RESTRICTED  
  
WT/TPR/S/333  
29 February 2016  
(16-1185)  Page: 1/110  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
THE KINGDOM OF SAUDI ARABIA 
This report, prepared for the second Trade Policy Review of the Kingdom of Saudi Arabia, has been 
drawn up by the WTO Secretariat on its own responsi bility. The Secretariat has, as required by the 
Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from the Kingdom of Saudi Arabia 
on its trade policies and practices.  Any technical questions arising from this report may be addressed to Mr. John Finn (Tel: 022 739 
5081); Mr. Usman Ali Khilji (Tel: 022 739 6936); Mr. Xinyi Li (Tel: 022 739 5579) and Mr. Samer 
Seif El Yazal (Tel: 022 739 5459).  
Document WT/TPR/G/333 contains the policy statement submitted by the Kingdom of Saudi 
Arabia.  
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Revi ew Body on the Kingdom of Saudi Arabia. This 
report was drafted in English. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 7 
1   ECONOMIC ENVIRONMENT ........................................................................................ 10  
1.1   Fisca l Policy ........................................................................................................... .. 13 
1.2   Monetary and Ex change Rate  Policy ............................................................................ 14 
1.3   Balance of Payments ................................................................................................. 14 
1.4   Developments in Trade .............................................................................................. 16 
1.4.1   Composition of merchandise trade ............................................................................ 16 
1.4.2   Direction of  merchandis e trade ................................................................................ 16 
1.5   Foreign Dire ct Invest ment ......................................................................................... 16 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 19  
2.1   Genera l Framework .................................................................................................. 19 
2.2   Trade Poli cy Formulation ........................................................................................... 20 
2.3   Economic and Trade Policy Objectives .......................................................................... 21 
2.4   Trade Agreements and Arrangements .......................................................................... 22 
2.4.1   WTO ................................................................................................................... . 22 
2.4.2   Regional and pr eferential agreements ....................................................................... 24 
2.4.2.1   Cooperation Council for the Arab States of the Gulf .................................................. 24 
2.4.2.2   Pan-Arab Fr ee Trade Area  (PAFTA) ........................................................................ 25 
2.4.2.3   Other agreemen ts and arra ngements ..................................................................... 25 
2.5   Investme nt Regime .................................................................................................. 25 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 30  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 30 
3.1.1   Customs procedures ............................................................................................... 30 
3.1.2   Custom s valuation ................................................................................................. 32 
3.1.3   Rules of origin .......................................................................................................  32 
3.1.4   Tariffs ............................................................................................................... ... 33 
3.1.4.1   WTO bound tariffs ............................................................................................... 33 
3.1.4.2   MFN a pplied tariffs .............................................................................................. 33 
3.1.4.3   Preferential rates ................................................................................................ 36 
3.1.4.4   Tariff exemption ................................................................................................. 36 
3.1.5   Internal taxes co llected at th e border ....................................................................... 37 
3.1.6   Import  controls ..................................................................................................... 37 
3.1.6.1   Import prohibit ions and rest rictions ....................................................................... 37 
3.1.6.2   Import licensing .................................................................................................. 39 
3.1.7   Continge ncy measures ........................................................................................... 41 
3.1.8   Standards and te chnical requirements ...................................................................... 42 
3.1.9   Sanitary and ph ytosanitary measures ....................................................................... 43 
3.2   Measures Directly Affecting Exports ............................................................................. 46 
3.2.1   Export procedur es and requirements ........................................................................ 46 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.2.2   Export ta xes and duties .......................................................................................... 46 
3.2.3   Expo rt cont rol ....................................................................................................... 46 
3.2.3.1   Export prohibitions .............................................................................................. 46 
3.2.3.2   Export licensing .................................................................................................. 47 
3.2.4   Export finance, insuranc e, guarantees an d assistance ................................................. 48 
3.2.5   Fr ee zone s ............................................................................................................  48 
3.3   Measures Affectin g Production and Trade ..................................................................... 49 
3.3.1   Taxation an d tax incentives ..................................................................................... 49 
3.3.1.1   Taxation ............................................................................................................  49 
3.3.1.2   Tax incentives .................................................................................................... 49 
3.3.2   Non-ta x incentives ................................................................................................. 49 
3.3.3   State trading, state-owned enterprises, and privatization ............................................. 50 
3.3.4   Competition policy and price controls ........................................................................ 52 
3.3.4.1   Competition policy .............................................................................................. 52 
3.3.4.2   Pric e contro ls ..................................................................................................... 54 
3.3.5   Governme nt procurement ....................................................................................... 56 
3.3.6   Intellectual property rights ...................................................................................... 57 
3.3.6.1   Patents .............................................................................................................. 59 
3.3.6.2   Copyrights and related rights ................................................................................ 59 
3.3.6.3   Trademarks ........................................................................................................ 60 
3.3.6.4   Layout-designs (topographies) of integrated circuits, industrial designs, and 
plant vari eties ............................................................................................................... .. 60 
3.3.6.5   Enforcement ....................................................................................................... 60 
4   TRADE POLICIES BY SECTOR ..................................................................................... 62  
4.1   Overview ................................................................................................................. 62 
4.2   Agriculture ............................................................................................................. . 64 
4.2.1   Features ............................................................................................................... 64 
4.2.2   Trade ................................................................................................................. .. 65 
4.2.3   Policies ................................................................................................................. 66 
4.2.3.1   Trade policies ..................................................................................................... 67 
4.2.3.2   Domestic policies ................................................................................................ 67 
4.2.3.3   WTO notifica tions ................................................................................................ 68 
4.3   Mining and Energy .................................................................................................... 70 
4.3.1   Energy ................................................................................................................ . 70 
4.3.1.1   Overview an d policy ob jectives ............................................................................. 70 
4.3.1.2   Oil and petroleum ............................................................................................... 70 
4.3.1.3   Na tural gas ........................................................................................................ 73 
4.3.1.4   Electricity ........................................................................................................... 73 
4.3.2   Mining .................................................................................................................. 74 
4.4   Cons truction ............................................................................................................  74 
4.4.1   Overview ..............................................................................................................  74 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  4.4.2   WTO Commitments ................................................................................................ 76 
4.4.3   Policies ................................................................................................................. 77 
4.5   Services ................................................................................................................ .. 78 
4.5.1   Financial services ................................................................................................... 78 
4.5.1.1   Banking sector .................................................................................................... 78 
4.5.1.1.1   Struct ure ........................................................................................................ 78 
4.5.1.1.2   Regulation ....................................................................................................... 81 
4.5.1.2   Insura nce .......................................................................................................... 81 
4.5.1.2.1   Struct ure ........................................................................................................ 81 
4.5.1.2.2   Regulation ....................................................................................................... 82 
4.5.1.3   Capi tal mark ets .................................................................................................. 83 
4.5.1.3.1   Struct ure ........................................................................................................ 83 
4.5.1.3.2   Regulation ....................................................................................................... 84 
4.5.2   Transport .............................................................................................................  84 
4.5.2.1   Aviation ............................................................................................................ . 84 
4.5.2.2   Maritime Transport .............................................................................................. 86 
4.5.2.3   Railw ay tran sport ................................................................................................ 86 
4.5.2.4   Pipeline transport ................................................................................................ 87 
4.5.3   Tourism ................................................................................................................ 87 
4.5.3.1   Re gulation ......................................................................................................... 87 
REFERENCES .................................................................................................................. 8 9 
5   APPENDIX  TABLES .................................................................................................... 92  
 
CHARTS 
 
Chart 1.1 Merchandise trade by ma in HS section,  2010 and 2014 ........................................... 17 
Chart 1.2 Merchandise trade, by main origin and destinat ion, 2010 an d 2014 ........................... 18 
Chart 3.1 Average applied MFN tariff an d bound rates, by HS sectio n, 2015 ............................. 33 
Chart 3.2 Frequency distribution  of MFN tariff  rates,  2015...................................................... 35 
Chart 4.1 Support for agricultur e in Saudi Arab ia, 2006- 12 .................................................... 69 
Chart 4.2 Green Box support for agri culture in Saudi Arabia, 2006-12 ..................................... 69 
Chart 4.3 Amber Box support for agri culture in Saudi Arabia, 2006-12..................................... 70 
Chart 4.4 Market capi talization , 2010-14  ............................................................................. 83 
 
TABLES 
 Table 1.1 Selected macroeco nomic indicato rs, 2011-15 Q2 .................................................... 10
 
Table 1.2 GDP and employment, 2010-15 Q2 ....................................................................... 11 
Table 1.3 Balance of payments, 2010- 15 Q1 ........................................................................ 14 
Table 2.1 Selected notifications to  the WTO at end- September 2015 ....................................... 23 
Table 2.2 List of businesses proh ibited for foreign investment ................................................ 26 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Table 2.3 Licence fees, initial subscription rate s, and selected requirements for investment ........ 27 
Table 2.4 Investment classificati on, 2015  ............................................................................ 29 
Table 3.1 Summary of time and cost  for trading acro ss borders,  2015 ..................................... 31 
Table 3.2 Structure of the tariff sch edule in Saudi Ar abia, 2011 an d 2015 ................................ 34 
Table 3.3 Summary analysis of Saudi Arabia's MFN tari ffs, 2015 ............................................. 35 
Table 3.4 Import prohibitions, 2015 .................................................................................... 37 
Table 3.5 Import lic ensing re gime, 2015 ............................................................................. 39 
Table 3.6 Export pr ohibitions , 2015  .................................................................................... 46 
Table 3.7 Products requiring export licences, 2015 ............................................................... 47 
Table 3.8 Export finance and guarante es, 2012- 14 ............................................................... 48 
Table 3.9 Selected publicly listed companies with state investments in 2014 ............................. 51 
Table 3.10 Budget appropriations for se lected public inst itutions, 2012-15  ............................... 52 
Table 3.11 Price re gulation , 2015  ....................................................................................... 54 
Table 3.12 Legislation on gove rnment procur ement, 2015 ..................................................... 56 
Table 3.13 IP applications, grants, and registrations in Sa udi Arabia , 2006-14  .......................... 58 
Table 4.1 Crop pr oduction, 2008-13  ................................................................................... 64 
Table 4.2 Livestock and animal products, 2008-13 ................................................................ 65 
Table 4.3 Exports of agricu ltural produc ts, 2007- 14 .............................................................. 65 
Table 4.4 Imports of agricultural products, 2007-14 .............................................................. 66 
Table 4.5 Agricultural Developm ent Fund lendin g, 2006- 14 .................................................... 68 
Table 4.6 Daily crude oil producti on, 2009- 14 ...................................................................... 71 
Table 4.7 Exports of crude oil and re fined products, by  region, 2012-14  .................................. 71 
Table 4.8 Domestic production and consumption of refined products, crude oil, and natural 
gas, 2010 -14 ..................................................................................................................  72 
Table 4.9 Number of licences fo r non-hydrocarbon minerals , 2010- 14 ..................................... 74 
Table 4.10 Construction and building in Saudi Arabia, 2010-14 ............................................... 75 
Table 4.11 Selected large-scale construc tion projects in Saudi Arab ia, 2015 ............................. 76 
Table 4.12 Saudi Arabia's WTO construc tion-related servic es commitments .............................. 77 
Table 4.13 Saudi Arabia's  banking se ctor, 2010-14 ............................................................... 79 
Table 4.14 Bank credit to private sector by economic activity, 2012-14 .................................... 79 
 
BOXES 
 Box 4.1 Islamic banking .................................................................................................... 80
 
 
APPENDIX TABLES 
 
Table A1.1 Merchandise exports by product and HS se ction, 2010-14 ...................................... 92 
Table A1.2 Merchandise imports by product and HS se ction, 2010-14  ...................................... 93 
Table A1.3 Merchandise exports by trading part ner, 2010- 14 ................................................. 95 
Table A1.4 Merchandise import s by trading pa rtner, 2010-14 ................................................. 96 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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Table A2.1 Main trade-relate d legislation at end-2015 ........................................................... 97 
Table A2.2 Dispute settlement cases with  Saudi Arabia as a third party ................................. 100  
Table A2.3 Bilateral in vestment tr eaties ............................................................................ 101  
Table A2.4 Agreements and conventions on doub le taxation and prevention of tax evasion ....... 102  
 
Table A3.1 MFN applied duties partiall y in excess of bound  duties, 2015 ................................ 103  
Table A3.2 Products affected by standards and technical requirements, 2012-15 ..................... 106  
Table A3.3 SPS measures: products and countries affected, 2012-15 .................................... 108  
 
Table A4.1 Air Transpor t agreements , 2015 ....................................................................... 109  
 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  SUMMARY 
1. Despite the emphasis given to diversification in successive Development Plans, the economy 
of the Kingdom of Saudi Arabia continues to rely on oil production, which in 2014, accounted for about 50% of GDP, 83% of exports and 90% of government revenue. In the period 2010-2014, 
economic growth was one of the fastest in the G-20,  helped by high oil prices, and GDP per capita 
increased to more than US$24,000. For most of this period, high oil revenues resulted in fiscal surpluses and total public debt declined to 1.6% of GDP while foreign exchange reserves, at 
US$732 billion, were almost the equivalent of GDP or 3 years of imports. 
2. High oil prices also contributed to the large trade-in-goods and current account surpluses, 
although there was a large deficit for trade in services. However, the decline in the price of oil, which started in 2014, has affected the economy and government finances: at the end of 2014, 
the fall in the value of exports meant the current account surplus declined by 43% (compared to 
2013) to US$77 billion, and went into deficit in the first quarter of 2015; while the fiscal deficit for 2015 was expected to be equivalent to about 20% of GDP.  
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. 
4. As a member of the Cooperation Council for the Arab States of the Gulf (GCC), Saudi Arabia 
applies GCC rules and procedures in those areas where they have been developed, such as the 
common external tariff, the Common Customs Law, the Unified Guide for Customs Procedures for 
First Points of Entry, and the Common Law on Anti-dumping, Countervailing and Safeguard Measures. Thus, trade policy is relatively straightforward: the applied tariff is essentially unchanged since the last Review in 2012 at 5% on ne arly 80% of tariff lines; duty free on another 
11%; and high rates are reserved for products containing tobacco. For religious and moral reasons 
imports of some products (about 1.2% of tariff lines) are prohibited. Saudi Arabia has never conducted proceedings or applied any contingency measures. Saudi Arabia is also a member of the 
Pan Arab Free Trade Area and, through the G CC, a party to the GCC-EFTA, and GCC-Singapore 
free trade agreements.  
5. Although trade policy is quite straightforward, and tariffs on most products are low, 
procedures to import and export are complicate d. Several steps have been taken to simplify 
compliance with customs procedures, including the Electronic Data Interchange system allowing electronic submission and processing of impo rt declarations; and the pre-arrival document 
verification procedure (the Direct Clearance System) applies to some goods. Further steps are also 
being considered or implemented on a pilot basis, such as the single window for customs 
procedures which is operating in the Jeddah Islamic Seaport Customs Office.  
6. The Gulf Standards Organization (GSO) develo ps 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 addi tion, the Saudi Standards, Metrology and Quality Organization 
(SASO) oversees 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. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  7. 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%. About SAR 1 billion in loans and SAR 1 billion in guarantees were approved in 2014. In addition, the Islamic Corporation for the Insurance of Investment and Export Credit (I CIEC) provides export guarantees to its member 
States, and the Saudi Export Development Authority provides administrative, technical, and 
consultative assistance for marketing exports and attracting foreign investors. 
8. There are no sales, or value-added taxes, no personal income taxes on salaries, and no 
excise duties applied in Saudi Arabia. Non-nationals are taxed at a rate of 20% on income from 
self-employment, returns from capital investment, and profits from business activities conducted in the Kingdom. Saudi nationals and nationals of other members of the GCC are subject to Zakat at 2.5% of net worth. Employers and employees also  make social security contributions at 9% and 
11% of gross salaries respectively. 
9. The Kingdom has major holdings in a number of commercial companies through the Public 
Investment Fund, the General Organization of So cial Insurance, and the Public Pension Agency. 
The combined holdings of these agencies is over 50% for some major enterprises including, Saudi 
Telecom, Riyad Bank, the National Commercial Bank, Saudi Real Estate Company, Saud Arabian Mining Company (MA'ADEN), and Saudi Arabia Basi c Industries Corporation (SABIC). In addition, 
the Kingdom also directly or indirectly has holdings in several other companies while others are 
wholly owned, such as Saudi Arabian Airlines, and the Saudi Arabian Oil Co. (Saudi Aramco). 
10. The Competition Law was amended in 2014 to change the fines for contravention to a 
percentage of turnover or a monetary range (not exceeding 10% of turnover or up to 
SAR 10 million for the first offence). In addition, the offending parties are obliged to refund all 
gains made as a result of violation. Price contro ls apply to a limited range of goods and services, 
including pharmaceuticals. The New Pricing Scheme for pharmaceuticals, effective since late-2011, 
bases prices for innovative products on several factors including: therapeutic importance; ex-
factor, wholesale, and retail prices in country of origin; and prices in a list of 30 countries. At the end of the patent period the prices must be reduced and reduced further for generic products. 
11. The laws and regulations on government procurement apply to all public agencies, with 
some exceptions. The principal selection process is  public tender, although direct purchase and 
other methods are permitted depending on the esti mated value of the contract, the type of goods 
and/or services, or the urgency of the situation (such as for medical supplies). A price preference 
of 10% applies to domestically produced products and a preference of 5% to products from other 
GCC member States.  
12. In August 2013, Saudi Arabia joined the Patent Cooperation Treaty (PCT) and the Patent 
Law Treaty (PLT). The Saudi Patent Office has been working on changes to the Implementing 
Regulations of the Law of Patents, Layout-Designs  of Integrated Circuits, Plant Varieties, and 
Industrial Designs to harmonize domestic regula tions with the PLT and PCT. These changes were 
notified in the official gazette on 20 November 2015 and came into effe ct in December 2015. 
13. For several years now, agricultural policy has been following a consistent path towards more 
efficient use of resources, particularly water. The Grain Silos and Feed Mills Organization (GSFMO) stopped purchasing domestic barley in 2003, and made its last purchases of domestic wheat in 
2015. In late-2015, the Council of Ministers issu ed a decision which approved the regulatory 
arrangements for the privatization of the GSFMO – which was replaced by the newly-created Saudi Grain Organization (SAGO) – and the establishment of four flour mill companies with the intention 
of selling them to the private sector after a tria l period. Feed subsidies are provided for poultry 
producers and the Agricultural Development Fund provides interest free loans and a repayment subsidy of up to 25% of the loan value. 
14. With reserves of about 267 billion barrels, petroleum production and refining are the basis 
for the economy. Production increased during the period under review: from about 8.2 million bbl/day in 2010 to 10.3 million bbl/day in August 2014. The state-owned Saudi Aramco is the sole 
concessionaire producing crude oil in Saudi Arabia, with the exception of production in the Saudi 
Arabia-Kuwait Divided Zone. All crude for domestic  refineries is supplied by Saudi Aramco, and 
95% of Saudi Arabia's exports of crude were fr om Saudi Aramco. Refinery capacity was about 
2.9 million bbl/day in 2014 with foreign investme nt through joint ventures with Saudi Aramco WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  permitted. Saudi Aramco has autonomy for operational and procurement decisions while the 
Government sets oil production limits. Saudi Aramco has exclusive rights for gas production, which is carried out through joint ventures with other companies. Gas is used as fuel for power production, desalination plants, and as feedstock for petrochemicals. 
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. 
16. Regulation of the financial sector by the Sa udi Arabia Monetary Agency (SAMA), and the 
Capital Markets Authority (CMA) have helped insu late the sector from shocks and all banks met 
Basel III capital adequacy requirements in 2014. In principle, all banking activity in Saudi Arabia 
should comply with Shariah. In 2014, approximat ely 48% of the banking sector's assets were 
Shariah compliant and four out of the total of 24 banks (12 domestic and 12 commercial branches 
of foreign banks) are run completely in compliance with Shariah. Foreign banks may operate in 
Saudi Arabia either as locally incorporated joint-stock companies or as branches of international banks. Non-Saudi participation in a joint venture is permitted up to 60%. 
17. With the two holiest sites in Islam, Saudi Arabia is the host to millions of pilgrims each year: 
out of a total of nearly 14.5 million visitors in 2014, 11 million were pilgrims. Although the Government does not receive revenue from pilgrima ges, the economy of Saudi Arabia benefits as 
tourism contributes about 4.5% of GDP and 11% to employment (directly and indirectly). Real 
estate investment in Mecca and Medina and land transportation services (excluding intercity 
passenger transport by trains) are reserved for Saudi nationals. 
18. The end of a period of high oil prices in 2014 is affecting the Saudi Arabian economy, 
although the low public debt and high level of reserves also mean the Government has some fiscal 
space. Through successive Development Plans, diversification from oil production has been a consistent objective for the Saudi Government, bu t the large reserves and low production costs 
mean it will remain dependent on oil revenues for the foreseeable future. Furthermore, despite low 
taxes, low tariffs, and official policies intended to encourage foreign investment, in some areas the implementation of trade and investment laws and policies, complex compliance systems, foreign investment limits, and Saudization employment requirements may reduce the attractiveness of 
investment in Saudi Arabia. On the other hand, a large number of initiatives have been undertaken 
to facilitate trade and foreign investment, including in customs procedures, and in other areas mentioned in the report, such as protection of intellectual property rights, and investment in new 
cities and in infrastructure.  
 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  1  ECONOMIC ENVIRONMENT 
1.1.  In 2014, Saudi Arabia was the second largest oil producer and the largest exporter of oil in 
the world. Hydrocarbons represented nearly 50% of GDP, 83% of exports, and 90% of 
government revenue. For several ye ars up to 2014, rising oil prices and production led to large 
current account and fiscal surpluses. As a result Saudi Arabia had one of the strongest growing 
economies in the G-20. Real GDP growth averaged 5.3% annually between 2010 and 2014 and GDP per capita (in constant 1999 prices) rose from over US$19,000 in 2010 to over US$24,000 in 
2014 (Table 1.1). 
Table 1.1 Selected macroeconomic indicators, 2011-15 Q2  
(Growth rates calculated based on GDP at 2010 constant prices) 
 2011  2012  2013 2014a 2015  
Q2a,b 
Real GDP (% change yoy) 10.0 5.4 2.7 3.5 3.8 
 Final consumption expenditure 7.5 10.2 6.5 8.6 .. 
 Government 16.6 8.1 11.1 12.0 ..  
 Private 1.7 11.7 3.2 6.1 .. 
 Change in stock -16.6 -8.1 -27.7 30.8 ..  
 Gross fixed capital formation 15.6 5.0 5.6 2.4 .. 
 Exports of goods and services 10.2 3.4 0.2 1.7 ..  
 Imports of goods and services 5.5 7.7 3.7 11.3 .. 
Exports of goods and services/current GDP (%) 56.2 54.4 52.1 47.5 36.4 
Imports of goods and se rvices/current GDP (%) 29.6 29.3 30.9 34.2 36.3 
Unemployment rate, total (%) 5.8 5.5 5.6 5.7 ..  
Unemployment rate, nationals (%) 12.4 12.1 11.7 11.7 .. 
Exchange rate (SAR/US$) 3.75 3.75 3.75 3.75 3.75 
Real effective exchange rate (2010=100) 96.6 99.6 102.4 105.4 116.9 
Nominal effective exchange rate (2010=100) 96.3 99.6 102.1 104.1 113.9 
Inflation rate (2007=100, % change) 3.7 2.9 3.5 2.7 2.1 
Money and quasi money, M3 (% change) 13.3 13.9 10.9 11.9 2.0 
Interest rate on Saudi riyal (3 months SIBOR deposit, %) 0.7 0.9 1.0 0.9 .. 
Interest rate on Saudi riyal (6 months deposit, %) 0.8 1.0 1.0 1.0 ..  
Interest rate on Saudi riya l (12 months deposit, %) 1.0 1.1 1.1 1.1 .. 
Government revenue 44.5 45.3 41.4 37.3 ..  
 Oil revenue 41.2 41.6 37.1 32.6 .. 
 Other revenues 3.3 3.7 4.3 4.7 ..  
Government expenditure 32.9 31.7 35.0 39.7 .. 
 Current expenditure 21.9 22.2 23.8 26.4 ..  
 Capital expenditure 11.0 9.5 11.2 13.2 .. 
Surplus/deficit 11.6 13.6 6.5 -2.3 ..  
Total public debt 5.4 3.0 2.2 1.6 .. 
Gross national savings ..  .. .. .. .. 
Gross fixed investment .. .. .. .. .. 
Terms of trade (% change) 16.6 2.2 1.8 -3.7 ..  
Exports of goods (% change) 45.2 6.5 -3.2 -8.9 .. 
Imports of goods (% change) 23.1 18.2 8.1 3.3 ..  
Exports of services (% change) 7.8 -4.1 7.2 3.1 -4.9 
Imports of services (% change) 1.6 -5.9 4.4 26.4 40.9 
Population (millions) 28.4 29.2 30.0 30.8 .. 
… Not available. 
a Preliminary data. 
b Growth rate over the same period of the previous year. 
Source: Central Department of Stat istics and Information (CDSI); Saudi Arabian Monetary Agency (SAMA); 
 Ministry of Economy and Planning; Ministry of Finance; and International Monetary Fund (IMF). 
1.2.  During this period high oil prices underpinned growth in nearly all sectors, particularly 
wholesale and retail trade, restaurants and hotels, finance, real estate and business services, and 
construction (Table 1.2). However since mid-2014, global oil prices have declined considerably, WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  which has resulted in lower export and revenue receipts. Consequently real GDP growth is 
expected to slow down to 2.8% in 2015.1 
Table 1.2 GDP and employment, 2010-15 Q2 
 2010  2011  2012  2013 2014a 2015  
Q2a,b 
GDP at current prices (SAR billion) 1,975.5 2,510.7 2,752.3 2,791.3 2,798.4 631.0 
GDP at current prices (US$ billion) 526.8 669.5 734.0 744.3 746.2 168.3 
GDP at constant prices (2010 SAR billion) 1,975.5 2,172.3 2,289.3 2,350.4 2,431.9 617.9 
GDP per capita (US$) 19,113 23,594 25,139 24,816 24,252 .. 
GDP by economic activity, constant 2010 prices (% change)  
Agriculture, fore stry and fishing -1.0 2.2 1.3 1.9 1.8 1.0 
Mining and quarrying 0.5 13.2 5.1 -1.4 0.8 4.8 
 Crude petroleum and natural gas 0.1 13.3 5.2 -1.5 0.7 4.8 
 Other 11.3 4.3 4.1 3.2 2.9 1.9 
Manufacturing 10.1 8.9 4.1 3.4 7.8 4.1 
 Petroleum refining -0.9 -1.9 4.1 -4.7 12.5 9.0 
 Other 12.4 13.4 4.1 6.3 6.3 2.4 
Electricity, gas and water 16.1 5.5 5.9 1.6 5.8 6.5 
Construction 10.7 9.9 4.8 7.8 6.7 4.2 
Wholesale and retail trade, restaurants and 
hotels 15.9 7.9 6.0 6.6 6.0 3.3 
Transport, storage and communication 13.3 13.8 4.9 6.4 6.2 5.4 
Finance, insurance, real estate and business 
services 4.7 1.8 7.5 9.2 4.1 2.1 
 Ownership of dwellings 7.7 2.4 11.9 14.0 5.0 2.6 
 Others 2.3 1.3 3.4 4.3 3.2 1.6 
Community, social and personal services 6.1 6.4 5.9 6.5 5.7 2.0 
Imputed bank service charge 1.5 1.1 0.8 1.0 1.0 1.1 
Producers of government services 6.8 7.9 5.3 4.9 3.3 2.7 
Import duties 4.3 12.9 18.0 -1.8 4.2 -15.6 
Share of main sectors in current GDP (%)  
Agriculture, forestry and fishing 2.4 1.9 1.8 1.9 1.9 2.3 
Mining and quarrying 41.6 48.4 47.6 44.2 39.5 29.0 
 Crude petroleum and natural gas 41.2 48.1 47.3 43.8 39.1 28.5 
 Other 0.4 0.3 0.3 0.4 0.4 0.4 
Manufacturing 11.0 10.0 9.8 10.0 10.9 11.3 
 Petroleum refining 3.2 2.6 2.5 2.2 2.5 2.0 
 Other 7.8 7.5 7.3 7.8 8.4 9.4 
Electricity, gas and water 1.3 1.1 1.1 1.1 1.2 1.7 
Construction 4.6 4.3 4.3 4.8 5.5 6.4 
Wholesale and retail trade, restaurants and 
hotels 8.8 7.9 8.0 8.7 9.5 10.4 
Transport, storage and communication 5.1 4.6 4.5 4.8 5.2 6.1 
Finance, insurance, real estate and business 
services 9.2 7.8 8.4 9.7 10.5 12.0 
 Ownership of dwellings 4.5 3.9 4.5 5.5 6.0 6.8 
 Others 4.8 3.9 3.9 4.2 4.4 5.2 
Community, social and personal services 1.9 1.7 1.7 1.8 1.9 2.2 
Imputed bank service charge 1.0 0.8 0.8 0.8 0.8 0.9 
Producers of government services 14.2 12.4 12.7 13.2 14.0 18.7 
Import duties 0.7 0.7 0.8 0.8 0.8 0.8 
GDP by institutional sectors (% of current GDP)  
Non-oil sector 54.6 48.5 49.2 53.0 57.4 68.3 
 Non-oil private 37.7 33.7 34.2 37.3 40.7 46.5 
 Non-oil government 16.9 14.8 15.0 15.7 16.6 21.9 
Oil sector 44.6 50.8 50.0 46.2 41.8 30.8 
Import duties 0.7 0.7 0.8 0.8 0.8 0.8 
Shares of sectors in employment (%)  
Agriculture, forests and fishing 7.0 9.2 9.3 6.7 6.3 .. 
Mines, oil, natural gas and quarrying 1.0 1.1 1.0 1.0 1.0 .. 
Manufacturing industries  10.7 10.3 9.9 9.5 9.2 .. 
Electricity, gas and water 0.4 0.3 0.5 0.5 0.5 .. 
Construction and building  43.2 45.1 47.3 48.3 48.9 .. 
                                               
