Kingdom expects to submit the Instrument of Acceptance of the protocol in due time.
 
 Question 6 Para 3.41 states that goods in transit are subjec t to a service charge of 0.004% of the value of 
goods in transit against the service rendered. It se ems that the ad valorem transit charge does not 
comply with article VIII:1(a) GATT as it does not seem to be limited in amount to the approximate 
cost of services rendered as required by article VIII:1(a) GATT. 
 
Could Saudi Arabia indicate how the charge complies with article VIII:1(a) GATT requirements and which measures it would undertake so that the transit charge will comply with article VIII:1(a) GATT? 
 
Answer 
Saudi Customs applies transit procedures based on those established by the League of Arab 
States. Once the Trade Facilitation Agreement enters into force, transit charges will be based on 
charges for transportation, administrative ex penses and costs of services rendered.  
 
Question 7 
As para 3.57 states, some WTO Members in the TBT Committee expressed their concerns about Saudi's technical regulations on motor vehicles, toys, and energy drinks.   WT/TPR/M/333/Add.1 
 
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  What is Saudi Arabia's intention and policy with regard to Codex Alimentarius standards on 
nutrition and claims, in particular as regards to labelling requirements on energy drinks?  Answer 
Saudi Arabia uses Codex standards as a reference in preparing and adapting its food to technical 
regulation and standards  
Question 8 
How does Saudi Arabia intend to take comments by WTO members into account in its current revision of requirements for energy drinks, impl emented by the GCC Standardization Organization? 
 
Answer 
GCC food and agricultural technical committees  review the comments made by WTO Members. 
 
Question 9 
According to para 3.87 Saudi Arabia maintains export bans on seven categories of products including some agricultural products. In addition, Saudi Arabia also requires licenses for the export 
of various agricultural products (para 3.88).  
 What are the reasons for maintaining these export restrictions?  
Answer 
Saudi Arabia does not maintain export bans on agriculture products, except on some items such as 
Arabian breeding horses and livestock animals (b ovine, camels, sheep and goats). Such measures 
aim to preserve the local purebred Arabian livesto ck varieties, which are scarce in the Kingdom.  
 The local breeds and varieties are pure and rare, and the measures take into account that Saudi 
Arabia has significant shortages in domestic production with high consumption rates in livestock 
animals, particularly during the Hajj season each ye ar. Therefore, it also aims to increase the local 
livestock numbers to stabilize prices. The bases for each individual ban were justified under Article XX(b) of GATT 1994.  
 
Question 10 How does Saudi Arabia ensure that net food-importing countries are not negatively affected by 
such measures? 
 Answer 
Saudi Arabia is a net importing country for such products.  
 Question 11 Does Saudi Arabia consider any changes regarding its measures affecting exports? If yes, what 
changes are planned? 
 Answer 
Any changes regarding these measures will be fully consistent with the Kingdom's WTO obligations and notified to the WTO.  
Question 12 
According to para. 3.112 Competition Law in Saudi Arabia does not apply to state entities or to enterprises which are wholly owned by the State.  
Could Saudi Arabia please elaborate on the reasons for this exemption? 
 Answer 
The exception is based on Article 2 of the Co mpetition Law. State-owned enterprises in the 
Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party Report to make purchases of goods and services, which are not for government use, and 
sales in international trade in accordance with commercial considerations. Moreover, the new 
Saudi Competition Law expands the scope of the Law to all establishments, organizations and authorities that conduct commercial and economic activities, notwithstanding their ownership.  WT/TPR/M/333/Add.1 
 
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  Question 13 
Are there any sectoral regulations which ensure fair competition regarding public undertakings?  Answer 
State-owned enterprises in the Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party Report to make purchases of goods and services, which are not for government use, and sales in international trade in accordance with commercial considerations. 
Please see paragraph 52, page 26 of the Working Party Report on the Accession of Saudi Arabia. 
 Question 14 Para. 3.113 states that the Council of Competition may choose not to apply the Competition Law to 
practices and agreements in violation of competition in cases which improve the performance 
offirms and realize a benefit for the consumer exceeding the effects of restricting freedom of competition. 
 
Could Saudi Arabia provide more detailed information on this provision and, if possible, practical examples of these cases? 
 
Answer 
To date, such cases do not exist.  
Question 15 
The Secretariat's report in para 3.143 states that Saudi Arabia established an internal IPR Unit in 2008 to create a database for customs' use to assist with enforcement against forged and 
counterfeit goods, so as to improve IPR enforcement particularly at the border. 
 Could the Saudi Arabian authorities provide more information on the establishment and operation 
of the internal IPR Unit, as well as on the types of measures customs can make use of? 
 Answer 
The Customs' database is currently operational and  intellectual property right holders can register 
their rights with Saudi Customs.  
 Question 16 
Are there any other initiatives planned to improv e enforcement of intellectual property rights? 
 Answer 
Enforcement of intellectual property rights in Sa udi Arabia is conducted with the cooperation of 
several authorities. The Ministry of Culture and Information is responsible for copyright enforcement. In addition, trademark issues falls within the responsibility of the Ministry of Commerce and Industry. The Board of Grievances is responsible for the implementation of other 
issues. Work continues to enhance enforcement in this area. 
 Question 17 
Footnote number 25 to para 4.50 mentions the regulated prices inter alia for fossil fuel in Saudi 
Arabia for the year 2005.   
How did these prices evolve over the last 10 years? 
 Answer 
Regulated prices have continued to be based on market factors as originally negotiated between 
domestic producer and consumers, codified by the Saudi Government and applied on a non-
discriminatory basis to all users in the Kingdom. Pricing is described in more detail in paragraphs 26 et seq. of the Working Party Report.  
 
Question 18 Para. 4.56 states that Saudi Arabia continues to promote the use of renewable energy for the 
electricity and desalination industries. On the other hand, para. 4.50 states that natural gas is 
used for local power and desalination.   Did Saudi Arabia consider to raise the regulated prices for fossil fuel in order to increase the 
competitiveness of renewable energy? WT/TPR/M/333/Add.1 
 
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  Answer 
The question appears to be based on two inaccu rate premises. First, the Government of Saudi 
Arabia does not unilaterally dictate hydrocarbo n prices, which, even when regulated, are 
negotiated between producer and consumers based on market factors. Second, the pricing of 
hydrocarbon in the Kingdom does not directly a ffect the competitiveness of renewable energy, 
which is governed by unique market factors. Thus, Saudi Arabia does not consider that it is necessary to "raise the regulated prices for fossil fuel in order to increase the competitiveness of 
renewable energy". Developing a renewables sector is an important policy objective for the 
Kingdom, but it is approaching this as a long-ter m undertaking in which many factors need to be 
taken into account. The Kingdom's public policy objective involves working with market prices but also factoring in the public good value of su stainable economic development and environmental 
protection. To that end, all policy options are being kept under review.  
 Question 19 
In view of the relatively low prices for natural gas listed in para 4.50, how does Saudi Arabia foster 
an increased production of renewable energy?  
Answer 
The Kingdom does not consider that the increased production of renewable energy is constrained 
by the price of natural gas. Saudi Arabia consumes the lowest and most cost effective level of energy per capita among GCC countries, but energy consumption is rising rapidly due to the 
expanding economy and population. The Kingdom is  fully cognizant that energy efficiency and 
renewable energy may play a role in ensuring sustainable energy.   
Saudi Arabia has a large expansion plan for electricity generation capacity through renewable 
sources, prompted by the growing need for electricity in the country. Although renewables are not yet fully developed as a source of electricity, the King Abdullah City for Atomic and Renewable 
Energy is aiming to ensure that half of the electricity generated in Saudi Arabia comes from 
renewable sources by 2032  
 QUESTIONS REGARDING THE GOVERNMENT REPORT 
 Question 20 Para 2.3 refers increased foreign direct investment due to the opening of key economic activities 
such as mining, petrochemicals and telecommunication.  
 In view of this success is there a road map for a further opening of economic activities? 
 
Answer 
The Secretariat Report (Section 2.5, page 25) provides more details about the Kingdom's policy towards attracting more direct foreign investme nt, to which Saudi Arabia is fully committed. 
Reference to steps that have been taken to open the mining, petrochemicals and 
telecommunications sectors to foreign investment, important though these are, should not overshadow the extent to which the rest of the economy is also open to foreign investment.  
 
Investment by the private sector, including foreig n direct investment, is considered essential for 
economic diversification, GDP growth, and creating job opportunities. Several sectors have been 
identified as priority sectors for foreign and dome stic investment, including: energy; transport and 
logistics; information and communication technologies; health; life sciences; education; and tourism.   
Saudi Arabia continues to maintain a negative list for foreign investments (Table 2.2 of the 
Secretariat Report); the list is periodically review ed and updated and is subject to approval by The 
Saudi Council of Economic and Development Affairs. Since the last review, the negative list has 
been amended and several sectors were removed. Foreign investment is now permitted for 
mining, petrochemicals, gas, and telecommunication.  
 
Question 21 
Under para 2.6 a wide range of steps are outlined to achieve diversification of the economy.  
 Are these measures also uphold if a rising oil price would make them unnecessary to achieve a 
stable government budget? WT/TPR/M/333/Add.1 
 
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  Answer 
Diversification of the Saudi economy is one of the main pillars of Saudi Arabia's long-term 
development strategy regardless of changes in the oil prices. It is therefore a strategic choice and as such all the measures selected for its achiev ement would be necessary to implement even if a 
rising oil price would make them unnecessary to ac hieve a stable government budget or any other 
objectives beside diversification.  
It is important to stress that the primary objectiv es of the privatization program include increasing 
competition, improving efficiency, enhancing produc tivity, promoting private sector participation, 
improving the services, improving the investment  environment, and reducing the government 
burden. So, privatization is a long term strategy decoupled from changes in the oil market and has 
not been activated to finance the budget deficit. 
 Question 22 
Under para 2.8 it is outlined that state-owned co mpanies such as the postal service and airports 
may be privatized.   
Are there further plans to privatize other state-owned companies to increase productivity of the 
economy?  Answer 
Yes, as noted in the Government Report, the King dom is considering the privatization of various 
government-owned companies as well as some part s of the Government itself. Privatization on a 
national level is very important for the country to generate revenue and increase efficiency. The 
Tenth Development Plan envisages accelerating the privatization of suitable government and public 
services. It also stated the importance of studying the possibility of privatization of social services.  WT/TPR/M/333/Add.1 
 
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  OMAN 
QUESTION REGARDING THE SECRETARIAT REPORT 
 
Question 1 
We understand that KSA has drawn up a diversification strategy called the national transformation 
programme. Could you provide more details about this programme, particularly on what impact KSA expects it to have on trade? 
 
Answer 
Due to the current world economic slowdown and the decline in oil prices, the Kingdom of Saudi 
Arabia established a national transformation plan , which is the Kingdom's 2020 strategy. This plan 
is in its initial stages and aims to accelerate economic growth through diversification and reduced 
dependence on oil revenue, and should offset the decline in oil prices. WT/TPR/M/333/Add.1 
 
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  COLOMBIA 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Cooperation Council for the Arab States of the Gulf (2.30) 
 
Question 1 How is estimated possible, to compatibilize thes e results with the possibility of promoting the 
liberation of trade within the multilateral trading system? 
 Answer 
The GCC Free Trade Agreements described in para . 2.30 of the Secretariat's Report are both WTO-
consistent and fully supportive of trade liberaliz ation through the multilateral trading system. FTAs 
such as these complement the multilateral syst em by deepening the integration of markets, 
reinforcing the role of trade in economic growth , promoting economies of scale and providing an 
expanded base to face  global competition. 
 Question 2 
Is expected in the immediate future an extension of the current policy of trade negotiations 
agreements FTA type, projecting it to other regions or countries?  Answer  
The GCC is negotiating trade agreements with Aust ralia, China, the EU, India, Japan, the Republic 
of Korea, MERCOSUR, Pakistan, and Turkey. The G CC has received requests for negotiations, inter 
alia, from ASEAN; Azerbaijan; the Common Market for East and Southern Africa (COMESA); 
Georgia; Hong Kong, China; Peru; and Ukrain e. Some GCC members (e.g. Bahrain and Oman) 
have bilateral FTAs, notably with the United States. These FTAs with the United States were concluded before GCC countries decided to negotiate all future FTAs as a group. 
 
Question 3 Investment Regime (2.35, 2.36, 2.37, 2.41) Does Saudi Arabia foresee, in the immediate future, changes in this area, aimed at further 
expansion and diversification of opportunities for foreign investors? 
 Answer 
The Kingdom of Saudi Arabia is working to develop a National Investment Plan (NIP). The NIP will identify all the available and promising investment opportunities in production, operations, manufacturing, research, and services, including opportunities for contracting public private 
partnership arrangements.  
 In the short-term, the NIP provides a roadmap to create a foundation for a sustainable, diversified 
economy in the future. In the long term, the NIP aspires to no less than a transformation of the 
Saudi economy, where diverse and competitive manufacturing and service industries become 
highly dynamic drivers of sustainable develo pment and Saudi employment throughout the 
Kingdom, and a core lever for developing the aspired knowledge economy. 
 
Realizing the aspirations of the NIP relies on thr ee essential elements: acceleration of investments 
in attractive sectors of the Saudi economy, creation of new investment opportunities, and 
implementation of primary enablers for investment promotion.  
 Question 4 Intellectual property rights (3.132)  
Does not submitting applications for th ese figures refers to the residents? 
 Answer 
Yes. As evident in Tabl e 3.13, there were applications for utility models and trademarks from 
abroad during the years 2006–13. Accordingly, the language that there were "no applications in Saudi Arabia for registration of utility models or trademarks (Table 3.13)" refers to the fact that 
there were no such applications made by or  on behalf of residents of Saudi Arabia.  
 WT/TPR/M/333/Add.1 
 
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  Question 5 
Policies (4.69)  
These licenses are granted to companies but in the case of engineers who will provide the service, 
how is the process of obtaining the temporary license  for foreigners and additional requirements to 
the title required? 
 Answer 
All professional activities including Engineering Consultancy are licensed directly by the Saudi Arabian Ministry of Commerce for Foreign comp anies, with the exception of two activities. 
Consultancy in top Management and Consultanc y in Computer and IT are licensed by Saudi 
Arabian General Investment Authority (SAGIA). . Moreover, the Saudi Council of Engineers is the 
agency that issues work licenses for the foreign engineers to perform temporary work in Saudi 
Arabia.  
Question 6 
Who issues these licenses? Are the requirements the same for businesses?  
Answer 
Please refer to our answer to question 5.3 
 QUESTIONS REGARDING THE GOVERNMENT REPORT 
 Question 7 Exports and free zones (3.16-3.17) 
How the policy of diversification of the productive structure of the Development Plan relates to the 
objectives of the policy of diversification of exports?  
Answer 
The 10th National Development Plan (2015) has become the key guidepost for the economic 
development of the Kingdom, articulating twenty -four national objectives and over three hundred 
sub-objectives. It aims to make the Saudi economy a diversified, prosperous, private-sector driven 
economy by 2024, providing job opportunities, quality education, healthcare and necessary skills 
to ensure the well-being of all citizens while safeguarding Islamic values and the Kingdom's cultural heritage. Development of non-oil exports can positively influence both economic 
development and social and human development objectives. Key to these objectives is the ability 
to grow non-oil exports and enhance economic di versification. Growing exports would improve the 
balance of payments, thus enhancing the fiscal and monetary stability of the Kingdom. Moreover, 
growing non-oil exports base would help in providing suitable job opportunities for Saudi nationals  
 Question 8 Is there any provision to expand financial incentives to export to other incentives? 
 
Answer 
SEP provides Saudi exporters with irrevocable in surance and guarantee credits to cover the risks 
of non-payment for their exports. SEP does not provide insurance/guarantee facilities for import 
transactions into Saudi Arabia. Therefore, foreig n firms dealing with buyers (importers) in Saudi 
Arabia should seek to obtain insurance/guarantee facilities from their country's Export Credit 
Agency (ECA) or from any regional/international credit insurers. 
 
Question 9 Diversification of the Economy (2.8) 
What are the guidelines and characteristics of the reforms that Saudi Arabia seeks to introduce to 
promote privatization of enterprises and gove rnment functions and expand private sector 
participation in the Saudi economy? 
 
Answer 
As noted in the Government Report, the Kingdom is considering the privatization of various 
government-owned companies as well as some part s of the Government itself. Privatization on a 
national level is very important for the country to generate revenue and increase efficiency. The 
Tenth Development Plan envisages accelerating the privatization of suitable government and public  
                                               
3 For further information, kindly visit: http://www.saudieng.sa/En glish/Pages/default.aspx . WT/TPR/M/333/Add.1 
 
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  services. The Plan also stated the importance of  studying the possible privatization of social 
services.  WT/TPR/M/333/Add.1 
 
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  MEXICO  
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Objectives of economic and trade policy 2.13 
 
Question 1 According to the objectives of the Tenth Developm ent Plan (2015-2019). What are the projects to 
increase the added value of natural resources and diversify sources, while ensuring at the same 
time the sustainability and the environmental protection and wildlife species?  Answer 
One of the key objectives of the Tenth Development Plan is "Raising the value added of natural resources in the national economy, diversifying their sources and ensuring their sustainability along with protecting the environment and conser ving the wildlife". The means to achieve this 
objective are as follows: 
 Oil and mineral resources:  
  Maximizing the value added of oil and gas resources in all uses and production activities.  
  Enhancing mechanisms of conservation of oil resources and rationalization of their use, 
including development and application of criteria for programmed production from the oil fields as well as efficient consumption of energy in all related sectors and activities.  
  Developing the use of renewable energy sources for production of electricity, water 
desalination along with accelerating approval of necessary regulations and mechanisms.  
  Encouraging manufacturing industries whic h depend on hydrocarbon and mining raw 
materials.  
 Water resources:  
  Accelerating the approval of the National  Water Strategy and implementation of its 
comprehensive plan.  
  Increasing the use of reclaimed water for agricultural purposes.  
  Enhancing the mechanisms of rationalizing water consumption, reducing the losses in 
production, transportation and distribution of water; and enforcing the criteria pertaining 
to efficiency of water use in all activities.  
  Protecting non-renewable water resources and ensuring their availability in the long run to 
meet basic needs.  
  Enhancing renewable water resources through study of potential sources and development 
of additional surface and ground water storage capacities.  
  Developing an integrated desalination industry which uses renewable energy sources and 
supporting it by advanced research centers.  
 Resources sustainability:  
  Reviewing the package of incentives provided by the state to ensure their consistency with 
the objective of natural resources conservation, elimination of their wastage and protection of environment against pollution.  
  Expanding application of principles and standards related with sustainable development in 
the management of natural resources.  
  Conducting a feasibility study for use of solid  waste in generation of thermal energy and 
electricity and water desalination.  
 
Protection of the environment:  
  Developing regulations related to the protection of the environment against pollution, and 
enhancing pertinent mechanisms with a view to improve waste management, reduce size 
of waste, raise recycling rates and ensure safe disposal of waste.  
  Improving environmental health by reducing air pollutant emissions from various transport 
sources, factories and other facilities.  
  Protecting the natural environment and wild life, developing and expanding the protected 
zones, enhancing mechanisms of protecting land against desertification and overgrazing, 
and the coastal and territorial water against pollution, as well as conserving biodiversity. 
 WT/TPR/M/333/Add.1 
 
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  Technical Barriers to Trade 3.60 
 Question 2 With regard to the standards developed by the Gulf Standards Organization (GSO), Do these 
standards comply with the same procedures developed by SASO? 
 Answer 
Yes, these standards comply with the same procedures developed by SASO.   
 Question 3 Can you elaborate more about these standards? 
 
Answer 
Both Saudi and Gulf Standards are developed according to the technical guidelines harmonized 
with international practices and guidelines issued by ISO and IEC. 
 Para 3.61 
 
Question 4 With regard to medical devices/products. What is the reason of having an interim regulation applied on these products ? 
 
Answer 
The purpose of this Interim Regulation is to:  
A.  Protect and maintain public health within th e Kingdom to ensure a high level of safety and 
health protection of patients, users, and thir d parties with regard to the use of medical 
devices as it relates to their manufacturi ng, supply, and use during their lifecycle.  
B.  Mandate measures, and allocate responsibilities to ensure that medical devices placed on 
the market and/or put into service within the KS A comply with all relevant provisions of the 
Interim Regulation. 
 
Question 5 
When is the final regulation will be published?  
Answer 
The Saudi Food and Drug Authority is in the proc ess of completing the final draft of the Medical 
Devices Regulation, and it will be published to collect comments from all stakeholders, as well as 
WTO Members, before receiving final approval fr om the Saudi FDA Board of Directors. Then, the 
final regulation will be sent to the Government for final approval.  
 Para 3.62 
 
Question 6 What is the procedure to obtain the quality mark? 
 
Answer 
The procedure to obtain a SASO quality mark are:  
1- Studying the request; 
2- Planning auditors visit;  
3- Initial auditing;  
4- Reviewing committee;  
5- Decision making; 
6- Certificate issuing  .4 
 
Question 7 
What are the requirements for imported goods?  
Answer 
Imported goods into Saudi Arabia must be accomp anied by Certificates of Conformity (CoC) which 
indicates that these goods comply with related SASO standards.  
                                               
4 For more information: please visit SASO website: http://www.saso.gov.sa/en/pages/default.aspx . WT/TPR/M/333/Add.1 
 
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  Import Conditions:  
- The goods must not be prohibited to be imported.  
- Obtaining import license for goods restricted to be imported. 
- Filling out customs declaration. 
-  
Import Requirements:  
For imports in general, the following documents are required:  
- Invoice 
- Certificate of origin 
- Bill of lading 
-  Insurance policy 
- Delivery order 
Other imports such as meat require the attachment of a Halal slaughter certificate. 
 
Question 8 What are the topics dealt with in the mutual re cognition agreements signed by the Kingdom of 
Saudi Arabia and the countries mentioned in this paragraph? 
 Answer 
The topics are issuance of Certificates of Conf ormity (CoC) for goods to be exported to Saudi 
Arabia in accordance with the related SASO standards. The CoC must be issued based on an 
accredited (ISO 17025) lab test report. According to (ISO 17065), the Bodies with which SASO signed with mutual recognition programs are the peer Standardization bodies, which work as 
Certification Bodies (CBs).  
 Question 9 
With regard to the labelling language, Is it possible to re-label products at the port of entry? 
 Answer 
The Saudi Standards, Metrology and Quality Organization requires that the information should be 
written in Arabic. If the consignment is imported without complying with this requirement, it will 
be considered in violation and a fine will be imposed on the importer along with a requirement that the importer write the information in Arabic at the entry port. He shall undertake not to repeat the 
offense. If the violation is repeated more than three times, the consignment shall not be allowed 
to enter.  
Question 10 
Mexico would like to have more details on the examination of financial, technical, administrative and execution ability required for companies wishing to tender for contracts with public agencies?  
Answer 
All the above mentioned requirements and the remaining are to be found in the Government 
Tender and Procurement Law and its Implementing Regulations. 
 
Question 11 Mexico appreciates details on the Nitaqat Program, which requires a certain minimum percentage 
of Saudi citizens employed.? 
 Answer 
Under the so called Nitaqat program, the MoL has ca tegorized the private sector into 72 economic 
activities (e.g., retail, agriculture, insurance, petr ochemical, etc.). Each activity was further divided 
into 5 sizes (very small, small, medium, large, and huge). The size of any company in the market is based on the number of its employees. For example, 1 to 9 employees = very small, 10 to 49 
employees = small, etc. Thus, in total there are 255 different "bins" in the market. Each company 
on the Saudi market was labelled with a specific colour according to its jobs nationalisation rate. MoL counted the rate of nationals in each company wi thin each bin in each activity (i.e., out of 51 
activities). Then, for each bin, the companies in the top 50% (in terms of rate of national 
employees) were labelled as green, the middle 40% were labelled as yellow, and the poorest 10% 
were labelled as red. In the green zone, the top 10% companies were further labelled as excellent. 
These labels (i.e., excellent, green, yellow and red) were then translated into incentive 
programmes introduced by the MoL. For ex ample, companies that fall in the red  category are not WT/TPR/M/333/Add.1 
 
- 16 - 
 
  allowed to renew their licenses and they cannot request visas to employ new foreign staff.5 
Companies that fall in the yellow category are not allowed to undertake any government contracts but can request a limited number of visas to empl oy new staff. Companies in the green category 
can get a higher number of visas and can do business with the Government. Companies in the 
excellent category get priority treatment, they can request an unlimited number of open visas to 
recruit new staff, have higher opportunitie s to do business with the Government, etc. 
The main advantage of Nitaqat is that it compares companies with their peers in the market (i.e., 
companies in the same bin). Hence, the companies are asked to increase their job nationalization 
only to the extent that their peers already have. Also, note that the ability to recruit new foreigners is the main reward for companies wh en they reach the green or excellent category. 
Thus, Nitaqat is also leading the market toward expansion. 
 
QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Question 12 
In document G333, paragraph 4.63, it is indicated that the Commission on Information Technology and Communications has undertaken initiatives to enhance promotion of competition, 
implementation of new procedures for mobile number portability, and attempts to solve complaints 
made thereon by users. In this regard, which initiative implemented to promote competition obtained the best results?  
Answer 
The new decision by the Saudi's telecoms regulator (CITC) in reducing the wholesale mobile 
termination rates is considered one of the best initiatives implemented to promote and stimulate 
competition in the telecom sector in Saudi Arabia. (CITC) has cut the country's wholesale mobile 
termination rates (MTRs) to SAR 0.15 (US$0. 04), down 40% from the SAR 0.25 previously 
charged for terminating calls on mobile networks. 
This new decision came after conducting intensiv e studies, following a benchmark analysis with 
several countries at regional and international levels and public consultation. It is expected to have 
a positive impact on consumer and operator alike. 
CITC had decided to start regulating MTRs in orde r to promote competition, protect the interest of 
end-users and encourage the provision of reliable telecoms services. The outcome indicates that 
operators already started restructuring some of their offers and packages offered to their 
customers. 
 