1 International Monetary Fund (2015). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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   2010  2011  2012  2013 2014a 2015  
Q2a,b 
Wholesale and retail trade 21.5 19.3 17.8 20.0 19.7 .. 
Transport, storage and communications 10.5 3.0 3.2 3.5 3.5 .. 
Finance, insurance, and real estate  2.6 1.9 1.8 1.9 2.1 .. 
Community, social and personal services 1.8 9.9 9.2 8.6 8.7 .. 
Other activities 1.2 .. .. 0.0 .. .. 
.. Not available. 
a Preliminary data. 
b Growth rate over the same period of the previous year. 
Source: Central Department of Stat istics and Information (CDSI); Saud i Arabian Monetary Agency (SAMA); 
Ministry of Economy and Planning; Ministry of Fi nance; and International Monetary Fund (IMF). 
1.3.  Looking forward, the immediate economic ri sks to growth are sustained lower oil prices, and 
instability in the region leading to lower consumption and higher unemployment. The authorities are cognizant of these challenges and have tried to address them through the Ninth and Tenth 
Development Plans. 
1.4.  Under the Ninth Development Plan (2010-14), the focus was on diversification of the 
economy and job creation. In this regard the authorities concentrated on promoting industries such as petrochemicals and other energy-intensive industries that use abundant oil reserves and 
have relatively low production costs. Additionally, the Government has focused on, inter alia:  
capital goods industries, such as the manufacturing of metal products, machinery, equipment and electrical appliances; export-orientated manufacturing industries; and strengthening and 
developing SMEs. 
1.5.  Furthermore, with a view to creating a knowledge based economy, the authorities also 
encouraged investment in high-tech capital intensive industries such as mining and 
pharmaceuticals. The authorities stated that a US$400 billion stimulus had been provided for 
infrastructure, education and health and job creation under the Ninth Plan.  
1.6.  The Tenth Development Plan (2015-19), buil ds on the Ninth Plan. Under the Tenth Plan, the 
Government is seeking to enhance economic diversification with its different dimensions through: 
  Vertical diversification: raising utilization rates of mineral resources, diversifying pertinent 
activities and encouraging expansion in local production, processing and manufacturing of mining raw materials and developing production and service activities, that have strong 
linkages with oil and gas industries as well as upstream and downstream activities that 
depend on oil and gas; 
  Horizontal diversification: expanding produc tion capacities of the industrial sector, 
particularly in fields covered by the National  Industrial Strategy; developing the services 
sector and increasing its contribution to GDP with due emphasis on financial, tourism, transport, engineering, communication and information technology (IT) services; diversifying economic activities in non-oil sectors with due emphasis on high-productivity, 
and promising comparative advantage activities; investing in projects related to the 
diversification of energy sources; developing non-oil exports and increasing their contribution to the total value of exports; encouraging local and foreign strategic 
partnerships to implement investment projects which contribute to diversification of the 
production base of the national economy; and developing low-water-consuming agricultural products as well as fishing activities; and 
  Spatial diversification: making use of the comparative advantages of the provinces in 
boosting spatial diversification of economic activities along with expansion in the establishment of industrial zones and busi ness and technology incubators to improve 
utilization of these advantages. 
1.7.  With a view to increasing employment of Saudi nationals and females, the authorities have 
implemented a labour market reform strategy. The reforms are designed to make Saudi nationals more competitive in the private sector labour market, make private sector jobs more attractive to 
nationals, and require or encourage pr ivate firms to hire nationals. The Nitaqat  programme WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  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.2 According to the 
authorities, in the first six months of its launch, Nitaqat  resulted in an increase of 58% in the 
number of Saudis employed in the private sector and, in its first year 103,962 new jobs were 
created for Saudi women. 
1.8.   Government expenditure on education and training has been increased. The Hafiz 
programme provides financial support for people searching for a job. Job placement services and 
an unemployment insurance programme have also been put in place. The Government invested 
SAR 4 billion in the first six months of the Hafiz programme, resulting in the number of beneficiaries increasing from 0.5 to 1.3 million. According to the authorities, 80% of the increase was due to women. 
1.9.  With regard to female employment, regulations that restricted access to specified sectors 
were eased, with more sectors being opened for their employment. Proposals to reduce the private sector work week from 45 to 40 hours and to limit late night opening in retail stores, which will 
facilitate hiring of female workers, are presently under discussion. Other initiatives to boost female 
employment in Saudi Arabia include: 
 The "Female Employment in Retail Sectors" initiative involves a law requiring shops that 
only sell women's products to hire female employees only. Under this programme, training 
centres have been established to prepare women for jobs in the retail industry. This initiative led to the creation of 160,000 additional jobs for women in the private sector between 2013 and 2014; 
 The "Telework" initiative was developed to provide additional flexibility for private sector 
employees by allowing them to work remotely. The authorities stated that this has had a positive impact on the employment of Saudi women as it helps tackle issues such as 
transportation between home and the workplac e, gender-segregated work facilities, and 
distance from the workplace for women in rural areas. Under this initiative, the Ministry of Labour pays 50% of the salary for employees using teleworking up to a maximum of 
SAR 2,000 monthly for a period of two years. Currently, there are six agencies certified by 
the Government linking candidates with employers; and 
 The "Safe Transportation" scheme, which will be launched in 2016 to provide 
transportation for women between their homes and workplaces and help reduce a key 
barrier to Saudi female employment. The first list of beneficiaries validated by the Ministry 
of Labour comprises 1,800 Saudi women. 
1.1   Fiscal Policy 
1.10.  With oil prices holding firm for most of  the review period, gove rnment 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 debt 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 expected 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 spending on goods and services is tightened.  
1.11.  Going forward, the Government would be able to sustain the expected expenditure levels in 
the near term by drawing down reserves and incr eased borrowing. However in the absence of an 
oil price recovery in the medium term, the Government may need to put in place a fiscal 
consolidation plan to be able to sustain its growth objectives.  
                                               
2 Under Nitaqat , employees are paid an amount based on th eir employers' discretion and not based on a 
requirement, however, to count as employing a Saudi national SAR 3,000 a month must be paid. For example 
two persons can be employed at SAR 1,500 each per month, but for the purposes of Nitaqat it would count as employing a single Saudi. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  1.2  Monetary and Exchange Rate Policy 
1.12.  Exchange rate targeting is the principal monetary policy objective, complemented by an 
operational focus on system liquidity and the medium-term goal of maintaining price and financial stability. As such, the exchange rate anchor provides the long-term framework for monetary 
policy. Within that framework, there is some flexibility to alter domestic monetary conditions. This 
can be done by changing policy interest rates (repo rates), introducing prudential guidelines on bank lending, and adjusting reserve requirements. The Saudi Arabian Monetary Agency (SAMA), is 
vested with the conduct of monetary policy and has instrument and operational independence in 
pursuing its policy objectives. 
1.13.  Since 1986 the exchange rate parity has been fixed at SAR 3.75 per US dollar and a 
countercyclical fiscal policy has been used to stabilize the growth path. The Government runs a 
fiscal surplus when oil exports are strong and the ec onomy is in external surplus. When oil exports 
weaken, foreign exchange assets are utilized and the Government boosts domestic demand by deficit spending. 
1.14.  Housing and food prices have been the drivers of inflation in Saudi Arabia. Given the fiscal 
dominance in Saudi Arabia, monetary policy can at best complement fiscal policy in maintaining price stability. Inflation, as measured by the consumer price index, was 2.2% in June 2015 
compared with 2.7% a year earlier. The decline reflects global food prices and indirectly 
commodity price trends; furthermore, inflation is  expected to remain subdued as the supply of 
housing rises. 
1.3  Balance of Payments  
1.15.  During the period under review, Saudi Ar abia's current account surplus declined from 
approximately US$165 billion in 2012 (22.4% of GD P) to around US$77 billion in 2014 (10.3% of 
GDP) (Table 1.3). 
Table 1.3 Balance of payments, 2010-15 Q1 
(US$ billion) 
 2010  2011  2012  2013 2014a 2015  
Q1b 
1. Current account 66.8  158.5  164.8  135.4 76.9 -10.5  
 Goods and services 87.6 178.2  184.2  157.8 99.2 -3.3 
Goods 153.7 244.7 246.6 222.6 183.9 14.6 
Credit 251.1 364.7 388.4 375.9 342.3 51.5 
Debit 97.4 120.0 141.8 153.3 158.5 36.9 
Services  -66.1 -66.5 -62.4 -64.8 -84.7 -17.9 
Credit 10.7 11.5 11.0 11.8 12.2 3.4 
 Transport 2.0 2.0 2.3 2.7 2.7 0.8 
 Travel 6.7 8.5 7.4 7.7 8.2 2.4 
 Other services 1.9 1.1 1.3 1.5 1.2 0.3 
Debit 76.8 78.0 73.4 76.7 96.9 21.3 
 Transport 12.7 15.3 17.9 19.2 19.9 4.7 
 Travel 21.1 17.3 17.0 17.7 24.1 5.3 
 Other services 42.9 45.4 38.5 39.7 52.9 11.3 
Primary income 7.0  9.7 11.0 13.6 16.5 3.1  
Credit 18.2 19.8 23.6 25.2 27.1 5.1 
Compensation of employees  0.2 0.2 0.2 0.3 0.3 0.1 
Investment income 17.9 19.5 23.4 24.9 26.8 5.1 
Direct investment 3.0 2.7 3.4 3.9 4.2 1.1 
Portfolio investment 14.0 15.7 18.5 20.2 22.0 3.8 
Other investment 1.0 1.1 1.5 0.8 0.6 0.1 
Debit 11.1 10.1 12.7 11.6 10.6 2.0 
Compensation of employees  0.9 0.9 0.9 0.9 0.9 0.2 
Investment income 10.2 9.2 11.8 10.7 9.7 1.8 
Direct investment 9.9 8.9 11.4 10.3 9.2 1.8 
Portfolio investment 0.1 0.1 0.2 0.2 0.2 0.0 
Other investment 0.2 0.2 0.2 0.3 0.3 0.0 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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   2010  2011  2012  2013 2014a 2015  
Q1b 
Secondary income -27.9  -29.4  -30.4  -35.9 -38.7 -10.3  
General government -1.7 -1.6 -1.8 -1.9 -2.7 -0.5 
Credit n.a. n.a. n.a. n.a. n.a. n.a. 
Debit 1.7 1.6 1.8 1.9 2.7 0.5 
Financial corporations, nonfinancial 
 corporations, households, and NPISHs -26.3 -27.8 -28.7 -34.0 -36.0 -9.8 
Personal transfers  -26.2 -27.6 -28.6 -34.1 -36.0 -9.8 
Credit n.a. n.a. n.a. n.a. n.a. n.a. 
Debit 26.2 27.6 28.6 34.1 36.0 9.8 
 Of which: Workers' remittances 26.2 27.6 28.6 34.1 36.0 9.8 
Other current transfers -0.1 -0.2 0.0 0.1 0.0 0.0 
Credit n.a. 0.0 0.1 0.1 0.0 n.a. 
Debit 0.1 0.2 0.1 0.0 0.0 0.0 
2. Capital account n.a. n.a. -0.3 -0.3 -0.3 -0.1 
 Capital transfer n.a.  n.a. -0.3 -0.3 -0.3 -0.1 
 Credit n.a. n.a. n.a. n.a. n.a. n.a. 
 Debit n.a.  n.a. 0.3 0.3 0.3 0.1 
3. Financial account 32.4 113.3  118.9  126.5 65.5 -15.2  
 Direct investment  -25.3  -12.9  -7.8 -3.9 -2.6 -0.9  
 Net acquisition of financial assets 3.9 3.4 4.4 4.9 5.4 1.0 
Net incurrence of liabilities 29.2 16.3 12.2 8.9 8.0 1.8 
 Portfolio investment  15.2 16.0 3.2 6.6 28.3 8.2 
Net acquisition of financial assets 16.7 15.4 4.1 8.4 28.5 7.9 
 Equity and investment fund shares  17.8 10.4 4.6 7.9 17.5 5.4 
 Debt securities  -1.1 5.1 -0.5 0.5 11.0 2.6 
 Net incurrence of liabilities 1.5 -0.6 0.9 1.8 0.2 -0.2 
 Other investment 7.5  11.2 11.0 54.7 33.2 11.9  
Net acquisition of financial assets 6.5 7.2 10.3 52.3 39.2 9.4 
 Trade credits n.a.  n.a. n.a. 36.8 30.5 7.0 
 Currency and deposits 1.2 8.2 15.3 15.0 9.5 2.4 
 Loans -0.8 -0.3 -0.2 -0.5 -0.4 0.0  
 Other accounts receivable  6.1 -0.7 -4.8 1.1 -0.4 0.0 
Net incurrence of liabilities -1.0 -4.0 -0.7 -2.4 6.0 -2.5 
 Trade credits n.a. n.a. n.a. n.a. n.a. n.a. 
 Currency and deposits -0.7 -2.1 0.2 -0.2 5.4 -3.4 
 Loans 0.3 -1.2 -0.9 -2.1 0.4 0.8 
 Other accounts receivable  -0.6 -0.8 0.0 -0.1 0.3 0.1 
 Reserve assets  -35.0  98.9 112.6  69.2 6.6 -34.4  
 Monetary gold 0  0 0 0 0 0 
 Special drawing rights  0.3 -0.4 -0.4 -0.2 -0.6 -0.4 
 Reserve position in the IMF 0.0 2.9 0.8 -0.5 -1.2 -0.7 
 Other reserve assets 35.3 96.3 112.2 69.8 8.4 -33.2 
Net errors and omissions -34.4  -45.3  -45.6  -8.6 -11.1 -4.5  
n.a. Not available. 
a Preliminary. 
b Estimates. 
Source: Saudi Arabian Monetary Agency (SAMA). 
1.16.  The decline in the current account surplus can be attributed primarily to a fall in the value of 
oil exports in 2014 and 2015, which is explained by the decline in international oil prices and, to a 
lesser extent, by an increase in the services deficit, which came about due to increased payments 
in lieu of travel, transport and other private services.  
1.17.  The capital and financial account declined from nearly US$120 billion in 2012 compared to 
US$65.5 billion in 2014. Net direct investment has been registering inflows during the review 
period. However, the most significant change took place with regards to other assets, namely trade credits and, to a lesser degree, currency an d deposits, where cumulative outflows increased 
from US$11 billion in 2012 to over US$33 billion in 2014. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  1.18.  Consequently, the accumulation of surpluses in the balance of payments during the review 
period led to foreign exchange reserves rising from around US$650 billion in 2012 (nearly 34 months of imports of goods and services) to US$724 billion in 2014 (over 36 months). 
1.4  Developments in Trade 
1.19.  The ratio of total merchandise trade and no n-factor services to GDP has declined slightly 
from nearly 83% in 2010 to around 82% in 2014. The fall is mainly due to a decline in exports which can be accounted for by a decline in international oil prices (oil is responsible for over 80% 
of Saudi Arabia's exports). In contrast the share of imports rose reflecting in particular increased 
capital expenditure by the Government.  
1.4.1  Composition of merchandise trade 1.20.  Saudi Arabia's exports continued to be do minated by mineral products (mainly oil), which 
accounted for over 83% of exports in 2014 (Cha rt 1.1 and Table A1.1), and whose share has 
declined slightly since 2010 due mainly to the drop in international oil prices. On the other hand, the export shares of chemical products and plastics have risen. 
1.21.  As in most countries the structure of Saudi Arabia's imports is much less concentrated than 
exports. The largest single import category co ntinues to be machinery followed by transport 
equipment and base metals (Chart 1.1 and Table A1.2). Since 2010, the share of machinery in the 
import bill has increased due to increase d capital and development expenditure by 
the Government. In contrast, the shares of transport equipment and base metals have fallen over the same period. 
1.4.2  Direction of merchandise trade 
1.22.  Saudi Arabia's largest export markets continue to be the United States followed by China, 
Japan and the EU (Chart 1.2 and Table A1.3). The sh ares of the United States have declined since 
2010, as have those of the Americas, Middle East and Asia as a whole. On the other hand, the 
shares of the EU, China and Europe as a whole have risen.  
1.23.  In 2014, Saudi Arabia's largest import supplier was the EU followed by China and the United 
States (Chart 1.2 and Table A1.4). Since 2010, the shares of the EU, United States, Japan and 
Europe as a whole have declined. In contrast the shares of China, Asia as a whole and the Middle 
East (primarily UAE) have increased over the same period  
1.5  Foreign Direct Investment 1.24.  Since 2010 inward FDI has been declining steadily. Inward FDI in 2014 was US$8 billion, 
compared with nearly US$30 billion in 2010. The stock of FDI in 2014 stood at approximately 
US$216 billion. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 17 - 
 
  Chart 1.1 Merchandise trade by main HS section, 2010 and 2014  
2010 2014
(a)    Exports
Total: US$ 251,143 million
(b)    Imports
Total: US$ 106,862 million Total: US$ 173,833 millionTotal: US$ 342,433 millionChemical 
products
4.3%Other
3.5%Transport 
equipment
0.9%
Plastics
4.5%
Plastics
3.6%Mineral 
products
85.8%
Textiles
3.3%Chemical 
products
8.7%
Base metals
12.4%
Machinery
24.7%Other
13.8%
Textiles
3.1%Chemical 
products
8.6%
Plastics
3.4%
Base metals
12.2%
Machinery
26.2%Other
16.3%Mineral 
products
83.2%Other
3.0%
Transport 
equipment
18.4%Transport 
equipment
16.7%Base 
metals
0.9%
Live 
animals
3.8%Live 
animals
4.0%Vegetable 
products
5.3%Vegetable 
products
6.2%Prepared 
foodstuffs; 
beverages
4.9%Prepared 
foodstuffs; 
beverages
4.4%Chemical 
products
5.8%Plastics
5.5%Base 
metals
1.2%Transport 
equipment
1.3%
 
Source: WTO Secretariat estimates, based on data  provided by the authorities of Saudi Arabia. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Chart 1.2 Merchandise trade, by main origin and destination, 2010 and 2014  
2010 2014
(a)    Ex ports
Total: US$251,143 million
(b)    Im ports
Total: US$106,862 million Total: US$173,833 millionChina
11.9%
Total: US$342,433 millionJapan
12.2%Others
4.5%United States
13.2%
China
12.5%Other America
1.9%
Asia
59.0%America
14.4%United States
12.7%
Other America
1.8%
EU(28)
12.2%
Other Europe
1.1%
Six East 
Asian 
Traders
9.3%Others
5.1%
America
15.1%
United States
13.2%
Other America
5.5%
EU(28)
28.4%
Other 
Europe
4.4%Japan
7.5%
China
11.7%Other Asia
7.7%Others
5.1%
United States
13.0%
Other 
America
4.5%
EU(28)
26.3%
Other 
Europe
4.6%Japan
5.7%
China
13.4%Other Asia
9.0%Others
5.3%
America
18.7%America
17.5%EU(28)
9.5%Middle East
9.8%
Middle East
8.4%Europe
13.3%Europe
10.6%
Europe
32.8%Asia
36.1% Asia
38.0%Europe
30.8%Six East Asian 
Traders
20.6%
Japan
14.4%Asia
57.4%
Middle 
East
7.3%
Six East Asian 
Traders
9.9%Other Europe
1.1%Other Asia
12.1%Middle East
10.8%
Six East Asian 
Traders
19.4%Other Asia
13.3%
 
Source: WTO Secretariat, based on data  from the authorities of Saudi Arabia. 
 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  General Framework 2.1.  The Kingdom of Saudi Arabia is a monarc hy. The King is the head of the Government, 
judiciary and the Commander in Chief of the military. The Cabinet
1, headed by the King, exercises 
both executive and legislative powers and executes the legislative authority with the assistance of 
the Consultative Council (Majlis Al-Shura).2 The King started appointing women as members of the 
Consultative Council in January 2013. In 2015, the King introduced the Crown Prince and Deputy 
Crown Prince as deputy prime ministers3 in the Cabinet. Municipal elections, which are held every 
five years, were introduced in 2005. 
2.2.  Since the last review, some structural chan ges in the organization of the government bodies 
have been introduced: under Royal Decree No. A/69 of 29 January 2015, a number of committees 
and councils4 were annulled and replaced by the Politic al and Security Affairs Council and the 
Economic and Development Affairs Council; and the role of the Supreme Economic Council has been taken over by the Economic and Development Affairs Council. According to the authorities, 
the Bureau of Experts (under the Council of Ministers), in collaboration with relevant bodies, is to 
review laws, regulations and ordinances affected by the annulment of the old committees and councils. The Bureau is also expected to lay down the administrative arrangements required in this 
regard, including drawing up the responsibilities of the new councils.  
2.3.  The judicial system continues to be based on Shariah (Islamic law).
5 The Constitution of the 
Kingdom protects the independence of the judiciar y and judges. The judicial system consists of: 
(i) specialized courts (i.e. civil public courts, commercial courts, family courts, criminal courts and 
labour courts); (ii) courts of appeal; and (iii) the Supreme Court. These courts are responsible for 
adjudicating all cases except administrative cases, which are handled by the Board of Grievances.6 
The law also provides for alternatives to adjudicate commercial matters, such as arbitration.7 
2.4.  In 2013, Commercial Courts were established by the Shariah Pleadings Law.8 The 
Commercial Courts have jurisdiction for all commercial disputes, cases filed against and between natural and corporate persons in relation to their businesses, cases involving alleged violations of 
commercial legislation (without prejudice to the jurisdiction of the Board of Grievances), and 
bankruptcy cases and related procedures. The Law also sets out procedures for appeals to the 
courts of appeal and to the Supreme Court. 
2.5.  Since the last review, policies, including trade policies, continue to be formulated and 
implemented by means of legal instruments. Sharia is the highest legal instrument, followed, in 
order of precedence, by: 
 Royal Decrees, which are issued by the King to enact primary legislation and 
amendments approved by the Council of Minist ers, and to approve international treaties; 
 Royal Orders which are issued by the King and may address any matter;  
                                               