Question 13 Considering that mobile number portability creates competition, when did its implementation 
begin? and how long does the response procedure last for the user? 
 Answer  
Mobile number portability (MNP) service was launched mid-2006. During the launch stage, the 
MNP process was completed just within 6 days. After relaxing the bills settlement requirement, 
normally, the process is expected to be completed within one day and at a maximum 3 days.  
                                               
5 Note that in Saudi Arabia, non-Gulf state worker s need to enter the country on a valid work visa. WT/TPR/M/333/Add.1 
 
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  SINGAPORE 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1 
We note that the Audio-Visual and Media Services sector is listed under businesses prohibited for 
foreign investment. However, there are exceptions to foreign investment prohibitions for Radio and Television Broadcasting Studios (CPC 96114) and Motion Picture and Video Tape Distribution 
Services (CPC 96113) in the Printing and Publishing sector.  
 Singapore seeks clarification on specific services which are eligible for foreign investments under CPC 96113 and CPC 96114? 
 
Answer 
The cited exceptions have not been used. 
 
Question2  Paragraph 3.108 of the Secretariat Report noted that "as a prelude to privatization, the Council of 
Ministers approved the conversion of business uni ts [in Saudi Arabian Airlines (Saudia)] into 
companies which are to become independent subsidiaries of a holding company".  
 How does Saudi Arabia envision the level of government involvement in these business units, and 
in Saudia in general? 
 Answer 
The Government's involvement in these business units is currently being minimized to Saudi Arabia's shares only, so as to significantly liberalize Saudi Arabia and its business units from any assumed influence.  
 
Question 3  Paragraphs 4.8 and 4.109 of the Secretariat Report  noted that only 12 of Saudi Arabia's bilateral 
air services agreements cover fifth freedom righ ts. In addition, fifth fr eedom rights are only 
granted by special approval from competent authorities.  
 In this regard, we would like to seek greater cl arity on Saudi Arabia's considerations behind air 
services liberalization with other countries, particularly in the area of exchange of fifth freedom 
traffic rights?  
Answer 
Saudi Arabia has an agreement with 80 countries and these agreements are confined to certain 
forms of liberalized arrangements to expand traffic rights. However, every country oversees the 5th 
freedom rights based on available economic opportunities to benefit both countries. So GACA 
evaluates the 5th freedom traffic right request by overseeing economic benefits to the nation as 
well as to national carriers and then allowing them through special approvals. WT/TPR/M/333/Add.1 
 
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  AUSTRALIA 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1 
Australia notes that changes have recently been made to the Custodian of the Two Holy Mosques 
Scholarship Program.   
Which courses of study and subject areas will be  the focus of the programme going forward, and 
how will the changes be applied to different types of educational institutions in the future depending on whether they deliver theoretical or technical-education components in their courses? 
 
Answer 
The requested information can to be found on the website of the Ministry of Education.6 
 
Question 2 
Based on Saudi Arabia's trade-related notification s to the WTO, it had 13 outstanding notifications 
to the WTO as at end-2015. 
 
Could Saudi Arabia please advise when it will submit its outstanding notifications?  Answer 
KSA laws and regulations under Articles 18.5, 32.6 and 12.6 of the Agreements have already been notified to the WTO on 20 January 2016 and included in document (G/ADP/N/1/SAU/2/Suppl.1,G/SCM /N/1/SAU/2/Suppl.1, G/SG/N/1/S AU/2/Suppl.1). Saudi Arabia 
is working to provide the remaining notifications in due time. 
 Question 3 
Given that Free Trade Agreement (FTA) negotiatio ns are in abeyance with all potential FTA 
partners (except China).  
 Is the GCC, and Saudi Arabia as GCC Supreme Council President for 2016, planning on making 
changes to its FTA policies? 
 Answer 
The GCC and Saudi Arabia's policy regarding FTA ne gotiations is currently being revised to decide 
on the feasibility of resuming negotiations in this regard.  
 
Question 4 
Australia understands that negotiations for a FTA with China have recently recommenced.  
 How does the GCC, and Saudi Arabia as GCC Supreme Council President for 2016, prioritize FTA 
partners? 
 Answer 
Prioritization of FTA partners is currently under consideration and the GCC Secretariat is working on consolidating the priority list for all GCC members. Since the economy and markets for each member differ, the list of priorities differs accordingly. 
 
Question 5 Does the Cooperation Council for the Arab States of the Gulf (GCC), and Saudi Arabia as GCC Supreme Council President for 2016, intend on pursuing a common monetary unit for GCC 
member states? 
 Answer 
Saudi Arabia ratified an agreement to establish a monetary union together with three other GCC member states, namely Bahrain, Kuwait and Qata r. The Monetary Union Agreement entered into 
                                               
6 List of approved universities: 
https://www.moe.gov.sa/ar/Mini stry/SCHOLARSHIPSAGENCY/Pages/UniversityRating.aspx  [in Arabic]; and 
areas of study and specific fields: 
https://www.moe.gov.sa/ar/Mini stry/SCHOLARSHIPSAGENCY/Pages/ScholarshipCountries.aspx  [in Arabic].  WT/TPR/M/333/Add.1 
 
- 19 - 
 
  force on 27 February 2010 and the Statute of the Monetary Council became effective on 
27 March 2010. The Monetary Council Board, which consists of the governors of the member states, is meeting regularly to set up the necessa ry institutional and organizational underpinnings 
of the Gulf Monetary Council (GMCO). The primary objective of GMCO is to prepare the required 
infrastructure for establishing the Monetary Union. At this stage, GMCO is working on developing 
policies necessary for the formulation of an IT go vernance structure to achieve its objectives and 
determine IT requirements relevant to economic research and statistics and management 
information systems. It is also working on de termining the necessary operational requirements, 
including conducting economic research on various monetary union issues.  
 Question 6 
The Kingdom of Saudi Arabia has made advances in the development of electronic transfer of data 
and improvements in government business, includ ing the implementation of an electronic data 
interchange (EDI) system for submission and processing of import declarations.  
 
What capability exists to extend these systems to  the electronic exchange/transmission of health 
and other (halal, etc.) certification data in communication with relevant authorities from other 
Member states? 
 Answer 
Saudi Arabia is working to move on this matter and it will notify the WTO secretariat about any 
changes.  
 Question 7 
To what extent are such platforms for electronic da ta transfer used in food and agricultural trade 
with other Members? Australia notes there are a number of internationally recognized and operated data transfer systems in existence (" e-phyto", and Australia's "e-Cert", etc.), and 
encourages any new development to extend to data interchange to the use of these systems? 
 Answer 
Please refer to the answer to question no. 6. 
 
Question 8 Annex B of the SPS Agreement requires that each  Member shall ensure that one enquiry point 
exists which is responsible for the provision of an swers to all reasonable questions from interested 
Members as well as for the provision of relevant documents. The Kingdom of Saudi Arabia has nominated the Saudi Food and Drug Authority as the agency for the notification and receipt of 
enquiries related to SPS issues. If SFDA is the ag ency responsible for the receipt and response to 
enquiries from Members and for the notification of relevant regulatory changes, why does the 
Kingdom require the exchange of information through the Ministry of Foreign Affairs?  
Answer 
The Saudi Food Drug Authority (SFDA) exchanges information directly with any interested WTO 
members via an SPS notification point of contact if  the enquiries relate to SPS issues that have 
been notified to the SPS secretariat. For example; the enquiry point of contact at SFDA has 
responded to more than 100 enquiries worldwide over the last two years.  
Question 9 
The report notes all importers must submit a certificate of origin (regardless of whether the importer is seeking preferential treatment).   
Why does Saudi Arabia require certificates of origin to be provided for all imports, even where the 
importer is not seeking preferential tariff treatment?  
Answer 
The purpose of the certificate of origin submission  is to determine the country of manufacturing in 
order to limit commercial fraud and for statistical purposes. 
 
Question 10 What policy purpose does the requirement to provide non-preferential certificates of origin for all 
imports serve? 
 WT/TPR/M/333/Add.1 
 
- 20 - 
 
  Answer 
Please refer to the answer to question no. 9. 
 Question 11 
Does Saudi Arabia impose any limitations on who may provide, or sign, a non-preferential 
certificate of origin?  
Answer 
Saudi Arabia does not impose any restrictions. The exporting country designates the body 
empowered to sign the certificate of origin.  
Question 12 
Can any exporter, manufacturer, producer or agent in the exporting country sign a non-preferential certificate of origin? Or are only ce rtain bodies able to provide a non-preferential 
certificate of origin?? 
 Answer 
No, exporter, manufacturer, producer or agent can sign the non-preferential certificate of origin. 
The certificate of origin can be presented by the owner or his representative.  Question 13 
If only certain bodies are able to provide non-pr eferential certificates of origin, how does Saudi 
Arabia recognize which bodies in other countries are allowed to issue non-preferential certificates of origin? 
 
Answer 
There are letters coming to Saudi Customs through the Ministry of Foreign Affairs from the 
exporting countries containing names of bodies empowered to issue certificates of origin as well as 
the names, signature specimens and seals of those empowered to sign and endorse the non-
preferential certificate of origin.   
Question 14 
Does Saudi Arabia maintain legislation, or a register, of the bodies which it recognises as authorised as capable of issuing non-preferential certificates of origin? Is this register publicly 
available? 
 Answer 
Yes, the Kingdom of Saudi Arabia keeps records of bodies which it recognizes as being authorized 
and can issue non-preferential certificates of origin. These records are not available publicly. 
 Question 15 
Saudi Arabia does not maintain any non-preferential rules of origin. Given this, how does Saudi 
Arabia assess the validity of claims of origin made on the certificates of origin which must accompany all imports? 
 
Answer 
Saudi Arabia examines the certificate of origin i ssued by the competent authorities in the country 
of origin or the country of Re-exportation. Saudi Arabia then matches it with other documents, in 
addition to physical inspection and origin indication fixed on the imported goods.   Question 16 
Saudi Arabia does not provide preferential market access to Least Developed Countries (LDCs).  
Is Saudi Arabia considering, or has it considered in the past, providing preferential market access 
to imports from LDCs? If Saudi Arabia has considered such measures in the past, could Saudi 
Arabia please explain the outcome of those considerations? 
 Answer 
This issue is being studied by the relevant competent authorities.  
 Question 17 The report notes that committees make recomm endations to the SASO Board of Directors on 
whether a standard should be voluntary or mandatory. WT/TPR/M/333/Add.1 
 
- 21 - 
 
  What proportion of standards in Saudi Arabia ar e mandatory and what proportion are voluntary?  
 Could Saudi Arabia provide further information on the breakdown by sector of voluntary standards that have become mandatory by way of  reference in technical regulations? 
 
Answer 
The approved SASO standards consist of 93% voluntary standards. Only 7% are mandatory 
standards. 
 Question 18 The report notes that SASO is required to consider relevant international standards as a basis for 
preparing national standards and technical regulations unless the international standards are 
ineffective or inappropriate to achieve the intended, legitimate objectives.  
What international standards organizations does Saudi Arabia consider in preparing standards – 
ISO, IEC, etc.?  
Answer 
Saudi Arabia considers various international standard organizations including but not limited 
toISO, IEC, OIML and CAC.  
Question 19 
The report notes that once a GSO standard is approved, each GCC member State may transpose it into a national standard through domestic legal procedures. According to the authorities, Saudi 
Arabia develops standards and technical regulations at its national level only when there is a 
pressing need. At end-2015, 55% of Saudi standa rds in force were adopted from GCC standards. 
 
How does the statistic of 55% of Saudi standards being adopted from GCC standards relate to the 
statistic at paragraph 3.59 that 90% of Saudi standards are aligned with international standards?  Answer 
The reason is that 90% or more of the GSO stan dards were adopted from international standards . 
 
Question 20 
The report notes that both SASO and GSO have roles in standard-setting in Saudi Arabia. 
 Which organization (SASO or GSO) has priority in determining the applicable international 
standard or national standard for Saudi Arabia? Which organization has priority in determining 
whether a standard should be voluntary or mandatory?  Answer 
SASO has priority in determining the applicable international standard or national standard for Saudi Arabia. SASO also has the priority in determining whether a standard should be voluntary or mandatory.  
 
Question 21 Could Saudi Arabia provide additional information about the implementation dates and 
arrangements for the VAT? 
 Answer 
The Supreme Council of the Cooperative Council of the Arab States of the Gulf (GCC) has approved 
VAT implementation at the GCC level. The GCC Member States are finalizing drafting a Common 
VAT Agreement and a Common Excise Taxes Agreement. Accordingly Member States may start implementing VAT at the national level in 2018 and may not delay the implementation beyond 
2019; they may start implementing excise taxes at earlier dates.  
 The VAT Implementation dates for Saudi Arabia is during 2018. Expert teams have been working 
on drafting the domestic VAT Law and on organizational and other issues related to VAT 
implementation.  WT/TPR/M/333/Add.1 
 
- 22 - 
 
  Question 22 
With regard to the Shariah compatibility of banking services, what restrictions are placed on the composition or qualifications of an internal Shariah Board within each bank?  
Answer 
SAMA does not intervene in the composition of Shariah boards/committees. They are decided by 
banks themselves.  
 
Question 23 Australia welcomes Saudi Arabia's decision to allow certain qualified institutional investors to directly invest in the Saudi stock market.  
 
Could Saudi Arabia please outline the process by which foreign institutional investors become qualified? 
 
Answer 
The Rules for Qualified Foreign Financial Institutions Investment in Listed Shares (the "Rules") are 
available on the website of the Capital Market Authority7. The purpose of these Rules is to set out 
the procedures, requirements and conditions for the registration of qualified foreign investors with the Capital Market Authority and the approval of their clients to invest in listed shares. Furthermore, the Frequently Asked Questions (F AQs) on the Rules explained the registration 
process by which foreign institutional investors become qualified in part C of the FAQs. The FAQs 
are available on the website of the Capital Market Authority
8. 
 
Question 24 
Does Saudi Arabia have plans to liberalize its business visa processes, which could (in the case of Australian investors) assist in improving levels of business familiarity and capacity to invest in 
Saudi Arabia? 
 Answer 
Saudi Arabia permits businessmen and senior comp any officials to apply for a business visit visa 
without the need for a sponsorship letter. These individuals may approach the embassy directly 
and obtain a business visit visa. The Saudi Arabian embassies aim to process business visit visas within 24 hours of receipt of a complete application form. 
 
Question 25 To what extent do Saudi Arabia's priorities and initiatives influence or support Saudi Arabia's 
mining equipment, technology and services sector? 
 Answer 
Government policy, as set out in successive Development Plans, has emphasized economic 
diversification by supporting various non-oil sectors, including in the mining, technology and 
services sectors. The Tenth Development Plan (2015-19) addresses these sectors through both 
vertical linkages (i.e., production and service activities that have a linkage to the Kingdom's 
abundant natural resources) and horizontal linkages (i.e., industrial and services sectors, including 
information technology, outside of oil and gas). The Kingdom also encourages foreign investment in many of these sectors and has taken concrete steps to improve the investment climate in, for 
example, mining and communications by opening them to foreign investment. 
 Question 26 In relation to steps being taken by Saudi Arabia to open key economic activities such as mining to 
more foreign investments, what are the types of mi ning equipment, technologies and services that 
Australian businesses could supply to Saudi Arabia to support this goal and support Saudi Arabian resources sectors in the future? 
 
Answer 
The Kingdom welcomes any support that Australian businesses might be qualified to provide to 
Saudi companies in the mining equipment, technolo gies and services sectors, to the extent that 
                                               
7 Please follow this link: http://cma.org.sa/En/Pages/home.aspx . 
8 Please follow this link: http://cma.org.sa/En/Documents/FAQS.pdf . WT/TPR/M/333/Add.1 
 
- 23 - 
 
  such support is commercially appropriate, permitted under Saudi law and consistent with the 
Kingdom's international trade obligations.  Question 27 
How can Saudi Arabia and Australia, through the Australian Government and the Mining 
Equipment, Technology and Services Growth Cent re, work together to support the Saudi Arabian 
resources sector through the utilisation of Australian businesses? 
 
Answer 
The Kingdom looks forward to continuing its strong economic relationship with Australia, as evidenced through bilateral trade flows, a shared membership in the G20 and Australia's 
engagement with the Gulf Cooperation Council. This relationship can extend to the mining, 
technology and services sectors, supported by Sa udi Arabia's open trade and investment climate. 
 
Question 28 
The report mentions the laws and regulations on  government procurement apply to all public 
agencies and an application of a price preferen ce of 10% applies to domestically produced 
products and a preference of 5% to products from other GCC member States. Can Saudi Arabia 
clarify what that means? Does it mean that locally produced products can cost 10% more and still be competitive?  
Answer 
Recently, the GCC Unified Rules on Granting Prio rity in Government Procurements to National 
Products and Products of National Origin had been  amended to apply the same price preference of 
10% to both domestic and GCC produced products. Given that, both domestic and GCC products 
benefit from 10% price preference over the price of foreign products.   
QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Question 29 Saudi Arabia notes that it has continued to improve its customs practices and is a strong supporter 
of the Trade Facilitation Agreement (TFA). Saudi Ar abia notes that ratification of the TFA is under 
active consideration, and that it has submitted its Category A notification to confirm implementation of all the provisions contained in Section I of the TFA, except Article 2.1 
(Opportunity to Comment and Information before Entry into Force) and Article 10.4 (Single 
Window). Saudi Arabia also notes that it is committed to implement the Agreement on Trade Facilitation. 
 
When does Saudi Arabia expect to accept the WTO TFA? Is Saudi Arabia still considering ratification or is the process to ratify already underway?  
Answer 
The ratification of the WTO TFA is in its final stage and Saudi Arabia expects to submit the 
Instrument of Acceptance of the protocol in due time.  
 
Question 30 Australia notes the important role of financial services, including insurance in Saudi Arabia's 
economy.  
Could Saudi Arabia please outline the opportunities and licensing processes for foreign firms wishing to provide insurance services?  
Answer 
Saudi Arabia's insurance market remains one of the largest and fastest-growing markets within the 
Gulf region where premiums more than doubled between 2009 and 2014. This growth is expected 
to continue over the near and medium term driven mainly by the compulsory insurance products. 
However, the foreign insurance presence is highly significant in the Saudi insurance market. Many international well-recognized insurers are major strategic partners in the Saudi insurance market 
including Bupa, Allianz, Munich Re, AIG, MetLife, AXA, ACE, Royal and Sun Alliance. The majority 
of the operating cooperative insurance companies have foreign investment including with these 
above international insurance companies . WT/TPR/M/333/Add.1 
 
- 24 - 
 
  Licensing requirements are stipulated in Arti cles 4 through 11 of the Cooperative Insurance 
Companies Control Law and its implementing regulations.9 
 Question 31 
Australia notes Saudi Arabia's interest in increased foreign investment in large hospitals so as to 
increase technology transfer.  
Could Saudi Arabia please provide further detail on any opportunities for foreign services suppliers 
in the health sector and it's plan for technology transfer? 
 Answer 
Recently, the investment environment in the Kingdo m of Saudi Arabia was re viewed to identify key 
areas for reform in order to identify barriers and weakness in the Kingdom's investment 
environment. One of the areas that was reviewed is health care services. A Unified Investment 
Plan (UIP) has been adopted and currently Saudi Arabia is forming a dedicated team to execute 
the UIP health care. In addition, Saudi Arabia is launching an (Invest Saudi) application in Google 
Android Market and Apple Store to provide investors with up-to-date, interactive information about the Kingdom's economy, sectors performance and the value-add investment opportunities to the 
economy. 
 Question 32 Australia notes a number of changes which have recently been made or are proposed which will 
affect Saudi Arabia's trade, investment and taxation policies. Australia would appreciate additional 
detail on some of these measures including: GCC FTA policy, VAT policy and implementation arrangements and privatisation? 
 
Answer 
GCC FTA Policy 
The GCC has concluded free-trade agreement (FTA) negotiations with the European Free Trade 
Association (EFTA) States and this Agreement en tered into force in July 2015. The Agreement 
covers a broad range of areas, including trad e in goods, trade in services, government 
procurement and competition. The GCC-Singapore FTA entered into force in September 2013. The 
New Zealand-GCC FTA negotiations concluded in 2009, however, the agreement is yet to be 
signed.   
The GCC is negotiating trade agreements with Aust ralia, China, the EU, India, Japan, the Republic 
of Korea, MERCOSUR, Pakistan, and Turkey.  
The GCC has received requests for negotiations, inter alia, from ASEAN; Azerbaijan; the Common 
Market for East and Southern Africa (COMESA); Ge orgia; Hong Kong, China; Peru; and Ukraine.  
 Some GCC members (e.g. Bahrain and Oman) have b ilateral FTAs, notably with the United States. 
These FTAs with the United States were concluded before GCC countries decided to negotiate all 
future FTAs as a group.   
VAT Policy 
Saudi Arabia does not apply a value added tax (VAT) or excise duties, therefore no internal taxes on imported goods are collected at the border. However, the Supreme Council of the Cooperative 
Council of the Arab States of the Gulf (GCC) has approved VAT implementation at the GCC level. 
The GCC Member States are finalizing drafting a Common VAT Agreement and a Common Excise Taxes Agreement. Accordingly Member States may st art implementing VAT at the national level in 
2018 and may not delay the implementation beyond 2019; they may start implementing excise 
taxes at earlier dates.  
 The VAT Implementation dates for Saudi Arabia is during 2018. Expert teams have been working 
on drafting the domestic VAT Law and on organizational and other issues related to VAT 
implementation.  
                                               
9 For more information please follow the link: http://www.sama.gov.sa/en-
US/Laws/InsuranceRulesAndRegulations/IIR_4600_C_ReguExecutive_En_2005_08_18_V1.pdf . WT/TPR/M/333/Add.1 
 
- 25 - 
 
  Privatization 
As noted in the Government Report, the Kingdom is considering the privatization of various government-owned companies as well as some part s of the Government itself. Privatization on a 
national level is very important for the country to generate revenue and increase efficiency. The 
Tenth Development Plan envisages accelerating the privatization of suitable government and public 
services. The Plan also states the importance of studying the possible privatization of social services. 
 
Question 33 Saudi Arabia notes that it requires technical assistance in the field of trade facilitation.  
What provisions of the Agreement on Trade Facili tation does the Kingdom of Saudi Arabia require 
assistance with in order for it to accept the TFA?  
Answer 
Saudi Arabia does not require technical assistance in order to accept the TFA as indicated in 
answer to question (29). However, the requeste d technical assistance was regarding provisions 
scheduled under Category B which are: Article 2.1 (Opportunity to Comment and Information 
before Entry into Force) and Article 10.4 (Single Window).  WT/TPR/M/333/Add.1 
 
- 26 - 
 
  CHINA 
QUESTION REGARDING THE SECRETARIAT REPORT 
 
Question 1 
Page 25, Para 2.35. As per the Foreign Investment Law of 2000 and its Implementing Regulations 
of 2002, as further amended through the Saudi Arabian General Investment Authority Board 
(SAGIA) Resolution No. 2/74 adopted in 2014, foreign investment may be either in firms owned by 
both a Saudi national and a foreign investor or firms wholly owned by foreign investor.  
 Please further explain whether there is any percentage requirement for foreign investment in firms that own by a Saudi national and a foreign investor? 
 
Answer 
There is no general requirement for a Saudi National to hold a majority shareholding in a joint 
venture company. In most sectors, foreign investors may own 100% of the shares in companies in 
Saudi Arabia. In certain sectors, as noted in Saud i Arabia's Schedule of Specific Commitments in 
Services, foreign equity limits of 60% or 75% apply.  
 WT/TPR/M/333/Add.1 
 
- 27 - 
 
  CHINESE TAIPEI 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1 
With oil prices holding firm for most of the review period, government revenues remained robust, 
allowing the Government to initiate large welfare and infrastructure projects. The fiscal surplus peaked at over 13% of GDP in 2012, while public de bt as a proportion of GDP came down to 1.6% 
in 2014. However, with the decline in oil prices in 2014 coupled with high capital and defence 
expenditure, Saudi Arabia ran a fiscal deficit in 2014. Furthermore, with the current expenditure 
path and the continued weakness in international oil prices, the fiscal deficit is expected to be 
nearly 20% of GDP in 2015. The deficit is expect ed to improve in 2016 as government expenditure 
growth is expected to slow down as a number of large infrastructure projects are completed, some 
planned capital projects are put on hold, and sp ending on goods and services is tightened. 
 
Right now there is no sign that oil price will be reverse, and economic growth and government 
finance of Saudi Arabia continue to be affected. In  order to consolidate market share, Saudi Arabia 
said it will maintain oil production at current level and won't consider raise the oil price. However, 
this report says that the deficit is expected to  improve in 2016 as a number of large infrastructure 
projects are completed. Saudi Arabia started to show fiscal deficit in 2014, and oil revenue will continue to fall.   
Will deficit really decrease in the future? Will Saudi Arabia consider to issue external debt to make 
up fiscal deficit??  
Answer 
The deficit financing will take into account the best financing options available, including borrowing 
from the local and international markets ; the scheme will be designed so not to adversely affect 
domestic liquidity to ensure private sector growth.  
 Due to the recent excessive volatility of oil prices and to address potentially declining revenues, a budget support provision has been established to offer increased flexibility to  redirect capital 
expenditures and operating expenditures on both ongoing and new projects according to national 
developmental priorities and to meet any emerging expenditure needs.  
Question 2 
From 2012, the economic growth of Saudi Arabia fe ll from two-digits to one-digit. IMF said that 
Saudi Arabia's economy is in danger of collapse as oil prices grow increasingly unstable. Also, slow 
down government expenditure in 2016 will reduce economic growth.  
 How does Saudi Arabia government manage this slowing economic growth situation?  
Answer 
The Kingdom is committed to economic diversification as a long-term policy objective for a number 
of reasons. Diversification is important to redu ce the exposure of the economy to volatility and 
uncertainties in the global oil market. It is a key factor to help create jobs in the private sector 
that are needed to absorb the young and growin g working-age populations into the workforce. 
Diversification will increase productivity and sustainable growth.  
 