1 The Council of Ministers is comp osed of 22 govern ment ministries. 
2 The Consultative Council has 150 members who are appointed by the King for renewable four-year 
terms. It proposes new laws an d amends existing ones without prior submission to the King. 
3 The Crown Prince was put in charge of the Ministry of Interior, and the Deputy Crown Prince was put in 
charge of the Ministry of Defence. 
4 Education Polices Supreme Committee, Administra tive Planning Supreme Committee, Civil Service 
Council, King Abdul Aziz City for Science and Technology Supreme Authority, Higher Education and Universities Council, Education Supreme Council, Petroleum and Minerals Supreme Council, Supreme Economic Council, 
National Security Council, King Abdullah City for Atomic and Renewable Energy  Supreme Council, Islamic 
Affairs Supreme Council, and Hand icapped Affairs Supreme Council. 
5 Royal Decree No. A/90 of 27/08/1412H - 01/03/1992G. 
6 The Board of Grievances is an independent tr ibunal to which appeals may be made for all 
governmental administrative decisions.  The Board's decisions may be appeal ed to the Appeals Court within the 
Board of Grievances, which would either confirm or reve rse decisions. In all cases, the Appeal Commission's 
decisions are final and enforceable (WTO document WT/ACC/SAU/61, 1 November 2005). 
7 Under the Arbitration Law (approved by Royal Decree No. (M/52) 15/11/1433H, 25/11/2013G), 
arbitration is conducted by the court that has original ju risdiction over the issue in dispute (e.g. a commercial 
court for a trade dispute). 
8 Royal Decree No. M71 of 25/11/2013G. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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   Council of Ministers Decisions, which promulgate implementing regulations to address 
particular matters raised under primary legislation, without a Royal Decree or Order;  
 Ministerial Decisions are issued to make effective implementing regulations; and  
 Circulars, which are issued by ministries to clarify rules/regulations pursuant to a piece of 
legislation.  
2.6.  The Council of Ministers and the Consultative Council receive draft legislation prepared by the 
relevant government agencies for their review and further submission to the King for issuance of 
Royal Decree to enact the legislation. In case of divergent views between the two bodies on the 
draft legislation, the King has the final word. All legal instruments are published in the Official Gazette ( Umm Al-Qura ) and enter into force on the date of publication, unless otherwise specified. 
2.7.  Following the ratification by Royal Decr ee and enactment by the Consultative Council and 
Council of Ministers, international agreements enter into force as domestic laws. Where conflicts or 
inconsistencies between international agreements and domestic law occur, the most recent laws take precedence.
9 
2.2  Trade Policy Formulation 
2.8.  During the period under review, there have  been no significant changes to the ministries 
responsible for the day-to-day formulation and implementation of trade policy in Saudi Arabia. The 
Ministry of Commerce and Industry (MCI) has over all responsibility for trade policy, including 
ensuring compliance with the WTO agreements. The MCI coordinates with other relevant ministries and agencies, such as the Economic and Develo pment Affairs Council, and the Saudi Negotiating 
Team in charge of WTO-related issues. The Saudi Negotiating Team is composed of 
representatives from MCI, Ministry of Finance, Ministry of Economy and Planning, Ministry of 
Petroleum and Mineral Resources, Ministry of Agri culture, Ministry of Foreign Affairs, and Saudi 
Arabian Monetary Agency.  
2.9.  The private sector also provides inputs eith er directly to the MCI or through the chambers of 
commerce and industry. Each chamber, governed by a board of directors, is a private association 
to which local businesses (including traders, profes sionals, and industrialists) belong. The Minister 
of Commerce and Industry appoints one third of the Directors; the rest are elected by the 
members. There are currently twenty-eight chambe rs of commerce and industry located around 
the country.
10 
2.10.  As a member State of the Gulf Cooperation Council (GCC), Saudi Arabia is in the process of 
harmonizing its trade-related legislation with that of the other members. According to the 
authorities, this has been achieved to a large extent. To date, seven GCC resolutions had been 
adopted by the GCC member States covering, inter alia , customs union requirements, the 
extension of domestic treatment to all GCC nati onals, customs-related issues, and industrial 
organization (Section 3).  
2.11.  The main trade-related laws and regulation s are presented in Table A2.1. During the period 
under review, Saudi Arabia has notified the Gulf Cooperation Council ("GCC") Amended Common 
Law on Anti-Dumping, Countervailing and Safeguard Measures (the "Law") to the WTO.11 
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 
                                               
9 Where its domestic laws or other acts are in contradiction with international treaties or agreements, 
Saudi Arabia would bring them into conformity with such  treaties or agreements, and would respond quickly if 
inconsistencies are brought to the attention of Saudi officials. However, this does not apply in respect of fundamental religious rules and principles, such as pr ohibiting the consumption of alcohol and pork (WTO 
document WT/ACC/SAU/61, 1 November 2005). 
10 Riyadh, Jeddah, Eastern Region, Makkah, Madinah, Abha, Ahasa, Albaha, Albu kairyah, Bisha, Tabouk, 
Aljof, Jazan, Hail, Hafr Albaten, Alkharj, Alras, Alzu lfi, Altaif, Arar, Onaizah, Quraiyat, Qassim, Almajmaa, 
Almukhwah, Najran, and Yanbu. 
11 WTO documents G/ADP/N/1/SAU/2; G/SCM/N/1/SAU/2; and G/SG/N/1/SAU/2, 12 November 2014. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 21 - 
 
  amended through the Saudi Arabian General Investment Authority Board Resolution No. 2/74 
adopted in 2014 (Section 2.5). 
2.3  Economic and Trade Policy Objectives 2.13.  Objectives, strategies and plans for deve lopment are set out in multi-annual development 
plans, including the Ninth Development Plan (2011-2014) and the Tenth Development Plan 
(2015-2019). As at end-2015, the details of the Tenth Development Plan had not been published 
but the objectives in the field of economic development include: 
 Enhancing vertical, horizontal, and spatial economic diversification; 
 Promoting the transition to a knowledge-based economy;  
 Expanding the capacity of the national economy to attract and absorb investment; 
 Improving productivity of labour and capital; 
 Increasing value added of natural resources, diversifying sources, while ensuring 
sustainability and environmental and wildlife protection;  
 Developing small and medium-sized enterprises and increasing their contribution to the 
economy and Saudization; 
 Enhancing fiscal and monetary stability; and 
 Increasing the contribution and productivity of the private sector.
12 
2.14.  According to the authorities, Saudi Arabia attaches great importance to the liberalization of 
trade and investment to assist its economic growth and its efforts to diversify its economy so as to develop and enhance the role of the non-hydrocarbo n sectors. The authorities also stated that the 
encouragement of private investment from Saudi and foreign companies is an important part of 
this strategy, and the authorities continue to place emphasis on improving the investment climate 
including through opening certain key economic sectors to foreign investment (e.g. mining, 
petrochemicals, and telecommunications). 
2.15.  The authorities stated that the multilateral trading system offers the best framework for 
managing Saudi Arabia's trade and investment policies, and WTO membership confirms the country's commitment to the rules-based system. Policies used in support of the Government's 
efforts to diversify the economy reflect this commitment, such as relatively low import duties, an 
open services economy, and the absence of resort to trade remedy measures. 
2.16.  Saudi Arabia believes that regional trade agreements can complement and reinforce the 
multilateral system and help deepen the integratio n of its economy into the global marketplace. It 
is a member of the GCC and the Pan-Arab Free Trade Area (PAFTA). The GCC is party to other 
bilateral agreements in which Saudi Arabia, as a member of the GCC. The authorities also stated that, as a member of the G20, Saudi Arabia has respected the G20 Leaders' commitment to refrain 
from imposing protectionist measures on trade in goods and services in order to support global 
economic recovery and the restoration of sustainable growth. Saudi Arabia has fully supported the WTO Secretariat's exercise of periodically monitori ng the imposition of new trade measures by G20 
WTO Members and is alone, of all G20 Members, in avoiding such measures since the global 
financial crisis. 
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 
                                               
12 Ministry of Economy and Planning (2014). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  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.13  
2.18.  Saudi Arabia is continuing with the strategy to share its oil and gas wealth between current 
and future generations. Four "economic cities" are to be built, of which three are currently under 
construction, to promote economic diversification and with the intention of building more. The 
objectives for the cities are, to create 1.3 million jobs and homes for 2.4 million residents by 2020, improve education and health services, and mode rnize the infrastructure (Section 4.4). These 
cities are expected to contribute about US$150 billion to Saudi Arabia's GDP over the next 
25 years. Other major developments include: upgrading the international airports in Jeddah, Medina, and Tabuk at a total cost of US$11.3 billion; and finalizing the first stage of the US$5.9 billion development of the Jubail industri al city (phases 2 and 3 are expected to be 
completed by 2023). The development of Medina International Airport was completed, while the 
other airports are being developed.  
2.4  Trade Agreements and Arrangements 
2.4.1  WTO 
2.19.  Saudi Arabia became a Member of the WTO on 11 December 2005. As part of its accession 
commitments, Saudi Arabia bound 100% of its tariff lines (Section 3.1.4) and made extensive 
commitments under the GATS (Section 4.5). Saudi Arabia also incorporated into its tariff schedule 
the tariff reductions of the Information Technolo gy Agreement (ITA); and accepted to implement 
the Chemical Tariff Harmonization Agreement. Saud i Arabia is an observer to the plurilateral 
Government Procurement Agreement (GPA) and the Committee on Trade in Civil Aircraft. 
2.20.  Saudi Arabia is an active Member of the WTO with a Permanent Mission to the WTO in 
Geneva. Saudi Arabia is a member of the grou p of recently-acceded members (RAMs), the WTO 
Arab Group, and the Informal Group of Developi ng Countries.  The first Trade Policy Review of 
Saudi Arabia took place on 25 and 27 January 2012. 
2.21.  According to the authorities, the Government of Saudi Arabia reassigned and strengthened 
its WTO team by naming the Ministry of Commerce and Industry (MCI) as the focal agency for 
WTO affairs. The Government also instructed other relevant agencies to establish specialized units 
for WTO affairs. Furthermore, it established the World Trade Service Center (WTSC) in April 2014 to build the capacity of officials in related minist ries and local authorities. The WTSC also hosts the 
WTO Reference Center. Saudi Arabia reiterated its support to the multilateral trading system and 
highlighted recent achievements during a ceremony that was held in Geneva on 
29 September 2015 and attended by a senior delegati on from Riyadh headed by the Minister in 
charge of the WTO to commemorate its ten-ye ar anniversary for acceding to the WTO. 
2.22.  Saudi Arabia has not been a complainant or respondent in any disputes under the WTO 
Dispute Settlement Mechanism, but has participated as a third party in twenty-eight cases (Table A2.2). 
2.23.  Saudi Arabia's trade-related notifications to the WTO are in Table 2.1. As at end-2015, 
Saudi Arabia had 13 outstanding notifications. 
                                               
13 SAGIA online information. Viewed at: http://www.sagia.gov.sa/en/Why-Saudi-Arabia/  
[October 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Table 2.1 Selected notifications to  the WTO at end-September 2015 
WTO Agreement Description of the 
requirement Most recent notification Comments 
Agreement on Implementation of GATT Article VI  (Anti-dumping), Agreement on Subsidies and 
Countervailing Measures and Agreement on Safeguards 
Article 18.5 of ADP  
Article 32.6 of SCM 
Article 12.6 of SG  Laws and regulations G/ADP/N/1/SAU/2, 12.12.2014 Amended GCC Common 
Law on Anti-Dumping, 
Countervailing and 
Safeguard Measures 
Articles 10 and 18.2 Export subsidies G/AG/N/SAU/9, 26.02.2014 No export subsidies for 
the calendar years 
2010, 2011 and 2012  No export subsidies for the calendar year 2009 
Article 18.2 Domestic support G/AG/N/SAU/8, 26.02.2014 
G/AG/N/SAU/7, 16.05.2012 
G/AG/N/SAU/6, 19.09.2011 List of DS measures for 
the years 2009-2011 
 
 
Agreement on Agriculture 
Article 18.2  G/AG/N/SAU/9, 26.02.2014 
G/AG/N/SAU/8, 26.02.2014 Export subsidy 
Domestic support 
Agreement on Technical Barriers to Trade 
Article 10.6 Technical regulation 711 notifications (01/01/2011-
31/12/2015: starting with 
G/TBT/N/SAU/209)  
Custom Valuation Agreement  
Article 22 Laws and regulations G/VAL/N/1/SAU/1, 06.02.2007 Implementation of the 
agreement 
 Checklist of issues G/VAL/N/2/SAU/1, 08.01.2007 
 Answers by Saudi 
Arabia  
Agreement on Import Licensing Procedures  
Articles 5.1-5.4 
 Article 7.2 Import Licensing G/LIC/N/2/SAU/1, 10.03.2014 
G/LIC/N/3/SAU/2, 29.09.2011 Import Licensing 
procedure 
Agreement on Rules of Origin  
Article 5.4 of Annex 
II Rules of Origin G/RO/N/48, 08.11.2006 No non-preferential 
rules of origin 
Agreement on Sanitary and Phytosanitary Measures 
 Sanitary and 
phytosanitary measures 187 notifications (01/01/2011-
31/12/2015: starting with G/SPS/N/SAU/9)  
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Article 63.2 Laws and regulations IP/Q-Q4/SAU/1, 16.03.2007 
IP/N/1/SAU/C/2/Rev.1, 14.02.2007 IP/N/1/SAU/O/3, 14.02.2007 IP/N/1/SAU/I/1, 14.11.2006 Laws and regulations 
under the TRIPS Agreement 
Agreement on Trade-Related Investment Measures 
Article 6.2  G/TRIMS/N/2/Rev.21, 
26.08.2011 No TRIMs maintained 
Source: WTO Secretariat. 
2.24.  As reported in the last TPR, the authorities reiterated that Saudi Arabia has an interest in a 
wide range of issues in the DDA negotiations, including trade and environment, rules, trade 
facilitation, non-agricultural market access (NAMA), and services. The authorities believe that they 
made extensive commitments during their WTO accession process and are calling for additional 
flexibilities to be granted to the RAMs in the DDA . Saudi Arabia strongly supports any efforts to 
bring the negotiations to a successful conclusion. In its capacity as Coordinator of the Arab Group, 
Saudi Arabia hosted a conference for Arab Minist ers of Trade with the participation of the WTO 
Director-General, to prepare and coordinate Arab positions for the tenth WTO Ministerial Conference. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  2.4.2  Regional and preferential agreements 
2.4.2.1  Cooperation Council for the Arab States of the Gulf 2.25.  Saudi Arabia is a member of the Cooperation Council for the Arab States of the Gulf (the 
Gulf Cooperation Council (GCC))
14, 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, fi nance, transport, communications, 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.
15 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 (Section 1).  
2.26.  The GCC member States signed an Economic Agreement in November 1981, which set the 
basis for the economic relationship among memb er States. The agreement established the GCC 
Free Trade Area whereby GCC originating goods were exempted from customs tariffs. The 
Economic Agreement was revised in December 2001. The revised agreement contains a comprehensive revision of the original Agreement. The revised Agreement stipulates that the trade 
between the GCC member States will be conducted within the framework of a Customs Union that 
will be implemented no later than January 2003. Saudi Arabia initially notified the Agreement under Article XXIV of the GATT (as a condition of its accession to the WTO) in 2006.
16 On 
19 November 2007, Saudi Arabia notified that it would like to change the notification of the GCC 
Customs Union from Article XXIV of GATT 1994 to Paragraph 4(a) of the Enabling Clause17 and, on 
6 October 2009, it was again re-notified under Article XXIV:7(a) of GATT 1994.18  
2.27.  Saudi Arabia and other GCC member States implemented the Common Customs Law of the 
GCC and its Rules of Implementation and Explanatory Notes thereof with effect from 
1 January 2003.19 As per the law, the GCC States have implemented the common external tariff 
(CET) of 0% and 5% for most products (Section 3.1.4). The GCC Common Customs Law is 
implemented in Saudi Arabia under Royal De cree No. 41 of 3.11.1423H (6 January 2003) 
(Section 3.1.4). Since the last TPR, the full GCC customs union was inaugurated on 
1 January 2015, and the Unified Guide for Custom s Procedures and the single point of entry 
principle apply to imports in each GCC member State.20  
2.28.  The member States of the GCC launched the Gulf Common Market (GCM) in January 2008. 
The GCM, among others, allows the citizens of the member States to engage in all economic 
activities, investment and various services sectors without discrimination. 
2.29.  As reported in the last TPR, some differ ences remain in the implementation of the CET as 
each member is entitled to have lists of prohibited and restricted goods. Furthermore, members continue to maintain customs check points for security and other reasons (e.g. statistics, and to 
avoid piracy and commercial cheating). The proh ibited goods are restricted from circulating 
between members' territories. However, transit fo r restricted products is allowed with proper 
documentation.  
2.30.  The GCC has concluded free-trade agreement (FTA) negotiations with the European Free 
Trade Association (EFTA) States
21 and this Agreement entered into force in July 2015. The 
Agreement covers a broad range of areas, including trade in goods, trade in services, government procurement and competition. The GCC-Singapore FTA entered into force in September 2013 and 
                                               
14 Membership comprises the Kingdom of Bahrain, th e State of Kuwait, Oman, Qatar, the Kingdom of 
Saudi Arabia and the Un ited Arab Emirates. 
15 GCC online information. Viewed at: http://www.gcc-sg.org/index_e.html  [October 2015]. 
16 WTO document WT/REG222/N/1, 20 November 2006. 
17 WTO documents WT/REG222/N/1/Corr.1 and WT/COMTD/N/25, 31 March 2008. 
18 WTO document WT/REG276/N/1/Rev.1, 17 November 2009. 
19 The text of the Common Customs Law was notified to the WTO under Article 22 of the Customs 
Valuation Agreement (see WTO document G/VAL/N/1/SAU/1, 6 February 2007). 
20 GCC Secretariat (2015). 
21 Iceland, Liechtenstein, Norway and Switzerland. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  was notified to WTO on 30 June 2015.22 The New Zealand-GCC FTA negotiations concluded in 
2009, however, the agreement is yet to be signed.  
2.31.  The GCC is negotiating trade agreements with Australia, China, the EU, India, Japan, the 
Republic of Korea, MERCOSUR, Pakistan, and Turk ey. Furthermore, 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.23 Some GCC members (e.g. 
Bahrain and Oman) have bilateral FTAs, notably with the United States.24  
2.4.2.2  Pan-Arab Free Trade Area (PAFTA) 
2.32.  Saudi Arabia is a signatory to the Pan-Arab Free Trade Area (PAFTA) Treaty25, which 
entered into force on 1 January 1998. Most trade barriers among its members were eliminated as of 1 January 2005, with some products excluded from liberalization. Negotiations on the 
implementation details of some provisions on rules of origin and NTBs are ongoing. Efforts are 
being made to include services in PAFTA. The pr incipal entity responsible for implementing the 
programme is the Economic and Social Council of th e League of Arab States. Saudi Arabia notified 
PAFTA to the WTO under GATT Article XXIV in 2006.
26 
2.4.2.3  Other agreements and arrangements 2.33.  Saudi Arabia does not use trade preferen ces under the Generalized System of Preferences 
(GSP) and does not participate in the Global  System of Trade Preferences (GSTP) among 
developing countries. Saudi Arabia as a high income country graduated from EU GSP in January 2014. However, Saudi Arabia is eligible to use GSPs accorded by Australia, New Zealand, the Eurasian Economic Union (Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, and the Russian 
Federation), Switzerland and Turkey.
27  
2.5  Investment Regime 2.34.  Investment by the private sector, including foreign 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 domestic investment, including: energy; transport and logistics; information and communication technologies; health; life sciences; 
education; and tourism. 
2.35.  As per the Foreign Investment Law of 2000 and its Implementing Regulations of 2002, as 
further amended through the Saudi Arabian Ge neral 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.  
2.36.  According to the amended regulation, the legal form of the firm is limited to: (i) a limited 
liability company; (ii) joint-stock company; (iii) branch of a foreign company; or (iv) any other 
legal form permitted by a resolution of the Board of Directors of SAGIA. Foreign investment 
projects are entitled to all the benefits, incentiv es and guarantees extended to national projects. 
GCC nationals are treated as Saudi nationals for th e purposes of investment. Companies or citizens 
from GCC countries may own land and engage in in ternal trading and distribution activities, with 
some exceptions. 
2.37.   Saudi Arabia continues to maintain a negative list for foreign investments (Table 2.2), 
which is periodically revised and is subject to approval by the Economic and Development Affairs 
                                               
22 WTO documents WT/COMTD/N/45/Rev.1 and S/C/N/807/Rev.1, 14 July 2015. 
23 In September 2010, the GCC decided to put its negotiations on hold until the completion of a 
feasibility study to bett er perform in current and future negotiations. 
24 The Saudi authorities indicate that these FTAs wi th the United States we re concluded before GCC 
countries decided to negotiate all future FTAs as a group. 
25 The PAFTA members are: the GCC countries plus Eg ypt, Iraq, Jordan, Lebano n, Libya, Morocco, the 
State of Palestine, Sudan, Syrian Arab Republic, Tunisia and Yemen. 
26 WTO document WT/REG223/N/1, 20 November 2006. 
27 WTO PTA database. Viewed at: http://ptadb.wto.org/ptaList.aspx  [October 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Council. Since the last review the negative list has been amended and several sectors were 
removed. Foreign investment is now permi tted for mining, petrochemicals, gas, and 
telecommunications.  
Table 2.2 List of businesses proh ibited for foreign investment 
Sector 
Manufacturing 
 Oil exploration, drilling, and production, except mini ng services listed at 5115 and 883 in International 
 Industrial Classification Codes 
 Manufacturing of military equi pment, devices,  and uniforms 
 Manufacturing of civilian explosives 
Services 
 Catering to military sectors 
 Security and detective services 
 Real estate investment in Makkah and Madina 
 Tourist orientation and guidance services related to Hajj and Umrah 
 Recruitment and employment services, including local recruitment offices 
 Real estate brokerage 
 Printing and publishing, except: 
 Pre-printing services internationally classified at CPC 88442 
 Printing presses internationally classified at CPC 88442 
 Drawing and calligraphy internationally classified at CPC 87501 
 Photography internationall y classified at CPC 875 
 Radio and television broadcasting studio s internationally classified at CPC 96114 
 Foreign media offices and correspondents internationally clas sified at CPC 962 
 Promotion and advertising internat ionally classified at CPC 871 
 Public relations internationally classified at CPC 86506 
 Publication internationally classified at CPC 88442 
 Press services internationally classified at CPC 88442 
 Production, selling and renting of computer software internat ionally classified at CPC 88 
 Media consultancies and studies internationally classified at CPC 853 
 Typing and copying internationally classified at CPC 87505 and 87904 
 Motion picture and video tape distribution se rvices internationally classified at CPC 96113 
 Commission agents internationally classified at CPC 621 
 Audio-visual and media services 
 Land transportation services, excluding intra-city pa ssenger transport by trains and buses within public 
 transport systems for high-population cities, which ha ve public transport systems approved by the Council 
 of Ministers 
 Services provided by midwives, nurses, physical therapy services , and quasi-doctoral services 
 internationally classified at CPC 93191 
 Fisheries  
Source: Saudi authorities. 
2.38.  SAGIA is responsible for formulating government policies on investment activities; 
proposing plans and regulations to enhance the investment climate in Saudi Arabia; and evaluating 
and licensing investment proposals. SAGIA operates an Investor's Service Centre (ISC) to issue 
licences to foreign companies, provide services to investment projects, offer detailed information on the investment process, and coordinate with government ministries in order to facilitate 
investment procedures. The ISC must decide to grant or refuse a licence within 30 days of 
receiving an application and supporting documentation from the investor. 
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. 
                                               
28 WTO document WT/ACC/SAU/61, 1 November 2005. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  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-Saudis
29 allows foreign 
investment in real-estate worth SAR 30 m illion or more, including GCC nationals.  
2.41.  A foreign investor has the right to transfer out of Saudi Arabia their share derived from 
selling their equity or profits, as well as any amounts required for the settlement of contractual obligations pertaining to the project. There is a flat 20% tax rate on profits and capital gains and a 5% withholding tax on dividends while losses may be carried forward. There are no taxes on 
personal income (Section 3.3.1). According to the regulations, a court order is necessary to 
confiscate foreign investments, and they may not be subjected to expropriation wholly or partly except for reasons in the public interest and in exchange for an equitable compensation.  
2.42.  Both the government and private investment companies are involved in investment 
promotion. Besides SAGIA, majority-government-owned Saudi Arabian Basic Industries Corporation (SABIC), the Saudi Industrial Development Fund (SIDF), Saudi Arabia Industrial 
Property Authority (MODON) and other entities are actively involved in the promotion of 
investment in Saudi Arabia. Meanwhile, private investment companies such as the National Industrialization Company, Saudi Venture Capital Group, Saudi Industrial Development Company, Royal Commission for Jubail and Yanbu, and Arriyadh Development Authority are involved in 
investment promotion in industrial cities and other regions.
30  
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. 
2.44.  In order to improve transparency and to ai d investors, in August 2015, SAGIA published the 
second edition of its Services Manual.31 The Manual sets out the objectives for investments, the 
requirements to qualify for a licence to invest and conduct business in Saudi Arabia, the licence fees, and the cost of subscribing to services prov ided by SAGIA. In many cases, such as minimum 
capital requirements, the requirements apply equally to domestic as well as foreign investors 
(Table 2.3). The objectives for investment include: transfer and localization of technological 
knowhow; diversification of the economy; improv ing the terms of trade; development of Saudi 
human resources; reinforcement of economic competitiveness and Saudi products in both 
domestic and foreign markets; balanced developm ent among the different regions of the Kingdom; 
and environmentally friendly firms manufacturing products in accordance with the state of the art specifications and international quality standards.
32 
Table 2.3 Licence fees, initial subscription  rates, and selected requirements for 
investment 
Licence Licence fee  First year 
subscription 
SAR Minimum 
capitala 
SAR Minimum 
Saudi 
participation 
New licences  
Industrial activity 2,000  10,000  1,000,000 n.a. 
Commercial 2,000  10,000  26,666,667b 25% 
Communications 2,000  10,000  n.a. 30%  
Communications value added  2,000  10,000  n.a. 30% 
Insurance 2,000  10,000  100,000,000 40%  
Reinsurance 2,000  10,000  200,000,000 40% 
Real estate financing 2,000  10,000  200,000,000 40%  
Real estate development 2,000  10,000  30,000,000  
(Total value of 
investment) n.a. 
                                               
29 Royal Decree No. M715 of 17/4/1421H. 
30 United States Department of Stat e online information. Viewed at: 
http://www.state.gov/e/eeb/ifd/2008/101779.htm  [October 2015].  
31 SAGIA (2015). 
32 SAGIA (2015), p.4. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Licence Licence fee  First year 
subscription 
SAR Minimum 
capitala 
SAR Minimum 
Saudi 
participation 
Management of construction projects, detailed 
engineering design and EPC contracts 2,000  10,000  n.a. 25%  
Temporary licences  
Temporary certificate to bid for government projects  n.a. n.a. n.a. n.a. 
Temporary licences for the performance of 
government/semi-government contracts 2,000  10,000  n.a. n.a. 
Temporary contracting licences for 3 years for firms 
wishing to study the market with the aim of establishing investment entities
c 2,000  500,000d  
(3 years) n.a. n.a. 
Additional licences and branches  
Existing licence holders seeking another licence for a 
new activity 2,000  10,000  n.a. n.a. 
Amendment of licences  
 2,000  n.a. n.a. n.a. 
Renewal of licences  
- Annual 2,000  n.a. n.a. n.a. 
n.a. Not applicable. 
a - Minimum capital requirements apply to domestic and foreign investors equally except as indicated 
under note b. 
b - The 25% minimum Saudi participation equates to a foreign equity limit of 75% (minimum SAR 20 
million) as set out under Distributi on Services in the Schedule of Specific Commitments in Services 
(WTO document WT/ACC/SAU/61/Add.2, 1 November 2005). 
c To convert to a permanent licence the firm must have a minimum of 12 engineers, of which at least 
50% must be Saudis; a minimum of 5 completed proj ects of a value of SAR 50 million, assets not 
less than SAR 10 million; and revenue not less than SAR 20 million. 
d Under Article 2 of the Foreign In vestment Law, SAGIA may give a temporary or perm anent licence. 
A temporary licence does not require the establishment of legal presence in Saudi Arabia and enables a company to investigate the market before requesting a permanent licence and establishing legal presence. 
Source: SAGIA (2015), SAGIA Services Manual, Second Edition , August. Viewed at: 
http://www.sagia.gov.sa/Documents/Wi zard/SAGIA%20Manual%20final_en_2016a.pdf   [January 
2016]. 
2.45.  Licences are classified into a number of categories and special incentives and privileges 
granted depending on the classification. The ad vantages and benefits granted include licence 
duration, service priority in business centres, and the annual financial fees associated with their 
services (Table 2.4). The classification is based on several factors, including:  
 profit growth ratio and reversible losses;  
 the stock and inventory ratio, compared to average ratios of the sector;  
 ratio of operational revenues to total revenues;  
 presence of technological content or patents;  
 products must be manufactured according to the international standard specifications; 
and  
 the presence of research laboratories or training centres.33 
                                               
33 SAGIA (2015), p. 107. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 29 - 
 
  Table 2.4 Investment classification, 2015 
Classification Definition Licence 
period Service 
priority in 
business 
centres Annual fee 
SAR 
Strategic Firms committed to deepening the value chain across 
targeted sectors, such as: transportation, healthcare, education and technology, and bringing in associated investments 5 1 30,000 
Distinctive Firms employing not less than 10 Saudis, with 
monthly wages of a minimum of SAR 10,000 each, 
and which are within the "platinum" category 
prescribed by the Ministry of Labour; firms with a 
labour force that exceeds 100 employees and a 
Saudization rate of over 50%; and finally, the top 10 
firms in different sectors based on their capital 3 2 30,000 
Advanced Publically listed companies or international consulting 
firms with no less than 25 employees, in which the Saudization range is within the "platinum" category; contracting companies with more than 300 employees with monthly average wages of not less than SAR 
5,000 per employee, and in the "green" category 
prescribed by the Ministry of Labour 2 3 45,000 
Limited Contracting companies with less than 300 employees 
with monthly average wages of less than SAR 5,000 
per employee; individual establishments, firms 
working in the restaurant industry, technology 
companies that are not internationally classified, and 
industrial workshops 1 4 60,000 
Innovative and 
promising Innovative firms which have registered patents 1 1 10,000 
Non-classified Contracting companies without classification will be 
granted a temporary licence to help them establish a 
sustainable foundation and ob tain categorization from 
MOMRA 3 3 500,000  
(for 3 years) 
Source: SAGIA (2015), SAGIA Services Manual, Second Edition , p. 107-109, August. Viewed at: 
http://www.sagia.gov.sa/Documents/Wi zard/SAGIA%20Manual%20final_en_2016a.pdf   [January 
2016]. 
2.46.  In total, Saudi Arabia has signed 23 bilateral investment treaties (Table A2.3), one of which, 
with Japan, was signed since the last Review. Saudi Arabia is a member of the Multilateral Investment Guarantee Agency. Saudi Arabia has also signed agreements for the avoidance of 
double taxation and/or the prevention of tax evasion with 43 countries (Table A2.4). In addition, 
Saudi Arabia has signed and ratified the Conventi on on Mutual Administrative Assistance in Tax 
Matters, and the Convention is to enter into force in March 2016.
34 
                                               
34 OECD online information. Viewed at: http://www.oecd.org/ctp/exchange-of-tax-
information/conventiononmutualadmini strativeassistance intaxmatters.htm  [December 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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 3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports 3.1.1  Customs procedures 3.1.  The basic customs legislation in Saudi Arabia is the GCC Common Customs Law and its Rules 
of Implementation and Explanatory Note. Accordin g to the authorities, during the period under 
review, customs legislation was expanded to cover e-commerce, IPR violations, pre-arrival clearance, GCC members' international obligations, and adoption of the 2015 Unified Guide for 
Customs Procedures at First Points of Entry to facilitate customs operations in the GCC member 
States.
1 According to the authorities, these improvements have gone a long way towards meeting 
the obligations of the Trade Facilitation Agreement. 
3.2.  The Customs Department under the Ministry of  Finance is the principal agency responsible for 
implementing customs procedures although severa l other government agencies are responsible for 
specific products or issues related to imports, such as the Saudi Food and Drug Authority (SFDA), the Ministry of Agriculture, and the Mini stry of Commerce and Industry (MCI).  
3.3.  Since the implementation of the GCC customs union in 2003, the customs procedures and 
documentation requirements are, in principle, the same among the GCC member States. However, implementation of the Common Customs Law and application of the Unified Guide for Customs 
Procedures is the responsibility of each GCC member State's customs agency. Furthermore, each 
member State may determine its own list of prohibited or restricted products, although members are developing a common list; imports that are prohibited/restricted in a GCC member State and permitted in others may not transit through the States in which they are prohibited.  
3.4.  Customs legislation and related operational guidelines are available online.
2 According to the 
authorities, meetings between Saudi Customs and relevant stakeholders are held periodically to discuss customs matters.  
3.5.  All enterprises, including importers and exporters, irrespective of nationality, must register 
with the Ministry of Commerce and Industry (MCI) before engaging in any business. The commercial registration is required when applying for import licences (Section 3.1.6.2) and when 
clearing customs for imported goods. The commercial registration is valid for five years, renewable 
for additional periods of five years. Using a Saudi commercial agent
3 is required only when 
importing/exporting agricultural machinery.  
3.6.  According to the World Bank's Doing Business 2016 report, Saudi Arabia was ranked 150th 
out of 189 economies for trading across frontiers. The report states that the time and cost 
(excluding tariffs) for imports into Saudi Arabia are greater than the average in the Middle East North Africa region for both border and documentary compliance with 12 different documents 
required to import a container (Table 3.1). 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.
4 The authorities expressed their reservation about the World Bank's Doing 
Business report, in particular the methodology of information collecting; the authorities indicated 
that delays might be caused by mis-submission of customs documents or by other procedures and 
                                               
1 GCC Secretariat (2015). 
2 Saudi Customs Authority online informatio n, "Rules and Regulations". Viewed at: 
http://www.customs.gov.sa/sites/sc/en/sRules/ ; and "Customs Procedures". Viewed at: 
http://www.customs.gov.sa/sites/sc/en/CustomsGuideNew/HQweb/Pages/Pages/LandingPage.aspx .  
3 Under the Commercial Agencies Law (Royal Decree No. M/11, 20/2/1382H), commercial agent is a 
natural or legal person as a representative of foreig n distributors/producers. A commercial agent is not a 
customs broker. 
4 World Bank (2016). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  documentation not required by Customs.5 It was also noted that, in 2014, under the World Bank's 
Logistics Performance Index, Saudi Arabia was ranked much higher, at 49th out of 160 economies.6 
Table 3.1 Summary of time and cost  for trading across borders, 2015 
 Saudi Arabia  Middle East & North Africa  
Time to import: border compliance (hours) 228 120 
Cost to import: border compliance (US$) 779 594 
Time to import: documentary compliance (hours) 131 105 
Cost to import: docume ntary compliance (US$) 390 385 
Time to export: border compliance (hours) 69 65 
Cost to export: border compliance (US$) 264 445 
Time to export: documentary compliance (hours) 90 79 
Cost to export: docume ntary compliance (US$) 105 351 
Source: World Bank (2016), Doing Business 2016 , Economy Profile . Viewed at: 
http://www.doingbusiness.org/reports/globalrep orts/~/media/giawb/doing%20business/documents/
profiles/country/SAU.pdf .  
3.7.  All commercial imports, irrespective of valu e, must be declared to Saudi Customs. According 
to the World Bank, in general, the Customs Department 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. 
3.8.  The Customs Department uses an electronic data interchange (EDI) system, which allows 
electronic submission and processing of import  declarations. There is no country-wide single 
window for customs procedure operating in Saudi Arabia, but a pilot programme is operating in Jeddah Islamic Seaport Customs Office. 
3.9.  The Customs Department also operates a pre-arrival document verification procedure, the 
Direct Clearance System, for certain products, in cluding new vehicles, pipes, timber, and building 
materials, upon the request of importers. The au thorities are considering widening the scope of 
goods that the Direct Clearance System applies to.  
3.10.  Upon arrival, all imports are subject to customs inspections. Physical inspection may be 
carried out for goods on a random basis determined by risk profiling. According to the authorities, 
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. 
3.11.  For perishable imports, such as items fo r human consumption, the SFDA inspectors control 
the consignment at the border including taking a sample for laboratory analysis. In general, the 
Customs Department immediately releases consignments with an undertaking from the importer until the analysis results are disclosed. Customs release of perishable goods such as food does not 
imply that the import may be freely circulated in the market. Free circulation in the market is 
subject to the decision of the SFDA (see Section 3.1.9).  
3.12.  The Customs Department adopted an authorized economic operator (AEO) scheme, called 
Eltizam, on 5 April 2014. An action plan for the AEO scheme in Saudi Arabia was approved by the 
Administrative Decision No. 56946. Details of the AEO scheme were not available to the 
                                               
5 In a separate World Bank report, the  Logistics Performance Index 2014 , the ease of customs 
procedures in Saudi Arabia was ranked 56th out of 160 countries. Viewed at: http://d21a6b425f3bbaf58824-
9ec594b5f9dc5376fe36450505ae1164.r12.cf2.rackcdn.com/LPI_Report_2014.pdf .  
6 World Bank online information. Viewed at: http://lpi.worldbank.org/  [December 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Secretariat, but the authorities stated that the conditions and requirements for the Saudi AEO 
scheme are consistent with the relevant guidelines from the World Customs Organization (WCO).  
3.13.  Using custom brokers is voluntary. Custom s brokers must be licensed by Saudi Customs, 
and must be nationals of GCC member States. 
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.  
3.15.  According to the authorities the use of pre-shipment inspection is voluntary.  
3.16.  There have been no changes in Saudi's appeal procedures against Customs' decisions since 
the last TPR.
7 Importers that disagree with Customs' decisions concerning, inter alia , 
classifications, valuation, and IPR violations, may appeal to the Director of Customs or the relevant 
customs committees. Importers may then refer the case to the Board of Grievances if they are not 
satisfied with the outcome of the appeal.  
3.17.  With regard to the WTO Agreement on Trade Facilitation (TFA), Saudi Arabia has submitted 
its Category A notification: upon the TFA's entry of force, Saudi Arabia will implement all of the 
provisions contained in Section I of the TFA except for providing opportunities to comment and information before customs measures enter into force (Article 2.1); and a single window for 
customs procedures (Article 10.4).
8 As at end-2015, Saudi Arabia had not deposited its Instrument 
of Acceptance; the authorities indicated that ratification of the TFA is under active consideration. 
3.1.2  Customs valuation 3.18.  There has been no change in customs valu ation legislation since the last TPR. The rules 
were set out in the GCC Common Customs Law and its Rules of Implementation.
9 
3.19.  The transaction value is the primary basi s 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.  
3.1.3  Rules of origin 3.20.  Saudi Arabia does not maintain any non-preferential rules of origin.
10  
3.21.  Saudi Arabia maintains preferential rules for goods originating from countries that it has 
free-trade arrangements with (Section 2.4.2). Regarding preferential rules, products are 
considered originating from the country wher e wholly obtained or where they underwent 
substantial transformation. Substantial transformation may be expressed as: 
 a change of HS tariff heading or subheading criterion; 
 local accumulation criterion; or 
 value added criterion. 
3.22.  As regards the value added criterion, at le ast 40% of local value added must be contained in 
the goods in order to benefit from the preferen ce. Moreover, direct transport is required for 
maintaining the preference.  
                                               
7 WTO document WT/TPR/S/256/Rev.1, 14 February 2012. 
8 WTO document WT/PCTF/N/SAU/1, 22 July 2014. 
9 WTO document G/VAL/N/1/SAU/1, 6 February 2007. 
10 WTO document G/RO/N/48, 8 November 2006. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.23.  Saudi Arabia does not maintain preferential rules of origin for goods from least developed 
countries (LDCs). 
3.1.4  Tariffs 3.1.4.1  WTO bound tariffs 
3.24.  With the exception of prohibited products, as listed in its Schedule, all tariff lines in Saudi 
Arabia are bound. The simple average bound tariff rate is 11.0%, more than double the simple 
average applied MFN rate of 5.2% (Chart 3.1). 
Chart 3.1 Average applied MFN tariff an d bound rates, by HS section, 2015 
% 
0510152025
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 2101   Live animals & products  
02   Vegetable products03   Fats & oils      
04   Prepared food, etc.
05   Mineral products06   Chemicals & products07   Plastic & rubber
08   Hides & skins09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals & products
16   Machinery
17   Transport equipment18   Precision instrument19   Arms & ammunition
20   Miscellaneous manufacturing21   Works of art, etc.Average bound
(11.0%)
Average MFN applied
(5.2%)MFN applied Bound 
 
Source: WTO Secretariat calculations, based on data  provided by the authorities of Saudi Arabia. 
3.25.  The highest bound rates cover tobacco and tobacco products: the bound tariff for each line 
in HS heading 24 is 200% or a specific duty (e.g. HS 24022000 (cigarettes containing tobacco) has a bound duty of 200% or SAR 200 per 1,000 cigarettes). The largest differences between the 
bound and applied rates are found among prepared food. The ratio of the bound rate over the 
applied rate is the largest for precious stones, i.e. the simple average of the bound rate is more than three times the applied MFN rate. The smallest gap is found for chemical and chemical 
products (Chart 3.1). 
3.1.4.2  MFN applied tariffs 3.26.  Saudi Arabia provides at least MFN treatment to all countries and territories with which it 
trades.  
3.27.  Saudi Arabia applies the GCC common external tariff. Under the "single port of entry" 
principle, items imported into Saudi Arabia (or any other GCC State), and destined for another GCC market, are subject to customs duty only at the first point of entry into the GCC. 
3.28.  The tariff nomenclature is based on the Harmonized Commodity Description and Coding 
System (HS), and further specified at the eight-digit level. The current nomenclature reflects the WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 34 - 
 
  fifth amendment to the HS (HS 2012). The authorities maintain a public online database of tariff 
rates applied to imports.11 
3.29.  During the period under review, applied MFN rates remained largely unchanged; 
modifications to the tariff mainly reflect changes in nomenclature or tariff code (e.g. split lines, or 
merge lines). The 2015 tariff comprises 7,325 lines at eight-digit level: 11% of all tariff lines are 
duty free and 79.8% of lines were at the rate of 5% (Chart 3.2).12 There are no tariff lines subject 
to tariff quotas and no lines have "nuisance" rates. The simple average applied MFN tariff rate was 
5.2% in 2015, the same as in 2011. Based on the WTO definition, the average applied rate for 
agricultural products was 5.9% in 2015, down from 6.1% in 2011; for non-agricultural products, the average was 5.1%, compared with 5.0% in 2011 (Table 3.2). 
Table 3.2 Structure of the tariff sche dule in Saudi Arabia, 2011 and 2015 
 2011 2015 
Total number of tariff lines 7,151 7,325 
Bound tariff lines (% of all tariff lines) 100.0 100.0 
Non-ad valorem  tariffs (% of all tariff lines) 1.4 1.5 
Non-ad valorem with no AVEs (% of all tariff lines) 1.4 1.5 
Lines subject to tariff quotas (%  of all tariff lines) 0.0 0.0 
Duty free tariff lines (% of all tariff lines) 10.6 11.0 
Dutiable lines tariff av erage rate (%) 5.8 5.9 
Simple average tariff (%) 5.2 5.2 
 WTO agriculture 6.1 5.9 
 WTO non-agriculture (incl. petroleum) 5.0 5.1 
Domestic tariff "peaks" (% of all tariff lines)a 1.8 0.6 
International tariff "peaks" (% of all tariff lines)b 1.8 0.6 
Overall standard deviation 5.8 5.7 
Nuisance applied rates (% of tariff lines)c 0.0 0.0 
a Domestic tariff peaks are defined as those exc eeding three times the overall average applied rate. 
b International tariff peaks are defined as those exceeding 15%. 
c Nuisance rates are greater than 0% but inferior or equal to 2%. 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
3.30.  In the 2015 tariff schedule, 1.5% of total lines have non- ad valorem  rates; ad valorem  
equivalents (AVEs) for these lines were not provided  by the authorities. The tariff on some of these 
lines is 100% with a minimum specific duty, for example the tariff on HS 24022000 (cigarettes 
containing tobacco) is 100% with a minimum of SAR 100 per 1,000 units. In the absence of ad 
valorem  equivalents for these tariff lines, the tariff analysis assumes the applied tariff is 100%. 
The analysis also disregards banned products. 
                                               
11 Saudi Customs Authority onlin e information, "Custom Tariffs Browsing". Viewed at: 
http://www.customs.gov.sa/sites/sc/en/SCTariffs/Pages/Pages/SectionsPage.aspx .  
12 There are no tariff rates between zero and 5% in Saudi Arabia's MFN tariff schedule. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Chart 3.2 Frequency distribution of MFN tariff rates, 2015 
(11.0%)(79.8%)
(2.5%)(4.8%)
(0.3%) (0.3%)(1.3%)
0102030405060708090100
01,0002,0003,0004,0005,0006,0007,000
Duty free >0-5 >5-10 >10-15 >15-20 >20 ProhibitedNumber of tariff linesa%
Cumulative %
Number of lines (% of total)
 
a The total number of ad valorem  lines is 7,214 and 19 non- ad valorem  (mixed duties). 
Source: WTO Secretariat calculation, based on data provided by the authorities. 
3.31.  The presence of a few tariff lines with ad valorem  rates of 100% and minimum specific 
duties, increases the average tariff and standard deviation for the beverages and tobacco category 
to 32.9% and 43.3% respectively. The average for all WTO categories, which do not include 
tobacco is between 3.5% and 6.5% with low dispersion – as reflected in the low standard deviations (Table 3.3). 
Table 3.3 Summary analysis of Saudi Arabia's MFN tariffs, 2015 
Description MFN Final 
bound 
range (%) No. of 
lines Average 
(%) Range 
(%) Standard 
deviation 
Total 7,325  5.2 0 - 100 5.7 0 - 200 
HS 01-24 1,374 5.4 0 - 100 12.2 0 - 200 
HS 25-97 5,951 5.2 0 - 20 2.6 0 - 20 
By WTO category  
WTO agriculture 1,195 5.8 0 - 100 13.1 0 - 200 
 - Animals and products thereof 158 3.5 0 - 20 4.6 0 - 25 
 - Dairy products 35 5.0 5 - 5 0.0 6 - 25 
 - Fruit, vegetables and plants 358 4.0 0 - 40 4.0 5 - 40 
 - Coffee and tea 38 5.3 0 - 15 4.7 5 - 15 
 - Cereals and preparations 183 3.9 0 - 15 2.9 5 - 25 
 - Oil seeds, fats and oils and their products 101 4.8 0 - 5 1.0 6 - 15 
 - Sugars and confectionary 40 3.9 0 - 10 3.0 6 - 20 
 - Beverages, spirits and tobacco 84 32.9 0 - 100 43.3 0 - 200 
 - Cotton 5 5.0 5 - 5 0.0 6 - 15 
 - Other agricultural products n.e.s. 193 4.2 0 - 5 1.8 5 - 15 
WTO non-agriculture (incl. petroleum) 6,130 5.1 0 - 20 2.6 0 - 20 
 - WTO non-agriculture (excl. petroleum) 6,095 5.1 0 - 20 2.6 0 - 20 
 - - Fish and fishery products 265 3.5 0 - 5 2.3 5 - 15 
 - - Minerals and metals 1,202 5.3 0 - 15 1.9 0 - 20 
 - - Chemicals and photographic supplies 1,258 4.7 0 - 6.5 1.5 0 - 15 
 - - Wood, pulp, paper and furniture 431 6.5 0 - 20 4.7 0 - 20 
 - - Textiles 717 6.0 0 - 15 2.8 0 - 15 
 - - Clothing 254 5.1 5 - 12 0.6 8 - 15 
 - - Leather, rubber, footwear and travel 
 goods 212 6.1 5 - 15 2.6 6.5 - 15 
 - - Non-electric machinery 647 4.4 0 - 15 2.3 0 - 15 
 - - Electric machinery 314 3.7 0 - 15 3.1 0 - 15 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Description MFN Final 
bound 
range (%) No. of 
lines Average 
(%) Range 
(%) Standard 
deviation 
 - - Transport equipment 252 6.1 0 - 15 3.9 0 - 15 
 - - Non-agriculture articles n.e.s. 543 4.8 0 - 15 2.0 0 - 15 
 - Petroleum 35 5.9 5 - 10 1.9 5 - 10 
By HS section  
 01 Live animals & products 439 3.6 0 - 20 3.2 0 - 25 
 02 Vegetable products 460 3.2 0 - 40 3.9 5 - 40 
 03 Fats & oils 63 5.0 5 - 5 0.0 6 - 15 
 04 Prepared food etc. 412 10.2 0 - 100 21.3 0 - 200 
 05 Minerals 211 5.4 5 - 15 1.7 5 - 15 
 06 Chemicals & products 1,199 4.6 0 - 6.5 1.5 0 - 15 
 07 Plastics & rubber 272 5.4 5 - 15 1.1 0 - 15 
 08 Hides & skins 86 6.3 5 - 15 2.8 8 - 15 
 09 Wood & articles 190 6.3 0 - 20 4.4 5 - 20 
 10 Pulp, paper etc. 195 4.7 0 - 15 3.2 0 - 15 
 11 Textile & articles 944 5.8 5 - 15 2.4 5 - 15 
 12 Footwear, headgear 74 6.6 5 - 15 2.9 8 - 15 
 13 Articles of stone 229 5.9 0 - 15 2.5 0 - 15 
 14 Precious stones, etc. 65 3.2 0 - 5 2.4 7 - 15 
 15 Base metals & products 737 5.4 5 - 15 1.8 0 - 20 
 16 Machinery 953 4.2 0 - 15 2.7 0 - 15 
 17 Transport equipment 264 6.1 0 - 15 3.8 0 - 15 
 18 Precision equipment 286 4.4 0 - 12 1.8 0 - 15 
 19 Arms and ammunitions 23 5.0 5 - 5 0.0 7 - 15 
 20 Miscellaneous manufacturing 212 7.7 5 - 15 4.2 5 - 15 
 21 Works of art, etc. 11 5.9 5 - 15 2.9 15 - 15 
Note: Bound rates are provided in HS07 classification and applied rates in HS12; therefore there may be a 
difference between the number of lines included in the calculation. 
Source: WTO Secretariat, based on the in formation provided by the authorities. 
3.32.  With regard to non-agricultural goods, wood, pulp, paper and furniture have the highest 
simple average applied MFN rates at 6.5%, followe d by transport equipment (6.1%) and leather, 
rubber, footwear and travel goods (6.1%), text iles (6.0%), petroleum (5.9%), and minerals and 
metal (5.3%). 
3.33.  From the information provided by the authorities, it appears that a number of tariff lines 
may have applied MFN rates in excess of their corresponding bound rates (Table A3.1). Nearly all 
these lines are related to products destined for civil aircraft. In most cases, the bound rates 
differentiate between goods for use in civil aircraft, which are duty free, while the same good for other purposes has a bound duty. However, from the information provided, the applied tariff does 
not distinguish between goods destined for use in civil aircraft and other goods.  
3.1.4.3  Preferential rates 3.34.  Preferential tariffs are granted to countries that Saudi Arabia has free-trade agreements 
with. Except alcohol, pork, and pork-related products, which are banned on religious grounds 
(Section 3.1.6), imports meeting the preferential rules of origin for GCC member States and PAFTA 
members are duty free. 
3.35.  With regard to imports from Singapore, 6,750 lines have been duty free since 1 April 2015. 
For imports from EFTA states, 6,535 lines have been duty free since 1 July 2015. 
3.36.  Saudi Arabia does not accord preferential tariff rates to imports from least developed 
countries. 
3.1.4.4  Tariff exemption 
3.37.  Saudi Arabia grants tariff exemptions to national and foreign investors for imports of raw 
materials, machinery, equipment, and semi-manufactured substances required for industrial production based on the GCC Common Industrial Law. Exemptions from customs duties are also 
applied to investors in the mining sector, irrespective of an investor's nationality.  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 37 - 
 
  3.38.  The authorities stated that there is no tariff drawback system operating in Saudi Arabia. 
3.1.5  Internal taxes collected at the border 3.39.  Saudi Arabia does not have a value added tax (VAT) or excise duties, therefore no internal 
taxes on imported goods are collected at the border. 
3.40.  There is an "other duty or charge" (O DC) imposed on tobacco and tobacco products at 
SAR 0.03 for each packet, as set out in Schedule CLVIII of the Kingdom of Saudi Arabia, which, the authorities stated, is applied for public health reasons. 
3.41.  For goods left in Customs Department's sheds and not cleared within 10 days of the 
unloading date, storage charges are levied at SAR 20 per tonne per day; no charges are levied if the delay was not caused by the importer. Goods in transit are subject to a service charge at a rate of 0.004% of the customs value. The author ities indicated that the charge is commensurate 
with the service cost. 
3.42.  There are no customs inspection charges im posed on goods. However, a scanning charge of 
SAR 100 per consignment is applied to scanned goods. 
3.1.6  Import controls 
3.1.6.1  Import prohibitions and restrictions 3.43.  Import prohibitions are maintained based on security, public safety, moral, and religious 
considerations, as well as on international obligations such as international conventions 
requirements and UN sanction resolutions.
13 At the eight-digit level, 92 tariff lines are subject to 
import prohibition, covering, inter alia , narcotics, alcoholic beverages, live swine and swine 
products, worn clothes, and electronic cigarettes (Table 3.4). Compared to the list of import 
prohibition in the previous TPR, four items (all related to satellite internet receivers) are no longer 
prohibited from importation, but imports of such products are still restricted.  
Table 3.4 Import prohibitions, 2015 
HS code Description 
01031000 Live swine, pure-bred breeding animals 
01039100 Other live swine, weighing less than 50 kg 
01039200 Other live swine, weighing 50 kg or more 
02031100 Meat of swine, fresh or chilled: carcasses and half-carcasses  
02031200 Meat of swine, fresh or chilled: hams, shoulders and cuts thereof, with bone in  
02031900 Other meat of swine, fresh or chilled 
02032100 Meat of swine, frozen: carcasses and half-carcasses  
02032200 Meat of swine, frozen: hams, shoulders and cuts thereof, with bone in  
02032900 Other meat of swine, frozen 
02050090 Other, meat of asses, mules or hinnies, fresh, chilled or frozen 
02063000 Edible offal of swine, fresh or chilled 
02064100 Edible offal of swine, frozen: livers  
02064900 Other edible offal of swine, frozen 
02089091 Frogs' legs 
02101100 Meat of swine: hams, shoulders and cuts thereof, with bone in  
02101200 Meat of swine: bellies (streaky) and cuts thereof  
02101900 Other meat of swine 
05021000 Pigs', hogs' or boar s' bristles and hair and waste thereof 
09082100 Mace, neither crushed nor ground 
09082200 Mace, crushed or ground 
12079100 Poppy seeds 
12079910 Poppy 
12079920 Hemp seeds 
12113000 Coca leaf 
12114000 Poppy straw 
12119020 Black poppy 
12119060 Hemp 
                                               