Question 3 Is Saudi Arabia considering economic restructuring to decrease the dependence on oil?  
Answer 
The 10th National Development Plan (2015) has become the key guidepost for the economic 
development of the Kingdom, articulating twenty -four national objectives and over three hundred 
sub-objectives. It aims to make the Saudi economy a diversified, prosperous, private-sector driven 
economy by 2024, providing job opportunities, quality education, healthcare and necessary skills to ensure the well-being of all citizens while safe-guarding Islamic values and the Kingdom's 
cultural heritage. Development of non-oil exports can positively influence both the economic 
development and the social & human development objectives. Key to these objectives is the ability to grow non-oil exports and enhance economic di versification. Growing exports would improve the 
balance of payments, thus enhancing the fiscal and monetary stability of the Kingdom. Moreover, WT/TPR/M/333/Add.1 
 
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  growing the non-oil exports base would help in providing suitable job opportunities for Saudi 
nationals.  
 Question 4 
Saudi Arabia adjusted its Growth Strategy within the G20 framework for the year 2015 and 
identified 6 key commitments in line with its key national priorities that aim at boosting domestic investment, enhancing competitiveness, and facilitating trade. It is impressive for us to know that 
one of these key commitments is to boos t female labour force participation. 
 What are the practical measures for the government of Saudi Arabia to encourage female labour force participation? 
 
Answer 
I t i s  a de c l are d  goal  of the  Saud i  G ove rnme nt to mas s i ve l y inc re as e  op portuni ti e s  avai l ab l e for 
women in the private sector, away from the more traditional areas of employment in the public 
sector and accounting for the steadily increasing participation rate of women in the Kingdom.  
Women are still facing several barriers to employment, including the availability of affordable 
transportation or childcare, both of which are priorities for the Ministry of Labor and initiatives have been launched with the goal of supporting over 100,000 women in childcare over the next 
years. Likewise, multi-billion-dollar investments in public transportation systems are currently 
underway, which will benefit all of society, bu t especially women. In addition to this, a 
transportation subsidy scheme is currently being ro lled out to subsidize private transportation of 
women from home to the workplace. 
 
In addition, on the demand side, the Saudi government has supported the employment of female Saudi employees through its Saudization progra mmes, which has yielded encouraging results. 
From 2010-2014, the number of women in the private sector has risen from 50,000 to 450,000 
employed women. Women participation rates are increasing year by year, which is a very 
encouraging development.  
 
Question 5 
How does the Government of Saudi Arabia assist Saudi women exploring trading or business 
opportunities with their counterparts from other countries? 
 
Answer 
The Saudi government is strongly encouraging entrepreneurial activities for women and their 
engagement in the private sector. e.g. the National Women's Committee as part of the Council of 
Saudi Chambers was established in 2005 through royal decree to foster the promotion of women in the private sector and as entrepreneurs.  For small entrepreneurs, the Ministry of Labor is running a programme called "Productive 
Families", which encourages and enables Saudi women to sell home made products or products 
made in small scale production facilities.  
Question 6 
Saudi Arabia is a member country of the Gulf Cooperation Council, which was established in May 1981 and its main objectives are to enhance regional cooperation and integration in all economic, 
social, and cultural affairs. The specific objectives of the GCC remain unchanged so far. However, 
in most common situations Saudi Arabia still follows the traditional sponsorship, which is considered a barrier for foreign business or investors to enter Saudi market  
 
Would Saudi Arabia consider establishing so called Free Trade Zones to attract foreign direct 
investment by allowing even higher percentage of  foreign ownership, establishing business-friendly 
licensing and visa programmes as well as streamlined tax regulations and incentives as other GCC 
member countries do, in order to boost economic growth and promote non-oil business in Saudi 
Arabia?  
Answer 
This issue is currently being studied by the relevant authorities. 
 WT/TPR/M/333/Add.1 
 
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  Question 7 
It has also been reported that the Nitaqat Prog ramme, which requires employment of a specific 
minimum proportion of Saudi nationals depending on  the size of the enterprise, could affect the 
cost of doing business and could lead to the closure of some companies  
 
How can Saudi Government assist those companies suffered from the increasing cost of labour due to the Nitaqat Program? 
 
Answer 
There are wide range of financial support programmes available to companies to cope with Saudization requirements. These include wage support programmes, training support 
programmes, and other company support programmes. 
1. Wage support programme: One substantial programme in this area is the Payroll Rebate Programme, which offers financial 
facilities to companies who have increased the payroll to Saudis either through raising salaries for 
Saudis or overall employing more Saudis. Hundreds of millions of dollars have been paid out in the 
first year of the program alone and tens of thousands of companies have benefitted from this 
"cash back" programme. 
In addition, the Ministry of Labor offers substantial wage support programme for Saudis hired in the private sector for up to two years. 2. Training support programme: 
For companies hiring Saudis for on the job trainings, the Government is counting them fully in the 
Saudization quota and support programme heavily both salary and training costs for up to two years. Training costs are subsidized to up to 100 %, especially for previously unemployed Saudis. 
3. Other company support programme 
Examples for such programmes include SME support programme for newly formed companies and ensuring access to government bids to SMEs.  
 
Question 8 According to the authorities, there have been no major changes in the policy objectives set for the 
energy sector; Saudi Arabia continues diversifying the energy sources for domestic use from oil 
and petroleum towards gas and other renewable energies. 
 Regarding the investment in renewable energy for domestic consumption, Saudi Arabia has a clear 
policy in solar energy. Saudi Arabia announced a goal  of building 41 gigawatts of solar capacity by 
2040. To date, the government authorities have developed some solar projects to attract foreign investment for building solar power plants. Whether there have been differentiated treatments 
against foreign investment in terms of building factories, financing and related subsidies, 
compared with domestic firms?  Answer 
T r a n s p a r e n c y  i s  o n e  o f  t h e  k e y w o r d s  t h a t  K . A . C A R E  i s  p u r s u i n g  i n  d e v e l o p i n g  t h e  r e n e w a b l e  energy sector in Saudi Arabia. We believe that a le vel playing field is an essential part of building 
that sector economically and sustainably. Currently, the Kingdom of Saudi Arabia is working on 
certain mechanisms that will illustrate equal opportunities available to local and foreign 
investments.  
Question 9 
According to the authorities, Saudi Aramco follows market-based procurement policies. Under its procurement policies, the major objectives are: co mpletion of work on schedule, conformance with 
demanding technical standards, and lowest overall cost to Saudi Aramco. The procurement 
opportunities are offered to all qualified supplie rs of goods and services from all WTO Members 
through competitive bidding.   
What are the required qualifications (e.g. certification or license) to become a qualified supplier? 
 Answer 
"Qualified" in this context does not refer to certification or licensing requirements but to a supplier's ability to satisfy Saudi Aramco's rigorous product and service standards. Saudi Aramco follows market-based procurement policies consistent with customary business practices. Major contracting objectives are completion of work on  schedule, conformance with demanding technical 
standards and lowest overall cost to Saudi Aramco. Similar to the practices of international oil WT/TPR/M/333/Add.1 
 
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  companies of other WTO Members, Saudi Aramco encourages the development of a strong, broad-
based local contractor community in its area of op eration. To meet these objectives, Saudi Aramco 
conducts its purchasing programs in an equitable manner and maintains a business environment intended to attract highly qualified, competitive contractors. Foreign suppliers that participate in 
government procurement are required to register with the Saudi Arabian General Investment 
Authority (SAGIA) and also establish a training program for Saudi Nationals.  
 
Question 10 
Would the relevant certifications and licences result in any technical barrier in the market?  Answer 
There are no technical barriers to supplying goods or services to Saudi Aramco.  
 Question 11 
The Electricity and Cogeneration Regulatory Authority (ECRA), a financially and administratively 
independent organization, is the regulator in the electricity and water desalination industry in Saudi Arabia. According to the authorities, its mission is to develop and pursue a regulatory 
framework, in accordance with government laws, regulations, policies, and standards, as well as 
international best practices in order to guaran tee the provision of safe, reliable and efficient 
electric power and desalinated water to the consumers of Saudi Arabia. The ECRA issues licences to operators for generation/cogeneration, transmission, and distribution; it also assesses and 
approves electricity tariffs. 
 What is the threshold that the Electricity and Cogeneration Regulatory Authority (ECRA) sets on 
licensing the operators, which generate, cogenerate, transmit and distribute the electricity? 
 Answer 
ECRA is the concerned authority for granting licenses for electricity and cogeneration activities in accordance to the implemented regulations in Saudi Arabia that identifies all electrical activities and licenses.  
Question 12 
The Saudi Electricity Company (SEC) is a dominant operator in the electricity industry, engaged in generation, transmission, and distribution. The SEC was publicly traded on the Saudi capital 
market, and the Saudi Government owns 74.3% of the share. A number of independent power 
generation plants also supply electricity directly to larger consumers, including to the SEC for distribution. 
 
Are there any foreign investors investing in the independent power generation plants? If not, is there any limitation to foreign enterprises to invest in domestic power generation market?  
Answer 
There are no limitations on foreign enterprises to invest in the Saudi Arabian power generation 
market. Currently, there are international investors who invest in the independent power 
generation plants. 
 QUESTIONS REGARDING THE GOVERNMENT REPORT 
 Question 13 Page 8 (Para 1) Imported goods are subject to the proof of origin adopted within the framework of 
international and regional agreements inforce.  
Will Saudi Arabia provide the option of a Declaration of Origin on the invoice for the approved 
foreign exporters?  
Answer 
Goods imported into Saudi Arabia must identify  the origin of the products by submitting a 
certificate of origin.  
 
Question 14 Page 13 (Para 4.21) Most production comes from  fields in the coastal plains of the Eastern 
Province in an area extending 300 km. Saudi Arabia 's total crude oil reserves at the end of 2014 
stood at 266.578 billion barrels and the Kingdom continues to maintain maximum sustainable oil WT/TPR/M/333/Add.1 
 
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  production capacity at 12.5 million bpd. The King dom's average daily crude oil production in 2014 
amounted to 9.7 million bpd and crude oil exports totaled 2.6 billion barrels to customers around the world  
 
Are certificates or permit required to export crude oil and refined products? 
 Answer 
As stated in paragraph 179 and Annex J of The Kingdom's accession Working Party Report, crude oil and refined products are subject to automatic licensing.  
 Question 15 
Is there any quantitative or quota restriction to WTO member parties? 
 Answer 
There are no quantitative or quota restrictions ma intained by Saudi Arabia for the export of crude 
oil and refined products to WTO Members.  
Question 16 
Page 16 (Para 4.46) ……Banks recorded strong prof itability with an average Return on Equity 
(ROE) of 15.0% and an average Return on Assets (ROA) of 2.0%. ……   
Would the Kingdom of Saudi Arabia advise us  how the banking sector recorded the above-
mentioned strong profitability and whether the SAMA has taken measures to promote the 
application of Fintech on financial sector? 
 
Answer 
The Saudi banking system continued to grow in 2015 with credit growth of 9.85% and deposit 
growth of about 2%. Nonperforming loans remain very low at 1.13% in December 2015 and the 
NPL coverage ratio was 172%. Banks continued to expand their business in all sectors. The Banks 
have an average Basel Capital ratio of  17.8% and a Liquidity coverage Ratio of 177%. As far as the 
application of FinTech is concerned, the Banking Se ctor already is well advanced in use of latest 
technology so that internet and telephone banking, internet bill payment etc. are widely applied 
along with the ATMs and point of sale. SAMA's Payment Systems Department guides the banking system in adopting new technologies and has lately updated its business strategy taking into 
account market behavior and practices, technology advancement, and SAMA's vision of the 
banking sector.  
Question 17 
Page 15 (Para 4.36) Conduct a mining strategy study for mid- and long- term periods (20 years) in order to increase the sector's contribution to GDP; to improve value chain opportunities in the categories of metals, fertilizers, construction materials, industrial compounds and industrial 
minerals that will supply downstream industries; to maximize economic development and 
competitiveness; to develop remote areas; to create jobs; and to ensure environmental sustainability and best in class safety performance.  
 
As for mining strategy study for mid- and long- term periods (20 years), Are these studies still in progress or concluded? 
 
Answer 
The mining strategy study is still in the process of being prepared.  
Question 18 
Would Member Saudi Arabia please kindly provide conclusion reports with respect to topics aforementioned for our reference,  when this study concluded? 
 
Answer 
The study is being prepared as a strategy document for internal government use. No decision has 
been taken on whether or not it will be released publicly.  WT/TPR/M/333/Add.1 
 
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  EUROPEAN UNION 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1  
According to the report, the immediate economic risks to growth are sustained lower oil prices, 
and instability in the region leading to lower consumption and higher unemployment.   
What are Saudi Arabia's views on the effect of its recent agreement with Russia and some other oil 
producers to freeze production at the January 2016 le vel (in terms of near-term trends in oil prices 
and global oil production)?  
Answer 
Saudi Arabia's actions in respect of crude oil production are consistent with stable global oil prices 
and sustainable global supply, in both the near and long term.  
 
Question 2 Under the 10
th Development Plan (2015-19), the Government is seeking to enhance economic 
diversification with its different dimensions.  
 What are the key sectors that Saudi Arabia is targeting in horizontal economic diversification and which industries and services are key priorities? In particular, please clarify if the new National 
Transformation Plan will include additional/different priorities, or will it provide further details to 
the 10th Development Plan?  
Answer 
Due to the current world economic slowdown and the decline in oil prices, the Kingdom of Saudi 
Arabia established a national transformation plan: the Kingdom's 2020 strategy. This plan is in its 
initial stages and aims to accelerate economic gr owth through economic diversification, reducing 
dependence on oil revenue, and offsetting the steep decline in oil prices. The primary sectors targeted for horizontal economic diversification are: - Education; 
- Health; 
- Manufacturing; 
- Non-oil mining; 
- Financial services; 
- Tourism. 
 
Question 3  
The Secretariat's report gives some indications on the Nitaqat programme that requires companies to meet certain Saudization quotas.  
Could Saudi Arabia elaborate on its method for determining the quotas for different sectors which 
ensures that these are realistically attainable by businesses?  
Answer 
Under the so called Nitaqat program, the MoL has ca tegorized the private sector into 72 economic 
activities (e.g., retail, agriculture, insurance, petr ochemical, etc.). Each activity was further divided 
into 5 sizes (very small, small, medium, large, and huge). The size of any company in the market 
is based on the number of its employees. For exampl e, 1 to 9 employees = very small, 10 to 49 
employees = small, etc. Thus, in total there are 255 different "bins" in the market. Each company on the Saudi market was labelled with a specific colour according to its jobs nationalisation rate. 
MoL counted the rate of nationals in each company wi thin each bin in each activity (i.e., out of 51 
activities). Then, for each bin, the companies in the top 50% (in terms of rate of national 
employees) were labelled as green, the middle 40% were labelled as yellow, and the poorest 10% 
were labelled as red. In the green zone, the top 10% companies were further labelled as excellent. 
These labels (i.e., excellent, green, yellow and red) were then translated into incentive programs introduced by the MoL. For example, companies th at fall in the Red category are not allowed to 
renew their licenses and they cannot request visas to employ new foreign staff 
10. Companies that 
fall in the Yellow category are not allowed to undertake any government contracts but can request 
                                               
10 Note that in Saudi Arabia, non-Gulf state worker s need to enter the country on a valid work visa. WT/TPR/M/333/Add.1 
 
- 33 - 
 
  a limited number of visas to employ new staff. Companies in the Green category can get a higher 
number of visas and can do business with the Government. Companies in the excellent category get priority treatment: they can request an unlimited number of open visas to recruit new staff, have higher opportunities to do business with the Government, etc.  
 
The main advantage of Nitaqat is that it compares companies with their peers in the market (i.e., companies in the same bin). Hence, the companies are asked to increase their job nationalisation 
only to the extent that their peers already have. Also, note that the ability to recruit new 
foreigners is the main reward for companies when  they reach the green or excellent category.  
 Thus, Nitaqat is also leading the market toward expansion. 
MoL has allowed foreign labourers to freely move from companies in the red or yellow category to 
companies in they, green, or excellent categories. This gives more freedom to foreign labour while, 
at the same time, encouraging companies in the red and yellow category to recruit more nationals.  
 
As a result, Nitaqat has created a dynamics in the market by effectively encouraging foreign employees who work in the companies labelled as red or yellow to leave those companies and 
undertake work in different companies (if they get better offers) without changing their visa 
status.   Nitaqat was launched in 2010 and helped to employ over 120K citizens in one year only. Following 
the success of Nitaqat, the MoL envisions a series of Nitaqat programs that can include further 
improvements to the policy.  
 
Question 4 
Isn't there a potential contradiction between the setting of minimum quotas for the employment of Saudi nationals in corporations and the need to attract foreign investment to boost the 
diversification of the economy away from the energy sector? 
 Answer 
The programme attempts to neutralize the market preference for low skilled workers, and 
encourage the private sector to value productivity and efficiency in its work. This aligns with Saudi 
Arabia's goal of moving toward a knowledge-based economy and higher productivity. In addition, there are a wide range of financial support programmes available to help companies 
meet Saudization requirements. These include wage support programmes, training support 
programmes, and other company support programmes.  
They broadly fall in three different areas: 
 1. Wage support programme One substantial program in this area is the Payroll Rebate Program, which offers financial benefits 
to companies who have increased the payroll to Saudis either through raising salaries for Saudis or 
overall employing more Saudis. Hundreds of millions of dollars have been paid out in the first year of the program alone and tens of thousands of companies have benefitted from this "cash back" 
programme. 
In addition, the Ministry of Labor offers substantial wage support programme for Saudis hired in the private sector for up to two years. 
 
2. Training support programme For companies hiring Saudis for on the job trainings, the Government is counting them fully in the Saudization quota and support programme heavily both salary and training costs for up to two 
years. Training costs are subsidized to up to 100%, especially for previously unemployed Saudis. 
 3. Other company support programme 
Historically, Saudization has been much easier fo r larger sized companies who readily comply with 
the requirements due to their better working en vironment and competitiveness. Hence, a lot of 
support is given to SMEs, which at times find it more difficult to offer a substantial share of jobs to 
Saudis. 
 WT/TPR/M/333/Add.1 
 
- 34 - 
 
  Question 5 
Could Saudi Arabia further inform about its strategy for ensuring that quotas, rules and procedures for "Saudization" are predictable, transparent, co herent, and reliable and published with sufficient 
notice? 
 
Answer 
The strategy of Saudi Arabian labor market law and procedures are posted on the MOL website. 
Moreover, MOL's new decisions are posted on a portal for public comment. The feedback is used to 
revise the new decision before it ente rs into force with sufficient notice. 
 Question 6 
According to the report, with the current ex penditure path and the continued weakness in 
international oil prices, the fiscal deficit is expected to be nearly 20% of GDP in 2015. 
 
Could Saudi Arabia give more details on their me dium-term strategy to contain the adverse effect 
of low oil prices on fiscal balances, clarifying al so whether the government drew scenarios on the 
projected pace of exhaustion of available fiscal buffers? 
 
Answer 
A central government fiscal deficit of 19.5 percent of GDP is projected in 2015. While the deficit will decline in 2016 and beyond as one-off spending ends and large investment projects are 
completed, it will remain an issue over the medi um-term if it erodes to some extent the fiscal 
buffers built up over the past decade. Nevertheless, government debt is very low and was 1.6%of GDP at end-2014. Against this background, the Government is considering the possibility of a 
gradual but sizable multi-year fiscal adjustment based on a mix of expenditure and revenue 
measures including firm control of the public sector  wage bill, greater efficiency in public sector 
investment, and an expansion of non-oil revenues, for example through industrial diversification 
into value-added industries. Issuing debt to finance part of the deficit is appropriate and could help 
promote the development of private capital markets.   
 Question 7 
According to the report, the GCC nationals are treated as Saudi nationals for the purposes of 
investment.  
 
Is it correct that GCC investors and foreign investors enjoy the same treatment in the priority 
sectors as described in paragraph 2.34 (i.e. including energy, transport and logistics, information and communication technologies, health, life sciences, education and tourism)? 
 
Answer 
GCC nationals are treated the same as Saudi nationals in accordance with the Economic Agreement between the GCC states adopted on December 31, 2001. Saudi investors and GCC 
investors who apply for an investment licence with a foreign partnership are treated the same as 
foreign investors.   
Question 8 
According to the report, Saudi Arabia continues a negative list for foreign investments.  
 
Could Saudi Arabia clarify whether this does include GCC investors? 
 Answer 
Yes, GCC investors are also subject to th e negative list for foreign investments.   
 
Question 9 SAGIA informed of longer licenses being issued  in priority sectors and where companies are 
established in the country. However, companies wi th contracts for multiple years have recently 
obtained again a one year license only.  
 
Could Saudi Arabia clarify whether they intend to adopt any amendments to make the granting of 
licenses by Saudi Arabian General Investment Au thority Board (SAGIA) more speedy and investor-
friendly?  WT/TPR/M/333/Add.1 
 
- 35 - 
 
  Answer 
SAGIA has significantly improved the process of applying for a foreign investment license by 
reducing the number of required documents needed to be submitted by foreign investors accompanying an application. Currently, within le ss than 5 working days the application is being 
processed by SAGIA. As for the average time need ed to start a business, it will depend upon the 
type of investment.  
Question 10 
How is it ensured that companies with a longer-term contract do not need to renew their license annually?  
Answer 
SAGIA has recently announced that foreign companie s have the option to extend their licenses for 
up to a 15-year period. 
 
Question 11  Saudi Arabia interpretation of permanent establishm ent in case of services is not the traditional 
one. As such, in case of double taxation agreements, the provision of services in Saudi Arabia 
without physical presence for longer than 6 months in a year results in the establishment of a "permanent virtual establishment".  
 
Could Saudi Arabia clarify the procedure and the legal timeframe for obtaining the written 
confirmation for a company that does not have a permanent establishment in Saudi Arabia in order to avoid the withholding tax? Could Saudi Arabia also clarify which is the responsible issuing 
body? 
 The EU would also ask clarifications on "virtual permanent establishment". Considering that, 
according to Article 5 (3) (b) of the UN Model Convention the term "permanent establishment" also 
encompasses: (b) The furnishing of services, in cluding consultancy services, by an enterprise 
through employees or other personnel engaged by the enterprise for such purpose, but only if 
activities of that nature continue (for the same or a connected project) within a Contracting State 
for a period or periods aggregating more than 183 days in any 12-month period commencing or 
ending in the fiscal year concerned.  
Answer 
To withhold taxes at rates stipulated by a tax treaty, the resident making payments to a non-
resident who is entitled to benefits from a tax treaty between its country and Saudi Arabia is 
required to submit to the Saudi Tax Authority a confirmation by the foreign Tax Authority, to the 
best of knowledge of such authority, that the non-resident recipient among other things has no 
permanent establishment in Saudi Arabia. That confirmation is to be filed by the resident paying entity along with the monthly withholding return Form. The same confirmation is accepted by the 
Tax Authority for all payments to that recipient during the fiscal year concerned. Saudi Tax 
Authority has been receiving such confirmation and only a few cases reported difficulties in obtaining such confirmation. The Saudi Tax Authority is always willing to reconsider any of its 
procedures in order to ease and improve compliance by our universe. See our answer to Question 
12 below.   
Question 12  
Does Saudi Arabia consider its interpretation of a virtual permanent establishment (P.E) in accordance with the traditional interpretation  of a P.E., according to the UN Convention? 
 
Answer 
Our interpretation of a permanent establishment is generally in accordance with the interpretation 
of a P.E., according to the UN Convention.  
Jurisdictions around the world have been facing a problem of tax base erosion and profit shifting 
(BEPS) that has drawn the attention of the wo rld: the BEPS Project under the G-20 and OECD. 
This problem has been exacerbated with the great advances in communications and information 
technologies that have enabled businesses to do businesses in non-traditional ways: some services 
that used to require physical presence do no longer require so.   Regarding the above-referenced provision from the UN Model Convention, some jurisdictions 
believe that, depending on the nature of services, th e main criteria of continuity of services within WT/TPR/M/333/Add.1 
 
- 36 - 
 
  a jurisdiction is some times the performance of the service in that jurisdiction, and not necessarily 
the physical presence in such jurisdiction. We lean toward that position in some cases.  
 Question 13  
Saudi Arabia is introducing higher customs duty on tobacco in 2016; the rate has been set to its 
maximum according to the WTO accession treaty. The other GCC countries however have much lower threshold in their WTO agreements.  
How will the higher customs duty on tobacco in Saudi Arabia figure in the common external tariff 
of the GCC customs union considering that other GCC members may not increase the duty to the same level as Saudi Arabia?  
Answer 
To the extent that there remain disparities betw een GCC member states in the customs duty on 
tobacco, an exception in the Common External Tariff may be required.  
 
Question 14 
Clarifications are needed with reference to the commercial registration with the Ministry of 
Commerce and Industry (MCI) requested before engaging in any business.  
 Could Saudi Arabia clarify whether the registration process for importers and exporters is granted automatically? 
 
Answer 
Commercial registration is granted automatically once the required documents are fulfilled. 
 
Question 15 If not, could Saudi Arabia clarify what are the re quirements needed for registration in MCI and the 
procedures concerning closing business and cancelling registration in the country? 
 Answer 
N/A. 
 
Question 16  Could it be possible to describe in detail the 12 different documents required, clarifying in 
particular for which purposes are they required for importing a container? 
 Answer 
Container requirements fall into two categori es: import requirements in general and the 
requirements of importing other goods like hazardous materials and some restricted goods that require prior importation permission. The purpose of some required documents is to accelerate clearance procedure (e.g., certificate of conformity).
 
 For import in general, the following documents are required:
 
 Invoice 
 Certificate of origin 
 Bill of lading (sea, air) 
 Manifest (land) 
 Delivery order (sea, air) 
 Other imports such as meat require attachment of Halal slaughter certificate.  
Question 17 
All imports need to be accompanied by a certificate of conformity. 
 