13 Under the GCC Common Customs Law, each GCC member  State determines its own list of prohibited 
or restricted products, although memb ers are developing a common list. Im ports that are prohibited in some 
GCC member States and permitted in others must not transit through the States in which they are prohibited. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  HS code Description 
13021100 Opium 
13021910 Hashish 
15011000 Lard 
15012000 Other pig fat 
15030011 Oleostearin of pig 
15030021 Oleo-margarine of pig 
15030091 Other oils of pig 
15180011 Animal or vegetable fats and oils and their fractions, excluding those of heading 15.16 
16010010 Sausages and similar products, of meat, meat o ffal or blood; food preparations based on these 
products: of swine or animal blood 
16024100 Other prepared or preserved meat, meat offal of swine: hams and cuts thereof 
16024200 Other prepared or preserved meat, meat offal of swine: shoulders and cuts thereof  
16024900 Other prepared or preserved meat, meat offal or blood: other, including mixtures  
16029030 Preparations of animal blood 
17049080 White Chocolate containing alcohol 
18063110 Chocolate and other food preparations containing cocoa, in blocks- slabs or bars, filled, containing 
alcohol 
18063210 Chocolate and other food preparations containing cocoa, in blocks- slabs or bars, not filled, containing 
alcohol 
20082010 Fruit, nuts and other edible parts of plants, otherw ise prepared or preserved, containing added spirit 
20083010 Fruit, nuts and other edible parts of plants, ot herwise prepared or preserved, containing added spirit 
20084010 Fruit, nuts and other edible parts of plants, otherw ise prepared or preserved, containing added spirit 
20085010 Fruit, nuts and other edible parts of plants, ot herwise prepared or preserved, containing added spirit 
20086010 Fruit, nuts and other edible parts of plants, otherw ise prepared or preserved, containing added spirit 
20087010 Fruit, nuts and other edible parts of plants, ot herwise prepared or preserved, containing added spirit 
20088010 Fruit, nuts and other edible parts of plants, otherw ise prepared or preserved, containing added spirit 
20089310 Other- including mixtures other than those of subheading 2008.19, containing added spirit 
20089710 Other- including mixtures other than those of subheading 2008.19, containing added spirit 
20089910 Other- including mixtures other than those of subheading 2008.19, containing added spirit 
22030000 Beer made from malt. 
22041000 Sparkling wine 
22042100 Other wine; grape must with fermentation prevented or arrested by the addition of alcohol : in 
containers holding 2 L or less 
22042900 Other wine; grape must with fermentation prevented or arrested by the addition of alcohol 
22043000 Other grape must 
22051000 Vermouth and other wine of fresh grapes flavoure d with plants or aromatic substances, in containers 
holding 2 L or less 
22059000 Other vermouth and other wine of fresh grapes flavoured with plants or aromatic substances 
22060000 Other fermented beverages; mixtures of fe rmented beverages and non- alcoholic beverages, not 
elsewhere specified or included. 
22072090 Other ethyl alcohol and other spirits of any strength 
22082000 Spirits obtained by distilling grape wine or grape marc 
22083000 Whiskies 
22084000 Rum and other spirits obtained by distilling fermented sugar-cane products  
22085000 Gin and Geneva 
22086000 Vodka 
22087000 Liqueurs and cordials 
22089090 Other undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol. 
23070010 Wine lees 
25241000 Crocidolite 
25249000 Other asbestos 
28299021 Potassium bromates  
29399110 Cocaine 
36041010 Fireworks, signalling flares and other pyrotechnic articles, for children 
40121100 Retreaded tyres: of a kind used on motor cars (including station wagons and racing cars) 
40121200 Retreaded tyres: of a kind used on buses or lorries 
40121300 Retreaded tyres: of a kind used on buses aircraft 
40121900 Other retreated tyres 
40122000 Used pneumatic tyres 
41033000 Other raw hides and skins, of swine 
41063100 Tanned or crust hides and skins of swine: in the wet state (including wet-blue) 
41063200 Tanned or crust hides and skins of swine: in the dry state (crust) 
41132000 Leather further prepared after tanning or crusting, of swine 
49019911 Holy Quran 
63090000 Worn clothing and other worn articles. 
68114000 Articles of asbestos-cement, of cellulose fibre-cement or the like, containing asbestos 
68128000 Fabricated asbestos fibres; mixtures with a basis of  asbestos or magnesium carbonate, of crocidolite 
68129300 Compressed asbestos fibre jointing, in sheets or rolls 
68132000 Containing asbestos 
85437030 Electronic cigarette 
90132010 Portable laser pointers, in form of pens, medals, etc. 
Source: Information provided by the authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.44.  Temporary import prohibitions based on sanitary and phytosanitary considerations are 
notified to the WTO (Section 3.1.9), according to the authorities. 
3.45.  Under the Basel, Rotterdam, and Vienna Conv entions, imports of recycled plastic waste are 
restricted. Imports of ozone depleting substances (ODSs) under the Montreal Protocol are also 
restricted. 
3.1.6.2  Import licensing 3.46.  Import licensing requirements and procedures have remained unchanged since Saudi 
Arabia's accession to the WTO.
14 Licensing requirements are applied to imports from all trading 
partners except other GCC member States.  
3.47.  Saudi Arabia does not operate an automatic licensing scheme while the non-automatic 
licensing system is maintained for the purpose of meeting requirements of domestic legislation 
and/or for compliance with international conventions. The list of products subject to licensing 
requirements is maintained by the Ministry of Commerce and Industry (MCI), and may be 
amended periodically. 
3.48.  For imports of each product subject to import licensing requirements, licensing procedures 
are handled by a single relevant administrative body and an eligible importer may apply to that authority for a licence (Table 3.5). Licence applications may be submitted 21 days prior to the 
arrival of goods; it takes a maximum of 30 days to process the applications, but the authorities 
indicated that normally licences are decided in a shorter period.  
Table 3.5 Import licensing regime, 2015 
HS code Description Licensing authority 
01 01 10 10 Arabian breed, pure-bred horses Equestrian Club 
01 01 10 20 Arabian breed, pure-bred horses Equestrian Club 
01 01 90 10 Arabian breed, pure-bred horses Equestrian Club 
01 01 90 20 Arabian breed, pure-bred horses Equestrian Club 
06 02 20 10 Date palm, and seedlings thereof Ministry of Agriculture 
23 09 90 50 Preparations for the animal forage MOA 
Chapters 28 and 29 Chemicals SFDA  for chemicals involved in 
the remanufacturing of medical preparations, requ ired by health 
organizations and non-radioactive reagents, and precursors Public Security Department for the chemicals used in explosives;  
Ministry of Commerce and 
Industry, or Presidency of Meteorology and Environment for the chemicals falling within their competence and supervision other than those stated above 
ex 30.03 Medicines, for veterinary use Saudi Food & Drug Authority 
ex 30.04 Medicines, for veterinary use Saudi Food & Drug Authority 
25 01 00 30 Sodium chloride Arms & Explosives Department 
27.12, except 
27 12 10 00 Paraffin, vaseline Arms & Explosives Department 
31 02 30 00 Explosives, fireworks, gunpowder, propellant 
powders, prepared explosives, detonating fuses, 
percussion or detonating caps, igniters, electric 
detonators, safety fuses, sulphate turpentine oils, 
polymethyl methacrylate, cellulose nitrates, 
aluminium powders and flakes, magnesium powder 
and flakes 
 Arms & Explosives Department 
31 02 50 00 Arms & Explosives Department 
36 01 00 00 Arms & Explosives Department 
36 02 00 00 Arms & Explosives Department 
36 03 00 10 Arms & Explosives Department 
36 03 00 90 Arms & Explosives Department 
25 01 00 30 Arms & Explosives Department  
35 03 00 10 Arms & Explosives Department 
                                               
14 WTO document WT/ACC/SAU/61, Annex E, 1 November 2005. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  HS code Description Licensing authority 
38 05 10 00  
 
 Arms & Explosives Department  
39 06 10 00 Arms & Explosives Department  
39 12 20 00 Arms & Explosives Department  
76 03 20 00 Arms & Explosives Department 
81 04 30 00 Arms & Explosives Department 
31.02 Chemical fertilizers Ministry of Agriculture 
31.03 Chemical fertilizers Ministry of Agriculture 
31.04 Chemical fertilizers Ministry of Agriculture 
31.05, except 
31 02 30 00 and 
31 02 50 00 Chemical fertilizers Ministry of Agriculture 
36 04 10 00 Lighting fireworks for occa sions  Arms & Explosives Department 
36 04 90 00  Arms & Explosives Department  
38 08 30 00 Herbicides, anti-sprouting products, plant-growth 
regulators Ministry of Agriculture 
ex 58 07 10 00 Military uniforms, mi litary badges, etc. 
 
 Competent Military Agency  
ex 58 07 90 00 Competent Military Agency 
ex 61 01 Competent Military Agency 
ex 61 03 Competent Military Agency 
ex 62 01 Competent Military Agency 
ex 62 03 Competent Military Agency 
65 05 90 94 Peak caps Competent Military Agency 
65 06 10 30 Helmets, for military  use Competent Military Agency 
ex 73 26 90 99 Other items of iron and steel, for military use Competent Military Agency 
ex 90 05 10 00 Night vision binoculars  Competent Military Agency 
83 01 40 20 Security equipment such as security surveillance  Public Security Department 
85 25 40 00 Security cameras, CTV systems, anti-theft alarm 
systems Public Security Department 
85 43 89 20 Metal detectors not for use in civil aircraft Public Security Department 
85 31 10 00 Magnetic card or thumb impressi on operated Public Security Department 
90 22 19 90 Access/exit doors and equipment, metal  Public Security Department  
90 22 19 10 Detecting doors and equipment, baggage screening 
equipment Public Security Department  
84 19 40 00 Distillation equipment Ministry of Commerce and 
Industry 
84 59 61 00 Key cutting, copying and repairing machines and 
instruments of any type Public Security Department 
84 59 69 00 Key cutting, copying and repairing machines and 
instruments of any type Public Security Department 
84 72 30 00 Postage franking machines General Directorate of Posts 
85 25 20 11 Transmission apparatus for military purposes Communication & Information 
Technology Commission 
85 25 20 19 Transmission apparatus whose  operation requires a 
frequency assignment from CITC Communication & Information 
Technology Commission 
85 25 20 30 Transmission apparatus whose  operation requires a 
frequency assignment from CITC Communication & Information 
Technology Commission 
85 25 20 40 Transmission apparatus whose  operation requires a 
frequency assignment from CITC Communication & Information 
Technology Commission 
85 25 20 50 Transmission apparatus whose  operation requires a 
frequency assignment from CITC Communication & Information 
Technology Commission 
85 25 20 60 Transmission apparatus whose  operation requires a 
frequency assignment from CITC Communication & Information 
Technology Commission 
85 25 20 90 Video boosters whose operation requires a 
frequency assignment from CITC Communication & Information 
Technology Commission 
85.26 in addition to any other relevant heading Transmission apparatus wh ose operation requires a 
frequency assignment from CITC Communication & Information 
Technology Commission 
85 42 10 00 Mobile telephone chips and prepaid mobile phone 
cards Communication & Information 
Technology Commission 
ex 87.03 Armoured vehicles Ministry of Interior 
89 02 00 00 Fishing vessels Border Security 
Chapter 93 Arms and ammunitions Arms & Explosives Department 
Different headings Wild animals, plants and their products thereof, 
according to CITES Saudi Wildlife Authority 
Different headings Cultural and archaeol ogical property General Directorate of 
Archaeology & Museum 
Different headings Products containing currency pictures, models or 
wrappers in shape of currency or otherwise Saudi Arabia Monetary Authority 
Different headings Items imported for display in  trade fairs Ministry of Commerce & Industry WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  HS code Description Licensing authority 
84 24 81 10 
84 24 81 20 
84 24 81 30 
84 24 81 90 Irrigation equipment Ministry of Agriculture 
82.01 Agricultural tractors Ministry of Agriculture 
84 13 19 
84 13 19 90 
84 13 80 
84 38 11 00 
84 38 20 00 Water pumps Ministry of Agriculture 
84 32 10 00 
84 32 21 00 84 32 29 00 Ploughing machinery Ministry of Agriculture 
84 32 30 00 
84 32 40 00 
84 32 80 00 Seeders Ministry of Agriculture 
84 33 11 00 
84 33 20 00 84 33 30 00 84 33 40 00 84 33 51 00 84 33 52 00 84 33 59 00 84 33 60 00 Harvesting machinery Ministry of Agriculture 
Source: WTO document WT/ACC/SAU/61, Annex E, 1 November 2005. 
3.49.  An import licence is valid for one year from its date of issuance,15 and is consignment 
specific. No licensing fees, other than administrati ve charges or deposits, are required for issuing a 
licence. Import licences are not transferable.  
3.50.  In addition, imports of live animals and bi rds and of plants for planting also require an 
application for a licence from the Ministry of Agriculture on the grounds of SPS considerations 
(Section 3.1.9). Imports of endangered species of wild fauna and flora under CITES or under national legislation
16 must apply to the Saudi Wildlife Authority (SWA) for import permits; the 
applications must be accompanied by CITES certificates issued by the exporting/re-exporting 
country. 
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.  
3.1.7  Contingency measures 
3.52.  The GCC Common Law on Anti-dumping, Countervailing and Safeguard Measures 
(hereafter, the GCC Common Law)  is applied in Saudi Arabia.17,18  
3.53.  Under the Common Law, the determination of injury is based on the overall market of the 
GCC member States.19 The 2011 amendment to the Common Law established a Ministerial 
Committee, a Permanent Committee, and a Technical Secretariat for trade remedy issues within 
the GCC market. The Technical Secretariat is the investigating authority for trade remedy proceedings. A complaint must be submitted to the Technical Secretariat, which reviews it and 
submits an initial report to the Permanent Committee with a recommendation to pursue an 
                                               
15 Extension of validity may be granted if it is in the public interest. 
16 The Act on Trade of Endangered Wildlife Spec ies and Their Products, Royal Decree No. M/9 of 
8 June 2000. 
17 WTO documents G/ADP/N/1/SAU/2; G/SCM/N/1/SAU/2; and G/SG/N/1/SAU/2, 12 November 2014. 
18 WTO documents G/ADP/N/1/SAU/1; G/SCM/N/ 1/SAU/1; and G/SG/N/1/SAU/1, 11 March 2009. 
19 GCC member States have also agreed that the dome stic industries eligible to submit complaints are 
the GCC producers of "like products" as a whole, or th ose whose collective output represents more than 50% 
of the GCC production of those products, i.e. trade remedy investigations examine the GCC market as one 
market, and all GCC producers of the "like products" with in the GCC are treated as a single domestic industry. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  investigation or not. Based on the initial report by the Technical Secretariat, the Permanent 
Committee may decide whether to initiate an investigation and whether to impose provisional measures. Based on the findings of the investigation, the Permanent Committee may propose the imposition of definitive measures  to the Ministerial Committee.  
3.54.  The General Department of Anti-dumping , Countervailing and Safeguard Measures, under 
the MCI, is the competent agency for issues related to trade remedies in Saudi Arabia. The General Department is not an enforcement agency for contingency measures, but serves an advisory role 
for the MCI in the Ministerial Committee by re viewing the actions and decisions of the GCC 
Technical Secretariat.  
3.55.  The authorities noted that Saudi Arabia has not conducted any proceedings nor imposed any 
measures with regard to anti-dumping, countervailing, or safeguard measures.  
3.1.8  Standards and technical requirements 
3.56.  The institutional framework for standards and technical regulations in Saudi Arabia 
remained largely unchanged since its previous review in 2012. The relevant legislation includes the 
Technical Directive.
20 The TBT enquiry point is the Saudi Standards, Metrology and Quality 
Organization, known as SASO.21 
3.57.  The SASO notified 640 technical regulations and conformity assessment procedures to the 
WTO in the period from 1 January 2012 to 31 December 2015. The notifications cover, inter alia , 
food and beverages, consumer chemicals, electric al equipment, plastics piping systems, and motor 
vehicles. The notifications normally specify a comment period of at least 60 days and a proposed date of adoption. The authorities also submi tted a number of addenda, providing additional 
information on the adoption, entry into force, ex tension of comment period, and contents of the 
final text of previously notified TBT measures. Since the last review, some WTO Members in the 
TBT Committee expressed their concerns about Saudi's technical regulations on motor vehicles, 
toys, and energy drinks.
22 
3.58.  Any interested party (i.e. the public sector, the private sector, academia, and members of 
the public) may submit proposals for national standards to SASO. All draft standards, technical 
regulations, and conformity assessments are made available on the SASO website for public 
comment for at least 60 days. After the SASO Board of Directors approves a proposed standard, there is usually a period of six months between final publication and entry into force. Technical committees make recommendations to the SASO Board of Directors on whether a standard should 
be voluntary or mandatory. According to the authorities, the criteria for adopting a standard as 
mandatory are based on the fulfilment of legitimate objectives such as protection of health, safety, 
national security, Islamic law, and the enviro nment. Currently, there are 1,820 technical 
regulations in force, 516 of which were adopted during 2012-15 (Table A3.2). 
3.59.  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). As of end-October 2015, there were 28,924 national standards in force. According to the authorities, 90% of Saudi standards were aligned with international standa rds, and 10% were developed/modified to suit 
specific situations in Saudi Arabia. 
3.60.  The Gulf Standards Organization (GSO) is mandated to establish and harmonize standards 
and technical regulations within the GCC member States. GCC-wide standards may be 
                                               
20 The Saudi Standards, Metrology and Quality Orga nization (SASO) online in formation, "Technical 
Guide". Viewed at: http://www.saso.gov.sa/en/eservices/tbt/Pages/TechnicalGuide.aspx .  
21 The Saudi Standards, Metrology and Quality Organization (SASO) is the main agency responsible for 
developing national standards, qualit y control and assurance, conformity assessment, certification, as well as 
accreditation. For more details,  see SASO online information at: 
http://www.saso.gov.sa/en/about/Pages/tasks.aspx .  
22 WTO documents G/TBT/M/56, 20 March 2012; G/TBT/M/63, 18 June 2014; G/TBT/M/64, 
5 November 2014; G/TBT/M/65, 18 March 2015; and G/TBT/M/66, 17 June 2015. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  proposed/initiated by a representing body in a member State, and are prepared by the technical 
committees of the GSO. In general, GSO standard s are based on international standards. 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 on ly when there is a pressing need. At end-2015, 
55% of Saudi standards in force we re adopted from GCC standards. 
3.61.  With regard to medical devices/products, the Medical Device Interim Regulation is applied to 
manufacturers, authorized representatives of overseas manufacturers, importers and distributors. 
It covers all medical devices, and their accessories, contact lenses and laser surgical equipment for cosmetic rather than medical purposes, and their accessories. Distributors, importers and authorized representatives of medical devices mu st obtain a licence issued by the SFDA; and 
medical devices must obtain SFDA authorization before entering Saudi Arabia's market. 
3.62.  Products subject to technical regulations mu st comply with the relevant regulations before 
they are placed on the market. SASO may grant a ce rtificate of conformity, or, for products that 
comply with standards and technical requirements , a licence to use the quality mark. The quality 
mark scheme is voluntary, and available for good s either domestically produced or imported. 
3.63.  All consignments of imported consumer g oods must be accompanied by a "Certificate of 
Conformity for commodities and products to be exported to the Kingdom of Saudi Arabia", or the 
consignment may be subject to random sampling in the port for laboratory testing to verify conformity before clearing customs. The certificat e of conformity may be issued by an accredited 
certification body, or an accredited laboratory as a third party. Saudi Arabia recognizes the 
certification bodies accredited by the accreditation body in the exporting country as long as the 
accreditation body is a member of the International Accreditation Forum (IAF), and accepts the certificates issued by these certification bodies.  
3.64.  Saudi Arabia has signed mutual recognition agreements (MRAs) with: Argentina; China; 
Egypt; Germany; Indonesia; Jordan; the Republic of Korea; Malaysia; Pakistan; the Philippines; 
Singapore; South Africa; Tunisia; and Turkey. 
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, on a case-by-case basis, for marketing test purposes. As an Islamic country, Saudi Arabia has strict marking and labelling requirements for meat and poultry products, including that the product was slaughtered in accordance with Islamic halal 
procedures. 
3.1.9  Sanitary and phytosanitary measures 3.66.  During the review period, the institutiona l framework for sanitary and phytosanitary (SPS) 
requirement remained largely unchanged. The Saudi Food and Drug Authority (SFDA) is the 
national notification authority and enquiry point for SPS matters in the WTO.
23 The SFDA is the 
competent authority for food and feedstuffs (including animal products for human consumption, 
e.g. meat and poultry meat), medicine, as well as for medical devices; and the Ministry of 
Agriculture for live animals, animal products, plants, and plant products. 
3.67.  Between 1 January 2012 and 31 December 2015, Saudi Arabia notified 134 regular and 
33 emergency SPS measures to the WTO. Saudi Arabia considered that for 55 notified measures 
there was a relevant international standard and they conformed to that international standard. 
Apart from the emergency notifications, almost all notifications specified a 60-day period for public comment; for the rest, the authorities considered that a comment period was not applicable or 
practical. In addition, the authorities submitted a number of addenda during the period under 
review, providing additional information on previously notified SPS measures. Since the last review, concerns relating to import conditions for poultry have been discussed in the SPS 
Committee.
24  
                                               
23 WTO documents G/SPS/NNA/16 and G/SPS/ENQ/26, 11 March 2011. 
24 WTO document G/SPS/R/73, 15 January 2014. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.68.  During the review period, Saudi Arabia maintained 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 (Table A3.3).  
3.69.  Saudi Arabia is a member of the World Organization for Animal Health (OIE), the Codex 
Alimentarius Commission, and a contracting party to the International Plant Protection Convention 
(IPPC). With regard to animals, plants, and their products, SPS measures are harmonized at the GCC level under the Veterinary Quarantine Law and the Plant Quarantine Law, and the 
corresponding Executive Regulations provide details of their implementation in Saudi Arabia. Saudi 
Arabia maintains bilateral arrangements on SPS matters with Belgium, Brazil, Canada, Denmark, 
Djibouti, Ethiopia, France, India, Ireland, the Ne therlands, Kenya, Pakistan, Sudan, Turkey, the 
United Arab Emirates (Abu Dhabi), and the United States.  
3.70.   All food, including imported food, must comply with the general requirement laid down in 
the Food Law
25 and specific standard requirements depending on the product.26 
3.71.  All imports of live animals and products of animal origin (including animal products27, animal 
offal, animal fodder, and animal biological preparations) from anywhere outside the GCC require 
import permits from the Ministry of Agriculture.  
3.72.  All imports of live animals and products of animal origin from non-GCC member States must 
be quarantined at the point of entry for a period  of 21 to 30 days depending on the diseases and 
exporting countries in question. Imported animals for slaughter or breeding may be transported to 
their final destinations if all documentation conditions are met, and there is no suspicion of an epizootic or contagious disease.
28 Imported sperm for industrial insemination and foetuses, and 
hen eggs for hatching are also allowed, subject to sampling and testing. 
3.73.  In addition to obtaining a commercial registration (Section 3.1.1), food importers must 
register with the SFDA and specify the food items that they import. All imports of food and animal 
products for human consumption are subject to import permits issued by the SFDA. For imports of 
meat and poultry meat, a Halal Certificate29 and an Islamic slaughter certificate are required for 
each consignment, in addition to other documentation generally required for customs clearance.30  
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 consulted 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 approv al certificate to the establishment in question; 
the approval certificate is valid for five years, an d renewable. The inspection and approval fees are 
borne by the individual establishment. Since 9 Ma rch 2014, the SFDA has begun to delegate to the 
competent authority of the exporting country to ap prove establishments on the list, provided that 
the competent authority of the exporting country signs bilateral minutes with the SFDA and 
                                               
25 Saudi Food and Drug Authority (SFDA) on line information (in Arabic). Viewed at: 
http://www.sfda.gov.sa /ar/Documents/ssfda.pdf .  
26 SFDA online informatio n, "General Standards for Food". Viewed at: 
http://www.sfda.gov.sa/en/food/about/adm inistration/mangement_food/Pages/EDOIFC-
GeneralSpecificationForFood.aspx .  
27 Under the GCC Veterinary Quarantine Law, the term  "animal products" covers fresh, dried, chilled and 
frozen processed, smoked, powdered re d and white meat and fish powder; fresh, dried and concentrated dairy 
and its products; eggs whether for consumption, hatchi ng, or scientific purposes; spermatozoa; foetuses; and 
animal gelatin. 
28 Under this scenario, the supervising veterinarian of  the nearest veterinary ce ntre must be notified 
prior to the arrival of animals for observation. 
29 SFDA online information, "I slamic Centers". Viewed at: 
http://www.sfda.gov.sa/en/food/about/administratio n/mangement_food/Pages/EDOIFC-IslamicCenter.aspx .  
30 SFDA online information, "Food Import Requirements". Viewed at: 
http://www.sfda.gov.sa/en/food/about/administratio n/mangement_food/Pages/EDOIFC-FoodImportReq.aspx .  
31 SFDA online information, "Meat Imported from Approved Establishments". Viewed at: 
http://www.sfda.gov.sa/en/food/about/administration/mangement_food/Pages/Imported-Meat-from-
Approved-Establishments.aspx .  
32 SFDA online information, "Meat and Importing Countries". Viewed at: 
http://www.sfda.gov.sa/en/food/about/administration/mangement_food/Documents/0134_001.pdf .   WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  assures compliance with the GSO standards. The authorities indicated that the delegation to the 
competent authority of the exporting country is a trade facilitating measure, and the measure has 
been notified to the WTO.33  
3.75.  With regard to the maximum residues levels (MRLs) of pesticides, Saudi Arabia adopts the 
Saudi and GCC standards of MRLs. If an MRL does not exist, a reference must be made to the 
Codex Alimentarius  standard; if an MRL is not indicated in the Saudi/GCC/Codex standards, a 
reference may be made to the EU or the US standard, whichever is lower.34  
3.76.  All imports of food are subject to inspec tion at the border inspection posts (BIPs). The 
inspection involves documentary, identity, and ph ysical checks. If needed, the imported food may 
be referred to an authorized laboratory for addition al tests; under this scenario, the import will be 
held indefinitely until the final decision is taken. The authorities indicated that in the case of 
compliance, imported food is usually cleared by customs within one day.  
3.77.  The GCC rapid alert system for food (GRASF) operates to allow food and feed authorities of 
GCC member countries to exchange information on existing direct or indirect risks to consumers' 
health.35 According to the authorities, GRASF functions in a similar way to the Rapid Alert System 
for Food and Feed of the European Union. 
3.78.  Under the GCC Plant Quarantine Law and its Executive Regulations in Saudi Arabia, 
phytosanitary requirements are applied to: plan ts, plant products, beneficial organisms, and 
regulated articles. All plants or plant products contaminated with pests listed in the "approved 
united pest list of the GCC" are prohibited from importation. The list is published on the Ministry of Agriculture portal
36; the Ministry of Agriculture has the authority to amend the list. In addition, all 
types of palm trees and their derivatives (except dates), plants, and products of anaesthetic types, 
or poisonous types37 are prohibited from importation. Furthermore, natural soil and natural organic 
fertilizers may not be imported into Saudi Arabia.38 
3.79.  Importers of plants and plant products are required to apply for import permits issued by 
the Ministry of Agriculture.39 In order to apply for an import permit, importers must provide a 
phytosanitary certificate as well as a country of origin certificate issued by the exporting country. 
Usually, it can take up to three working days to process the request and issue an import permit. 
The authorities indicated that no applications for import permits were rejected during the review period. 
3.80.  All imports of plants and their products must be inspected at the point of entry into Saudi 
Arabia.
40 There are no inspection fees or other trea tment fees imposed on imports of plants and 
plant products, although the Executive Regulation of the GCC Quarantine Law provides for the possibility of such fees. Samples may be taken from suspected consignments and delivered to a 
laboratory for further testing. In practice, it take s two to seven days to complete a lab testing; the 
lab test cost is borne by the authorities, or by the importer, dependent on the imported plant 
species. Depending on the test result, the imports may be subject to quarantine treatments, re-
export, or destruction. 
3.81.  During the period under review, the Organic Agriculture Act was issued.
41 The Department 
for Organic Agriculture, under the Ministry of Agriculture, maintains and updates regularly a 
                                               
33 WTO document G/SPS/N/SAU/93, 28 January 2014. 
34 SFDA online information,  "Circulars". Viewed at: 
http://www.sfda.gov.sa/en/food/circulations/Pages/circulations.aspx .  
35 Gulf Rapid Alert System for Food. Viewed at: http://grasf.sfda.gov.sa/ . 
36 Ministry of Agriculture online portal. Viewed at: www.moa.gov.sa .  
37 For example, khat, marijuana, milkweed, castor bean, oleander, field poppy, and jimson weed were 
banned from being imported into Saudi Arabia. 
38 Article 20, the GCC Plant Quarantine Law; Article 6(2), the Executive Regulations of the GCC Plant 
Quarantine Law in the Kingdom of Saudi Arabia.  
39 Article 15, the GCC Plant Quarantine Law. 
40 For some perishable products or products packaged  in a special condition, inspection and sampling 
may be carried out at the final destination. See Articles 16 and 17, the Executive Regulations of the GCC Plant Quarantine Law in the Kingdom of Saudi Arabia.  
41 Royal Decree No. M/5 of 1435H - 2014G. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  positive list of inputs and their characteristics (including fertilizers, soil conditioner, plant 
protection materials, food additives, etc.) whic h are in compliance with the Act. Agricultural 
products (including fresh and processed products and agricultural production inputs for organic farming activities) that comply with the Saudi organic farming law may be marketed as "organic", 
using a Saudi national logo for organic agricultural products or for organic production inputs. 
Producers of organic products are subject to compliance checks, at least once a year; the compliance checks are carried out by private bodies designated by the Department. Organic 
producers may face removal from the authorization list if severe infringement is found during the 
compliance check. According to the authorities, imported products may also be marketed as "organic" only when they meet the requirements of the law and are approved by the Department. 
3.82.  Imports of GM food must be accompanie d by a certificate issued from the competent 
authority of the exporting country, confirming that the GM food in question is allowed to be 
consumed in the country of origin. Labelling of GM food follows a positive labelling approach, i.e. all ingredients must be indicated in the labels. Under the Council of Ministers Cable No. 7/5/2911 
(dated 16/1/1425H - 7 March 2004), genetically modified dates, seeds, seedlings, and ornamental 
plants are banned from importation to Saudi Arabia.  
3.2  Measures Directly Affecting Exports 
3.2.1  Export procedures and requirements 
3.83.  Registration and documentation requirements for exports, in general, are similar to those 
for imports. Exporters must be registered with th e MCI and food exporters must register with the 
SFDA. Pre-departure declarations for exports must  be submitted to Saudi Customs. According to 
the authorities, all exports are subject to inspection or X-ray scanning.  
3.84.  Exporters must obtain certificates of origin  from the MCI for all their exports. In addition, 
some products under export control are subject to export licensing (Section 3.2.3). For exports of 
food, certificates issued by the SFDA are required. 
3.2.2  Export taxes and duties 3.85.  On 10 September 2013, Saudi Arabia eliminated export duties on hides and skins. According 
to the authorities there are no export taxes. 
3.2.3  Export control 3.2.3.1  Export prohibitions 3.86.  According to Saudi Customs, Saudi Arabia does not maintain any export 
prohibitions/restrictions on any trading partners. 
3.87.  Saudi Arabia maintains export bans on seven categories of products (Table 3.6). Compared 
to the list of export prohibitions in the previous TPR, it appears that exports of wood and of 
antiques items are no longer prohibited.  
Table 3.6 Export prohibitions, 2015  
Product 
Livestock and horses of all kinds (male and female) 
Baby milk of all kinds 
Animal feeds such as barley and Sudanese sorghum 
Poultry feeds such as yellow corn and soya beans 
Natural sand and sand containing minerals 
Gas cylinders with the specifications of the National Gas & Industrial Company (GASCO) 
Zamzam water 
Source: Information provided by the authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.2.3.2  Export licensing 
3.88.  There are 10 categories of goods subject to export licensing requirements (Table 3.7). 
Exports of antiques are no longer prohibited bu t subject to approval (licensing) from the Saudi 
Commission for Tourism and Antiquities. Exports of any wildlife species (animals or plants) and 
their products must be accompanied by a CITES permit from the Saudi Wildlife Authority. Exports 
of crude oil and its derivatives are subject to automatic licensing requirements.  
Table 3.7 Products requiring export licences, 2015 
HS code Description  Licensing authority 
01 01 10 10 Horses, pure-bred Equestrian Club 
01 01 10 20 Horses, pure-bred Equestrian Club 
01 01 90 10 Horses, pure-bred Equestrian Club 
01 01 90 20 Horses, pure-bred Equestrian Club 
10 01 Wheat Grain Silos and Flour Mills Organization 
10 03 00 00 Barley Ministry of Finance  
10 05 90 10 Golden corn Ministry of Finance 
10 05 90 20 White corn Ministry of Finance 
11 01 00 10 Wheat flour Ministry of Finance 
12 01 Soya beans Ministry of Finance 
19 01 10 10 Milk-based infant food Ministry of Finance 
19 01 10 20 Milk-based infant food Ministry of Finance 
25 05 Sand Ministry of Petroleum and Mineral Resources 
25 06 21 10 Sand mixed aggregates Ministry of Petroleum and Mineral Resources 
25 06 21 20 Sand mixed aggregates Ministry of Petroleum and Mineral Resources 
25 15 11 00 Marble Ministry of Petroleum and Mineral Resources 
25 17 Stone mixtures Ministry of Petroleum and Mineral Resources 
25 22 Limestone Ministry of Petroleum and Mineral Resources 
27 09 Crude oil  Ministry of Petroleum and Mineral Resources 
27 10, 
except Naptha  Fuels Ministry of Petroleum and Mineral Resources 
27 11 Gases, including liquefied gases Ministry of Petroleum and Mineral Resources 
27 14 Asphalt Ministry of Petroleum and Mineral Resources 
28 44 Radioactive materials Ministry of Interior  
28 45 Radioactive materials Ministry of Interior 
90 22 19 10 Radioactive materials Ministry of Interior 
90 22 19 90 Radioactive materials Ministry of Interior 
29 03 19 10 
29 03 45 29 03 49 Ozone depleting materials Presidency  of Meteorology and Environment 
30 03 Medicines Saudi Food and Drug Authority  
30 04 Medicines Saudi Food and Drug Authority 
73 11 00 30 Filled gas cylinders Ministry of Petroleum and Mineral Resources 
84 07 90 00 
84 08 80 00 
84 11 
84 12 80 00 84 13 50 00 84 13 60 00 84 13 70 00 84 13 81 00 84 32 84 33 87 01 10 00 87 01 30 00 87 01 90 00 Agricultural machinery Saudi Agricultural Bank 
85 48 10 00 Scraps of batt eries, etc. Presidency of Meteorology and Environment 
Different headings Wild  fauna and flora, and 
products thereof Saudi Wildlife Authority 
Source: Information provided by the authorities. 
3.89.  Exporters must obtain licences from the relevant authorities before submitting export 
declarations. Procedures for export licence applications are similar to those for import licences. There are no licence fees. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.2.4  Export finance, insuranc e, guarantees and assistance 
3.90.  The Saudi Export Programme (SEP) is the official national 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.
42 The authorities 
stated that, based on commercial considerations, the SEP facilitates trade transactions through 
local and foreign banks, and develops its own a ssessment and classification of the political and 
commercial risk of relevant markets. The financing offered by the SEP includes finance (i.e. loans) 
and credit guarantees. According to the authorities, these financial products are made on 
commercial market-based terms. To be eligible for a loan/guarantee the application must show local value added of at least 25%. The SEP may provide loans for up to 100% of the transaction value, if the transaction value is SAR 100,000 or more. The maximum periods for loan repayment 
are: two years for consumable goods and raw materials; seven years for consumable durables and 
semi-capital goods; and 15 years for capital and durable goods or other long-term projects. With regard to guarantees, the SEP offers to cover up to 90% of non-payment risks, including 
commercial and political risks. In 2014, the SEP approved SAR 2.1 billion in its operations, among 
which SAR 1,056 million as loans and SAR 1,071 as guarantees (Table 3.8). 
Table 3.8 Export finance and guarantees, 2012-14 
(SAR million) 
Goods and products 2012 2013 2014 
Finance Guarantees  Finance  Guarantees  Finance Guarantees  
Manufactured metal 
products, machines and equipment 18.75 0.00 11.25 0.00 112.50 0.00 
Chemical and plastic 
products 1,387.50 1,998.00 2,418.75 917.00 0.00 954.00 
Capital projects 0.00 13.05 0.00 6.00 67.50 0.00 
Credit lines 502.50 0.00 431.25 0.00 243.75 0.00 
Other  0.00 54.11 0.00 390.00 632.81 117.00 
Total 1,908.75 2,065.16  2,861.25  1,313  1,056.56 1,071.00  
Source: SAMA (2015), Fifty-First Annual Report . Viewed at : http://www.sama.gov.sa/en-
US/EconomicReports/AnnualRep ort/5600_R_Annual_En_51_Apx.pdf. 
3.91.  In addition to the SEP, the Islamic Corpor ation 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.
43  
3.92.  The Saudi Export Development Authority (Saudi Exports) is an independent national 
authority that provides assistances with the diversification of exports through three strategic themes: enhancing small-and-medium-sized enterprises' export readiness; generating 
opportunities for export-ready businesses; and ad vocating ecosystem efficiency and international 
market access. Saudi Exports provides administrative, technical, and consultative assistance for marketing exports and attracting foreign investors; it also cooperates with trade representatives 
abroad and chambers of industry and commerce to identify best exporting practices, create new 
opportunities for exporters, and im prove the export environment.  
3.2.5  Free zones 3.93.  There is no legislation in Saudi Arabia other than the GCC United Customs Law pertaining to 
the establishment of free zones or free economic zones. The authorities note that no free zones 
have been set up in Saudi Arabia. 
                                               
42 Saudi Export Programme online information. Viewed at: http://www.sep.gov.sa .  
43 ICIEC online information. Viewed at: http://www.iciec.com.  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.3  Measures Affecting Production and Trade 
3.3.1  Taxation and tax incentives 3.3.1.1  Taxation 3.94.  Tax revenue represented about 1.2% of GDP in 2013
44, or about 3.5% of total government 
revenue, while oil revenues represented ab out 87% of total government revenue. 
3.95.  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. Compared to most other countries tax rates 
and the cost of tax compliance are low with an effective total tax rate (including social 
contributions) of 14.5% of profits and 64 hours per year required for compliance.45  
3.96.  Non-nationals are taxed at a rate of 20% on income from self-employment, returns from 
capital investment, and profits from business activities conducted in the Kingdom. Saudi nationals 
and nationals of other members of the GCC are subject to Zakat at 2.5% of net worth. 
3.97.  Employers and employees also make social security contributions at 9% and 11% of gross 
salaries respectively. 
3.3.1.2  Tax incentives 
3.98.  Saudi Arabia allows companies to transfer loss indefinitely in regard to profit tax. 3.99.  Tax concessions are granted to projects in six selected Saudi regions
46 for training and 
recruitment of local labour: 50% deduction from annual training expenses of Saudis, and 50% 
deduction from the annual salaries paid to Saudis, provided the investment capital is not less than SAR 1 million and not less than five Saudis are employed in technical or administrative positions under contracts of not less than one year. In addition, a one-time capital tax credit is granted to 
industrial projects that fulfil certain conditions, including that foreign capital share does not exceed 
15% of the total. 
3.3.2  Non-tax incentives 
3.100.  Saudi Arabia established a Saudi Industrial Development Fund (SIDF) to help diversify its 
industrial base. The SIDF extends loans to eligible Saudi and foreign companies/firms that are registered in the commercial registries. The SIDF loan provides a maximum term of 15 years 
covering up to 50% of the fixed assets, pre-operating expenses and start-up working capital
47; for 
projects in less developed or remote cities, the term may be extended to 20 years and the loan 
may be increased up to 75%.48 According to the authorities, the fees paid to SIDF on loans are 
similar to, and in some cases higher, than the in terest charged by comparable commercial banks. 
Furthermore, the SIDF is required by law to reco ver the principle and loan fees cover commercial 
costs. The SIDF may not finance projects in the sectors that it considers "non-commercially viable".
49 In 2013, the SIDF approved SAR 6,680 million in new loans to a wide range of sectors, 
including consumer products; food and beverage; textiles; furniture; paper products; printing; 
chemicals; oil & gas products; rubber products; plastic products; building materials; ceramic products; glass products; cement; engineered prod ucts; metals; machinery; electrical equipment; 
                                               
44 IMF eLibrary Data from World Revenue Longitudinal Data (WORLD). Viewed at: http://data.imf.org/  
[August 2015]. 
45 World Bank (2015). 
46 The six regions are: Ha'il, Jazan, Najran, Al -Baha, Al-Jouf, and the Northern Territory. 
47 The SIDF does not finance the purchase of used machinery or equipment. 
48 The SIDF online information, "Important  Information for Inve stors". Viewed at: 
http://www.sidf.gov.sa/En/GuidetoIndustrialLoans/Pages/Important-Notices.aspx .  
49 The SIDF online information, "Non-Com mercially Viable Sectors". Viewed at: 
http://www.sidf.gov.sa/En/GuidetoIndus trialLoans/Pages/ClosedSectors.aspx .  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  and transport equipment. When considering cumulati ve values, the chemical sector is the largest 
sector receiving loans.50  
3.101.  The authorities indicate that other financial incentives may be offered by regional 
programmes such as the Arab Fund for Economic  and Social Development (AFESD), the Arab 
Monetary Fund, and the Arab Trade Financing Programme. 
3.102.  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.51  
3.3.3  State trading, state-owne d enterprises, and privatization 
3.103.  Saudi Arabia notified the WTO that it did not maintain any state-tr ading enterprises within 
the meaning of Article XVII of the GATT 1994, an d the Understanding on the Interpretation of 
Article XVII.52  
3.104.  In addition to direct holdings by the Government in some undertakings, government 
agencies such as the Public Investment Fund, the General Organization of Social Insurance 
(GOSI), and the Public Pension Agency have hold ings in a number of businesses (Table 3.9):  
 The Public Investment Fund was established by Royal Decree No. M/24 of 1971 to provide 
financing support to commercial projects that are strategically significant to the economy 
and which the private sector could not implement. The Fund lends to enterprises, takes 
equity holdings, and, for some rail projects, provides complete funding. At end-2011: 
o Total lending was SAR 120.2 billion for petrochemical and petroleum works, iron 
and steel factories, water and electricity projects, rail projects, mining, aircraft, 
and accommodation for pilgrims; 
o Total equity participation was SAR 63.2 billion in 41 national corporations 
(including 10 wholly-owned companies), and SAR 14.9 billion in 27 bilateral and 
pan-Arab corporations; and 
o Complete funding was provided for the North-South Rail Road, and the Harmain 
High Speed Rail with total value of contracts at that date of SAR 14.5 billion and 
SAR 47.2 billion.53 
 GOSI was established to implement the Social Insurance Law issued under Royal Decree 
No. M/22 of 1969 as amended by Royal Decree  No. M/33 of 2000. Its responsibilities 
include managing the investment fund which is invested in real estate and companies in 
Saudi Arabia. At end-2008 GOSI had invested SAR 46.1 billion in 62 companies with a 
total market value estimated at SAR 86.6 billion.54 
 The Public Pension Agency (PPA) was created by Cabinet Decision No. 277 of 2003, taking 
over from the Retirement Pension Directorate as the administrator for civil and military 
services pension schemes. Under Cabinet Decision No. 3 of 2004, the PPA is an independent entity with the Minister of Finance as the Chairman. It was reported that the 
PPA had 32% of its investments in listed equities and 12% in real estate and, at end-2012, 
its holdings in Saudi-listed equities were valued at SAR 41.8 billion.
55  
                                               
50 The SIDF online information, "SID F Lending Activity". Viewed at: 
http://www.sidf.gov.sa/En/Achievements/Pages/AccumulatedLendingActivities.aspx .  
51 WTO documents G/SCM/N/155/SAU; G/SCM/N/186/SAU; and G/SCM/N/220/SAU, 12 April 2012; and 
G/SCM/N/253/SAU, 28 May 2014. 
52 WTO document G/STR/N/13/SAU, 3 October 2011. 
53 Ministry of Finance online information. Viewed at: 
https://www.mof.gov.sa/engli sh/Pages/investment.aspx  [December 2015]. 
54 GOSI (2009). 
55 Sleiman M., Rashad M., and McDowall A. (2014). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Table 3.9 Selected publicly listed comp anies with state investments in 2014 
Enterprise Main 
activities State holding  Total 
assets 
 
SAR mn Operating 
revenue 
 
SAR mn Net 
profit 
 
SAR mn 
Saudi Telecom Telecoms Public Investment Fund 70.00%  
GOSI 7.00% 
Public Pension Agency 6.77% 90,869 45,826 10,959  
Samba Financial Group Finance Public Investment Fund 22.90%  
Public Pension Agency 15.00% 
GOSI 11.70% 217,399 7,385 5,005  
Riyad Ban k Finance Public Investment Fund 21.75%  
GOSI 21.62% 
Public Pension Agency 9.18% 214,589 8,012 4,352  
Saudi Investment Bank Finance Public Pension Agency 17.32%  
GOSI 17.26% 
National Commercial Bank 7.20% 93,626 2,531 1,436  
The National Commercial Ban k Finance Public Investment Fund 44.29%  
Public Pension Fund 10.04% 
GOSI 10.00% 434,878 16,228 8,655  
The Company for Cooperative 
Insurance Insurance Public Pension Agency 23.79%  
GOSI 22.83% 9,939 6,208a 560 
Saudi Electricity Co.  Saudi Government 74.30%  
Saudi Arabian Oil Co. 6.92% 317,908 38,491 3,607  
The National Shipping Co. of 
Saudi Arabia Shipping Public Investment Fund 22.55%  
Saudi Aramco Development Co. 20% 17,123 3,626 534 
Saudi Real Estate Co. Real 
estate Public Investment Fund 64.57%  3,687 241 276  
Saudi Arabian Mining Co. 
(MA'ADEN) Minerals Public Investment Fund 49.99%  
GOSI 7.98% 
Public Pension Agency 7.45% 84,541 10,792 1,357  
Southern Province Cement Co.  Cement Public Investment Fund 37.4%  
GOSI 15.8% 3,890 1,878 1,045  
SABIC  Public Investment Fund 70%  
GOSI 5.7% 340,041 188,123 23,347  
Saudi Arabian Fertilizers Co. Fertilize r SABIC 42.99%  
GOSI 12.20%  4,456 3,174  
Saudi Ground Services Co. Airline 
grounds 
services General Authority of Civil Aviation 
52.5% 
National Aviation Ground Support 
14.70%  2,408 657 
Saudi Airlines Catering Co. Airline 
catering Saudi Arabian Airlines 35.7%  
Strategic Unit for Catering 25.61%  2,136 653  
a Gross premiums. 
Source: Annual reports and GulfBase online information. Viewed at: http://www.gulfbase.com/  
[August 2015]. 
3.105.  In addition to investments through public agencies, the State also directly or indirectly had 
holdings in several other companies. Some of these companies are publicly listed companies, such as the Saudi Electricity Company, while others are wholly owned by the State such as the Saudi 
Railways Organization, Saudi Arabian Airlines, and the Saudi Arabian Oil Co. (Saudi Aramco).  
3.106.  The state-owned Saudi Aramco is a fully integrated, global petroleum and chemicals 
enterprise. Production in 2014 was 3,489 million bbl of crude oil, 11.3 billion standard cubic feet 
per day of gas, and 239.9 million bbl of natural gas liquids. With recoverable reserves of about 
261.1 billion bbl of crude and 294 trillion standard cubic feet of gas, production at 2014 levels 
could continue for many years to come
56 – although reserves of both oil and gas are increasing 
due to new discoveries and better recovery. Saudi Aramco is also important for government 
revenue, as oil revenues accounted for 87.5% of  total revenue in 2014 (down from 92.5% in 
2011).57  
3.107.  In 2015, it was announced that the Supreme Council for Saudi Aramco would be 
reconstituted58 and it is now responsible for "the company's broadest policy and objectives".59 
                                               
56 Saudi Aramco (2015).  
57 Saudi Arabian Monetary Agency (2015), Table 9.6. 
58 El Gamal R., Shamseddine R., and Johnson C. ( 2015); Kerr S., Raval A., and Sheppard D. (2015). 
59 Saudi Aramco online information. Viewed at: 
http://www.saudiaramco.com/en/home/about/governance/leadership-team.html  [August 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  According to the authorities, Saudi Aramco operates on a commercial basis with autonomy for all 
operating decisions in compliance with government  regulations and production limits and policies 
established by the Government. The Government sets oil production limits within the territory of the Kingdom of Saudi Arabia.  
3.108.  Saudi Arabian Airlines (Saudia) is the national flag carrier operating domestic and 
international flights. As a prelude to privatization, the Council of Ministers approved the conversion of business units into companies which are to become independent subsidiaries of a holding 
company. Two of these business units have been pa rtially privatized: the Saudi Airlines Catering 
Company was incorporated in January 2008 and listed in May 2012; and the Saudi Ground Services Company was established in July 2008 and listed in June 2015 (Table 3.9).  
3.109.  The state budget also includes approval for budgetary revenue and expenditure of public 
institutions connected to the state budget. Some of these are commercial or quasi-commercial 
entities, including Saudia, the Saudi Ports Authority, and the Saudi Credit and Savings Bank (Table 3.10).  
Table 3.10 Budget appropriations for se lected public institutions, 2012-15 
(SAR million) 
 2012 2013 2014 2015 Operating 
revenue (year) 
Saudi Ports Authority 1,710.1 1,897.2 1,752.0 1,840.8 .. 
Saudi Arabian Airlines 20,413.0 24,690.0 26,595.0 28,478.0 .. 
Grain Silos and Flour Mills Organization 
(General Organization for Grains since 
December 2015) 1,914.7 2,236.8 2,481.7 2,916.7 1,749.5 (2013) 
Saline Water Conversion Corporation 15,461.3 15,692.6 16,576.1 15,574.8 .. 
Saudi Railways Organization 1,765.4 2,036.3 1,876.0 1,657.1 .. 
Saudi Post 2,277.4 2,524.0 2,859.0 3,156.1 .. 
Saudi Credit & Savings Bank .. 423.4 562.2 597.6 .. 
.. Not available. 
Source: Saudi Arabian Monetary Agency (2015), Fifty-First Annual Report , Table 9.3; and GSFMO Annual 
Report.  
3.110.  The basis for the privatization programme has not changed since the last review.60 
However, the Council of Economic and Development A ffairs, which took over the responsibilities of 
the Supreme Economic Council in early 2015, is no w responsible for overseeing the privatization 
programme and monitoring its implementation. Th e Council of Ministers Resolution No. 219 of 
2002 identified a number of projects for privatization, including water and sanitation facilities, 
desalination, communications, mail services, air transport and related services, airport services, 
ports services, railroads, and management, operation and maintenance of existing highway roads and construction and operation of new ones. Th e Objectives of the Tenth Development Plan 
include: "Finalizing the implementation of the privatization strategy in accordance with a specified 
schedule".
61 Under Decision of the President of the Council of Ministers No. 35 of 27/1/1437H - 
09/11/2015G the Grain Silos and Flour Mills Organization (GSFMO) became the Saudi Grain Organization (SAGO) and approval was given for the establishment of four flour mills (see 
Section 4.2.3    
3.3.4  Competition policy and price controls 3.3.4.1  Competition policy 
3.111.  The laws on competition are set out in the Competition Law
62, Royal Order No. A/292 of 
2005 (which established the Council of Competitio n), and the Implementing Regulations of the 
                                               
60 WTO (2012). 
61 Ministry of Economy and Planning (2014), p. 5. 
62 Royal Decree No. M/25 of 04/05/1425H – 22/06/2004G as amended by Royal Decree No. M/24 of 
11/04/1435H – 30/08/2014G. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Competition Law63. Furthermore, the authorities noted that Islamic law also prohibits a number of 
anti-competitive practices under the general rule requiring fair dealing in all commercial exchanges. In addition, ther e are Regulatory Guidelines
64 which do not have the status of 
legislation but do indicate how the legislation is to be applied by the Council.65,66  
3.112.  The Competition Law applies to firms operating in Saudi Arabia where a firm is defined as 
a "[f]actory, corporation or company owned by na tural or corporate person(s), and all groupings 
practicing commercial, agricultural, industrial or service activities, or selling and purchasing 
commodities or services". It does not apply to state entities or to enterprises which are wholly 
owned by the State. 
3.113.  The Council of Competition, chaired by  the Minister of Commerce and Industry, was 
established by the Competition Law and Royal Or der No. A/292 of 2005 as an independent body to 
implement the law on competition. It is responsible for investigations and prosecutions for 
violations of competition law and examining applications for mergers and acquisitions. 
 Under Article 4, the Law prohibits several activities that cause, or have the effect of 
causing, market distortion, including: 
o Practices, agreements or contracts (whether written or verbal, expressed or 
implied) among currently or potentially competing firms, if the objective or the 
impact is the restriction of commerce or violation of competition; and 
o Any practice by a firm with dominant status (defined as market share of 40% or 
more) which restricts competition, particularly controlling prices, flooding the market, or hampering establishment of competing firms. 
In these cases, the Council may choose not to apply the Law to practices and agreements 
in violation of competition in cases which improve the performance of firms and realize a benefit for the consumer exceeding the effect s of restricting freedom of competition. 
 In addition, under Article 5, the Law prohibits several other practices by firms with 
dominant positions, including below-cost selling, restrictions on supply intended to increase prices, imposing conditions on sales and purchases on other firms, or refusing to 
deal with another firm in order to restrict its entry into the market.  
 Under Article 6 of the Law, firms involved in mergers or acquiring assets, proprietary 
rights, or shares that lead to a dominant position and firms that want to combine management into a joint management which leads to a dominant position (defined as a 
market share of greater than 40%) are obli ged to notify the Council of Competition 
60 days before completing the acquisition. The merger or acquisition may go ahead if the Council responds favourably, or within 60 days if the Council neither rejects nor notifies 
the parties that the deal is under investigation, or with 90 days of notification by the 
Council that the deal is under investigation but without a notification of approval or rejection. 
3.114.  Based on a complaint or on its own initiative, the Council of Competition may undertake an 
investigation into a breach of the Competition Law and make a recommendation to an independent committee. This committee has the jurisdiction to review the case and impose a fine or an order to suspend the activity. The committee is appointed by the Minister for Commerce and Industry and 
made up of representatives of various stakeholders. 
3.115.  Under Royal Decree No. M/24 of 2014, which amended the Competition Law, penalties 
may include fines not exceeding 10% of turnover  or not exceeding SAR 10 million (double for 
                                               