Could Saudi Arabia clarify what should such a certificate confirm in case of non-existing standard 
or regulation?  
Answer 
Saudi standards and /or Technical Regulations must be used for issuing CoC's for goods to be 
exported to Saudi Arabia; in the absence of Saudi Standards or Technical Regulations, 
international, regional, or national standards may be  applied, taking into consideration the national 
requirements of Saudi Arabia based on legitimate objectives.  WT/TPR/M/333/Add.1 
 
- 37 - 
 
  Question 18 
Is there a capacity building programme for customs in Saudi Arabia?  Answer 
Yes, in Saudi Customs there are capacity building programmes in the Kingdom and abroad. In the Kingdom, there are training programmes organized by the Saudi Customs Training Institute. There are also training programmes organized by the Institute of Public Administration. The capacity 
building programmes held outside the Kingdom incl ude scholarships for specialized post-graduate 
studies and long-term training. In addition, there are training courses and workshops organized by 
the World Customs Organization (WCO) and the U.S. Patent Bureau. The number of participants in the capacity building programmes reached 9,344 employees according to the 2014 Saudi Customs 
Annual Report. 
 Question 19 
Could Saudi Arabia clarify whether the customs importation processes are fully automatized and/or 
to what extent (paperless vs tradit ional clearance processes, ratio, %)? 
 
Answer 
All import processes in Saudi Customs are performed electronically in all customs ports starting 
from the phase of transaction creation by the cu stoms broker via SANAM system on the internet. 
The automated systems are used to record inspection and x-ray scanning data. The procedures of 
competent sections such as exemptions and cust oms restrictions are processed by the automated 
systems. Saudi Customs uses electronic paymen t system to collect customs duties and fees 
related to import and export. The transaction is finalized with electronic release.  
 
Question 20 Could Saudi Arabia also clarify whether other customs procedures (notably, export, transit, etc.) 
are automatized? 
 Answer 
Yes, the automated system is used in all customs procedures. Electronic vehicle tracking system is 
used to track trucks in transit through the Kingdom.  
 Question 21 
All imports are subject to customs inspection and a single point of entry should be in place since 
January 2015.  
Could Saudi Arabia clarify whether risk profiling is determined by a data base or an automatic 
system of risk analysis?  Answer 
Saudi Customs has a database and an automated system for risk analysis.  
 Question 22 
Could Saudi Arabia clarify whether any post-clearance inspection is in place or whether everything 
is performed on the border/entry point?  
Answer 
The imported shipments are examined at the border customs ports.   
 Question 23 
How do Saudi customs deal with imports entering the GCC market via other GCC countries (such 
as UAE)? Please specify whether it does include conformity assessment?  
Answer 
Conformity should be verified at Saudi customs po rts either by attaching a conformity certificate 
by the exporter or by taking a sample and sending it to the competent laboratory. 
 
Question 24  Could Saudi Arabia clarify which are the requirements for trader to be granted with AEO Status (compliance, financial record clearance)? 
 WT/TPR/M/333/Add.1 
 
- 38 - 
 
  Answer 
The requirements for granting authorized economic  operator status are based on the criteria and 
requirements of the WCO Framework of Standards to Secure and Facilitate Global Trade (SAFE), in addition to other conditions pertaining to the following:  
1- The period of practicing import and export process, amount of imports and exports, amount of 
customs duties paid and the number of customs declarations.  
2- No previous conviction in a legal case or issu ance of a judicial rule by any customs committees 
of first instance or appeal committees.  
3- Complying with customs regulations and instructions and not committing any customs violation. 4- No violation committed by the person authorized to finalize customs clearance.  
 
Question 25 
How many applicants have been granted AEO status?  
Answer 
The number of those included in the AEO programm e for pilot implementation will be determined 
during the coming period. 
 
Question 26 Is it necessary to be a nation al, GCC or registered company? 
 
Answer 
The agency included in the AEO programme must  be from an officially registered company.  
 
Question 27 
Standards are only available in Arabic under a fee.  
Does Saudi Arabia plan to make the access to their standards easier, and free? 
 Answer 
Yes, SASO is carrying out the project of editin g and developing of the standards electronic 
directory named "WASEF". Furthermore, access to SASO's standards is similar to access to other 
standards (i.e. service against fees).  
 
Question 28 
According to the report, the Gulf Standards Organization (GSO) is mandated to establish and harmonize standards and technical regulations within the GCC member States.  
 
Could Saudi Arabia indicate what is the procedure by which GSO standards may become mandatory in the Saudi Arabia?  
Answer 
SASO is engaged in preparing the GSO draft standa rd/technical regulation. The draft is prepared in 
accordance with accredited stages and procedures, which are consistent with the international 
methods and practices in this field. After being ap proved by the GSO's Board of Directors, the draft 
is presented to SASO's Board of Directors for approval, afterward it is published in the official newspaper.  
 
Question 29 Does this mean that a GSO standard may exist but not apply to all GCC countries, depending on the decision of each GCC country? 
 
Answer: 
In Saudi Arabia, GSO standards are applied af ter approval by SASO Board of Directors. 
 
Question 30 Which are the legislative procedures which ensure that draft technical regulations, including 
GSO/SASO mandatory standards are transparentl y prepared and, where possible, based on 
international standards?  WT/TPR/M/333/Add.1 
 
- 39 - 
 
  Answer 
Standards/technical regulations drafts (GSO/SASO) are prepared according to technical directives 
that are based on TBT requirements.  
Question 31  
Does Saudi Arabia require publication of an early notice of the intention to introduce new regulations or amend existing regulations? 
 
Answer 
SASO informs the interested parties about its inte ntion to introduce new technical regulations or 
amend existing technical regulations.  
 
Question 32 How is consultation of domestic and foreign interested parties ensured? 
 
Answer 
SASO standards/technical regulations drafts are prepared according to technical directives. One of 
the most important stages in preparing SASO standards/technical regulations drafts is to consult 
concerned bodies; this is achieved via making dr afts available on SASO's website, and many of 
these bodies are members of the National Technical Committees that prepare these standards and regulations. 
 
Question 33 How is the necessary time for adaptation to changed requirements considered in order to establish 
the date of application of new or amended technical regulations? 
 Answer 
The above-referred period is determined based on the reasonable period needed by the interested 
parties to adhere to the technical regulation's requirements.  Question 34 
The report indicates that Saudi Arabia maintained, during the review period, import bans on 
bovine meat, sheep and goat meat, poultry meat, and their products from a number of trading partners for a number of reasons. 
 
When would Saudi Arabia fully align with the OIE code concerning the import conditions for beef and other meat of other animal origin, e.g. allow bovine meat other than animals only under 30 
months of age to Saudi Arabia? 
 Answer 
From time to time, we review the age according to the OIE recommendations. 
 
Question 35 Is Saudi Arabia already applying regionalizatio n in a general and consistent manner to trading 
partners so that trade can take place under the rules set down by the OIE from disease free areas? 
 Answer 
Yes, we do apply the regionalization according the OIE when we implement or lift a ban.  Question 36  Reference is done to the import documentation needed for food importers.  
Could Saudi Arabia provide further information on the GCC guide on imported food controls, which 
is to be implemented in the near future?  
Answer 
The GCC Food Safety Committee Secretariat is the body to answer this question. 
 
Question 37 
Could Saudi Arabia clarify whether they intend to address some inconsistencies that have been detected between the SFDA regulations and those contained in the draft Gulf Cooperation Council 
Food Guide regarding the requisites that must be met for some products, in particular on the 
requirements for Halal? WT/TPR/M/333/Add.1 
 
- 40 - 
 
  Answer 
The GCC Food Safety Committee has been discussing this issue to find appropriate ways to unify 
any inconsistencies between Gulf Cooperation Council Food Guide and the GCC food standards. According to the output of the discussion, the GCC food guide would be adjusted. 
 
Question 38 The tax system in Saudi Arabia is relatively simple with no sales tax or value added tax, no excise 
duties, and no personal income tax on salaries. Furthermore, it seems that Saudi Arabia is 
planning introducing tax on luxury goods (such as tobacco, carbonated drinks).  Are there any plans by Saudi Arabia to introduce a Value-Added Tax (VAT)? 
 
Answer 
Yes, there are plans to introduce VAT. The Supr eme Council of the Cooperative Council of the Arab 
Sates of the Gulf (GCC) has approved VAT impl ementation at the GCC level. The GCC Member 
States are finalizing drafting a Common VAT Agreement and a Common Excise Taxes Agreement. Accordingly Member States may start implementing a VAT at national level in 2018 and may not 
delay the implementation beyond 2019; they may start implementing excise taxes at earlier dates.  
 The VAT implementation dates for Saudi Arabia ar e during 2018. Expert teams have been working 
on drafting the domestic VAT Law and on organizational and other issues related to VAT 
implementation. 
 Question 39 
Could Saudi Arabia also give more details about any planned measure to introduce a tax on luxury 
goods, listing the goods that will be subject to that tax?  
Answer 
Saudi Arabia has planned measures to introduce excise taxes on some goods, such as tobacco 
products, carbonated drinks and energy drinks.  
Question 40 
Please describe the anti-competitive practices that are prohibited under Islamic law.   
How are infringements of these practice s regulated? Do any sanctions apply? 
 Answer 
Article 4 of the Saudi Competition Law states that:  Practices, agreements or contracts among current or potential competing firms, whether the contracts are written or verbal, expressed or implie d shall be prohibited, if the objective of such 
practices, agreements or contracts, or consequent impact thereof is the restriction of commerce or 
violation of competition among firms. A firm or firms enjoying a dominant status shall also be 
banned from carrying out any practice which restricts competition among firms, in accordance with the conditions and rules specified in the Regulations, especially the following: 
1.Controlling prices of commodities and services meant for sale by increasing, decreasing, fixing 
their prices or in any other manner detrimental to lawful competition. 
2.Restricting freedom of flow of commodities and se rvices to markets or removing them, wholly or 
partially, there from by hiding, unlawfully storing, or refraining from dealing in them. 
3.Contriving a sudden abundance of commodities and services which results in an unrealistic price 
affecting other dealers in the market. 
4.Preventing any firm from exercising its right to enter or move out of the market at any time or 
hampering the same. 
5.Depriving, wholly or partially, certain firm or firms of commodities and services available in the 
market. 
6.Dividing or allocating markets for selling or purchasing commodities and services pursuant to 
any of the following criteria: 
a. Geographical regions 
b. Distribution centers 
c. Type of clients d. Seasons and time periods 
7.Influencing the normal price of sale, purchase, or supply quotations of commodities and services 
whether in government or non-government bids or auctions. WT/TPR/M/333/Add.1 
 
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  8.Freezing or restricting manufacturing, developmen t, distribution or marketing processes and all 
other aspects of investment, or restricting the same. 
 
The Council may choose not to apply provisions of this Article to practices and agreements in 
violation of competition which are believed to improve the performance of firms and realize a 
benefit for the consumer exceeding the effects of restricting freedom of competition, as specified 
by the conditions and rules in the Regulations. 
 
Each violation of the provision of The Saudi competition Law shall be subject to a fine not 
exceeding 10% of the total turnover or not exce eding ten million Saudi Riyals. And in case of 
recurrence, the fine shall be multiplied. If the viol ation is being continued after the issuance of the 
decision or the judgment, the Council may suspend the activity of the undertaking tentatively for a 
period not exceeding one month or revoke the license permanently. 
 
Question 41 
Please explain the reasons why all state-owned enterprises are exempted from the competition 
law? 
 
Answer 
The exception is based on Article 2 of the Co mpetition Law. State-owned enterprises in the 
Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working 
Party Report to make purchases of goods and services, which are not for government use, and 
sales in international trade in accordance with commercial considerations.   
Furthermore, the new Saudi Competition Law expand s the scope of the Law to all establishments, 
organizations and authorities that conduct commercial and economic activities, notwithstanding 
their ownership. 
 
Question 42 How does Saudi Arabia ensure the Competition Co uncil's independence from the Government when 
the Council is chaired by the Minister of commerce and industry? 
 
Answer 
The Council of Competition is a government agency. The formation of the Council will be as stated 
in Article 8 of the Saudi Competition Law. Four members are representatives of government 
agencies, and four members of expertise and competence are selected for their merits. Furthermore, Council decisions shall be taken by majority vote.  
 
Question 43  The Secretariat mentions that the Kingdom's objectives for government procurement of efficiency, transparency, non-discrimination, and fairness remain the same. Also, the Secretariat notes that 
investment by the private sector, including foreign direct investment, is considered essential for 
economic diversification, GDP growth, and creati ng job opportunities. Among priority sectors for 
foreign investment are identified: transport and logistics, information and communication 
technologies, and health (page 25, para 2.34 of the Secretariat Report).  
 Considering that the Government is applying a policy of payment suspension, could Saudi Arabia 
clarify what is the government planning both sh ort term (working through payment backlogs) and 
long term (working capital requirements contributing to investment case) to remove FDI roadblocks?  
Answer 
Saudi Arabia does not maintain such policy in the short term or in the long term. It was a 
transitional period where there was payment suspension up until the budget for the fiscal year 
2016 was announced. Afterward, the government resumed payment of the suspended payments; 
the Government expects to pay the suspended payments in due time.  
Question 44 
The related rights covered by the copyright re gime concern performers, producers of sound 
recordings, and broadcasting organizations. How does Saudi Arabia concretely implement and enforce these related rights? 
 WT/TPR/M/333/Add.1 
 
- 42 - 
 
  Answer 
Performers, producers of sound recordings, and broadcasting organizations are protected 
According to the Copyrights Law (Articles 18,19, 22) and Articles 5,7 of the Implementing Regulations. 
 
Question 45 Does Saudi Arabia collect properly royalties for distribution to all right-holders? 
 
Answer 
Saudi Arabia does not collect royalties for distribution to all right-holders.  
Question 46 
The patent law excludes certain inventions from legal protection.  
Could Saudi Arabia provide some clarifications as regards the various types of exclusions, in 
particular are biotechnological inventions excluded? 
 Answer 
The Law of Patents, Layout Designs of Integrated Circuits, Plant Varieties, and Industrial Designs 
of Saudi Arabia (Article 45(C)) stated that micro-organisms, non-biological and microbiology processes are patentable, but plants, animals and processes – which are mostly biological – used for the production of plants or animals are excluded from legal protection.  
 
Question 47 According to the report "The Trademarks Law includ es provisions on the protection of geographical 
indications. However, geographical names cannot be registered as trademarks if their use causes a 
misunderstanding as to the source of products or services, or to their origin, for example those related to religion or sovereignty".  
Could Saudi Arabia clarify, if deemed appropriate through theoretical or actual examples, in which 
conditions geographical names would cause a misunderstanding as to "their origin" in respect of "religion or sovereignty"?  
Answer 
Each expression or sign or drawing in breach of one's religion or being identical or similar to the 
symbol of a religious character cannot be recorded  (for example: Zamzam water, Al-Hajj, Mecca, 
Zakat, Islam, Christ). 
 Question 48 
According to the report "[t]trademarks are granted exclusive rights upon registration. 
Furthermore, protection of well-known marks is assured in Saudi Arabia even if they are not 
registered". Could Saudi Arabia clarify if coexiste nce between a subsequent geographical indication 
seeking protection in the territory of Saudi Arabia and a prior trademark under no circumstances 
would be admitted? 
 Please note that the EU believes that such  coexistence between a prior trademark and a 
subsequent geographical indication would be fully compatible with WTO/TRIPS agreement, in 
particular pursuant to Article 17 thereof. Such possibility of coexistence is also contemplated through Article 13 of the Geneva Act of the Lisb on Agreement on Appellations of Origin and 
Geographical Indications, as adopted on 20 May 2015 in the framework of a dedicated diplomatic 
conference to which Saudi Arabia also attended  Answer 
Geographical names if their use would cause confusion as to the origin of products, services or origin, or if it would monopolize a statement to the source, for example: (Taibah, Umm al-Qura, Almaddinah). 
 
Question 49  The Law provides for the right to issue a compulsory licence for integrated circuits, industrial 
designs, and plant varieties. 
 Could Saudi Arabia provide some clarifications as regards the mechanism of the compulsory licences for integrated circuits and industrial designs? Please clarify whether these compulsory 
licences are used as exceptions to exclusive rights? WT/TPR/M/333/Add.1 
 
- 43 - 
 
  Answer 
Where a compulsory licence of layout design of an integrated circuit and patent have same 
procedures, the mechanism as following:  (Article Twenty Four): 
(a) KACST may grant a compulsory license to a third party to exploit an invention covered by the 
patent or a layout design of an integrated circuit covered by a certificate of design upon an application submitted to it, according to the following: 
(1) The application shall be submitted after the elapse of four years from the date of filing the 
patent application or three years from the date of granting the patent, whichever expires later, without the owner of the protection do cument exploiting his invention or having 
exploited it in an inadequate fashion, unless he justifies that with a legitimate excuse. 
(2) The applicant for the compulsory license must  prove that he has exerted -over a reasonable 
period of time efforts in order to obtain a contractual license on the basis of reasonable commercial conditions, and for a reasonable fina ncial compensation. However, this provision 
and the provision of the preceding paragrap h do not apply where the applicant is a 
government body or a person authorized by it, and the aim was to meet public interest - especially security, health, nutrition or the deve lopment of other vital sectors of the national 
economy- or to meet a state of emergency or other very compelling circumstances, or where 
the aim thereof was public non-commercial purposes. In the latter case, and upon knowledge of the existence of a patent or a certificate of design, their holder shall be promptly informed. 
(3) The compulsory license is basically granted to make the invention or design available in the 
local markets. But this provision does not apply where the aim of the license is to prevent or 
restrict practices against which a decision or judgment is issued declaring them to be acts of 
unlawful competition. 
(4) The decision granting the license shall spec ify the scope and term of the license, according 
to the purpose for which it was granted. The lic ense shall be subject to termination if the 
conditions for which it was granted cease to exist and their recurrence is not likely, with due 
regards to the lawful interests of the licensee. 
(5) The license shall not be exclusive. (6) Each application shall be independently decided. 
(7) The owner of the protection document or the holder of a certificate of a design shall be 
awarded a fair compensation. The Committee shall determine the amount of the compensation, and the licensee undertakes to pay it.  
 
Yes, compulsory licences are used as exceptions to exclusive rights.   
Regarding of Industrial design, there are no compulsory licences.  
 Question 50 The report informs of "a surplus of production over consumption only in milk". However, Tables 4.4 
(imports) and 4.3 (exports) shows clearly imports exceeding exports for Chapter 04 products - for 
example for 2014 – total exports for 0406-0402 and 0401 are of 783 mio $ whilst imports of 0402 
(concentrated milk) is amounting at 1 138 mio $. 
 
Could Saudi Arabia confirm that for dairy products the country is a net importer and that domestic production surpass (or not) national consumption? 
 
Answer 
Domestic production surpassed national consumption (surplus production) only in fresh milk; other dairy products are imported with values as shown clearly in table 4.4 (imports). 
 
Question 51 The report refers to the Ninth Development Plan on Agriculture which includes programmes to 
increase production of water-efficient crops; improve agricultural markets; improve farm extension 
services, and research and development; and impr ove sustainable management of rangelands and 
forests. Financial allocations to the Ministry of Agriculture and the GSFMO were SAR 8,944.4 
million, and SAR 13,824.0 million respectively under the Eighth and Ninth Development Plans.8 
According to the authorities, most of these amount s were for food security, refers to the latest 
Domestic Support notification  which dates back to 2000 covering the 1995-1998 period.  
 WT/TPR/M/333/Add.1 
 
- 44 - 
 
  The latest notification made to the WTO on Domestic Support on Agriculture (DS:1) covers the 
year 2011. When does Saudi Arabia intend to ma ke the outstanding notifications to the WTO on 
domestic support for agriculture?  
Answer 
The work on agricultural domestic support notification (DS:1) for calendar years 2012, 2013, 2014 
and 2015 is currently in progress. It will be submitted to the WTO as soon as data are completed 
and reviewed.  
 Question 52 Could Saudi Arabia indicate the amounts of agriculture support paid per year under the 9
th 
Development Plan?  Answer 
Domestic agriculture support for the Kingdom of Sa udi Arabia is made and sent to the WTO on an 
annual notification basis. It has detailed agricultural support paid per calendar year.  
Question 53 
Could these annual amounts also be specified per the different measures/type of products?  Answer 
These amounts refer to the overall financial allocations approved in the budget for total years of the above-mentioned development plan and could in clude expenditures on infrastructure, building 
establishments, etc. Specification per the different measures or the type of products may be found 
in the Kingdom of Saudi Arabia's domestic support notifications to the WTO. 
 Question 54 
Could Saudi Arabia inform about the amounts for food security provided under these types of 
intervention?  Answer 
In 2014, about SAR 4 billion is allocated for the imported wheat procurements programme.  
 Question 55 
The report refers to the fact that Barley for feed is bought at international prices and distributed to 
farmers at a fixed price of SAR 800 per tonne. To encourage better quality animal feed, the Government provides subsidies for soya bean and maize-based animal feeds for poultry producers. 
The subsidy is based on the energy and protein levels of the feed. 
 What has been the total cost for the last two years of the scheme distributing barley at SAR 800/t?  
Answer 
Updated information related to domestic support for barley and animal feed to poultry producers 
will be available in the upcoming domestic support notification of the Kingdom of Saudi Arabia to 
the WTO, which covers the years 2012 and 2013. 
 Question 56 
How much has been paid in support for animal feed to poultry producers in the last two years? 
 Answer 
Updated information related to domestic support for barley and animal feed to poultry producers 
will be available in the upcoming domestic support notification of the Kingdom of Saudi Arabia to 
the WTO, which covers the years 2012 and 2013.  
Question 57 
Reference is done to the bilateral air services agreements.   
What bilateral air service agreements are Saudi Arabia currently negotiating or planning to 
negotiate? WT/TPR/M/333/Add.1 
 
- 45 - 
 
  Answer 
Saudi Arabia is planning to expand air services to Asian, Middle East, European, South America 
and African countries. GACA is discussing and negotiating with various countries in the ICAN conferences carried out by ICAO. Once the negoti ation of the countries is finalized, GACA will 
announce the outcome of the bilateral negotiations.  
 Question 58 
The Saudi Arabian Oil Company (Saudi Aramco) is wholly owned by the Saudi Government. The 
authorities note that Saudi Aramco operates on a commercial basis with complete autonomy for operational decisions, in compliance with the production policies established by the Government (Section 3.3.3). The Saudi Government sets the oil production limits within its territory. There was 
an announcement a few months ago about the privatization of Saudi Aramco.  
 Could Saudi Arabia provide more information about what part of Aramco they would cover, or 
inform if these plans have been shelved? 
 Answer: 
No decisions have been reached although deliberation over a range of possible options continues.  
 Question 59 How the autonomy of Aramco tallies with the government's decision to limit production? 
 
Answer 
Saudi Aramco, like all commercial enterprises in Saudi Arabia, must comply with governmental 
regulations that pertain to its operations. Paragraph 44.vi of The Kingdom's accession Working 
Party Report notes, "The company conducts its activities on a commercial basis subject to government regulations, including those related to the exploitation of national natural resources."  
 
Question 60 What are Saudi Arabia's plans in relation to the privatization of major airports, and the airport authority, GACA? 
 
Answer 
The Kingdom plans to privatize its international an d domestic airports by 2020. As part of the 
process, some would be "corporatized" — restructured to operate like a company while remaining 
state owned. King Khaled International Airport will shift to a corporate structure in the first quarter of 2016; however, the airport's new Terminal 5 will be run as a concession by the private sector. 
King Fahd International Airport will be corporatized in the third quarter of 2017.  
 Question 61 Reference is done to the policy objectives for the aviation sector as set out in Saudi Arabia's Air 
Transport Strategy.  
 Furthermore, how the autonomy of Aramco tallies with the Government's decision to limit 
production? 
 Answer 
Saudi Aramco, like all commercial enterprises in Saudi Arabia, must comply with governmental regulations that pertain to its operations. Paragraph 44.vi of The Kingdom's Accession Working Party Report notes, "The company conducts its activities on a commercial basis subject to government regulations, including those related to the exploitation of national natural resources."  
 
Question 62 The report states that the Saudi Commission for Tourism and Natural Heritage (SCTH) is the body 
responsible for regulating the tourism industry and as such responsible for formulating and 
implementing a strategy to drive growth and invest ment in the sector by increasing the number of 
offerings as well as facilitate tourism through human resource development and infrastructure 
upgrades. 
 Considering that Saudi Arabia has taken almost full commitments for tourism services in the GATS, could Saudi Arabia clarify how many foreign investors have established any form of tourism facility WT/TPR/M/333/Add.1 
 
- 46 - 
 
  (hotel, restaurant) in recent years and what the level of foreign participation is in the area of 
travel agencies and tourists guides?  Answer 
255 current foreign investors have established tourism facilities to date. Please note, that tour guides are limited to Saudi Nationals.   
QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Question 63 Saudi Arabia has introduced a new Company Law,  which introduces five corporative forms.  
 
Could Saudi Arabia clarify what measures are being planned to deal with bankruptcy of businesses? 
 
Answer 
The Ministry of Commerce and Industry in Saudi Ar abia is about to finish a project on preparing 
and drafting an Insolvency Law for businesses. Th e proposed law will allow three main procedures 
for any debtor who is insolvent or facing financial or economic difficulties: protective settlement, 
rehabilitation and liquidation. The main objective of the proposed law is to encourage economic 
activity, including situations where debtors may face distress and may be either viable enough to 
be rehabilitated or liquidated in a cost-effective way so that the capital can be reallocated.  
 Question 64 
Could Saudi Arabia describe what are the key measur es taken by Saudi Arabia concerning contract 
enforcement?  
Answer 
Commercial agreements can be enforced through the Board of Grievances, commercial 
committees.   
Question 65 
What are the options for contracting parties to engage in, when there are disagreements and/or delays in the contract? 
 
Answer 
Either through amicable resolution or via the Board of Grievance, commercial committees. 
 
Question 66  Could Saudi Arabia submit an overview of the regulatory system that will be applied in the so called economic cities? In particular, will it be similar to other free zones (such as in UAE and 
Oman)? 
 Answer 
The regulatory systems for Saudi Arabia's economic  cities are in the process of being developed. 
The regulatory systems utilized by other free zones may be assessed as part of this process.    
Question 67 
Companies are facing difficulties concerning the reimbursement of the withholding tax. For their 
imbursement, a written confirmation is required from the Tax Authority, that the company does 
not have a permanent establishment in Saudi Arab ia. Nevertheless, this written confirmation has 
been reported as difficult to obtain.  
 Could Saudi Arabia clarify the procedure and the legal timeframe within which such confirmation 
should be provided? 
 Answer 
To withhold taxes at rates stipulated by a tax treaty, the resident making payments to a non-resident who is entitled to benefits from a tax treaty between its country and Saudi Arabia is required to submit to the Saudi Tax Authority a confirmation by the foreign Tax Authority that, to the best of knowledge of such authority, the no n-resident recipient among other things has no 
permanent establishment in Saudi Arabia. That confirmation is to be filed by the resident paying WT/TPR/M/333/Add.1 
 
- 47 - 
 
  entity along with the monthly withholding return form. The same confirmation is accepted by the 
Tax Authority for all payments to that recipient during the fiscal year concerned. Saudi Tax Authority has been receiving such confirmations, an d there have been only a few cases reported of 
difficulties in obtaining such confirmation. The Saudi Tax Authority is always willing to reconsider 
any of its procedures in order to ease and improve compliance. 
 Question 68  
The report states that the maritime trade law, which regulates the maritime transport and 
merchant shipping sector in Saudi Arabia, has reached the final procedure to be issued, while the freight forwarder regulation, which regulates marine shipping, has been issued.  
Could Saudi Arabia explain how it expects these new legislative initiatives to have an impact on 
the level of private and foreign participation in the maritime transportation sector?  
Answer 
The new legislative initiatives sought to consolidate all legislation and regulations into a unified law 
which we believe will enhance and develop the maritime transport environment in Saudi Arabia 
and will have a positive effect on the level of private and foreign participation in the maritime 
transportation sector . WT/TPR/M/333/Add.1 
 
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  CANADA 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1 
It is mentioned that, with regards to female employment, regulations that restricted access to 
specified sectors were eased.  
 
Does Saudi Arabia intend on introducing additional programmes to increase women's access to and 
participation in the labour market, and if yes in which sectors?  Answer 
It is a declared goal of the Saudi government to massively increase opportunities available for women in the private sector, away from the more traditional areas of employment in the public sector and accounting for the steadily increasing participation rate of women in the Kingdom. 
 
Women still face barriers to employment, including the availability of affordable transportation or childcare, both of which are priorities for the Ministry of Labor. Initiatives have been launched with 
the goal of supporting over 100 thousand women in childcare over the next years. Likewise, multi-
billion-dollar investments in public transportati on systems are currently underway, which will 
benefit all of society, but especially women. In addition, a transportation subsidy scheme is currently being rolled out to subsidize private transportation of women from home to the 
workplace. 
 In addition, on the demand side, the Saudi government has supported the employment of female 
Saudi employees through its Saudization programm es, which have yielded encouraging results. 
From 2010-2014, the number of women in the private sector has risen from 50k to 450k employed women. Female participation rates are increasing year by year, which is a very encouraging 
development.  
 Question 2 Does Saudi Arabia currently have or intend to create or fund training programmes for women to 
support them in pursuing high-skill jobs? 
 Answer 
The Ministry of Higher Education launched a long-term plan to make sure that the Saudi educational system provided the highly skilled manpower which the Kingdom needs to run its increasingly sophisticated economy. One of the plan's first objectives was to establish new 
institutions of higher education throughout the country and to expand existing ones. There are 
more than 25 major public universities and colleges, a large number of vocational institutes, and a growing number of private colleges.  
Another objective was to establish undergraduate and postgraduate programs in most 
disciplines at these universities and colleges. Currently, about 1 million students are enrolled at Saudi universities and colleges, over half are female. Indeed, women attend all major 
universities, as well as numerous all-female colleges and private women's universities. 
Saudi students also have the opportunity to pursue specialized graduate and postgraduate degrees abroad. Supported by government schola rships, thousands of Saudi students enroll in 
universities outside the Kingdom. 
 Technical and vocational training With the increased attention and demand throughout the Kingdom of Saudi Arabia for greater 
human resources and participation in technical and vocational areas, a key priority of the 
Ministry of Labor has been increasing the capacity of the institutions run by the Technical and Vocational Training Corporation. A focus here has been the introduction of Colleges of 
Excellence, as well as the expansion of short courses that are available to all job seekers, 
especially women:  
Colleges of excellence  
Colleges of excellence (CoE) provide tertiary courses designed in consultation with private sector employees which combine classroom training with placements in the workplace. The mix of skills and workplace experience makes CoE graduates attractive prospective employees. The WT/TPR/M/333/Add.1 
 
- 49 - 
 
  commitment is to establish 50 technical training institutes over the next 10 years, which are 
incentivized based on the number of college graduates that successfully move directly into employment. The first wave of CoE, with 5 world-class international training providers operating 10 new colleges, was launched in September 2013. Eight more providers joined the 
programme in September 2014, raising the number of colleges to 37. This number is set to 
increase even further.  
Short vocational training courses  
The Ministry of Labor has established a series of "short courses" to support job seekers. These 
courses are designed to address skills gaps, a key obstacle to employment, by training high school dropouts and by re-training and up-skilling adults who hold other educational 
qualifications. Whilst the courses are open to males and females, they are particularly 
attractive to women given their shorter and more flexible duration than more traditional vocational courses. The duration varies from a few hours to 1 year and focus on a wide range 
of different subjects, such as work readiness, basic IT, and technical and vocational skills which 
are in demand by employers.  
Question 3 
The Secretariat report notes that the Gulf Cooperation Council – EFTA Free Trade Agreement has entered into force in July 2015. The report further notes that this Agreement covers, among other things, government procurement. Canada is please d to note that the Saudi Arabia has undertaken 
government procurement commitments similar to the provisions of the WTO GPA.  
 Has Saudi Arabia undertaken similar commitments with other FTAs? 
 
Answer 
The Gulf Cooperation Council signed two Free Tr ade Agreements with Singapore and EFTA. Both 
agreements include chapters on government procurement. 
 Question 4 Does Saudi Arabia plan to undertake similar commitments with other partners in the foreseeable 
future? 
 Answer 
Prioritization of FTA partners is currently under consideration. The GCC Secretariat is working on consolidating the priority list for all GCC members.   
Question 5 
It is mentioned that the New-Zealand FTA has yet to be signed.  Can Saudi Arabia provide a timeline for signature? 
 
Answer 
The GCC- New Zealand prospective FTA is currently undergoing a legal review process. 
 
Question 6 It is mentioned that the GCC put its free trade negotiations on hold until a feasibility study is 
conducted.  
 Can Saudi Arabia provide a status up date of this feasibility study? 
 
Answer 
As noted above, prioritization of FTA partners is currently under consideration. 
 
Question 7 
Should this feasibility study stall or if their results should go against Saudi Arabia's commercial interests, would Saudi Arabia consider pursuing negotiations on a bilateral basis? 
 
Answer 
GCC member states collectively negotiate FTAs.  WT/TPR/M/333/Add.1 
 
- 50 - 
 
  Question 8 
The report indicates that Saudi Arabia has increased the number of documents needed to import or exports goods. The report also mentioned that Saudi Arabia has a time consuming import/export process.  
 
Why has the documentary requirement increased?  
Answer 
Container requirements fall into two categories : the import requirements in general and the 
requirements of importing other goods like hazardous materials and some restricted goods that require prior importation permission. The purpose of some required documents is to accelerate 
clearance procedure (e.g., certificate of conformity). 
 
For import in general, the following documents are required:  
 Invoice 
 Certificate of origin 
 Bill of lading (sea, air) 
 Manifest (land) 
 Delivery order (sea , air) 
 
Other imports such as meat require attachment of Halal Slaughter Certificate.  
Question 9 
Is Saudi Arabia exploring opportunities to facilitate  trade as part of its implementation of the WTO 
Agreement on Trade Facilitation (TFA)? 
 
Answer
 
Yes. The Kingdom has submitted its Category A notification to confirm implementation of all the provisions contained in Section I of the TFA, ex cluding only Article 2.1 (Opportunity to Comment 
and Information before Entry into Force) and Arti cle 10.4 (Single Window) which will be classified 
under Category B.   
 
Question 10 
Saudi Arabia has indicated that some of the delays might be caused by the mis-submission of documents. 
 
How has Saudi Arabia addressed this issue?  Answer 
Saudi Customs works on enhancing qualification and training of the customs brokers in order to avoid the erroneous submission of documents. Saudi Customs also permits pre-arrival submission of the Customs Declaration for sake of allo wing revision and amendment, if required. 
 
Question 11 Has Saudi Arabia considered offering importers/exporters support to facilitate cross-border trade 
(e.g. a guide on how to fill out forms, which forms are required, etc.)? 
 Answer 
Saudi Arabia is working with the GCC countries on preparing a Common Customs Procedure Guide 
that is expected to be issued soon in its final form.  
 Question 12 
It is noted that "for projects for which no domestic supplier or contractor is available (Article 7) 
public tenders must be advertized abroad".  
Could Saudi Arabia explain how foreign based entities can access such information? 
 Answer 
Access to such information most commonly provided via direct invitations or advertisement in 
internationally recognized magazines.  
 WT/TPR/M/333/Add.1 
 
- 51 - 
 
  Question 13 
When public tenders are advertised abroad, are all foreign potential suppliers treated equally or are there any restrictions that may apply to foreign suppliers?  
Answer 
Yes. 
 
Question 14 
It is mentioned that the majority of construction workers are not Saudi nationals.  
 Could Saudi Arabia provide information on its labour laws and practices related to construction 
workers? 
 Answer 
In general, we are trying to increase productivity, as well as to reduce low skill jobs and to increase middle and high skill jobs.  
QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Question 15 It is noted that "The Kingdom of Saudi Arabia is currently conducting a study to assess the pros 
and cons of acceding to the new Government Procurement Agreement (GPA) in order to provide a 
basis for it to initiate negotiations for membership in the GPA and submit an initial entity offer." Canada recalls that the Kingdom of Saudi Arabia, as part of its accession to the WTO in 2005, 
confirmed that it would initiate negotiations for membership in the Agreement on Government 
Procurement by tabling an entity offer upon its WTO accession. (WT/ACC/SAU/61, dated 1 November 2005, paragraph 231) 
 
Does Saudi Arabia have a specific timeline to complete its study and to submit its initial entity offer? If so, when can we anticipate this process to begin?  
Answer 
Government procurement is crucial to Saudi Arabia's economic development and diversification 
plans. Saudi Arabia is currently examining the re adiness of various economic sectors to decide 
which sectors may be liberalized.  
 Question 16 
If there is no specific timeline, what can GPA Parties do to help Saudi Arabia complete its study? 
 Answer 
Due to the importance of this matter, Saudi Arabia had already contracted with several 
consultancy firms to assist in the area of government procurement. 
 WT/TPR/M/333/Add.1 
 
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  TURKEY 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1 
It is mentioned in the report that "The Nitaqat programme requires companies to meet certain 
Saudization quotas. The programme has also been used to introduce a de facto minimum wage for 
nationals of SAR 3,000 a month." 
 
Considering the fact that the Nitaqat Program in creases the cost of doing business, how does 
Saudi Arabia view the possible impact of the said policy on its programmes that aim to improve the investment environment in the Kingdom? 
 
Answer 
This programme attempts to encourage the private sector to maximize productivity and efficiency, 
which is aligned with Saudi Arabia's goal of moving toward a knowledge-based economy and 
higher productivity.  
In addition, there are a wide range of financial support programs available to companies to cope 
with Saudization requirements. These include wage support programmes, training support programmes and other company support programmes. 1. Wage support programme. 
One substantial programme in this area is the Payroll Rebate Program, which offers financial 
benefits to companies who have increased the payroll to Saudis either through raising salaries for Saudis or overall employing more Saudis. Hundreds of millions of dollars have been paid out in the 
first year of the programme alone and tens of thousands of companies have benefitted from this 
"cash back" programme. In addition, the Ministry of Labor offers substantial wage support programme for Saudis hired in 
the private sector for up to two years. 
2. Training support programme For companies hiring Saudis for on the job trainings, the Government is counting them fully in the Saudization quota and support programme heavily both salary and training costs for up to two 
years. Training costs are subsidized to up to 100%, especially for previously unemployed Saudis. 
3. Other company support programme  
Historically, Saudization has been much easier fo r larger sized companies who readily comply with 
the requirements due to their better working en vironment and competitiveness. Hence, a lot of 
support is given to SMEs, which at times find it more difficult to offer a substantial share of jobs to 
Saudis. 
 Question 2 It is mentioned in the report that "With the dec line in oil prices in 2014 coupled with high capital 
and defense expenditure, Saudi Arabia ran a fiscal deficit in 2014. Furthermore, with the current 
expenditure path and the continued weakness in international oil prices, the fiscal deficit is expected to be nearly 20% of GDP in 2015." 
 
Could Saudi Arabia kindly provide information about the fiscal adjustments and revenue-raising measures it plans to adopt in order to cope with the fiscal deficit? 
 
Answer 
Saudi Arabia has faced the decline in oil revenue from a comfortable fiscal position of high public 
reserves and very low public debts. Such a position allowed us to maintain our investments in 
social programs. Nonetheless, the Government was able to increase non-oil revenue by 29% in 
2015 compared with 2014. Saudi Arabia has also undertaken comprehensive economic financial 
and structural reforms and introduced a number of measures in that connection. These measures 
include, among others, developing objective fiscal rules consist with transparency control, 
corporate governance, accountability and privatization of a range of economic activities streaming 
legislative and regulatory requirements, focusing on projects in the health, education social and 
utility sectors. 
 WT/TPR/M/333/Add.1 
 
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  Question 3 
It is stated in the Report that, "Since 2010 inward FDI has been declining steadily. Inward FDI in 2014 was US$8 billion, compared with nearly US$30 billion in 2010."  
 
Could Saudi Arabia elaborate on the reasons behind the inward FDI decline since 2010? 
 Answer 
The world economic slowdown has negatively impa cted not only the Kingdom of Saudi Arabia, but 
most, if not all, countries. Saudi Arabia has started initiatives to promote and attract foreign investment, such as the National Investment Plan and the Invest Saudi program. Also, Saudi Arabia is continuously improving its investment environment and taking any other possible 
measures that could increase its inward FDI.  
 Question 4 
It is mentioned in the report that "The GCC is negotiating trade agreements with Australia, China, 
the EU, India, Japan, the Republic of Korea, MERCOSUR, Pakistan, and Turkey." 
 
Could Saudi Arabia kindly provide information on the progress made in the mentioned negotiations 
and when they are envisaged to be finalized?  Answer  
Currently, the GCC is negotiating a Free Trade Agreement with China. Moreover, the GCC is 
working to consolidate a common priority list to resume halted FTAs negotiations.  
 
Question 5 
It is mentioned in the report that "According to the World Bank's Doing Business 2016 report, Saudi Arabia was ranked 150
th out of 189 economies for trading across frontiers. The report also 
noted that in 2013 Saudi Arabia increased the number of documents needed to import (and 
export), which made trading across borders more difficult."  Do Saudi authorities have any plans to decrease the number of documents needed to import and 
export and/or simplify the border procedures in order to avoid delays at the Saudi ports and 
customs?  
Answer 
Saudi Customs authorities have worked to simplify customs procedures through the customs ports 
by requesting the documents (certificate of origin, invoice, import licenses, conformity certificate, 
etc.) electronically to avoid delays in documents submission at customs ports and through 
expansion in automated interfacing with concerned agencies.  Question 6 
It is mentioned in the report that "The Technical Directive, requires 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)."   
 Could Saudi Arabia kindly provide further information on possible cases where the international 
standards are deemed ineffective? 
 Answer 
Examples of these cases : 
1-  If there exist difference in the electrical voltage and frequency that is necessary to operate 
the devices and instruments than that operating in Saudi Arabia . 
2-  The operation temperature of some devices and instruments are incompatible with the 
Saudi Arabian climate. 
 Question 7 It is mentioned in the report that  " T h e  S a u d i  E x p o r t  P r o g r a m m e  ( S E P )  i s  t h e  o f f i c i a l  n a t i o n a l  
export credit agency, with the objective of diversifying Saudi Arabia's non-oil exports through the 
provision of financing to Saudi exporters or importers in other countries of non-oil goods from Saudi Arabia."  WT/TPR/M/333/Add.1 
 
- 54 - 
 
  Could Saudi Arabia kindly provide the amount of export credits provided by SEP between the years 
2010 and 2014?  Answer 
The required data may be found within the annual reports on the SEP website.11 
 Question 8   
It is mentioned in the report that "Saudi Arabia continues to maintain a negative list for foreign 
investments which is periodically revised and is subject to approval by the Economic and Development Affairs Council."  
Could Saudi Arabia kindly provide information about the changes made on the negative list since 
the last Trade Policy Review (January 2012) of the Kingdom?  
Answer 
Beyond the details provided in the Secretariat report, the negative list has been amended as 
follows: 
Intra-city passenger transport by trains and buse s within public transportation systems for high 
population cities, which have public transport syst ems approved by the Council of Ministers, are no 
longer on the negative list.  
Question 9 
It is stated in the Report that, "The periodic li cense reviews, with the possibility of cancellation, 
adds uncertainty for investors and can provide a disincentive to longer-term investment 
commitments."  
 What are Saudi Arabia's plans in order to address this consideration? 
 
Answer 
SAGIA works with the foreign investors to rect ify any violations. Cancellation of a foreign 
investment license is a rare occurrence and it is a last resort where the foreign investor has clearly 
violated laws and regulations of the Kingdom of Sa udi Arabia and has failed to rectify the violation. 
 Question 10 
It is stated in the Report that, "GCC nationals ar e treated as Saudi nationals for the purposes of 
investment. Companies or citizens from GCC countries may own land and engage in internal trading and distribution activi ties, with some exceptions."  
 
According to this paragraph, GCC nationals are treated as Saudi nationals with some exceptions. Could Saudi Arabia please provide more information about these exceptions?  
Answer  
GCC investors are subject to the negative list for foreign investments.  
 
Question 11 
It is stated in the Report that, "2016 Doing Business" report, the World Bank ranked Saudi Arabia 82
nd out of 189 economies in terms of ease of doin g business, a significant drop from 2011 where 
Saudi Arabia ranked 12nd. Economic operators express concerns in terms of legal security that 
seems to have diminished."   What are the reasons for this "significant drop"  from 2011 to 2016 in terms of Saudi Arabia's rank 
for ease of doing business? Could Saudi Arabia elaborate on concerns expressed by economic 
operators in terms of legal security?  
Answer 
The drop in ranking can be attributed to the change in the methodology of the doing business 
report, as well as other countries improving thei r business environment. If the doing business 
methodology had remained constant Saudi Arabia would not have dropped in the rankings.  
                                               
11 See online information: 
http://www.sep.gov.sa/webcenter/faces/oracle/webcenter/page/scopedMD/s496069c3_e35f_448c_8a0a_0c2e
d8086bcf/Page27.jspx?_afrLoop=5218491283968026# %40%3F_afrLoop%3D5218491283968026%26_adf.ctrl
-state%3D16kmn7nngh_166 . WT/TPR/M/333/Add.1 
 
- 55 - 
 
  Saudi Arabia recently announced the Competitiveness Action Plan (CAP) which involves 49 
government agencies to work in coordination with SAGIA to put together specific reform recommendations across eight priority aspects of competitiveness, including: improving the ease 
of starting a business, strengthening the found ations of the trading system, enhancing the 
transparency, strengthening government procuremen t, improving trade logistics, enhancing access 
to markets, setting up rules for the future of  competitiveness, and improving labor market 
efficiency. The agencies identified 113 measures to be implemented in the short to medium term, 
with SAGIA actively monitoring the status reform implementation outlined in the CAP. 
 This has not diminished legal security. Saudi Arabia has a robust and transparent legal system. The Doing Business rankings do not reflect legal se curity rather they benchmark countries on best 
practices of doing business.  
 Question 12 
From 2012 until mid-2014, world oil prices had been fairly stable, at around $111 a barrel. But 
since June 2014 prices sharply decreased and Brent crude oil has now downed to $41 a barrel. As a result of this, Saudi Arabia's current account surplus declined from approximately US$165 billion 
in 2012 to around US$77 billion in 2014 and went into deficit in the first quarter of 2015.  
 What is the level of oil prices needed for Saudi Arabia and other OPEC members to regain current account surplus? 
 
Answer 
Saudi Arabia conducts its macroeconomic policy through a variety of fiscal and monetary 
measures. The Kingdom is not in a position to speculate on the economic circumstances of OPEC 
or OPEC Members.  
 
Question 13 
Will OPEC continue to freeze crude oil supplies at Ja nuary levels? In this framework, will OPEC take 
any further action to stabilize oil market and prices?  
Answer 
Any actions by OPEC would need to be taken in accordance with OPEC's prescribed decision-
making procedures. 
 
Question 14 It is mentioned in the report that "Innovation and technology development are central to the 
National Science, Technology and Innovation Plan (NSTIP) which is implemented by: the KACST; 
science, technology, and innovation institutions, including universities and government agencies; and the private sector. The NSTIP provides funds for research and development through a variety of programmes targeting strategic sectors such as water technologies, biotechnology, advanced 
materials, nanotechnology, and the oil and gas sector. The programmes cover a number of areas 
including capacity building, technology transfer, human resources, and intellectual property laws." 
 
It is understood from the report that the sectoral coverage of NSTIP is extensive and relates to 
critical sectors, which are also on the agenda of many countries.  
Could the Kingdom of Saudi Arabia elaborate more on the specifics of the funding mechanisms for 
the programmes targeting these sectors? 
 Answer 
At the first stage, the National Policy for Science, technology and innovation (MAARIFAH) defines 
15 strategic fields which are essential for the future development of Saudi Arabia, and King 
Abduaziz City for Science and Technology (KACST ) supports achieving these goals. Saudi Arabia 
has adopted MAARIFAH, an independent budget, to ensure continuous support to its programs and 
strategic projects. KACST announces twice a year the submission of program proposals to 
determine which projects are qualified to be f unded, and these proposals are assessed through 
specialized international institutions.  
 
Question 15 Could the Kingdom of Saudi Arabia also comment on how the effectiveness of these programmes are assessed a priori? 
 WT/TPR/M/333/Add.1 
 
- 56 - 
 
  Answer 
KACST has collaborated with specialized and well-regarded international scientific agencies to 
evaluate the first five-year plan for science, technology and innovation (MAARIFAH 1) by 
comparing achievements with their objectives and its relationship to the national economic and 
social development. Based on that evaluation, KACST prepared the second five-year plan for 
science, technology and innovation (MAARIFAH 2) and adopted KPIs to assess the performance efficiency and quality of knowledge of MAARIFAH 2. 
 
QUESTIONS REGARDING THE GOVERNMENT REPORT 
 Question 16 
It is mentioned in the report that "Steps taken by the Kingdom: to facilitate and promote an 
increased role for the private sector in the econom y; to improve the ease of doing business and to 
continue to improve the investment climate; to attract foreign investment." 
 
Do the Saudi authorities have any reform plans to ease the requirements for the issuance of travel visas in practice to further facilitate trade? 
 
Answer 
Saudi Arabia permits businessmen and senior comp any officials to apply for a business visit visa 
without the need for a sponsorship letter. These individuals may approach the embassy directly 
and obtain a business visit visa. The Saudi Arabian embassies aim to process business visit visas 
within 24 hours of receipt of a complete application form.  
Question 17 
It is mentioned in the report that "Practical steps within the Plan to achieve diversification include: Improving the efficiency of collection of direct and indirect taxes and government 
services fees; Considering the imposition of charges on some free services; Ensuring better 
collection of Zakat and income tax from all companies and individuals."  Could Saudi Arabia kindly provide further information as regards the additional taxes that will be 
imposed in order to boost its non-oil tax revenue? Is Saudi Arabia planning the introduction of a 
value-added tax (VAT) in the near future?  
Answer 
The Supreme Council of the Cooperative Council of th e Arab Sates of the Gulf (GCC) has approved 
VAT implementation at the GCC level. The GCC Member States are finalizing drafting a Common 
VAT Agreement and a Common Excise Taxes Agreement. Accordingly Member States may start 
implementing VAT at the national level in 2018, and may not delay the implementation beyond 2019; they may start implementing excise taxes at earlier dates.  The VAT Implementation dates for Saudi Arabia are in 2018. Expert teams have been working on 
drafting the domestic VAT Law and on organizational and other issues related to VAT 
implementation.  
Question 18 
It is mentioned in the report that "Saudi Arabia's related authority's (SAGIA) main aim is "to improve investment environment and foster competition".  
 
Could Saudi Arabia kindly clarify the average time needed to start a business for foreign investments (in terms of different firms according to their ownership structures stated at the last sentence of 2.9 at the same page)? 
 
Answer 
SAGIA has significantly improved the process of applying for a foreign investment license by 
reducing the number of required documents needed to be submitted by foreign investors 
accompanying an application. Currently, within le ss than 5 working days the application is being 
processed by SAGIA. As for the average time need ed to start a business, it will depend upon the 
type of investment. 
 Question 19 Could Saudi Arabia provide detailed information ab out the change in average cost and time to 
renew existing licenses which are required for foreign owned companies between 2010 and 2015? WT/TPR/M/333/Add.1 
 
- 57 - 
 
  Answer 
In 2010, renewing a license would require a period of one week to 10 days, with the average cost 
of SAR 2,000. Currently, renewing a license takes only 24 hours with the same cost of SAR 2,000.  
Question 20 
It is mentioned in the Government report that "… foreign investment may be either in firms owned by both a Saudi national and a foreign investor or firms wholly owned by foreign investor." 
 