63 Council Resolution Nos. 13/2006 of 25/11/1427H, 35/2008 of 9/9/1429H, and 126 of 4/9/1435H – 
01/07/2014G. 
64 Council Resolution No. 25/2008. 
65 The Competition Law and Regulations are available in English at: 
http://www.ccp.org.sa/go/p.vbhtml?lang=e n-sa&page=internal&id=63&tag=Council+Rules  [October 2015]. 
66 Hatem Abbas Ghazzawi & Co. (2015). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  repeat violations). If violations continue, the Council of Competition may oblige the firms to cease 
the activity or revoke their operating licences. In addition, the offending parties are obliged to refund all gains made as a result of the violation. Decisions by the Council may be appealed to the Board of Grievances within 15 days of notification  of the decision and the Board of Grievances may 
then review the violation and impose any relevant penalty. 
3.116.  From its establishment to end-2014, the Council has delivered 145 decisions (28 in 2014), 
and reviewed 92 reports (11 in 2014) on issues prev iously dealt with. In addition, it has initiated 
50 investigations (14 in 2014) based on complaints or on its own initiative, and received 20 
applications for approval of mergers and acquisitions. The authorities noted that implementation of the Competition Law has been intensified with extra staff engaged, provision for online complaints, and an undertaking to respond promptly after receiving a complaint. 
3.3.4.2  Price controls 
3.117.  The general principle in Saudi Arabia is to let market forces determine prices, although 
some products and services are subject to regulations which set maximum prices (Table 3.11). 
The list of products and services subject to price regulation has not changed since the last 
review.
67 The authorities noted that price regulations are applied on a non-discriminatory basis. 
Table 3.11 Price regulation, 2015 
(SAR) 
1. Goods subject to price regulation 
Item HS Code Current regulated price 
Wheat flour 1101 0010 22 per 45 kg 
Infant milk  400 gm can  29 
Cans > 400 gm 70 per kg 
Cement  ex-factory  12 per 50 kg bag 
consumer price  14 per 50 kg bag 
bulk    240 per tonne 
Barley  40 per 50 kg bag 
Fuel oil 2710 1140 0.06-0.12 per litre 
Petrol 2710 1121 0.60/0.45 per litre 
Diesel 2710 1130-3 0.37 per litre 
Kerosene 2710 1129 0.435 per litre 
Liquefied petroleum gas (LPG)  
(cooking gas) 2711 10 0.72 per litre 
Natural gas liquids  Pursuant to Council of Ministers Resolution No. 
260 
Propane 2711 1200  
Butane 2711 1300  
Natural gasoline 2710 1114  
Asphalt 2714 300 per tonne 
Natural gas (ethane and methane) 2711 11 2.81 MMBTU 
Crude oil (used as fuel) 2709 0.10 per litre 
2. Pharmaceuticals 
Item HS Code Current price controls 
Pharmaceuticals  Chapter 30 Based on several factors including therapeutic 
importance, price of similar products, pharma-
economic studies, price in country of origin, 
price in reference countries, proposed price, 
number of registered generic products, etc. (see 
below) 
                                               
67 WTO (2012), Section 3(3)(ii). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3. Price regulation in services 
Services Current regulated price  
Energy transportation services, including pipeline 
transportation services Tariffs established based on cost of services provided and 
administered in a non-discriminatory manner. Current single 
pipeline tariff: 539 per 1,000 barrels 
Port – general cargo 35 per tonne on part thereof 
Port – vehicles and equipment 35 per tonne or part thereof 
Port – bagged cargo and foodstuff 20 per tonne or part thereof 
Port – bagged cement 10 per tonne or part thereof 
Port – bulk cargo (including bulk handled at the 
cement silos, grains, oils or similar; excluding 
crude oil, gas and liquefied petroleum products) 6 per tonne or part thereof 
Port – exported bulk cement and clinker 3 per tonne or part thereof 
Port – container 20 feet long or less 270 per unit 
Port – container over 20 feet long 415 per unit 
Port – sheep/goat 2 per head 
Port – other livestock 5 per head 
(a) Electricity consumption for household purposes: 
1-2,000 kilowatts per hour/monthly basis 0.05 per kW 
2,001-4,000 kilowatts per hour/monthly basis 0.10 per kW 
4,001-6,000 kilowatts per hour/monthly basis 0.12 per kW  
6,001-7,000 kilowatts per hour/monthly basis 0.15 per kW  
7,001-8,000 kilowatts per hour/monthly basis 0.20 per kW  
8,001-9,000 kilowatts per hour/ monthly basis 0.22 per kW  
9,001-10,000 kilowatts per hour/monthly basis 0.24 per kW  
10,001 and more kilowatts per hour/monthly 
basis 0.26 per kW 
(b) Electricity consumption for governmental purposes: 
1 and more kilowatts per hour/monthly basis 0.26 per kW 
(c) Electricity consumption for commercial purposes: 
1-4,000 kilowatts per hour/monthly basis 0.12 per kW  
4,001-8,000 kilowatts per hour/monthly basis 0.20 per kW  
8,001 and more kilowatts per hour/monthly basis 0.26 per kW  
(d) Electricity consumption for agricultural purposes: 
1-2,000 kilowatts per hour/monthly basis 0.05 per kW 
2,001-5,000 kilowatts per hour/monthly basis 0.10 per kW 
5,001 and more kilowatts per hour/monthly basis 0.12 per kW 
(e) Electricity consumption for industrial purposes in consumption period (October-April): 
1 and more kilowatts per hour/monthly basis 
with contracted load of 1 MWA or less 0.12 per kW 
1 and more kilowatts per hour/monthly basis 
with contracted load of more than 1 MWA 0.14 per kW 
(f) Electricity consumption for industrial purp oses in consumption period (May-September): 
1 and more kilowatts per hour/monthly basis 0.15 per kW 
Source: Information provided by the Saudi authorities. 
3.118.  Under the New Pricing Scheme for pharmaceuticals approved in 01/10/1432H 
(31/08/2011G) by the board of directors of the Sa udi Food and Drug Authority and effective since 
01/01/1433H (27/11/2011G) prices of innovative pharmaceuticals are based on several factors: 
 The therapeutic importance of the product; 
 The price of similar products, if they exist; 
 Pharma-economic studies, if they exist; 
 The ex-factory, wholesale, and retail prices in  the country of origin, in local currency; 
 The proposed CIF, or ex-factory price as proposed by the company; 
 The CIF price in the 30 countries listed in the price list68; and 
 Reference prices, if available. 
                                               
68 Algeria; Australia; Argentina; Bahrain, Kingdo m of; Belgium; Canada; Cy prus; Denmark; Egypt; 
France; Germany; Greece; Hungary; Ireland; Italy; Japa n; Jordan; Korea, Rep. of ; Kuwait, the State of; the 
Netherlands; New Zealand; Oman; Portugal; Lebanon; Sp ain; Sweden; Switzerland; Turkey; the United Arab 
Emirates; and the United Kingdom. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.119.  Taking these factors into account, the Committee for Pricing of Pharmaceutical Products 
may recommend a ceiling price to the Registra tion Committee for Drug Companies which may 
accept or revise the recommendation. Pharmaceutical companies may appeal the price through a letter with supporting scientific justification. Appr oved prices are published by the SFDA and may 
be reviewed. Once the patent period is over, and the first generic product is registered with the 
SFDA, the price of the innovative product is redu ced by 20%. Prices of generic products are based 
on the same factors as innovative products, or, for the first generic the price is set at 65% of the 
innovative product, the second generic product at 90% of the first, the third at 90% of the second, 
the fourth at 90% of the third. The price of the fourth generic is then the ceiling price for subsequent registered generic products. All prices set by the SFDA for innovative products and generic products are ceiling prices.
69,70 
3.3.5  Government procurement 
3.120.  Total government expenditure in Saudi Arabia in 2012 was SAR 873.3 billion, in 2013 SAR 
976 billion, and in 2014 SAR 1,109.9 billion and the budget for 2015 was SAR 860 billion 
(source: SAMA Annual Report). 
3.121.  The official policy objectives for government procurement of efficiency, transparency, non-
discrimination, and fairness remain the same and there have been no changes to the legislative or 
regulatory structure. The basic legislatio n (Table 3.12) has not been amended and.71 According to 
the authorities, Saudi Arabia has a developed regime that governs the structure, process, and transparency of procurement. 
Table 3.12 Legislation on go vernment procurement, 2015 
Title Reference Date 
Government Tenders and Procurement 
Law Royal Decree No. M/58 04/09/1427H - 
27/09/2006G 
Government Tendering and Procurement 
Regulations Resolution of the Council of Ministers 
No. 223 
 
Minister of Justice Circular No. 
13/T/2971 02/09/1427H – 
02/09/2006G 
 
17/09/1427H – 
17/09/2006G 
Implementing Regulations of Government 
Tenders and Procurement Law Minister of Finance Decision No. 362 20/03/1428H – 
10/03/2007G 
GCC Unified Rules on Granting Priority in 
Government Procurements to National 
Products and Products of National Origin Resolution of the Council of Ministers 
No. 139  25/06/1407H – 
24/02/1987G 
 Resolution of the Council of Ministers 
No. 23 17/01/1428H - 
05/02/2007G 
 Resolution of the Council of Ministers 
No. 155 
 09/06/2008G 
Source: WTO document WT/TPR/S/265/Rev.1 and Crowell & Moring (2013), So you want to do business with 
the Saudi Government . Viewed at: https://www.crowell.com/files/ So-You-Want-to-Do-Business-
with-the-Saudi-Government-Crowell-Moring.pdf  [October 2015]. 
3.122.  The Government Tenders and Procurement Law applies to all government authorities, 
ministries, departments, public institutions and public bodies with independent corporate 
personalities, apart from the exceptions set out in the Law itself or in cases where there are provisions on procurement in the legislation relating to the agency. Each government agency is 
responsible for procurement from its own budget and,  in compliance with the Law, each agency is 
required to establish a committee to examine bids  and make recommendations. The final decision 
rests with the Minister or head of the government agency who may delegate this authority for contracts of SAR 3 million or less. However, if the term of the contract is longer than one year and 
the value is SAR 5 million or more, the contract mu st be reviewed and approved by the Ministry of 
Finance (Article 32). 
                                               
69 SFDA (2011). 
70 Khan T.M., Emeka P., Suleiman A.K., Alnutafy F.S., and Aljadhey H. (2015).   
71 WTO (2012), Section 3(2)(vii). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.123.  Under the Law the principal selection proce ss is through public tenders (Article 6) which 
must be announced in the Official Gazette and advertised in local newspapers and on the government agency's website or advertised abroad  for projects for which no domestic supplier or 
contractor is available (Article 7). For projects under SAR 50 million, the request for tenders must 
be advertised for at least 30 days, and for projects of SAR 50 million or more, the request must be 
advertised for at least 60 days (Article 10(5) of the Implementing Regulations). 
3.124.  Direct purchase is permitted for procurement up to SAR 1 million but at least three offers 
must be obtained and, for purchases over SAR 0.5 million, the Minister or head of the agency is 
responsible for selection (Articles 44-45). Other exceptions to selection by public tender are allowed in some cases (Article 47), including: 
 Procurement of weapons, and military equipment and their spare parts may be 
through direct purchase from manufacturers, which are selected by a ministerial 
committee formed by royal decree which makes recommendations to the President of the Council of Ministers; 
 Procurement of consultancy and technical works, studies, setting specifications, plans 
and supervision of their execution, services of accountants, lawyers, and legal advisors. In these cases bids must be sought from five offices lice nsed in Saudi Arabia 
to provide these services; 
 Procurement of spare parts where three specia lists should be invited to submit bids; 
 Procurement of goods, construction works, or  services available only from one source 
may be procured from that source; and 
 Procurement of medical supplies urgently needed in cases of epidemics. 
3.125.  Domestically produced products qualify for a price preference of 10% and products from 
other GCC states a preference of 5%. Furthermore, where a contractor is a foreign company or 
less than 51% Saudi-owned at least 30% of the value of the contract must be sub-contracted to 
wholly Saudi-owned companies.
72  
3.126.  Saudi Arabia is an observer to the WTO Plurilateral Agreement on Government 
Procurement (GPA).73 
3.3.6  Intellectual property rights 3.127.  Intellectual property rights in Saudi Arabia are governed by the: Copyright Law
74 and 
Implementing Regulations75; Law of Patents, Layout-Designs of Integrated Circuits, Plant Varieties 
and Industrial Designs76 and Implementing Regulations77; Trademarks Law78 and Implementing 
Regulations79; Regulations for the Protection of Confidential Commercial Information80; and 
Regulations for Border Procedures.81 
                                               
72 Council of Ministers Resolution No. 124 25/9/1403H - 14/03/1983G, as clarified by Ministry of 
Finance. Circular No. 5767/404 9/11/1404H – 06/08/1984, Minister of Finance Circulars Nos. 3/1742 and 3/174312/3/1406H – 24/11/1985G, and Council of Mini sters Resolution No. 145 dated 7/7/1406H – 
17/03/1986G. 
73 In its WTO accession commitments, Saudi Arabia indicated that it would initiate negotiations for GPA 
membership (see WTO document WT/ACC/SAU/61, 1 November 2005, paragraph 231). 
74 Royal Decree No. M/41, 2/7/1424H (30 August 2003), published in Official Gazette No. 3959, 
19 September 2003. 
75 Ministerial Decision No. 1688/1, 10/4/1425H (29 May 2004), published in Official Gazette, June 2004; 
entry into force 2 August 2004. 
76 Royal Decree No. M/27, 17 July 2004, published in  Official Gazette No. 4004, 6 August 2004; and 
entry into force 6 September 2004. 
77 Ministerial Decision No. 118828/10, 14/11/1425H (26 December 2004) and entry into force on the 
same date. 
78 Royal Decree No. M/21, 7 August 2002. 
79 Ministerial Order No. 1723, 4 October 2002. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.128.  As part of its WTO accession protocol, Saudi Arabia committed itself to the full 
implementation of the WTO TRIPS Agreement. Th e Saudi intellectual property legislation was 
reviewed by the WTO TRIPS Council in February 2007.82 
3.129.  The government institutions responsible for intellectual property matters are: the Ministry 
of Commerce and Industry (MCI) for trademarks (Trademarks Office) and for the protection of 
confidential commercial information; the King Abdulaziz City for Science and Technology (KACST) (Saudi Patent Office) for patents, industrial designs, layout-designs of integrated circuits, and plant 
varieties; the Ministry of Culture and Information for copyrights; the Customs Department for 
border measures; and the Board of Grievances for judicial rulings.  
3.130.  Saudi Arabia is a party to: the Convention Establishing the World Intellectual Property 
Organization (WIPO) (22 May 1982); the Berne Co nvention for the Protection of Literary and 
Artistic Works (11 March 2004); the Paris Convention  for the Protection of Industrial Property 
(11 March 2004); the Universal Copyright Convention (13 April 1994); the Arab Regional Copyright and Related Rights Agreement (22 De cember 1985); and the GCC amended Patent Law 
(29 August 2001). Saudi Arabia joined the Patent Cooperation Treaty and the Patent Law Treaty in 
August 2013. 
3.131.  Innovation and technology development are central to the National Science, Technology 
and Innovation Plan (NSTIP) which is implemen ted 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.
83 
3.132.  According to WIPO statistics, IP activity in Saudi Arabia has been increasing for several 
years in both absolute numbers and in terms of  its ranking among WIPO members: in 2000 there 
were 94 patent applications by residents; wh ile in 2013 there were 492 applications. Over the 
1999-2013 period, 42% of patent applications were  for chemistry and chemical engineering. Since 
2006, applications for patents have continued to in crease. However, there were no applications in 
Saudi Arabia for registration of utility models or trademarks (Table 3.13). 
Table 3.13 IP applications, grants, and registrations in Saudi Arabia, 2006-14 
  2006  2007  2008  2009  2010  2011  2012  2013  2014  
Patents 
Resident  Applications  118 128  222  224  325  358  409  492  652 
 Grants  7  17  23 22 40  39  21  37  49 
Non-resident  Applications  414  642  663 552 606  629  652 449  135 
 Grants  137  240  278 248 278  309  191 196  512 
Abroad  Applications  42  38  37  34  34  34  25  25  .. 
 Grants  52  54  52  47  39  40  35  31  .. 
Utility models  
Abroad  Applications  ..  1  .. .. 1  5  .. 3  .. 
Trademarks  
Abroad  Applications  1,024  2,070  1,596  1,697  2,085  2,439  2,347  3,534  .. 
 Registrations  64  63  59  58  59  58  60  58  .. 
                                                                                                                                               
80 Council of Ministers Decision No. 50, 25/2/1426H (4 April 2005). 
81 Ministerial Decision No. 1277, 15/5/1425H (3 July 2004). 
82 WTO document IP/Q-Q4/SAU/1, 16 March 2007. 
83 Alsodais S. (2013). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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    2006  2007  2008  2009  2010  2011  2012  2013  2014  
Industrial designs  
Resident  Applications  97 225 132 209 170 269  143 153  236 
 Registrations  87 117 62 76 37  210  198 51  237 
Non-resident  Applications  159 234 222 287 333 483  517 539  444 
 Registrations  152 230 220 256 232  464  433 261  794 
Abroad  Applications  1  36  46  - 5  5  180  62  .. 
 Registrations  1  99  96  45  4  7  174  82  .. 
International applications via WIPO administered treaties  
PCT System   54  45  61  70  82  147  286  187  .. 
Madrid System   .. 1  2  3  1  .. .. .. .. 
Hague System   ..  .. .. .. .. .. .. .. .. 
.. Not available. 
Source: Information provided by authorities. 
3.3.6.1  Patents 
3.133.  During the period under review, the Saudi Patent Office has been working on changes to 
the Implementing Regulations of the Law of Patent s, Layout-Designs of Integrated Circuits, Plant 
Varieties, and Industrial Designs that harmonize the patent legislation in Saudi Arabia with the PLT 
and PCT. These changes were notified in the official gazette on 20 November 2015 and came into 
effect in December 2015. Under the provisions of the Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and Industrial Designs, patents are granted for 20 years (not 
renewable) from the date of filing the application with the Saudi Patent Office.
84 Patents are 
granted for inventions in all fields of technology and innovative ideas that could be manufactured and are not contradictory to the provisions of Islamic Law or the rules of conduct. However, as per Article 45 of the Law; the following are not considered inventions: discoveries, scientific theories, 
and mathematical methods; schemes, rules, and methods of conducting commercial activities, 
exercising pure mental activities or playing a game; plants, animals and processes – which are mostly biological – used for the production of plants or animals, with the exception of micro-
organisms, non-biological and microbiology processes; or methods of surgical or therapeutic 
treatment of human or animal bodies and methods of diagnosis applied to human or animal bodies 
with the exception of products used in any of these methods.  
3.134.  Compulsory licences for a patented invention may be granted by the Saudi Patent Office. 
However, the applicant for a compulsory licence needs to prove the ability to use the invention 
industrially, and needs to provide fair compensation to the patent holder.
85 The licence is not 
exclusive and is granted so as to meet the de mands of the local market. In addition, the GCC 
Unified Law on Patents (Article 19) requires that at least three years have elapsed after the 
granting of the patent; that the applicant proves that efforts were made to obtain a licence from the patent owner; and adequate compensation under  fair terms. Furthermore, consensus of all six 
GCC countries is necessary for granting a compulsory licence.  
3.3.6.2  Copyrights and related rights 3.135.  There have been no changes to the copyright legislation in Saudi Arabia since 2003. Under 
the provisions of the Copyright Law, copyright prot ection is granted for the author's lifetime plus 
50 years. It covers works of art expressed in writing, sound, drawing, photography or motion pictures, and computer software, as well as all intellectual works whether literary, scientific or 
artistic of any type, as far as their distribution is allowed in Saudi Arabia.
86 The related rights 
covered concern performers, producers of sound recordings, and broadcasting organizations. Saudi 
                                               
84 Patents are subject to various fees, including an application filing fee (SAR 800) and annual fees 
(ranging from SAR 500 in the first year to SAR 10,000 in the 20th year). These fees ar e for establishments; 
fees for individuals are half these amounts.  
85 A grant of a compulsory licence costs SAR 8,000 for a company (SAR 4,000 for an individual) . 
86 The copyright legislation gives authors and their succ essors in title the right to authorize or prohibit 
the commercial rental to the public of originals or co pies of their copyright works within the limits allowed 
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  Arabia has no copyright registration procedur es and follows the provisions of the Berne 
Convention. Additionally, parallel imports of copyrighted materials are prohibited in Saudi Arabia.87  
3.3.6.3  Trademarks 3.136.  Trademark legislation has remained unc hanged during the review period. Under the 
Trademarks Law, protection is granted for ten years, and is renewable indefinitely for periods of 
ten years at a time. Exclusive rights are granted upon registration.
88 Furthermore, protection of 
well-known marks is assured in Saudi Arabia even if they are not registered. Under the provisions 
of the Law, registration can be rescinded for trademarks that have not been used for five 
consecutive years, unless the owner submits an acceptable justification.  
3.137.  The owner of a registered trademark has the sole right to produce, import or distribute the 
trademarked goods or service and the right to pr event any other person from using the trademark 
without permission. A separate application needs to  be filed with respect to each trademark for 
goods or services. Trademarks are not granted for alcoholic products, or for retail and wholesale services. The Trademarks Law includes 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. The Trademar ks Law provides for the right of appeal within 
30 days before the Board of Grievances against decisions by the Ministry of Commerce and 
Industry.
89  
3.3.6.4  Layout-designs (topographies) of in tegrated circuits, industrial designs, and 
plant varieties 
3.138.  The Law of Patents, Layout-Designs of In tegrated Circuits, Plant Varieties and Industrial 
Designs is being amended. The change in regulation s has been notified in the Official Gazette of 
20 November 2015 and the changes are expected to come into force in December 2015. Under the 
Law, protection of integrated circuits and industrial designs is granted for ten years from the date 
of filing the application with th e Industrial Property Directorate.90 The Law requires that the design 
must be new, have specific features, and not be contrary to Islamic law. The Law also provides for 
the right to issue a compulsory licence for integrated circuits, industrial designs, and plant 
varieties. Plant varieties are entitled to protection  if they are new, distinct, uniform, stable and 
subject to denomination. Protection is for 20 years (25 for trees) from the date of filing the application with the Saudi Patent Office.
91  
3.3.6.5  Enforcement 
3.139.  All intellectual property rights laws in Saudi Arabia contain enforcement provisions. 
Additionally, the Law of the Board of Grievances (the administrative judiciary of Saudi Arabia), the 
Rules and Procedures of the Board of Grievances, and the Border Measures Regulations related to 
IPR contain provisions regarding enforcement. The laws also provide for recourse to the Board of Grievances to contest the decisions of the administrative bodies.
92 
                                               
87 WTO document WT/ACC/SAU/61, 1 November 2005. 
88 Trademarks, including service marks, are subjec t to the following fees: application (SAR 1,000); 
registration (SAR 3,000); renewal of registration (SAR 3,000); changes to  the registration (SAR 1,000); and 
delayed renewal (SAR 1,000). 
89 The Trademarks Law also incorporates the right of third parties to file a complaint before the Board 
of Grievances against the registrati on or deletion of a trademark. 
90 Protection for layout-designs of in tegrated circuits is subject to fees , including an application fee (SAR 
1,000) and annual fees (ranging from SAR 1,000 in the first year to SAR 5,500 in the tenth year). The 
corresponding fees for industrial designs are: application filing fees (SAR 300) and annual fees ranging from SAR 300 in the first year to SAR 1,500 in the tenth year . These fees are for establ ishments; individuals pay 
half of these amounts. 
91 Fees for plant varieties include an application filing fee (SAR 1, 000) and annual fees (ranging from 
SAR 1,000 in the first year to SAR 5,500 in the 20th year). 
92 Administrative and judicial decisions are required to be in writing and well-reasoned. According to 
the authorities, fines and imprisonment are imposed based on the circumstances of each case, the gravity of the offence in each case, and ensuring  a deterrent effect. A righ ts-holder who is not satisfied with the level of 
 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  3.140.  With regards to patents, layout-designs of integrated circuits, plant varieties, and industrial 
designs, the Committee for Examining Patents on Inve ntions Lawsuits is in charge of enforcing the 
law and its implementing regulations. At the request of the rights holder, the Committee grants an injunction to prevent the infringement, in additi on to the necessary damages, and may impose a 
fine not exceeding SAR 100,000 (which may be doubled in case of repetition).
93  
3.141.  With respect to the enforcement of copyri ghts, the Law sets out a three-step procedure: 
provisional seizure; confiscation; and destruction and imposition of penalties if the goods are found 
to violate the Copyrights Law as deemed by th e Violation Review Committee of the Ministry 
Culture and Information, which is responsible for enforcement of the Law. Under the provisions of the Law, copyright violators are subject to: imprisonment for up to six months (which may be doubled for repeat offences), a maximum fine of SAR 250,000 (which may be doubled for repeat 
offences), closing the establishment, and confiscati on of all copies of the work. According to the 
authorities, most cases of copyright infringement relate to DVDs and CDs.  
3.142.  On trademarks, the Ministry of Commerce and Industry addresses any possible violations 
and if deemed appropriate, conducts an immediate investigation. The Bureau of Investigations and 
Public Prosecution initiates a penal action before the Board of Grievances, while the Customs Department applies border procedures against impo rts of counterfeit goods. Under the Trademarks 
Law, criminal actions include imprisonment for a term not exceeding one year and/or a maximum 
fine of SAR 1 million (penalties may be  doubled in the case of recurrence).  
3.143.  Additionally, judicial and administrative bodies are permitted to issue provisional seizure 
orders. Moreover, customs authorities, in coordina tion with the MCI and the Ministry of Culture 
and Information, may seize consignments infringing IPRs. So as to improve IPR enforcement 
particularly at the border, Saudi Customs 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.  
                                                                                                                                               