Could Saudi Arabia clarify if the sponsorship regime which requires a Saudi national to hold at least 51% share of the company is abrogated?  
Answer 
There is no general requirement for a Saudi National to hold a a majority shareholding in a joint 
venture company. In most sectors, foreign investors may own 100% of the shares in companies in 
Saudi Arabia. In certain sectors, as noted in Saud i Arabia's Schedule of Specific Commitments in 
Services, foreign equity limits of 60% or 75% apply.  
Question 21   
It is mentioned in the Government report that "Pre-arrival document verification procedures can be applied to certain products to allow direct clea rance, and there is the intent to widen the scope 
of goods covered by such procedures." 
 
Could Saudi Arabia kindly give a timetable to widen the list of the products which can be subject to the Pre-arrival document verification procedure (Direct Clearance System)? 
 
Answer 
The expansion of the list of products subject to pre-arrival documents verification depends on the 
time of manifest receipt by customs from the shipping  agent, in order to start in auditing the bill of 
lading, thus confirming its contents. It also depends on the submission of the Customs Declaration (import) by the importer, such that customs clea rance formalities begin to decide the extent of 
application of the risk management system prior to consignment arrival. The Saudi Customs took 
the initiative to hold a workshop on pre-arrival consignment clearance (direct clearance) attended 
by importers, brokers and chambers of commerc e with the aim of urging the customs user 
community to submit the documents before the consignment arrival with a view to increasing the 
number of goods subject to direct clearance and thereby accelerate it. 
 Question 22 
It is mentioned in the report that "Any customs valuation disputes may be appealed to the highest 
administrative tribunal in Saudi Arabia (i.e. the Board of Grievances)."   Could Saudi Arabia kindly provide further information about such dispute resolution mechanisms in 
Saudi Arabia? 
 Answer 
Customs valuation disputes are handled by quasi-judicial committees; the first stage is through a lower committee, and second and last resort is through an appellate committee, the decision of which is final. 
 
Question 23 I t  i s  m e n t i o n e d  i n  t h e  G o v e r n m e n t  r e p o r t  t h a t  " T h e  S E P  i s  t h e  o f f i c i a l  n a t i o n a l  e x p o r t  c r e d i t  agency, which provides financing to Saudi exporters or importers in other countries of non-oil 
goods from Saudi Arabia." 
 Could Saudi Arabia kindly provide details about th e procedures for export credits granted by Saudi 
Export Programme (SEP)? 
 Answer 
Basic information about the SEP is available on its website: www.sep.gov.sa. SEP's credit terms 
are similar to, if not more stringent than, those offered by Ex-Im banks in other countries.  WT/TPR/M/333/Add.1 
 
- 58 - 
 
  Question 24 
I t  i s  m e n t i o n e d  i n  t h e  G o v e r n m e n t  r e p o r t  t h a t  " S A U D I  E X P O R T S "  i s  a n  i n d e p e n d e n t  n a t i o n a l  authority that seeks to develop Saudi non-oil export s. With respect to Saudi Exports, this authority 
is concerned with opening up to global markets, promoting Saudi products in international 
markets, leveraging competitive capacity, and assisting in the development of new products. 
 Could Saudi Arabia kindly describe the activities of "SAUDI EXPORTS" to promote Saudi products 
in international markets? 
 Answer 
The work of Saudi Exports is set out in paragraph 3.92 of the Secretariat report.  
 
Question 25 It is mentioned in the Government report that "… Export bans are maintained on only a few 
product categories, while export licensing requirements apply to a set lists of products…" 
 Could Saudi Arabia kindly provide detailed information about the above-mentioned products? 
 
Answer 
Relevant information is provided in Annex I (list of Banned Exports) and Annex J (list of Exports Subject to Authorization/Licensing) of the Kingdom's Working Party Report.  
 
Question 26 It is mentioned in the report that "In order to reach these goals, SAUDI EXPORTS is focusing on 
the following 3 strategic themes in the Saudi export ecosystem: enhancing SME export readiness, 
generating opportunities for export ready businesses, and advocating ecosystem efficiency and international market access."  
 
Could Saudi Arabia kindly provide detailed information on what kind of opportunities are planned for export ready businesses?  
Answer 
The activities of Saudi Exports are set out in paragraph 3.92 of the Secretariat Report 
 
Question 27 
It is mentioned in the report that "The current Tenders and Government Procurement Law is being amended along with the Administrative Contracts on: Public Construction, Consultation Services 
and Operating and Maintenance." 
 Could Saudi Arabia kindly provide information regarding the timetable of the mentioned amendment and where businesspeople can find information about the Law? 
 
Answer 
The Law on Tenders and Government Procurement is  still being reviewed and will be published as 
soon as it is approved.12 
 Question 28 
It is stated in the Government Report that, "4. 70. Saudi Arabia encourages foreign investment in 
large hospitals to promote the transfer of technology, which leads to strengthening the quality of health services, creating an economic impact and increasing employment opportunities for the citizens of the Kingdom." 
 
Could Saudi Arabia provide further information regarding measures taken in order to attract foreign hospital investments and to improve the quality of health care services for international 
patients? 
 
                                               
12 The current Tenders and Government Procuremen t Law is available at the following link: 
https://www.mof.gov.sa/English/R oles/Documents/Gover nment%20Tender%20and% 20Procurement%20Law-
%204%20Dec%202007.doc . WT/TPR/M/333/Add.1 
 
- 59 - 
 
  Answer 
The Kingdom of Saudi Arabia is currently reviewin g the Private Healthcare Act in order to provide 
more opportunities for foreign hospital investment s, which will lead to accelerated engagement 
with foreign hospital operators. 
 
Furthermore, a number of globally recognized international hospital operators were engaged to discuss their strategic objectives in the Kingdom. The Ministry of Health is establishing the Saudi 
Patient Safety Center, which will ensure that there is standardized patient safety practices for all 
patients regardless of nationality.  
 Question 29 
It is mentioned in the report that "The Kingdom grants preferential treatment to the goods of 
national origin imported from Singapore as of 1 April 2015 within the framework of the free trade 
agreement between the GCC states and Singapore. " and "The Kingdom also grants preferential 
treatment to the EFTA group (Iceland, Norway, Sw itzerland and Liechtenstein) to the goods of 
national origin within the framework of the fr ee trade agreement between the GCC states and the 
EFTA as of 1 July 2015." 
 
In this context, could Saudi Arabia provide information on GCC's plans with regards to future free trade agreements (FTA)?  
Answer 
Currently, the GCC is negotiating a Free Trade Agreement with China. Moreover, the GCC is 
working to consolidate a common priority list to resume FTA negotiations.  
 
Question 30 "Therefore, the Ministry of Agriculture (MOA) in the Kingdom of Saudi Arabia has identified 
aquaculture for intense focus, and proposes to enhance the development of investments in all 
coastal and interior areas."  Could Saudi Arabia kindly explain through which tools development of investments to aquaculture 
sector will be realized? 
 Answer 
Many tools are available by the Ministry of Agriculture to realize the development of the investments in aquaculture, including but not limited to: 
- Increasing awareness of investors regarding the importance of the application of parameters 
regulating the bio security programmes in aquaculture projects; 
- The assurance of commitment of aquaculture proj ects regarding the application of basics and 
principles of good practices in aquaculture operations; 
- Strengthening control and surveillance programs over aquaculture projects; 
- Maintaining the ecological balance through the application of environmental requirements; 
- Enhancing extension and diseases control programmes. 
 
Question 31 
"Officially supported export financing and guar antees are available from the Saudi Export 
Programme (SEP) for exports with local value added of at least 25%." 
 
Could Saudi Arabia kindly make an explanation about the compatibility of local content requirement for officially supported export financ ing and guarantees with Article 3.1(b) of the 
Agreement on Subsidies and Countervailing Measures? 
 
Answer 
The pricing of SEP credit is commercially-based, depending on the borrower's credit and country 
risk – similar to all Ex-Im bank funding. SEP's credit terms are similar to, if not more stringent 
than, those offered by Ex-Im banks in other countries.  
 
Question 32 
"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." WT/TPR/M/333/Add.1 
 
- 60 - 
 
  Are there any additional criteria such as minimum investment requirement, investment on specific 
sectors etc. required to be fulfilled in orde r to benefit from mentioned tariff exemptions? 
 Answer 
No.  WT/TPR/M/333/Add.1 
 
- 61 - 
 
  DOMINICAN REPUBLIC 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Question 1 
Paragraph 2.37, relates to the negative list for foreign investments (Table 2.2), which is 
periodically revised, on this subject we would like to know, what time period that list is revised? 
 
Answer 
There is no time period set for the further revision of the negative list. The Board of Directors of 
SAGIA keeps the negative list under review. As stated in Article 3 of the Implementing Regulations of the Foreign Investment Law: "The Board of Directors shall periodically review the list of 
activities excluded from Foreign Investment (Negative List) and submit its recommendations to the 
Council for endorsement."  
 
Question 2 
In paragraph 3.121 the objectives for government procurement guarantee transparency of government procurement processes,  
 
Could Saudi Arabia provide us with information on how they are ensuring transparency in these processes?  
Answer 
The Government Tenders and Procurement Law and its Implementing Regulations contain 
provisions governing transparency in such proc esses. Paragraph 3.123 of the Secretariat report 
elaborates on this issue, noting the announcement requirements for public tenders.  
 Question 3 
In paragraph 3.65, "Labels must be in Arabic in addition to any other language. A small number of 
products with labels only in  English may be approved"  
What are the specific cases which product labelling in English can be approved?  
Answer 
As noted in paragraph 3.65 of the Secretariat report, there is no such list. English product labelling 
is approved on a case-by-case basis.  
 
Question 4 In paragraph 3.66 on Sanitary and Phytosanitary Measures, could you indicate if they have a 
matrix or database indicating the requirements to be met to enter the Saudi market? 
 Answer 
The requirements to enter the Saudi market are de tailed in the relevant technical regulations and 
standards, available on the website of the Gulf Standardization Organization: 
http://www.gso.org.sa/g so-website/?lang=en ; and the Saudi Standards, Metrology and Quality 
Organization: http://www.saso.gov.sa/en/pages/default.aspx.  
Information regarding the general requirements for exporting food products and relevant updates 
disseminated by SFDA is available on the Imported Food Control portal: http://www.sfda.gov.sa/ar/food/about/administrat ion/mangement_food/Pages/Introduction.aspx  
[in Arabic]. 
 WT/TPR/M/333/Add.1 
 
- 62 - 
 
  UNITED STATES 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 Question 1 
Page 32, Paragraph 3.14: The Secretariat report notes that there are no legal provisions pertaining 
to advance rulings, but that Saudi Customs answers, on a case-by-case basis, requests for information on customs matters.  
 
How long are such answers valid for and are such answers considered to be binding ?  Answer 
Exporters, importers and interested parties from a guidance perspective based on the principles of 
cooperation and the Kingdom's membership in the Nairobi Convention on Mutual Administrative 
Assistance in Customs Matters. The duration of va lidity and any binding effect vary depending on 
the facts of each inquiry.  
 Once the Trade Facilitation Agreement has entered into force, Saudi Customs will apply Article 3 
on Advance Rulings in conformity with the Agreement. 
 Question 2 Is information on how to obtain such answers publically available, and if so, where? 
 
Answer 
It is not available yet. 
 
Question 3 Page 50, paragraph 3.102: In paragraph 3.102, the Secretariat notes that Saudi Arabia has 
notified the WTO that it does not grant or maintain any subsidy programmes as defined in Article 
1.1 of the Agreement on Subsidies and Countervailing Measures (G/SCM/N253/SAU). However, the Secretariat report also explains that Saudi Arabia grants tax concessions to projects in six selected Saudi regions and that a one-time capital tax credit is granted to industrial projects that 
fulfil certain conditions. To the extent that these tax incentives are provided to certain enterprises 
or industries located in designated geographical re gions, they would appear to meet the definition 
of a subsidy that is subject to the notification requirements under Article 25 of the SCM Agreement 
 
Could Saudi Arabia please explain why these tax incentives were not notified in accordance with its WTO obligations or explain why it believes the incentives are not subject to that requirement? 
 
Answer 
As indicated by the Kingdom in its May 28, 2014 New and Full Notification to the SCM Committee (G/SCM/N/253/SAU), Saudi Arabia does not grant or maintain within its territory any subsidies, as 
defined in Article 1.1 of the Agreement on Subsidies and Countervailing Measures, which are 
specific within the meaning of Article 2 of that Agreement. None of these tax measures are subject 
to the notification requirements of Article 25 of the SCM Agreement. 
 
Question 4 Page 56, paragraph 3.121: The Secretariat notes that the official policy objectives for government 
procurement in Saudi Arabia of efficiency, transparency, non-discrimination, and fairness remain 
the same and there have been no changes to the legislative or regulatory structure, providing a 
table that notes no changes or resolutions since 2008 (Additionally, there is an incomplete sentence immediately following, saying "The basic legislation (Table 3.12) has not been amended 
and."). However, at the beginning of 2016, a change was announced in government procurement 
policy by the central government that reportedly would require offsets in the form of domestic investment of 40% of the contract value for any awards over 400 million Saudi riyals 
(US$100 million). As of yet, no information seems to have been made public about how the offset 
programme will be operationalized  
Could Saudi Arabia please explain the details of this offset programme, including: How will 
investment proposals be reviewed and approved? Regarding investment proposals that have been approved to date, at what phase will the invest ment proposal need approval in the Government 
procurement process? Are any industries or sectors that are not covered by this offset proposal?? WT/TPR/M/333/Add.1 
 
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  Answer 
The implementation procedures of the offset programme are not determined yet and will be 
publicly available within a sufficient time  period before entering into force. 
 
Question 5 
Page 58, Paragraph 3.130: The Secretariat notes that Saudi Arabia is a party to the Berne Convention for the Protection of Literary an d Artistic Works (11 March 2004), the Universal 
Copyright Convention (13 April 1994), and the Ar ab Regional Copyright and Related Rights 
Agreement (22 December 1985).   Does Saudi Arabia intend to join the WIPO Copyright Treaty or the WIPO Performances and 
Phonograms Treaty? 
 Answer 
This matter is currently under deliberation by th e Standing Committee of the Ministry of Culture 
and Information.  
Question 6 
Page 61, Paragraph 3.141: The Secretariat notes th at enforcement of copyrights involves a "three-
step procedure: provisional seizure; confiscation; and destruction and imposition of penalties if the goods are found to violate the Copyright Law as deemed by the Violation Review Committee of the 
Ministry of Culture and Information."  
 Please provide additional information regarding this process, including, What role, if any, does the 
rightsholder have in identifying potential infringements? 
 Answer 
The rightsholder may bring a potential violation to the attention of the Violation Review Committee of the Ministry of Culture and Information.  QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Question 7 Page 7, Paragraph 3.4: The Secretariat's report noted that "ratification of the TFA is under active 
consideration, and the Kingdom has submitted its Category A notification to confirm 
implementation of all the provisions contained in Section I of the TFA, except Article 2.1 
(Opportunity to Comment and Information before Entry into Force) and Article 10.4 (Single 
Window)."  
 Could Saudi Arabia provide an update with regards to its expected timeline for accepting the TFA?  
Answer 
The ratification of the WTO TFA is in its final stage and it is expected that the Instrument of 
Acceptance of the protocol will be submitted in due time. 
 
Question 8 When does Saudi Arabia expect to fo rmally ratify and accept the TFA? 
 
Answer 
Kindly, refer to the answer to question number (7).  
Question 9 
Page 10, paragraph 3.35: The Kingdom of Saudi Arabia notes that it is currently undertaking a study to assess the pros and cons of accession to the WTO GPA in order to provide a basis for 
future negotiations.  
 Does Saudi Arabia have an estimated timefr ame for the completion of such a study?? 
 
Answer 
Government procurement policy has important implications for Saudi economic development and diversification plans. In this regard, Saudi Arabia is currently examining the readiness of various 
economic sectors to decide which sectors may be liberalized.  WT/TPR/M/333/Add.1 
 
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  Question 10 
Is the study being undertaken within the government only or will there be input from other sources such as private sector stakeholders or consultants?  
Answer 
It is currently being conducted by contracted consultancy firms hired by the Saudi Government 
and private-sector stakeholders that play a major role in the consultation process. 
 
Question 11 Page 11, Paragraph 3.43: The report notes that counterfeit goods seized by Customs "shall be confiscated and destroyed on a case by case basis in accordance with the Common Customs Law."  
 
Please provide additional information regarding this  process, including what role, if any, does the 
rightsholder have in identifying goods to be confiscated? 
 
Answer 
The right holders have no role in the issue of co nfiscation. Identifying the goods to be confiscated 
is the responsibility of customs committees. Their role  is limited to providing assistance when it is 
required to decide whether the goods are counterfeit or original. The rightholders or their agent will be notified of whatever decision is taken regarding the counterfeit goods and what action is taken regarding those parties involved in such violations. 
 
Question 12 What role, if any, does the rightsholder have in determining the final disposition of goods to be 
confiscated and destroyed? 
 Answer 
The rightsholders have no role in determining how to dispose of counterfeit goods. Determining how to dispose of goods that violate the regu lations is the responsibility of the customs 
committees.  
Question 13 
Under what circumstances, if any, will  counterfeit goods not be destroyed? 
 
Answer 
Determining whether and how to dispose of goods that violate the regulations is the responsibility 
of the customs committees. 
 
Question 14 What happens to any counterfeit goods not destro yed by Customs? Does the importer have the 
option of re-exporting the goods? 
 
Answer 
All counterfeit goods are destroyed except goods the destruction of which would be harmful to the 
environment or human beings. Saudi Customs does not maintain any counterfeit goods or allow 
them to enter Saudi Arabia.   
Question 15 
Is information on how to obtain such answers publically available, and if so, where?  Answer 
The website for the Saudi Customs Authority at: http://www.customs.gov.sa/sites/sc/en  contains 
information on procedures related to Saudi customs. 
 
Question 16 
Page 32, Paragraph 3.17: The Secretariat report notes that as ratification of the TFA is under active consideration.  
 
Could Saudi Arabia provide an update with regards to its expected timeline for accepting the TFA?  WT/TPR/M/333/Add.1 
 
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  Answer 
The ratification of the WTO TFA is in its final stage and it is expected that the Instrument of 
Acceptance of the protocol will be submitted in due time.  
Question 17 
Does Saudi law provide Enforcement authorities the ability to investigate and prosecute copyright violations on their own cognizance? 
 
Answer 
Yes. Article 24 of the Copyright Law provides th at "officers concerned at the Ministry shall 
investigate the violation and visit media and commercial facilities, warehouses and public 
institutions and private establishments that use intellectual works in their activities and investigate 
them. They shall have the power of judicial inve stigation and protection of evidentiary proofs." 
Article 18(2) of the Implementing Regulations of  the Copyright Law provides for "[r]outine or 
sudden field visits by the inspectors of the Ministry to public firms and shops that use in their 
activities any of the intellectual works." If the inspec tions reveal material that is in violation of the 
Copyright Law, then the authorities may investigate, prosecute and enforce against these 
violations as outlined in Articles 19 through 29 of the Implementing Regulations.  
 Question 18 Page 61: Paragraph 3.143 states that "Saudi Cust oms established an internal IPR Unit in March 
2008, which is to create a database for customs' use to assist with enforcement against forged and 
counterfeit goods."   
Is the Customs' database operational? If so, does the database require rights' holders to record 
their intellectual property rights with Saudi Customs'  
Answer 
Yes, the database is operational and the rightsholders may register their trademarks with Saudi 
Customs in case they desire to do so.  
Question 19 
What type of information is included in the database?  
Answer 
Only trademark information is included in the Saudi Customs database. 
 
Question 20 
Does Saudi Customs' have data sharing agreements with other Saudi agencies, such as the Ministry of Commerce and Indu stry or the Patent Office? 
 
Answer 
Yes, there is continuous cooperation and coordination with all Saudi government agencies involved 
in Intellectual Property Rights protection. WT/TPR/M/333/Add.1 
 
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  CHILE  
QUESTIONS REGARDING THE SECRETARIAT REPORT  
 Question 1 
Chile would be grateful if the Kingdom of Saudi Arabia could explain the reasons for this exclusion. 
Also, How the Kingdom of Saudi Arabia ensures that State entities and companies wholly state-owned do not have an anti-competitive behavior? 
 
Answer 
The exception is based on Article 2 of the Co mpetition Law. State-owned enterprises in The 
Kingdom are subject to the commitment embodied in paragraph 52 of The Kingdom's Working 
Party Report to make purchases of goods and services, which are not for government use, and 
sales in international trade in accordance with commercial considerations. Moreover, the new Saudi Competition Law expands the scope of the Law to all establishments, organizations and 
authorities that conduct commercial and economic activities, notwithstanding their ownership.  
 Question 2 
Regarding Competition Policy of the Kingdom of Saudi Arabia (3.3.4 Competition policy and price 
controls; 3.3.4.1 Competition policy) within the different tools from the investigating authority, Chile would be grateful if more information could be given about the existence of leniency system 
programmes, which offer companies linked to a cart el the possibility of immunity from fines or 
reductions in exchange for evidence. 
 Answer 
The Saudi Competition law does not deal with leniency system programme. However, the new Saudi Competition Law, which is currently being revised by the Shura council for possible adoption, 
will address this issue. 
 
Question 3 In relation to the Competition Act (3.3.4 Competition policy and price controls; 3.3.4.1 Competition policy) and its application in different areas of the economy, Chile would be grateful if 
the Kingdom of Saudi Arabia could clarify whether such law applies to public procurement. 
 Answer 
The exception is based on Article 2 of the Co mpetition Law. State-owned enterprises in the 
Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party Report to make purchases of goods and services, which are not for government use, and 
sales in international trade in accordance with commercial considerations.  
 Furthermore, the new Saudi Competition Law expand s the scope of the Law to all establishments, 
organizations and authorities that conduct commercial and economic activities, notwithstanding 
their ownership.  
 Question 4 
provide information on what is the organization that develops technical regulations. Does the 
Organization for Standardization, Metrology and Qu ality from Saudi Arabia (SASO), also produces 
these technical regulations or are they made by the respective regulatory agencies and 
organizations? 
 Answer 
SASO is the organization that develops technical regulations and it is also responsible for issuing 
and approving standards and technical regulations,  except standards for drugs, food, cosmetics 
and medical devices, which are under the jurisd iction of the Saudi Food and Drugs Authority 
(SDFA). 
 
Question 5 explain the difference between a certificate of conformity (delivered by the SASO) and a license to 
use the quality mark. How the latter works? What is the advantage of each one? 
 WT/TPR/M/333/Add.1 
 
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  Answer 
SASO issues a CoC for goods (consignment) to be exported to Saudi Arabia. SASO grants a Saudi 
quality mark for products that conform to the Saudi standards in accordance with quality mark regulations. 
 
Question 6 Are all products entering Saudi Arabia subject to random sampling at the port of entry? 
 
Answer 
Yes.   
Question 7 
Is surveillance carried out on the market? If th e answer is yes, who perform the surveillance? 
 
Answer 
Yes, the Ministry of Commerce and Industry performs the surveillance. 
 
Question 8 
Is there a standardize process for the development of technical regulations? If affirmative, in which instrument or legal norm is defined?  
Answer 
Yes, technical regulations are developed according to SASO Technical Directive Part II: 
"Requirements for Preparing Optional and Ma ndatory Saudi Standard (Saudi Technical 
Regulations)", which is now being revised. 
 Question 9 
Does Saudi Arabia makes regulatory impact assessments? If so, do you use some specified 
methodology? Who coordinates?  Answer 
Yes, SASO reviews the impact of technical regula tions by reverting to commonly used international 
methods; SASO is responsible for coordination.  
Question 10 
How is coordination with industry in relation to these matters?  
Answer 
SASO coordinates with industries during the process of development of Technical Regulations and 
Standards.  
Question 11 
Confirm if medicines and medical devices are treated and reported (where applicable) under TBT.  
Answer 
The Saudi Food and Drug Authority is the competent authority for drug and medical devices; the 
TBT Agreement (where applicable) applies to their regulations. 
 
Question 12 Are the bilateral agreements of the Kingdom of Saudi Arabia considered in this matter WTO plus?  
Answer 
These bilateral agreements are fully WTO-consistent. The Kingdom of Saudi Arabia maintains 
bilateral arrangements on TBT and SPS matters, which assure compliance with Saudi technical 
regulations and standards. 
 Question 13 
Is there a national coordination mechanism for SPS matters? If so, who coordinates and how it 
works?  WT/TPR/M/333/Add.1 
 
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  Answer 
Yes, the SFDA is the national contact point for SPS matters and coordinates internally with the 
concerned competent bodies.  
Question 14 
Regarding the regulation of GMO products, has the Kingdom of Saudi Arabia established thresholds? 
 
Answer 
Yes, there are technical regulations and standards that apply to GMO food products. WT/TPR/M/333/Add.1 
 
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  NEW ZEALAND  
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 Question 1 
In addition, the Report by the Kingdom of Saudi Arabia, at paragraph 1.3, states that "Saudi 
Arabia strongly supports all efforts to bring the Doha Development Agenda (DDA) negotiations to a 
successful conclusion as soon as possible. While Saudi Arabia supports the conclusion of the 
negotiations on the basis of the existing mandates, the Kingdom made clear at the Tenth 
Ministerial Conference in Nairobi that, as a recently acceded Member, it will engage constructively this year under the leadership of the Director-General with other Members to find ways to advance the negotiations in all areas in a consensual way. The multilateral trading system remains at the 
core of Saudi Arabia's trade policy and it is determined to play its part in strengthening it."  
New Zealand welcomes Saudi Arabia's support for successfully concluding Doha Development Agenda negotiations as soon as possible, and its intentions to constructively engage with WTO 
Members to advance negotiations. In this regard , New Zealand would be interested in hearing. 
 What are Saudi Arabia's major priorities for both the Doha Round, and policy settings for 
advancement of regional free trade agreements? 
 Answer 
As a Recently Acceded Member (RAM) with comprehe nsive, WTO- plus undertakings in its Protocol 
of Accession, Saudi Arabia believes that meaningf ul results on all Doha Round issues would be 
consistent with the Kingdom's expectations of establishing the balance of rights and obligations that should prevail between the RAMs an d longer-standing Members of the WTO.  
 
Regarding the advancement of regional free trade agreements, the Kingdom negotiates as a member of the GCC. The GCC is negotiating trade agreements with Australia, China, the EU, India, 
Japan, the Republic of Korea, MERCOSUR, Pakistan, and Turkey. The GCC has received requests 
for negotiations, inter alia, from ASEAN; Azerbaijan; the Common Market for East and Southern Africa (COMESA); Georgia; Hong Kong, China; Peru; and Ukraine.   
Question 2 
The Secretariat's report, at paragraph 3.95, notes that "the tax system in Saudi Arabia is relatively simple with no sales tax or value added tax, no excise duties, and no personal income tax on 
salaries." In addition, the Secretariat's report, at paragraph 2.25, states that "Saudi Arabia is a 
member of the Cooperation Council for the Arab States of the Gulf (the Gulf Cooperation Council (GCC)), which was established in May 1981. The main objectives of the GCC are to enhance 
regional cooperation and integration in all economic, social, and cultural affairs, including trade, 
industry, investment, finance, transport, communica tions, and energy. The specific objectives of 
the GCC have not changed since the last TPR: to achieve a common market, with equal treatment of GCC citizens (now about 49 million), in each member country; respect of freedom of movement, 
work, residence, and ownership of real estate; allow free movement of capital; and financial and 
monetary coordination. Bahrain, Kuwait, Qatar and Saudi Arabia ratified an agreement to establish a monetary union in December 2009. The date for introduction of a single currency is yet to be 
determined." 
New Zealand understands that Saudi Arabia has worked with GCC partners to explore the development of a unified value added tax (VAT) system.  
 
What is the status of this new GCC tax regime?  Answer 
The Supreme Council of the Cooperative Council of the Arab States of the Gulf (GCC) has approved VAT implementation at GCC level. The GCC Member States are finalizing drafting a Common VAT Agreement and a Common Excise Taxes Agreement. Accordingly, Member States may start 
implementing VAT at the national level in 2018 and may not delay the implementation beyond 
2019; they may start implementing excise taxes at earlier dates.   
The VAT Implementation dates for Saudi Arabia will occur during 2018. Expert teams have been 
working on drafting the domestic VAT Law and on organizational and other issues related to VAT implementation.  WT/TPR/M/333/Add.1 
 
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  Question 3 
Is Saudi Arabia able to provide an update on the implementation of the monetary union between GCC members, following the ratification of the agreement in December 2009?  
Answer 
Saudi Arabia ratified an agreement to establish a monetary union together with three other GCC 
member states, namely Bahrain, Kuwait and Qata r. The Monetary Union Agreement entered into 
force on 27 February 2010 and the Statute of the Monetary Council became effective on 27 March 
2010. The Monetary Council Board, which consists of the governors of the member states, is meeting regularly to set up the necessary institutional and organizational underpinnings of the Gulf Monetary Council (GMCO). The primary objective of GM CO is to prepare the required infrastructure 
for establishing the Monetary Union. At this stage, GMCO is working on developing policies 
necessary for the formulation of an IT governance structure to achieve its objectives and determine IT requirements relevant to economic research and statistics and management 
information systems. It is also working on de termining the necessary operational requirements, 
including conducting economic research on various monetary union issues.  
Question 4 
The Secretariat's report, at paragraph 4.26, notes that "lack of water is the biggest constraint to [agricultural] production in Saudi Arabia." The report further notes, at paragraph 4.15, that "over the past few years, land use has changed as crop production has declined significantly. The change 
in land use reflects the change in policy under the Eighth Development Plan (2005-2009) and the 
Ninth Development Plan (2010-2014). These plan s emphasized improving the use of water and 
rationalizing production and export of water-intensive products. As a result, the total area under 
crop production has declined from nearly 1 million ha in 2008 to less than 700,000 ha in 2013."  
 How is the scarcity of water resources in Saudi Arabia likely to impact on agricultural production in 
the Kingdom over the next ten years?  
 Answer 
The Kingdom of Saudi Arabia is trying to minimize the negative impact of water scarcity by 
improving the use of water and rationalizing produc tion towards the adoption of new water-saving 
and cutting-edge cultivation technologies.  
Question 5 
In addition, the Report by the Kingdom of Saudi Ar abia identifies in paragraphs 4.9 – 4.12 (section 
4.2 'Food Security', page 12) that "food security remains a fundamental priority for Saudi Arabia".  
New Zealand would be interested in hearing 
 In what countries has the King Abdullah Agricultural Initiative invested funds to improve the food security situation in Saudi Arabia? 
 
Answer 
The King Abdullah Agricultural Initiative does not invest; the choice of investments is made by the 
Saudi private sector, which is the actual investor. The Saudi government will not provide any 
direct investment. Agricultural investment ab road is currently under study and evaluation. 
 
Question 6 
What are the criteria for food security investment?  Answer 
The main criteria for selecting a country for agricultural investment are: 
 Availability of resources. 
 Attractive FDI rules and regulations. 
 Transparent investment regulations and procedures. 
 Political stability. 
 Distinct cooperation desire. 
 
Question 7 Under the King Abdullah Agricultural Initiative, have investment protocols or framework agreements been established with other countries? 
 WT/TPR/M/333/Add.1 
 
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  Answer 
As mentioned above, agricultural investment  abroad is currently under examination and 
evaluation.  
Question 8 
The Secretariat's report, at paragraph 4.38, notes that "according to the authorities, there have 
been no major changes in the policy objectives set for the energy sector; Saudi Arabia continues 
diversifying the energy sources for domestic us e from oil and petroleum towards gas and other 
renewable energies."  New Zealand understands that in January 2016, as part of its aim to diversify energy sources for 
domestic use, Saudi Arabia lowered the level of domestic fuel subsidies, increasing the domestic 
price of gasoline by upwards of 50%. New Zealand welcomes Saudi Arabia's recent action to lower these subsidies, and in this context 
 
Is Saudi Arabia considering implementing any additional measures to further reduce fossil fuel subsidies in the Kingdom? 
 
Answer 
The Kingdom does not maintain inefficient fossil fuel subsidies.  
Question 9 
In light of Saudi Arabia's continued diversification of energy sources towards gas and other renewable energies. 
 
In light of Saudi Arabia's continued diversification of energy sources towards gas and other renewable energies, has Saudi Arabia considered utilizing the G20 peer review process for reform 
of fossil fuel subsidies as a mechanism for both reviewing its fossil fuel policies and sharing lessons 
learned from recent reform efforts?  Answer 
Saudi Arabia has considered the participation as a peer reviewer of inefficient fossil fuels subsidies that encourage wasteful consumption, although The Kingdom does not maintain such subsidies  
Question 10 
In addition, the Report by the Kingdom of Saudi Arabia, at paragraph 6.10, lists geothermal energy as one of five renewable energy technologi es that Saudi Arabia intends to integrate into 
the national power grid. 
 What is Saudi Arabia's long term strategy for the development of geothermal energy in the Kingdom, and has this changed since KACARE's inception in 2010? 
 
Answer 
Saudi Arabia considers geothermal energy to be one of the base-load resources in its future 
energy mix outlook. As K.A.CARE illustrated in it s 2012 long-term strategy, geothermal energy is 
part of the targeted renewable technologies. Moreover, initial studies and site visits have been conducted. 
 
QUESTIONS REGARDING THE GOVERNMENT REPORT   Question 11 
The Report of the Kingdom of Saudi Arabia notes, at paragraph 4.13, that the "fisheries sector is 
one of the basic pillars of the economic development strategy in the Kingdom. As it is contributing, 
together with the agriculture sector, to the achi evement of many goals, most notably, access to 
the self-sufficiency of fisheries products and enhancing national food security, as well as 
diversification of the production base for the nati onal economy, optimization of available resources 
and improving the economic and marketing efficiency ." It goes on to note that the Ministry of 
Agriculture (MOA) in the Kingdom of Saudi Arabia has identified aquaculture for intense focus, and 
proposes to enhance the development of investments in all coastal and interior areas (in paragraph 4.16). We note the Kingdom of Saudi Arabia's proposal to enhance the development of investments in all 
coastal and interior areas. WT/TPR/M/333/Add.1 
 
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  Could Saudi Arabia provide clarification on the level and type of subsidies it is providing to its 
capture fisheries and aquaculture sector?   Answer 
Aquaculture: There are no subsidies or support provided by th e government of Saudi Arabia to the aquaculture 
sector. The relevant authority in the Kingdom, the Aquaculture Department, provides technical 
support and extension services periodically to all aquaculture projects. 
 Capture fisheries: The Government provides technical support to fishermen to help them decrease their capture 
fisheries loss. 
 Question 12 
What steps are being taken to ensure that public  and private investment in the fisheries sector 
supports efficiency and sustainability objectives, including not contributing to overfishing or overcapacity? 
 
Answer 
Several steps are being considered to ensure that  public and private investment in the fisheries 
sector supports efficiency and sustainability objectives, for example:  
- Enhancing cooperation with government and private agencies. 
- Issuing and enforcing rules, regulatory me asures, direction and guidelines including 
descriptive manuals regulating the fisheries sector. 
- Establishing studies and developing research programmes within the sector.  
- Taking into account environmental and ecological objectives including not contributing to overfishing or overcapacity activities. 
 WT/TPR/M/333/Add.1 
 
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  KENYA 
QUESTIONS REGARDING THE SECRETARIAT REPORT  
 Question 1 
Under Economic Environment (Para 1.24 page 16), that since 2010 inward FDI has been declining 
steadily from nearly US$30 billion to US$8 billion in 2014. Could the delegation of Saudi Arabia elaborate on the what has been the cause of de clining inward FDI and what measures are being 
taken to address this situation? 
 Answer 
The world economic slowdown has negatively affe cted not only the Kingdom of Saudi Arabia but 
most other countries. Saudi Arabia has started initiatives to promote and attract foreign 
investment, for example: National Investment Pl an and the Invest Saudi Program. Also, Saudi 
Arabia is continuously improving its investment environment and taking measures to encourage 
inward FDI.  
 Question 2 
Saudi Arabia has not deposited its instrument of Acceptance of the protocol on Trade Facilitation 
Agreement (TFA). We would like to know the progre ss made so far by Saudi Arabia in their process 
of ratifying the TFA.  
Answer 
The ratification of the WTO TFA is in its final stage and it is expected that the Instrument of 
Acceptance of the protocol will be submitted in due time. 
 
Question 3 under the import licensing, (Para 3.49 page 41) it is stated that "No licensing fees, other than 
administrative charges or deposits, are required for issuing a license". We would like to know 
whether administrative charges are levied ad valo rem or otherwise. We would also like to know 
what kind of deposits, as stated in the Secretariat Report, are required for issuance of an import license 
 
Answer 
Administrative charges are based on cost of administration. Any deposits for import licenses reflect 
costs involved in the licensing process.  WT/TPR/M/333/Add.1 
 
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  DOMINICAN REPUBLIC - ADDITIONAL QUESTIONS  
SUMMARY (pages 7 and 9) 
 3. For many years now, government policy, as set out in successive Development Plans, has 
focused on diversification and job creation. Under the Tenth Development Plan (2015 2019), the 
Government is seeking to diversify the economy geographically, into new sectors, and vertically through processing and manufacturing in sectors linked to oil and gas. It is also encouraging 
greater employment of Saudi nationals through the Nitaqat programme, which requires enterprises 
to meet quotas for employment, and a number of initiatives intended to increase female participation in the workforce. Several steps have been taken to improve the investment climate as mining, petrochemicals, gas, and communications, were removed from the list of sectors where 
foreign investment was not allowed. In addition, in August 2015, as an aid to investment, the 
Saudi Arabia General Investment Agency (SAGIA ) published a manual setting out requirements 
and fees for investment licences, and the services available for different categories of investors. 
 
15. The contribution of construction and building to the economy has increased considerably over 
the past few years, rising from SAR 91 billion in 2010 to SAR 152 billion in 2014, with large scale 
private and public sector projects. Although foreign investment is possible and foreign companies 
are present, some problems have been reported, including policies relating to foreign workers and encouraging greater participation of Saudi nationals.  
Questions 5 
Where was the Saudi Arabia General Investment Agency's manual containing requirements for 
investment licences published, and how can it be accessed? How is the Government dealing with 
the problems deriving from polici es relating to foreign workers? 
 Answer 
The manual is published on SAGIA website. We would not agree with the Secretariat's characterization of the Kingdom's "policies relating to foreign workers" causing "problems". Saudi Arabia has long had recourse to foreign labour in several sectors of the economy, and this is governed by the Kingdom's Labour law and its im plementing regulations. Under that Law, the 
Labour Dispute Settlement Committee handles all labour related disputes involving Saudi or 
foreign workers.  
2.5 Investment Regime (pages 26 and 27) 
 2.39. In addition to policy formulation, SAGIA is  responsible for approving all foreign investments, 
except where the authority depends on the sector, such as the Saudi Arabian Monetary Agency 
(SAMA), the Capital Market Authority (CMA), the Communication and Information Technology Commission (CITC) or the Presidency of Meteorology and Environment (PME). Saudi investors are not required to obtain a licence from SAGIA to invest (which is a national treatment limitation 
inscribed in Saudi Arabia's Schedule on Specific Commitments in Services).28 Investors from other 
GCC member States do not require a licence either, provided they are not in partnership with a foreign investor. 
 
2.40. Foreign investors may obtain more than one licence to practice the same activity or other different activities provided that a competent department under the SAGIA issues a report stating 
that there are no violations or observations to that  effect on the existing project. A foreign facility 
licensed under the Foreign Investment Act is entitled to own real estate (except real estate investment in Makkah and Madina) for practising the licensed activity and for the housing of staff. The Regulation of Ownership and Investment in Real Estate by Non Saudis29 allows foreign 
investment in real estate worth SAR 30 million or more, including GCC nationals. 
 2.43. As per the Foreign Investment Law, foreign investors in violation of the law shall be subject 
to any of the following penalties: (i) withholding all or some of the incentives and benefits given to 
the Foreign Investor; (ii) imposing a fine not exceeding SAR 500,000; and/or (iii) revoking the foreign investment licence. The penalty issued ma y be appealed before the Board of Grievances. 
 WT/TPR/M/333/Add.1 
 
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  Questions 6 
What are the requirements for obtaining a foreign investment licence? How long is this licence valid for? Are specific violations provided for in the foreign investment legislation?  
Answer 
All the requirements for obtaining a foreign investment licence are to be found on SAGIA website 
and foreign investors can apply online. The license is valid for one year and it is renewable. 
Circumstances that may cause violations are listed in the implementing regulations of the Foreign 
Investment Law.   Table 3.5 Import licensing regime, 2015 (page 41) 
 
3.51. With regard to information and communica tion technology equipment, the Communication 
and Information Technology Commission (CITC) is  the responsible agency for type approval 
procedures prior to equipment importation; for special wireless equipment, additional frequency 
licences or device licences are required from the CITC.  
Questions 7 
What do the type approval procedures prior to im portation, which are required for information and 
communication technology equipment licences, consist of ?  
Answer 
The type approval procedures can be found on the CITC website.  
 
3.1.9 Sanitary and phytosanitary measures (page 44) 
 3.74. Imports of meat and poultry meat must only be sourced from the establishments on the list 
maintained by the SFDA.31 This list can be cons ulted by sector or by country.32 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; the approval certificate is valid for five years, and renewable. The inspection and 
approval fees are borne by the individual estab lishment. Since 9 March 2014, the SFDA has begun 
to delegate to the competent authority of the ex porting country to approve establishments on the 
list, provided that the competent authority of th e exporting country signs bilateral minutes with 
the SFDA and assures compliance with the GSO st andards. The authorities indicated that the 
delegation to the competent authority of the export ing country is a trade facilitating measure, and 
the measure has been notified to the WTO.33 
 Questions 8  What procedure and commitments are involved in signing the bilateral minutes with the SFDA for 
countries interested in exporting meat and poultry meat? 
 Answer: 
The procedures for inspecting and approving foreign meat establishments have been notified to 
the WTO and can be found in document G/SPS/N/SAU/93, 28 January 2014, and Add.1 and Add.2.  
4.5.3.1 Regulation (page 88) 
 4.130. Increasingly, the Government is trying to achieve its strategic goals for tourism through public private partnerships by reducing red tape and increasing access to funding. In this regard 
holding companies such as the Saudi Tourism Development and Investment Company have been 
set up.  
Questions 9 
What are the functions of the Saudi Tourism Development and Investment Company? Please describe the process of public and private sector integration in the Saudi Tourism Development 
and Investment Company and the cooperation strategies involved. What services does this 
company provide to reduce red tape for tourism sector projects?  WT/TPR/M/333/Add.1 
 
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  Answer 
The Saudi Tourism Development and Investment Co mpany functions to achieve the Government's 
strategic goals of minimizing bureaucratic hurdles to the efficient operation of the Saudi tourism industry and improving the ability of public and private entities to access necessary financial 
resources. An integrated, public-private sector approach to tourism development provides myriad 
opportunities for raising funds. Possible fundin g sources include the privatization of hotels, 
granting of land leases, selling private sector concessions at cultural and natural attractions. 
Additional sources that may be exploited relate to the tourism industry's operational aspects, 
including tourist entry fees at attractions, we b marketing and promotion fees and other private 
sector service charges.  
4.5.3 Tourism (page 87) 
 4.127. The Government envisions the tourism sector as a driver of growth and employment in the 
Kingdom. In this regard the authorities are encouraging business tourism, with a particular 
emphasis on meetings, incentives, conferences and events.61 However, Saudi Arabia does not 
provide any leisure tourism visas. In 2013, the authorities introduced the Umrah plus programme, 
which allows pilgrims to travel freely throughout Saudi Arabia for 30 days after having completed 
the religious rituals. However, this limits any potential non business tourism to Muslims only.  Questions 10 
What incentives are provided for business tourism? What body or institution has the power to 
grant these incentives?  
Answer 
SCTA encourages business tourism through activi ties, procedures, and services that actively 
contribute to the elimination of impediments to investment in the business tourism sector. The 
SCTA also encourages business tourism by, for example, providing technical support for the 
private sector; establishing Tourism Investment Service Centers in large cities; and introducing new investment opportunities in business tourism through events like the Annual "Saudi Tourism Investment & Travel Market".  
 
Furthermore, Cabinet Resolution No. 246 (May 2 013) transformed the exhibition and convention 
permanent committee, which was formed by Royal Decree 7863/MB, into a national programme 
called the "Saudi Exhibition and Convention Bureau". The Bureau seeks to encourage business 
tourism by developing and organizing the exhibiti on and convention sector in the Kingdom. The 
Resolution also called for the formation of a supervisory committee for the Bureau. WT/TPR/M/333/Add.1 
 
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  TURKEY - ADDITIONAL QUESTIONS  
SECRETARIAT REPORT 
 Summary, pg. 7, para. 6 
 
It is stated in the Report that, "The Gulf St andards Organization (GSO) develops standards and 
technical regulations that are applicable throughout the GCC and over half the standards 
applicable in Saudi Arabia were adopted from the GSO. In addition, the Saudi Standards, 
Metrology and Quality Organization (SASO) overs ees the system for development of standards 
applicable within Saudi Arabia. All imports must be accompanied by a certificate of conformity or may be subjected to random sampling to ensure conformity. All imports of live animals and 
products of animal origin from outside the GCC must be quarantined for 21-30 days depending on 
the country of origin. All imports of food and animal products for human consumption are subject to import permits issued by the Saudi Food and Drugs Authority (SFDA). For imports of 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. In addition, imports of meat must be sourced from SFDA approved establishments." 
 
Given the market size and growing potential of the halal market, in order to prevent technical barriers to trade, we are in the opinion that the halal market requires globally harmonized principles especially in the area of standardizatio n. There is a fragmented structure in the field of 
halal in international fora since the existence of so many standards and logos cause trouble for the 
well-functioning of the market.   
In this sense, as an affiliate body of the Organization of Islamic Cooperation (OIC), the "Standards 
and Metrology Institute for Islamic Countries" (SMIIC) was established in 2010. The adoption of a single halal standard is one of the major objectives of SMIIC. Until now, SMIIC published three 
guideline documents on the matter; "General Guidelines on Halal Food", "Guidelines for Bodies 
Providing Halal Certification" and "Guidelines for the Halal Accreditation Body Accrediting Halal Certification Bodies". In this context, the adoption and recognition of SMIIC standards is quite important to eliminate technical barriers to trade in this sector.  
 
With a reference to summary section of the secretariat report, it is mentioned that "for imports of 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." 
Therefore, Turkey kindly asks:   
Question 33 
According to which standards and technical criteria halal certificates should be issued in order to be recognized by Saudi Arabian Authorities?   
Answer 
Information can be found in WT O notification G/SPS/N/SAU/14. 
 
All imports of food and animal products for human consumption are subject to import permits 
issued by the Saudi Food & Drug Authority (SFDA). For imports of meat and poultry, a Halal  Certificate and an Islamic slaughter certificate are required. See: 
https://www.sfda.gov.sa/en/food/about/admin istration/mangement_ food/Pages/EDOIFC-
IncpectionOfForeignFacilities.aspx  [coming soon].  
SFDA's website provides that there are Islamic centers that issue "Halal Slaughtering Certificates" 
worldwide, which have been approved by the "M uslim World League." The SFDA requires these 
certificates with all meat and meat products. Importers can contact the Department of Halal Meat 
at the Muslim World League to find approv ed centers that issue Halal certificates. 
 
Question 34 
Within the context of the above mentioned information, is Saudi Arabia considering to adopt SMIIC Halal Standards as national standards?  
 
Answer 
Saudi Arabia is a member of SMIIC. Saudi Arabia is also a participant in the Halal Food Issues 
Technical Committee. As such, Saudi Arabia is working to create unified Halal standards and  WT/TPR/M/333/Add.1 
 
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  certification requirements and currently there exist a technical regulation for GCC countries (Halal 
Food - Part 1: General Requirement) which was recently updated.  WT/TPR/M/333/Add.1 
 
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  THAILAND  
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 2. TRADE AND INVESTMENT REGIME 
 
Page 21 (paragraph 2.13)  
Question 1  
Please elaborate on plans and policies to attract and absorb investment in line with the Tenth Development Plan.  
Answer 
Among the most important improvements introduc ed by the Kingdom to attract investment and 
support economic diversification have been significant investments in human capital, particularly 
education, vocational training, physical infr astructure and improvements to the business 
environment to support and encourage private sector investment. Financial policies are supporting the development of small and medium-scale enterprises (SMEs) through better SME access to 
finance, including through the establishment of de dicated SME units in banks, such as; "Kafalah" 
loan-guarantee programme and better access to cr edit information through "SIMAH" which is the 
national credit bureau .  
Work has started on a new insolvency law and contract enforcement is being strengthened. 
Privatization of state-owned enterprises (SOEs)  i s  a d v a n c i n g  w i t h  t h e  r e c e n t  s a l e  o f  t h e  
Government's stake in the National Commercial Bank. The Kingdom is developing industrial and 
economic "cities" to promote clusters of industry and service activity in a broad range of 
industries.  
3. TRADE POLICIES AND PRACTICES BY MEASURE 
 Page 53 (paragraph 3.113)  
The Paragraph stated that The Council of Competition, chaired by the Minister of Commerce and 
Industry, was established by the Competition Law and Order No. A/292 of 2005. However, a clear structure of The Council of Competition was not provided.  
 
Question 2  In this regard, please clarify the structure of Th e Council of Competition by giving; for example, 
the number of The Council and so on. 
 Answer 
Full details of the Council of Competition can be found on the Council's website, viewed at: 
http://www.ccp.org.sa/go/p.vbhtml?la ng=en-sa&page=index&id=0&tag=.  
 
4. TRADE POLICIES BY SECTOR 
 
Page 78 (paragraph 4.71)   
Question 3  
Given the fact that many expatriate workers have  been employed in the construction industry 
while the situation of illegal immigrants has still not been resolved completely, has the Government of Saudi Arabia undertaken any steps/actions to cope with this issue. 
 
Answer 
Workers require a valid work visa to work in the Kingdom. In 2013, the Ministry of Labor 
implemented a seven-month amnesty to allow illegal workers to correct their visa status or leave 
the country without any penalty or sanction. The successful implementation of the Nitaqat program will continue to address this issue and improve the labor market. 
The Nitaqat program has put in place limitations on the number of employers that can apply for 
work permits for foreign workers and will increase the security of the labor market.   WT/TPR/M/333/Add.1 
 
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  Question 4  
Please elaborate more on the Nitaqat Programme in Para.4.71 concerning the minimum proportion requirement of Saudi nationals' employment in the construction sector. Would this requirement 
affect both domestic and foreign enterprises in this sector? 
 
Answer 
The minimum requirement of Saudi Nationals' employment in the construction sector would 
depend on the size of the company in question . Foreign investment companies are treated the 
same as national companies in the same activity in terms of rates of Saudization and the application of incentives and sanctions.  
Page 79 (paragraph 4.76)  
 Question 5  
Given that there are many on-going construction projects in Saudi Arabia being dominated by 
domestic private companies while the proportion of bank credit to private building and construction sector is merely 7%, what source of funding do the private companies obtain to finance these 
projects? 
 Answer 
The Government is not able to disclose confidential information about the funding arrangements of 
private companies. 
 QUESTION REGARDING THE REPORT BY THE GOVERNMENT 
 
2.  ECONOMIC DEVELOPMENT   
Page 5 (paragraph 2.4)  
 Question 6  Since one of the key objectives of the 10th Development Plan (2015-2019) of Saudi Arabia is to 
transform into a knowledge economy, has the Gove rnment of Saudi Arabia formulated a concrete 
plan of action / an initiative with a view to achieving this aim, in particular with respect to the preparation of service sectors to support the knowledge economy? 
 
Answer 
The action plan to achieve this aim is curre ntly in the process of being developed.  
 
3.  TRADE POLICY DEVELOPMENTS   Page 9 (paragraph 3.21)  
 
Question 7  Does Saudi Arabia have any plan to set up free zone and special economic zones to attract foreign 
direct investment, particularly the non-hydrocarbon sectors? If so, please provide more 
information about government promotions for investors?  
Answer 
The regulatory systems for Saudi Arabia's economic  cities are in the process of being developed. 
The regulatory systems utilized by other free zones may be assessed as part of this process.   WT/TPR/M/333/Add.1 
 
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  ARGENTINA 
REPORT BY THE SECRETARIAT (WT/TPR/S/333) 
 1) ECONOMIC ENVIRONMENT 
 
In paragraphs 3 and 18 of the summary and 1.7 it is  noted that the so-called "sauditización" of the 
economy established by the Nitaqat Program, which sets quotas for Saudi national employees in 
percentages arranged by sectors, in some cases has impacted costs foreign companies. 
 Question 1 We want to know the degree of implementation of Nitaqat, its impact on employment of Saudis 
and, if any, conclusions about its possible revision against the higher costs generated by foreign 
companies.  
Answer 
The Nitaqat Program was launched in 2010. As noted in the Secretariat's report, in the first six 
months following the launch of the programme, there was a 58% increase in the number of Saudi 
nationals employed in the private sector. The programme also increased female participation in the 
labour force, and created 103, 962 new jobs for Saudi women in the private sector in its first year. The third phase of implementation of the pr ogramme and further increases in the minimum 
requirement for employment of Saudi nation als was due to be implemented in 2015. The 
implementation of this phase of the programme has been postponed.  
 In paragraph 1.11 of the Report by the Secretariat it  is mentioned that in the future, if oil prices 
do not recover in the medium term, the Government may be forced to establish a fiscal 
consolidation plan to be able to sustain its growth objectives.  
Question 2 
Could the Kingdom of Saudi Arabia inform if there is already a plan of fiscal consolidation and specify what would be the objectives and sectors concerned?  
Answer 
Saudi Arabia has faced a decline in oil revenue from a comfortable fiscal position of high public 
reserves and very low public debts. Such a position allowed the Kingdom to maintain its 
investments in social programmes. Also, the Kingdom was able to increase non-oil revenue by 29 
percent in 2015 compared with 2014. Saudi Arabia has also undertaken comprehensive economic, financial, and structural reforms, and introduced a number of measures in connection with them. 
These measures include, among others, (i) developing objective fiscal rules consistent with 
transparent tax collection; (ii) strengthening corporate governance and accountability; (iii) privatizing a range of economic activities; (iv) streamlining legislative and regulatory  
requirements; (v) and focusing on projects in the health, education social and utility sectors. 
 
In paragraphs 2.13 and 2.14 is mentioned the Tenth Development Plan (2015-2019) and efforts so as to diversify the economy to develop and enhance the role of non-hydrocarbon sectors. 
 
Question 3 Could the Kingdom of Saudi Arabia inform the specific measures included in the new Development 
Plan to diversify the economy?  
 Answer 
Among the most important improvements introduced by the Kingdom to support economic 
diversification have been significant investment s in human capital, particularly education, 
vocational training, physical infrastructure and improvements to the business environment to support and encourage private sector investment. Financial policies are supporting the 
development of small and medium-scale enterprises (SMEs) through better SME access to finance, 
including through the establishment of dedicated SM E units in banks, such as the "Kafalah" loan-
guarantee programme and better access to credit information through "SIMAH," which is the 
national credit bureau . 
 Work has started on a new insolvency law and contract enforcement is being strengthened. 
Privatization of state-owned enterprises (SOEs)  i s  a d v a n c i n g  w i t h  t h e  r e c e n t  s a l e  o f  t h e  WT/TPR/M/333/Add.1 
 
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  Government's stake in the National Commercial Bank. The Kingdom is developing industrial and  
economic "cities" to promote clusters of industry and service activity in a broad range of industries.   
Question 4 
Paragraph 2.17 states that the Tenth Development Plan highlights the need to develop a regulatory framework to channel private sector investment in line with development priorities. 
 
Could the Kingdom of Saudi Arabia detail what th e regulatory framework to be implemented under 
the Tenth Development Plan consist of ?  
Answer 
The regulatory framework to be implemented under  the Tenth Development Plan is currently being 
developed and once it is finalized, it will be made available to the public.  
 
Question 5 In paragraph 2.37 is mentioned that Saudi Arabia continues to maintain a negative list for foreign 
investments, which is periodically revised and is subject to approval by the Economic and 
Development Affairs Council. It is also noted that since the last review, the negative list has been amended and some sectors have been removed.  
Could the Kingdom of Saudi Arabia explain the criteria by which the sectors in which foreign 
investment is prohibited are reviewed?  
Answer 
Saudi Arabia continues to maintain a negative list for foreign investments (Table 2.2 of the 
Secretariat Report); the list is periodically review ed and updated and is subject to approval by The 
Saudi Council of Economic and Development Affairs. Since the last review, the negative list has 
been amended and several sectors were removed. Foreign investment is now permitted for mining, petrochemicals, gas, and telecommunication.  
Question 6 
Paragraphs 3.73 and 3.74 refers to the registration of food importers with the SFDA and to an evaluation, establishments that wish to supply meat and poultry meat to Saudi Arabia, must go 
through.  
 Could the Kingdom of Saudi Arabia detail the procedures to import these products? And in 
particular, could the Kingdom of Saudi Arabia explain what establishment evaluations consist of ? 
 Answer 
The procedures for inspecting and approving foreign meat establishments have been notified to 
the WTO and can be found in document G/SPS/N/SAU/93, 28 January 2014, and Add.1 and Add.2. 
 Question 7 
The report of Saudi Arabia (WT / TPR / G / 333), paragraph 6.2, mentioned among the six key 
commitments of the Kingdom in its growth strategy, "shift to greater private sector funding and management of investment through PPPs". The Report by the Secretariat also mentions that "at 
least 30% of the value of the contract must be sub-contracted to wholly Saudi-owned companies " 
(WT/TPR/S/333, paragraph 3.125).  The issue of Public Private Partnerships (PPP) was the main topic discussed during the Jeddah 
Economic Forum which took place between 1 and 3 March 2016.  
 In particular, we want to know the measures taken by the authorities aimed at enabling all foreign 
companies to set up their offices in the Kingdom without need for a local partner as was the case 
until 2015 when it was announced that, at least, US companies will be exempted from the requirement of a Saudi business partner. 
 WT/TPR/M/333/Add.1 
 
- 83 - 
 
  Answer 
Recently, a Royal directive has been issued to review the commercial and investment regulations 
so as to allow foreign companies up to 100% investment in the wholesale and retail sector, which would boost the Kingdom's economy and make it more competitive while generating more jobs for 
Saudis. This will be applied equally to a ll investors based on the MFN principle.  
 Question 8 
Paragraphs 4.7, 4.96 and 4.101 of the Report by the Secretariat and paragraph 4.56 of the Report 
of Saudi Arabia (WT/TPR/G/333) , refer to the opening of the stock exchange, called Tadawul, for foreign investment .  
As regards the measure in force since June 15, 2015: has it produced positive effects on 
investment and transparency, or it is still in a stage of preliminary assessment?  
Answer 
It is too soon to evaluate the effects of this me asure, but initial indications are considered to be 
favorable. 
 WT/TPR/M/333/Add.1 
 
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  MALAYSIA 
GOVERNMENT'S REPORT 
 Paragraph 4.85 
 
Saudi Arabia recently announced its plan to allow 100% foreign ownership in wholesale and retail services. The change is part of the broader reform  agenda that seeks to diversify the economy and 
decrease its reliance on oil. 
 Question 1 Appreciate if Saudi Arabia could share with Malaysia as to when the new policy on distribution will 
be implemented? 
 Answer 
The regulation and requirements to invest with 100% foreign ownership in those two sectors are currently being developed, and we expect to implement them as soon as they are finalized and approved.  
 
SECRETARIAT REPORT  Paragraph 2.12 
  
Investment in Saudi Arabia is regulated by the Commercial Agencies Law of 1962 and its Implementing Regulations of 1981, while foreign investment, in particular, is governed by the 
Foreign Investment Law 2000 and its implementing regulations adopted in 2002. This was further 
amended through the Saudi Arabian General Investment Authority Board Resolution No. 2/74 adopted in 2014 (Section 2.5). 
 
Question 2 Malaysia would like to request more information on the effects of the revision of the law on foreign participation in the Kingdom of Saudi Arabia.  
 
Answer 
Further information about the Foreign Investment  Law, including the amendments adopted by 
SAGIA in 2014, can be found in Section 2.5 of the Secretariat Report and from the following 
websites of the Ministry of Commerce and Industry and the Saudi Arabian General Investment Authority:  
http://mci.gov.sa/en/Pages/default.aspx ; http://www.sagia.gov.sa/en/Pages/default.aspx . WT/TPR/M/333/Add.1 
 
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  ECUADOR 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
 Question 1 
Pages 34 and 35, paragraph 3.11 and 3.12 ,  
In that context, Could Saudi Arabia inform us if there is a special treatment for perishable goods giving a priority on tests that must be performed? What facilities exist for storing these goods 
pending the results of your analysis? 
 Answer 
There is a condition clearance of all goods including perishable goods until the result shows 
negative and fits for human consumption. The importer may keep the goods in his storage facility. 
 Question 2 
Pursuant to page 31, paragraph 3.12, in the sy stem for authorized economic operators (OAS), 
called Eltizam adopted by the Customs Department since 5 April 2014.  
 
Could the Kingdom of Saudi Arabia inform us which facilitation measures are granted to the AEO, 
regarding the formalities and import and export proc edures, and what are the criteria that must be 
met for a company to access the AEO regime?  
Answer 
Any company registered in Saudi Arabia or agent thereof, which exports to Saudi Arabia, may 
apply to join the AEO programme as per the following conditions: 
1. To exercise importation and exportation op erations within two years from the date of 
applying to join the programme. 2. The import or export value should not be less than SAR 100 million annually, or the amount 
of customs duty already paid by him is not less than SAR 5 million, or number of customs 
declarations of such entity is not less than 1,000 declaration annually. 3. There should not be previous conviction in a case, issued order or in a case under review by 
any primary or appellate customs committee within 3 years before applying to join. 
4. Compliance with the customs regulations and instructions and non-committal of any type of 
violations and breach within 3 years before applying to join. The facilities provided to the AEO are as following: 
• Prompt preparation upon submitting the customs declaration.  
• Container examination immediately upon unloading from the means of transport. 
• Facilitate and accelerate customs duty payment and customs clearance formalities. 
• No fee collection against services provided in connection with the statistics reports 
• Dedication of specific access path to enter the customs yards at land ports.  • Possibility of completing required customs formalities at the customs warehouses. • Announcing names of the AEOs at the Saudi Customs electronic portal. 
 
Question 3  
According to page 34, paragraph 3.30, relating to that applied to cigarettes containing snuff tariff. 
"The tariff on some of those lines is 100%, with a minimum specific duty, such as the law 
applicable to goods in line 24,022,000 SA ("cigarettes containing Tobacco") is 100%, with a minimum 100 rials per 1,000 units. Lacking the ad valorem  equivalents for thes e tariff lines, tariff 
analysis assumes that the duty applied is 100%. 
According to the list of concessions the Kingdom of  Saudi Arabia in the WTO, the bound tariff for 
cigarettes containing snuff is 200% or 200 riyals per 1000 units.   
Could the Kingdom of Saudi Arabia tell us how a minimum specific tariff and a tariff of 100% ad 
valorem applied at the same time, it fits its binding commitments for the aforementioned tariff line that establishes two alternatives, the ad valorem  tariff or specific? 
 
Answer 
The law applicable to cigarettes in Saudi Arabia does not combine both ad valorem and specific 
duties altogether. What applies to the heading 2 402.20 is either an ad valorem duty of 100% or 
specific duty of SR 100.00 on each 1,000 cigarettes, whichever is higher. According to commitments by Saudi Arabia, a specific duty of SAR 200.00 has been applicable to each 1,000 
cigarettes. The specific duty is  equivalent to ad valorem. WT/TPR/M/333/Add.1 
 
- 86 - 
 
  Question 4  
According to page 43, paragraph 3.62, regarding a license to use the quality mark, could the Kingdom of Saudi Arabia tell us what benefits gr anted by this voluntary system to imported or 
domestic products that comply with standards and technical regulations relating to the certificate 
of conformity. In addition, the Ecuador is intere sted in knowing whether the license to use the 
quality mark certifies any other particular subject.  
Answer 
We would like to inform you that SASO signed with certification bodies(CBs) , accredited according 
to ISO 17065, a recognition program for the issuan ce of certificate of conformity (CoC) for each 
consignment of goods (that fall under its responsibility) to be exported to Saudi Arabia, unlike 
SASO quality mark that is granted to certified products, according to the regulation of SASO 
quality mark, which proves that the product conforms to the relevant Standard, as long as it bears SASO quality mark. 
 
Question 5  
According to page -44, paragraph 3.74, on the ce rtificate of approval of establishments in the 
exporting country that wants to supply meat and meat poultry to the Kingdom of Saudi Arabia. 
 Could you give more details if exists a specific time period for the approval process of establishments, either through the SFDA in situ or by delegation to the competent authority of the 
exporting country audit. Could you tell if any WTO member country has achieved such recognition 
by the option of delegation to the competent authority of the exporting country?  
Answer 
There is no specific period for the procedure of approving competent authority, it is based on the 
country assessment and it is a case-by-case basis,  however, after complete the requirements of 
approving competent authority, SFDA study the request and make the decision based on the 
country assessments. The requirements are on the SFDA portal, viewed at:  https://www.sfda.gov.sa/en/food/about/admin istration/mangement_ food/Pages/EDOIFC-
IncpectionOfForeignFacilities.aspx  [coming soon].  
 
Question 6  
According to page 48 -, paragraph 3.90, in relati on to financial products Export Program Saudi 
Arabia (SEP). 
 "According to the authorities, these financial products are offered on commercial terms and 
market-based. To qualify for a loan or a guaran tee, the applicant must demonstrate a national 
value added of at least 25%. The SEP can lend up to 100% of the value of the transaction, if this amounts to 100,000 riyals or more ". According to the text of the WTO Secretariat, th e export credits they would be granting prior 
fulfillment of a requirement of mi nimum domestic value added of 25%. 
 Could the Kingdom of Saudi Arabia tell us about how to ensure that the programme meets its 
commitments - in export subsidies for agricultural products , and the provisions of the Agreement 
on Subsidies and Countervailing Measures of the WTO, with respect to prohibited subsidies under the minimum requirement of  - national component? 
 
Answer 
SEP provides Saudi exporters with irrevocable in surance and guarantee credits to cover the risks 
of non-payment for their exports. SEP does not provide insurance/guarantee facilities for import 
transactions into Saudi Arabia and the pricing of  SEP credit is commercially-based, depending on 
the borrower's credit and country risk. Basic information about the SEP is available on its website: http://www.sep.gov.sa/webcenter/faces/oracle/ webcenter/page/scope dMD/s496069c 3_e35f_448c
_8a0a_0c2ed8086bcf/Page27.jspx?_afrLoop=5650777382238#%40%3F_afrLoop%3D5650777382
238%26_adf.ctrl-state%3Ddzob9aes7_4 . SEP's credit terms are similar to, if not more stringent 
than, those offered by Ex-Im banks in other countries.  
 
Question 7  
Pursuant to page 53 -, paragraph 3,112 on the Competition Law - and its non-applicability to --
state entities neither - companies wholly state-owned. 
 WT/TPR/M/333/Add.1 
 
- 87 - 
 
  Could the Kingdom of Saudi Arabia tells us if STEs are also excluded from the application of the 
Competition Law -. If so, what are the reasons that exist for the Competition Law - does not apply to state-owned commercial enterprises which, as is known, could distort the normal conditions of competition be? 
 
Answer 
The exception is based on Article 2 of the Co mpetition Law. State-owned enterprises in the 
Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working 
Party Report to make purchases of goods and services, which are not for government use, and sales in international trade in accordance with commercial considerations. Moreover, the new Saudi Competition Law expands the scope of the Law to all establishments, organizations and 
authorities that conduct commercial and economic activities, not withstanding their ownership. 
 Question 8  
According to page 66, paragraph 4.19, in relation to the granting of low-interest loans and grants 
to repayment of loans by the Fund Agricultural Development.  
The notification of the Kingdom of Saudi corresponding domestic support measures in 2011, 
Amber Box Arabia, subsidies are recorded at market price supports and subsidies fixed for supplies - could the Kingdom of Saudi Arabia indicates where subsidies at repayment of loans would be recorded - in accordance with its WTO commitments and multilateral rules on domestic support 
measures? 
 Answer 
The amount of total loans disbursed in calendar year 2011 are indicated in Annex 1, other General 
agricultural subsidies are indicated in Supporting Table DS: 9. 
 
 
 WT/TPR/M/333/Add.1 
 
- 88 - 
 
  CHINA – FOLLOW-UP QUESTIONS  
Part I. Questions based on Report by the Secretariat (WT/TPR/S/333) 
 Page 21, Para 2.17 
 
2.17 Saudi Arabia considers that a sound economic environment is essential to diversify the economy and to attract local and foreign capital. The Tenth Development Plan highlights the need 
to develop a regulatory framework to channel private sector investments in line with development 
priorities. The priority sectors identified are in energy, transport and logistics, information and communication technologies, finance, health, life sciences, education, and tourism (Section 2.5). 
Saudi Arabia continues to maintain three strategic targets, that is to: become the global capital of 
energy; act as a transport and logistical hub between East and West; and transform its 
knowledge-based industries, i.e. healthcare, education, and information technology.  
Question 2 
Has trade in services of traditional medicine (including traditional Chinese medicine or TCM) into its target? 
 
Answer 
No target has been set specifically for traditional medicine services in the 10th Development Plan.  
Page 31, Para 3.7 
 3.7. All commercial imports, irrespective of value,  must be declared to Saudi Customs. According 
to the World Bank, in general, the Customs Depa rtment requires importers to submit a customs 
import declaration, bill of lading, commercial invoice, certificate of origin, certificate of conformity, and proof of payment method to avoid money laundering and terrorist financing. Saudi Customs 
noted that the consignee's authorization of customs broker; and the company registration 
document are available in its database; therefore, they do not need to be submitted each time. For certain consignments, a packing list; and an import  licence are required, depending on the nature 
of the imported goods. 
 
Question 3 Please clarify if this requirement applies to all imported goods or just those subject to special 
requirements (such as trade restrictions and trade remedies etc). 
 Answer 
Import licensing is required only for restricted goods, but a packing list is required for all goods 
when the consignment includes different items.   Question 4: 
Please clarify the requirements for the submission of certificates of origin. 
 Answer 
There is no special requirement for its submission as the original certificate of origin or a copy of it 
shall be attached with the imported consignmen t documents. Currently, the Customs Authority is 
working on an EDI programme, which includes the recipient of importation documents 
electronically.  
 Page 31, Para 3.10  
3.10. Upon arrival, all imports are subject to cu stoms inspections. Physical inspection may be 
carried out for goods on a random basis determined by risk profiling. According to the authorities, 
about 90% of imported consignments are subject to X-ray scanning while the remaining 10% are 
inspected physically. Upon payment of customs duties, imported goods may be released from 
Customs. The authorities stated that clearance of goods from customs takes an average of one 
day regardless of the mode of transport. 
 WT/TPR/M/333/Add.1 
 
- 89 - 
 
  Question 5 
How does Saudi Customs perform risk assessment before the arrival of goods? What are the main technologies, methods and criteria of risk assessment?   
Answer 
Saudi Customs perform risk assessment before the arrival of goods according to the importer's 
records in the customs database.  
 
Page 32, Para 3.14  3.14. There are no legal provisions pertaining to advance rulings. According to the authorities, 
Saudi Customs answers, on a case-by-case basis, requests for information on customs matters 
such as classification, valuation, and rules of origin.  
Question 6 
Please indicate the legal effect, time and scope of application of such answer regarding the rule of origin. 
 
Answer 
Exporters, importers and interested parties from a guidance perspective based on the principles of 
cooperation and the Kingdom's membership in the Nairobi Convention on Mutual Administrative 
Assistance in Customs Matters. The duration of va lidity and any binding effect vary depending on 
the facts of each inquiry.   
Once the Trade Facilitation Agreement has entered into force, Saudi Customs will apply Article 3 
on Advance Rulings in conformity with the Agreement.  
Question 7 
Page 32, Para 3.19  3.19. The transaction value is the primary basis for determining customs value. The transaction 
values used are c.i.f. values. In the event that transaction values cannot be used, the customs 
value is calculated by proceeding through the basic methods established by the WTO Agreement on Customs Valuation (CVA). No minimum or reference prices are applied. According to the 
authorities, 96% of all import declarations in 2014 were accepted in accordance with the 
transaction value method.  
Please provide details on the approaches and measures of the price management. 
 Answer 
The requested details are to be found in Article One of the Implementing Regulation of The GCC 
Common Customs Law.  
 Page 48, Para 3.90 
 
3.90 The Saudi Export Programme (SEP) is the official national export credit agency...The financing offered by the SEP includes finance (i.e . loans) and credit guarantees...With regard to 
guarantees, the SEP offers to cover up to 90% of non-payment risks, including commercial and 
political risks.  Question 8 
Please indicate the difference between the func tions and business scope of SEP and ICIEC to 
support Saudi export.  
Answer 
Details of the functions and scope of SEP and ICIE C can be found on their respective websites:  
http://www.sep.gov.sa/webcenter/faces/oracle/ webcenter/page/scope dMD/s496069c 3_e35f_448c
_8a0a_0c2ed8086bcf/Page27.jspx?_afrLoop=5650777382238#%40%3F_afrLoop%3D5650777382
238%26_adf.ctrl-state%3Ddzob9aes7_4 ; http://www.iciec.com/ . 
 WT/TPR/M/333/Add.1 
 
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  Page 48, Para 3.91 
 3.91 In addition to the SEP, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provides export credit guarantees to member States; it also provides member 
States with investment insurance and guarantees against country risks. 
 Question 9 
Please indicate the underwriting scale, premium level, main beneficial industries and countries of 
short term export credit insurance of ICIEC for th e last three years, and their underwriting policies 
offered to Chinese buyers and other emerging markets.  
Answer 
Details on the policies of ICIEC can be found on its website: http://www.iciec.com/ . 
 
Part II. Questions based on Policy Statement by the Kingdom OF Saudi 
Arabia(WT/TPR/G/333)  
Page 19, Para 4.70 
 4.70 Saudi Arabia encourages foreign investment in large hospitals to promote the transfer of 
technology, which leads to strengthening the quality of health services, creating an economic 
impact and increasing employment opportuni ties for the citizens of the Kingdom. 
 Question 10 
What are the laws and policies regulating the market access of setting up traditional Chinese 
medicine hospitals in Saudi Arabia in the mode of commercial presence? Does Saudi Arabia provide equal national treatment? 
 
Answer 
The Ministry of Health is responsible for the ma nagement, supervision and regulation of private 
sector health services, with prudential regulati ons as applicable. The Kingdom has scheduled no 
limitation on national treatment in its Mode 3 GATS commitment on medical services. 
 WT/TPR/M/333/Add.1 
 
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  EUROPEAN UNION – FOLLOW-UP QUESTIONS 
Intellectual property rights 
 Question 45 
Does Saudi Arabia collect properly royalties for distribution to all right-holders? 
 Answer 
Saudi Arabia does not collect royalties for distribution to all right-holders.  EU follow-up question Could Saudi Arabia clarify whether they envisage collecting royalties for distribution to all right-
holders of neighboring rights in the future?  
 Answer   
According to Saudi Copyright Law we do not see collecting royalties for distribution to all right-
holders of neighboring rights in the future.   
Question 46 
Could Saudi Arabia provide some clarifications as regards the various types of exclusions, in particular are biotechnological inventions excluded?  
Answer 
The Law of Patents, Layout Designs of Integrated Circuits, Plant Varieties, and Industrial Designs 
of Saudi Arabia (Article 45(C)) stated that micro-organisms, non-biological and microbiology 
processes are patentable, but plants, animals and processes – which are mostly biological – used 
for the production of plants or animals are excluded from legal protection.  
EU follow-up question 
Could Saudi Arabia clarify whether they envisage changing their law and protect biotechnological inventions?   
Answer 
Saudi Arabia in the procedure for changing the Law of Patents, Layout Designs of Integrated 
Circuits, Plant Varieties, and Industrial Designs, the protection of biotechnological inventions is 
under consideration. 
 Question 48 
According to the report "[t]trademarks are granted exclusive rights upon registration. 
Furthermore, protection of well-known marks is assured in Saudi Arabia even if they are not 
registered". Could Saudi Arabia clarify if coexiste nce between a subsequent geographical indication 
seeking protection in the territory of Saudi Arabia and a prior trademark under no circumstances 
would be admitted? 
 Please note that the EU believes that such  coexistence between a prior trademark and a 
subsequent geographical indication would be fully compatible with WTO/TRIPS agreement, in 
particular pursuant to Article 17 thereof. Such possibility of coexistence is also contemplated through Article 13 of the Geneva Act of the Lisbon Agreement on Appellations of 
Origin and Geographical Indications, as adopted on May 20, 2015 in the framework of a dedicated 
diplomatic conference to which Saudi Arabia also attended.  Answer 
Geographical names if their use would cause confusion as to the origin of products, services or origin, or if it would monopolize a statement to the source, for example: (Taibah, Umm al-Qura, Almaddinah). 
 
EU follow-up question Could Saudi Arabia clarify if the reply given shall be read as the coexistence between a prior 
trademark and a subsequent geographical indication  seeking protection in the territory of Saudi 
Arabia is not allowed if the use of such geographical indication in case it is protected would cause confusion as to the origin of products, services or origin, or if it would monopolize a statement to the source, for example: (Taibah, Umm al-Qura, Almaddinah)?  WT/TPR/M/333/Add.1 
 
- 92 - 
 
  Answer 
We have two types for registering the trademark in  Saudi Arabia that is related to geographical 
indications: - Saudi Arabia doesn't allow to register any trademark that refer to any religious significance such 
as (Makkah,Taibah,..etc.). 
- Saudi Arabia allows to register the trademark with geographical indications after providing us with certificate of origin. 
 
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