fine or imprisonment has the right to file an appeal to  the Board of Grievances to increase the fine and/or 
prison term.  
93 If the Committee believes that the infringement warrants imprisonment, the infringer is referred, 
from the start, to the Board of Grievances; the Committ ee may take measures necessary to prevent damage 
resulting from the infringement. 
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  4  TRADE POLICIES BY SECTOR 
4.1  Overview  4.1.  This section covers the following sectors in some detail: agriculture; energy and mining; 
construction; financial services; transport; and tourism. 
4.2.  There have not been any major changes to agricultural policy over the 2011-2015 period as 
the Eighth, Ninth, and Tenth Development Plans have maintained the general objectives improving the use of water and rationalizing production and export of water-intensive products. As a result, 
the Grain Silos and Flour Mills Organization (GSFMO), now the Saudi Grain Organization (SAGO), 
reduced its purchases of domestically produced wheat with the last purchases taking place in 2015. Saudi Arabia continues to provide subsidies for feedstuffs but the overall level of Amber Box support to agriculture is lower than its peak in 2008. Green Box support has declined since 2010 
as spending on infrastructure services fell. In late-2015, the GSFMO was replaced by the SAGO. 
The Government's intention is to separate the flour milling operations from the SAGO into four corporate units. 
4.3.  Saudi Arabia is a world leader in terms of oil reserves, production, export, and refining 
capacity. Apart from the Saudi Arabia-Kuwait Divided Zone, the state-owned Saudi Aramco is the sole extractor of crude while refineries and gas plants are operated as joint-ventures. Saudi 
Aramco has autonomy for all operating decisions while the Government sets limits for production 
of oil within the Kingdom. The Electricity and Cogeneration Regulatory Authority is regulator for the electricity and water desalination industry and the majority state-owned Saudi Electricity Company is the main operator engaged in ge neration, transmission, and distribution. The 
Government is currently implementing a plan for comprehensive market reform in five stages 
starting with unbundling of SEC into four generation companies, a transmission company, and a distribution company. 
4.4.  The construction sector represents 5.4% of GDP and 3% of total employment, although the 
majority of construction workers are not Saudi nationals. In the 2010-2014 period, the construction sector expanded due to a large number of major investment projects, including the 
construction of a number of economic cities where development is being regulated by the 
Economic Cities Authority and supported by incentives. 
4.5.  The banks and insurance sector are regulate d by the Saudi Arabia Monetary Agency (SAMA) 
and capital markets are regulated by the Capi tal Markets Authority (CMA). There are 12 
commercially licensed domestic banks and 12 licen sed commercial bank branches of foreign banks 
operating in Saudi Arabia. To get a banking licence, a natural or legal person must be a Saudi national or a joint venture with a public Saudi joint-stock company and meet prudential criteria. In 
the 2010-2014 period the level of non-performing loans declined, and other prudential indicators 
suggest the banking sector is stable. Islamic banking is growing in importance with four banks completely Shariah compliant and others offering Shariah compliant products. Each bank assesses 
compliance with Shariah for its own products.  
4.6.  The insurance sector continued to grow in the 2010-2014 period as gross written premiums 
more than doubled to SAR 30.5 billion as many businesses started or improved health insurance 
for employees and third-party insurance for motorists became compulsory. There are about 
35 insurance companies operating. The sector is based on licensed public joint-stock insurance 
companies operating in a cooperative manner, and is Shariah compliant. Foreign insurance companies may establish a commercial presence, but it must be in the form of a locally 
incorporated cooperative insurance joint-stock company, or as an established direct branch of an 
international insurance company operating in Saudi Arabia as a cooperative insurance provider. Non-Saudi investment in such a joint-stock company in Saudi Arabia is permitted up to 60%. 
4.7.  The Saudi stock exchange, Tadawal, is the largest in the GCC: in 2014 70 billion shares were 
traded; at end-2014 market capitalization reached SAR 1,813 billion; and in 2014 the value of Sukuk (deeds and financial certificates) and bonds traded was SAR 25.5 billion. Direct trading in shares is restricted to Saudi citizens, foreign residents, and GCC nationals, but there are no 
restrictions on investment by non-resident foreign investors in government bonds, treasury bills or 
Saudi investments funds, ETFs, and swap agreem ents. Non-GCC nationals that hold shares of WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  public joint-stock companies traded in the equity share market must obtain permission from the 
CMA prior to buying or selling their shares. The CMA has also permitted the trading of Sukuk in order to promote a market in instruments less exposed to risk than ordinary equities. Furthermore, since 15 June 2015, qualified foreign investors were allowed to invest in listed 
shares. 
4.8.  Saudi Arabia has signed 28 bilateral air services agreements, 12 of which cover fifth freedom 
rights. Domestic air transport and cabotage are not open to foreign companies. The regulator, the 
General Authority of Civil Aviation (GACA), is the owner and operator of all airports although GACA 
signed a public-private-partnership contract with an international consortium for the construction and operation of the New Prince Muhammad bin Abdulaziz International Airport. The state-owned Saudia is the flag carrier and the main operator for passenger and freight air transport, and holds 
one of the two licences for ground-handling services; the other is held by SwissPort. 
4.9.  In 2014, the National Shipping Company of Saudi Arabia (Bahri) merged with Vela 
International Maritime Limited and, at end-2015, had a fleet of 69 vessels, including 32 VLCCs. 
Bahri is the exclusive supplier of VLCC shipping to Saudi Aramco. Bahri is a publically listed 
company, 20% owned by the Saudi Aramco Development Company and 22% by the Public Investment Fund. Except for the port in King Abdullah Economic City, all ports are owned by the 
Kingdom of Saudi Arabia Ports Authority (SEAPA) but managed and operated by the private sector. 
The port in King Abdullah Economic City is ow ned and being developed by the Port Development 
Company, a joint venture between a Saudi and UAE company and regulated by the Economic Cities Authority. 
4.10.  Religious tourism is important to the Saudi economy; of nearly 14.5 million visitors in 2014, 
over 11 million were pilgrims who came to perfor m Hajj and Umrah. Including direct and indirect 
tourism-related contributions, the sector a ccounted for 4.5% of GDP and 11% of total 
employment. However, the authorities stated that the Government does not gain any income from 
pilgrims, rather it provides for them through infrastructure investments and services provisions. Foreign investment is prohibited for tourist orientation and guidance services related to Hajj and 
Umrah. Business-related tourism, such as exhibiti ons and conferences, are officially encouraged 
but Saudi Arabia does not provide for visas for tourism only, although it does have an Umrah Plus Programme to allow pilgrims an additional 30 days to travel in the country.  
4.11.  Communications is not covered in this sect ion of the review. Over the review period there 
have not been any major changes to the legislation, regulation, or the telecommunications market. 
However, the authorities indicated that revisions to the Telecommunications Act
1 were under 
consideration to take account of changes in technology. The regulator is the Communications and 
Information Technology Commission. Broadband penetration is one of the highest in the world, 
with 95% population penetration for mobile and 43% household penetration for fixed broadband (which is currently undergoing a switch in tech nology from ADSL to FTTH). Telecom services 
revenues were SAR 68.2 billion in 2014.
2 There are three mobile network operators (STC, Mobily, 
and Zain) and two mobile virtual network operators (Virgin Mobile, and Lebara).  
4.12.  Policies relating to manufacturing are set out in various other sections of the review, 
including Sections 2.5 and 3.1. The manufacturing sector contributed 10.9% to GDP (of which 
2.5% was from petroleum refining) and accounted  for 7.2% of total employment in 2014. The 
sector grew strongly in the 2011-2014 period, aver aging over 8.5% per year, almost entirely due 
to growth outside petroleum refining. The growth in manufacturing is in line with government 
policies, through the Development Plans and the National Industrial Strategy Until 1441H (2020G)3 
which emphasize diversification of the industrial and economic base to protect the national economy from fluctuations in oil prices and revenues to achieve balanced growth.
4 The Saudi 
Arabia General Investment Authority is responsible for policy on investment. The Saudi Industrial 
Development Fund (SIDF) contributes to the develo pment of Saudi industry by providing loans for 
new industrial projects (Section 3.3.2). In additi on, the Saudi Arabian Basic Industries Corporation 
                                               
1 Royal Decree No. M712 of 12.03.1422H – 03.06.2001G . 
2 Communications and Information Technology Commission (2015). 
3 Council of Ministers Resolution No. 35 of 07.02.1430H – 02.02.2009G. 
4 Saudi Industrial Deve lopment Fund online in formation. Viewed at: 
http://www.sidf.gov.sa/en/IndustryinSaud iArabia/Pages/IndustrialStrategy.aspx  [December 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  (SABIC), Saudi Arabia Industrial Property Authority (MODON) and other entities are actively 
involved in the promotion of investment in Saudi Arabia. Private investment companies, such as the National Industrialization Company, Saudi Venture Capital Group, Saudi Industrial Development Company, Royal Commission for Jubail and Yanbu, and Arriyadh Development 
Authority, are also involved in investment promotion in industrial cities and other regions. 
4.2  Agriculture 4.2.1  Features 
4.13.  Agriculture, forestry, and fishing contributed nearly SAR 54 billion, or 1.9%, to GDP in Saudi 
Arabia in 2014. Although agriculture GDP increased in nominal and real terms from 2009 to 2014, its contribution to GDP declined from 2.8% in 2009 to 1.9% in 2014. Agriculture, animal husbandry, and fishing account for about 4% of total employment. 
4.14.  Agricultural production in Saudi Arabia faces several challenges related to the harsh desert 
climate, very limited water resources, and poor quality soils. Historically, production was limited to dates and small-scale production for subsistence and nomadic livestock. Under government 
programmes that began in the 1970s: irrigation, tran sport, and storage facilities were constructed; 
research and training programmes were starte d; and land was allocated to farmers.  
4.15.  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 plans 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. Furthermore the crop mix has changed as the area under grain production has declined 
by an average of over 18% per year from 2008  to 2013 while production of green fodder and 
dates increased (Saudi Arabia is the third biggest producer of dates in the world
5) (Table 4.1).  
Table 4.1 Crop production, 2008-13 
(Production in '000 tonnes, area in '000 ha) 
2008 2009  2010  2011  2012 2013  
Wheat Production 1,986 1,152  1,349  1,185  854  660  
Area 326 196  220  193 144  103  
Barley Production 24 20  16  16 14  11  
Area 4 4  2  2 2  2  
Total grains  Production 2,438 1,593  1,571  1,418  1,088  885  
Area 469 329  287  260 212  166  
Total vegetables Production 2,696 2,676  2,521  2,647  2,651  2,731  
Area 109 107  109  111  110  106  
Dates Production 986 992  992  1,008  1,031  1,095  
Area 157 162  155  156  157  157  
Total fruits Production 1,616 1,619  1,549  1,609  1,640  1,689  
Area 233 239  226  229  228  227  
Green fodders Production 2,984 2,974  3,603  3,651  3,919  3,978  
Area 161 160  184  187  195  196  
Total crops Production 9,734 8,862  9,244  9,325  8,211  9,283  
Area 972 835  807  787  746  695  
Source: Saudi authorities. 
4.16.  In 2009-13, production of some livestock products increased considerably, particularly eggs 
and poultry. Although total production of red meat (beef, sheep meat, goat meat, and camel 
meat) remained stable in this period, there were slight increases in the numbers of camels, cows, 
and sheep but a decline in the number of goats (Table 4.2). 
                                               
5 FAO Stat online database. Viewed at: http://faostat3.fao.org  [June 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Table 4.2 Livestock and animal products, 2008-13 
  2008 2009 2010 2011 2012 2013 
Livestock numbers (thousand head) 
 Camels 242 230  213  220  223  233  
 Cows 386 424  393  426  487  456  
 Sheep 6,974 5,886  5,922  6,563  6,250  5,988  
 Goats 1,872 1,334  1,058  1,069  1,075  1,036  
 Poultry 443,820 493,202  444,680  527,717  585,910  602,251  
Animal products (thousand tonnes) 
 Red meat 170 171  172  171 173 174  
 Milk 1,690 1,718 1,763  1,838  1,872  1,943  
 Eggs 170 191  219  220  220  240  
 Poultry 459 494  447  529  588  604  
Source: Saudi authorities. 
4.2.2  Trade 
4.17.  With domestic production limited to relatively few products and with a surplus of production 
over consumption only in milk and dates, Saudi Arabia is a net importer of agricultural products 
(WTO definition6). Exports of agricultural products fell to US$0.6 billion in 2008 but recovered 
quickly to stabilize at about US$3.6 billion in 2012. The main exports are fruit juices, and products 
made from cereals and milk (Table 4.3). Dates have been a traditional export, although the value 
and volume has fluctuated considerably. The main destination for exports is other Arab countries, particularly other GCC member States. 
Table 4.3 Exports of agri cultural products, 2007-14 
(US$ million) 
HS   2007 2008 2009 2010 2011 2012 2013 2014 
 Total exports 233,174  313,462  192,314  251,143  364,698  388,401  375,873 342,432 
  Total agriculture 
exports 2,135 642  966  2,996  3,481  3,577  3,509  3,575 
2009 Fruit juices and vegetable 
juices 185  109  140  274  294  341  395  444 
1905 Bread, pastry, cakes, 
biscuits and other bakers' 
wares 107  ..  135  211  239  313  357 344 
0406 Cheese and curd 165  187  225  330  357  311  311  335 
0402 Milk and cream, 
concentrated or 
containing added sugar 139  16  60  140  134  171  180 225 
0401 Milk and cream, not 
concentrated nor containing added sugar 101  .. 
 ..  169  189  224  246  223 
2202 Waters with added sugar 159  32  33  147  172  193  214 222 
1701 Cane or beet sugar and 
pure sucrose, in solid form 260  148 
 115  263  278  271  196  195 
1902 Pasta, whether or not 
cooked or stuffed 45  ..  ..  79  96  121  123 178 
0804 Dates, figs, pineapples, 
avocados and mangosteens, fresh or 
dried 42  .. 2 
 79  89  83  107  135 
0403 Buttermilk, curdled milk 
and cream or yogurt 121  80  92  156  235  227  261  121 
.. Zero or negligible. 
Source: UNSD Comtrade and Saudi authorities. 
4.18.  Imports of agricultural products fell in 2009  but then increased steadily from US$10.6 billion 
in 2009 to US$24.4 billion in 2014. (Table 4.4). The most important import is barley for animal feed, mostly from Argentina, Germany, Ukraine, Australia, and the Russian Federation. After 
barley, poultry meat (mostly from Brazil and France), and rice (mostly from India) are the next 
                                               
6 For the purposes of this section of the Trade Policy Report, the definition of agriculture product used is 
that set out in Annex 1 of the Agreement on Agriculture where fish and fish products are taken to include HS Headings 020840, 03, 051191, 1504, 1603, 1604, 1605, and 230120. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  biggest imports. Imports of wheat have increase d in tandem with the reduction in domestic 
production and an increase in the strategic reserve, from negligible levels in 2007 to US$1.02 billion in 2014 (mostly from Germany, Australia, and Lithuania). 
Table 4.4 Imports of agri cultural products, 2007-14 
(US$ million) 
HS  2007 2008  2009  2010  2011  2012 2013  2014  
 Total imports 90,214  115,134  95,552  106,863  131,587  155,593  168,155  173,834  
  Total agricultural 
imports 11,780  12,360  10,601  16,582  19,618  21,148  24,090  24,434  
1003 Barley 2,142  2,919  1,259  1,917  1,959  2,514  3,250  1,993  
1006 Rice 626  1,495  1,373  1,310  1,125  1,084  1,387  1,769  
0207 Meat and edible offal, of 
the poultry  727  1,054  1,067  1,305  1,827  1,757  2,028  1,709  
0402 Milk and cream, 
concentrated or 
containing added sugar 677  684  422  636  876  905  878  1,138  
2106 Food preparations not 
elsewhere specified or 
included 448  319  336  717  846  1,021  1,052  1,093  
2402 Cigars, cheroots, 
cigarillos and cigarettes 474  442  514  669  772  880  958  1,044  
1001 Wheat and meslin 1  50  373  400  641  743  720  1,024  
0104 Live sheep and goats.  497  414  396  522  577  677  825  861 
1701 Cane or beet sugar and 
pure sucrose, in solid form 394  505 
 513  899  873  565  904  681 
1005 Maize (corn) 466  579  378  471  611  629  686  681 
Source: UNSD Comtrade and Saudi authorities. 
4.2.3  Policies 
4.19.  The Ministry of Agriculture is responsibl e for developing and implementing agricultural 
policy. In addition to the Ministry, the Agricult ural Development Fund (ADF) (formerly the Saudi 
Arabia Agricultural Bank (SAAB)) provides low in terest loans and loan repayment subsidies, and 
the Saudi Grain Organization (SAGO) (which replaced the Grain Silos and Flourmills Organization (GSFMO) in November 2015) purchases and stores wheat, mills wheat for human consumption, 
and is responsible for the strategic stockpile of 6 months' consumption. It also produces wheat-
based animal feeds. 
4.20.  Historically, agriculture in Saudi Arabia had focused on small-scale production of vegetables 
and fruits and nomadic stock raising. Starting in the 1970s, government programmes to develop 
the sector and significant investment in infrastructure, particularly irrigation, increased production and, by 1992, Saudi Arabia had become a major exporter of wheat with 2.4 million tonnes exported in that year.
7 However, production at this level required high levels of inputs, particularly 
water, much of which was from non-renewing aquifers.  
4.21.  Under the Eighth Development Plan (2005-2 009), and the Council of Ministers Resolution 
No. 335 of November 2007, agricultural policy underwent a marked reform away from 
emphasizing domestic production and the pursuit of self-sufficiency in several key products 
towards greater emphasis on sustainable production, particularly more efficient use of water. To improve food security, the Government also began to encourage investment in agriculture abroad 
through the King Abdullah Agricultural Initiative. 
4.22.  Under the general policy of economic diversification in the Ninth Development Plan 
(2010-2014), the overall objective for agriculture policy is "modern agriculture that focuses on high value added, used advanced water saving techniques, and which improves efficiency of 
natural resource utilization". The objective is based on the vision of putting the sector on a path to 
sustainable development, promoting scientific research for high-yielding salinity-resistant varieties, and diversifying the production base of the ec onomy through water-efficient crops. The plan 
includes five specific objectives: 
                                               
7 UNSD Comtrade database. Viewed at: http://comtrade.un.org/data/  [July 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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   Enhance the role of agriculture in the process of socio-economic development;  
 Improve efficiency of utilization of natural resources to achieve sustainable agricultural 
development;  
 Increase the size of investments in agricultural activities abroad;  
 Boost regional and international cooperation in agriculture; and  
 Maintain, develop and diversify fisheries resources. 
4.23.  To achieve these objectives and targets, the Ninth Development Plan includes programmes 
to increase production of water-efficient crops; improve agricultural markets; improve farm 
extension services, and research and development; and improve 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 amounts were for food security. 
4.2.3.1  Trade policies 4.24.  According to the notifications to the WTO Committee on Agriculture, Saudi Arabia does not 
provide export subsidies for agricultural products.
9  
4.25.  Bound tariffs on agricultural  goods vary from as low as 5% to as high as 20% – with some 
tobacco-related lines at 200%. Imports of some products are prohibited (any product containing 
alcohol, and pig products). Applied tariffs vary from duty free to 100% with some compound tariffs 
for tobacco products (Section 3.1.4). 
4.2.3.2  Domestic policies 4.26.  Lack of water is the biggest constraint to production in Saudi Arabia. In 2009, agriculture 
accounted for about 15 billion m
3 of the total water consumption of 18 billion m3 per year in Saudi 
Arabia. Water for agriculture is mostly from ground wells tapping aquifers, as well as dams to collect runoff, and recycled wastewater which is distributed through of irrigation canals.
10 Under 
the Ninth Development Plan (2010-2014), water for agricultural purposes was to be reduced by 
3.7% annually, dam storage capacity was to increase by 85% to 2.5 billion m3, and greater use 
was to be made of treated wastewater.  
4.27.  Until November 2015, the GSFMO was responsible for importing and purchasing 
domestically produced wheat, and milling wheat in Saudi Arabia. Under the Government Decree No. 335 of 2008, the GSFMO began reducing purchases of domestically produced wheat by 12.5% per year and replacing them with imports. The final purchases of domestic wheat were to have 
taken place in 2015. The SAGO buys domestically produced wheat at SAR 1,000 per tonne. In 
2013, it bought 626,496 tonnes of domestically produced wheat – down from 1,724,733 tonnes in 2008 when it started importing. In 2013, it impo rted 2.54 million tonnes at an average price of 
US$318.8 per tonne.
11  
4.28.  At end-2014, GSFMO owned silos with total capacity of 2.7 million tonnes. As part of 
planned future expansion, several projects are bein g implemented to increase silo storage capacity 
to 3.2 million tonnes. The GSFMO also operated fl our mills with total capacity of 12,630 tonnes per 
day, and feed mills with total capacity of 2,900 tonnes per day. In August 2011, the Supreme Economic Council agreed to the privatization of GSFMO's flour mills and some silos. In line with this decision, in late-2015, the Council of Mi nisters issued a decision which approved the 
regulatory arrangements for the privatization of the GSFMO. The Saudi Grains Organization 
(SAGO) was created and replaced the GSFMO. Four flour mill companies are to be established, and 
                                               
8 Ministry of Economy and Planning (2010), pp 30, 71-72, 74, 77. 
9 WTO documents G/AG/N/SAU/1, 25 September 2007; G/AG/N/SAU/3, 19 July 2010; G/AG/N/SAU/5,  
19 September 2011; and G/AG/N/SAU/9, 26 February 2014. 
10 Al-Zahrani K.H. (2009). 
11 GSFMO (2014). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  a regulation issued for the flour production, with the intention of selling them to the private sector 
after a trial period. 
4.29.  Saudi Arabia has not provided price support for barley production since 2003 and imports 
nearly all its requirements. In 2014, it imported 10.5 million tonnes, nearly all for animal feed and 
much of which was not processed but fed raw to livestock which resulted in high levels of waste. 
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 an imal 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. 
4.30.  The Agricultural Development Fund provides interest-free loans for agricultural investment 
and a repayment subsidy of up to 25% of the lo an value. Since 2006, the number and value of 
short-term loans has declined as medium-term loans have increased (Table 4.5). 
Table 4.5 Agricultural Development Fund lending, 2006-14 
(Number of loans, and SAR million) 
 Medium-term loans 
approved Short-term loans 
approved Total loans 
approved Total subsidies 
 Number Value Number Value Number Value Value 
2006 3,179 792 1,124  177 4,303 968 258.6 
2007 3,159  975 611 69 3,770 1,044 32.9 
2008 2,397  761 304 31 2,701  792 32,8 
2009 2,236  844 124 12 2,360  856 41.8 
2010 2,712  742 145 11 2,857  753 42.8 
2011 3,025  899 266 17 3,291  916 55.7 
2012 3,278  909 312 15 3,590  924 42.8 
2013 4,193  1,034 331 15 4,524  1,048 41.4 
2014 4,450 1,280 221 12 4,671 1,292 50.5 
Source: Saudi authorities. 
4.31.  The ADF also launched the Agricultural Information Centre (AIC) in 2013, which is to 
provide data and information to stakeholders to help them identify opportunities in the agricultural sector through the provision of market data and economic analysis. The AIC is currently engaged 
in preparing a project to collect and monitor wholesale and retail prices for fruits and vegetables in 
Riyadh. The development plan for the AIC includes the development of an agricultural information 
system to support decision-making by the public and private sectors, and the establishment of AIC 
branches throughout the Kingdom to collect information.  
4.32.  Under King Abdullah's Initiative for Saudi Agricultural Investment Abroad, the private sector 
has been encouraged to invest in production of targeted products (wheat, barley, maize, sorghum, 
soya beans, rice, sugar, oil seeds, green fodder,  livestock, fisheries, and other staple food 
products).
12  
4.2.3.3  WTO notifications 4.33.  The most recent notification to the WTO on agriculture support is for the calendar year 
2011. This notification, along with earlier ones, indicates that support to agriculture in Saudi 
Arabia varies considerably from one year to another, partly due to changes in programmes but also due to the nature of the barley feed support which varies with changes in international prices 
(Chart 4.1). 
4.34.  In the 2006-12 period, support notified as Green Box increased to a maximum of 
SAR 1,338 million in 2010 before declining sharply to SAR 690 million in 2011 due almost entirely 
to a decline in spending on infrastructural services (irrigation-related works) (Chart 4.2). 
                                               
12 Ministry of Agriculture (2010). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  4.35.  Support notified under the Amber Box (including de minimis ) has been declining steadily 
since 2008 as input subsidies for livestock and poultry declined and purchases of wheat by GSFMO were being phased out (Chart 4.1 and Chart 4.3).
13 
Chart 4.1 Support for agriculture in Saudi Arabia, 2006-12 
(SAR million) 
05001,0001,5002,0002,5003,0003,5004,000
2 0 0 62 0 0 72 0 0 82 0 0 92 0 1 02 0 1 12 0 1 2De minimis
Current total AMS
Green box
 
Source: WTO notifications. 
Chart 4.2 Green Box support for agriculture in Saudi Arabia, 2006-12 
(SAR million) 
02004006008001,0001,2001,4001,600
2006 2007 2008 2009 2010 2011 2012Public stockholding Infrastructural services
Inspection services Extension
Training Pest and disease control
Research
 
Source: WTO notifications.  
                                               
13 WTO documents G/AG/N/SAU/2, 23 October 2007; G/AG/N/SAU/4, 19 April 2011; G/AG/N/SAU/6, 
19 September 2011; G/AG/N/SAU/7, 16 May 2012; and G/AG/N/SAU/8, 26 February 2014. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Chart 4.3 Amber Box support for agriculture in Saudi Arabia, 2006-12 
(SAR million) 
05001,0001,5002,0002,5003,0003,5004,0004,500
2006 2007 2008 2009 2010 2011 2012Non product specific
Dates
Poultry
Livestock
Wheat()
 
Note: For the year 2012, no notification as of end-December 2015. 
Source: WTO notifications. 
4.3  Mining and Energy 
4.3.1  Energy 
4.3.1.1  Overview and policy objectives 
4.36.  As stipulated in the Basic Law of Govern ance, all mineral resources are 100% owned by the 
State. The Ministry of Petroleum and Mineral Reso urces is the competent authority for developing 
and implementing policies for the energy and mini ng sectors, in particular policies related to 
petroleum and petroleum products. 
4.37.  On 29 January 2015, Saudi Arabia dissolved the Petroleum and Mineral Supreme Council, 
and its oversight responsibilities were assumed by the Economic and Development Affairs Council 
(see Section 2). 
4.38.  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.  
4.3.1.2  Oil and petroleum 4.39.  Saudi Arabia is the world leader in terms of oil reserves, production, export, and refining 
capacity. According to OPEC, in 2014 Saudi Arabia he ld 266.58 billion barrels of crude oil in proven 
reserves (approximately 22.1% of proven OPEC member reserves).
14  
4.40.  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 
                                               
14 The reserves figure only refers  to proven reserves, but does not include probable and possible 
reserves, or reserves currently not recoverable with available technologi es. See OPEC online information, 
"OPEC Share of World Crude Oil Reserves, 2014". Viewed at: http://www.opec.org/opec_web/en/data_graphs/330.htm .  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  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. 
4.41.  Saudi Aramco is the sole concessionaire producing crude oil in Saudi Arabia, with the 
exception of production in the Saudi Arabia-Kuwait Divided Zone. All crude oil for domestic 
refineries is supplied by Saudi Aramco, and 95% of Saudi Arabia's exports of crude oil were from Saudi Aramco. 
4.42.  Daily crude production had been relatively  stable at about 8.2 million bbl/day for several 
years up to 2010. However, in 2011 production increased and averaged about 9.7 million bbl/day in 2012-14 (Table 4.6). According to the Joint Orga nization Data Initiative, the average crude oil 
output of Saudi Arabia was 10.3 million bpd in August.
15 I t  h a s  a l s o  b e e n  r e p o r t e d  t h a t  S a u d i  
Arabia will gain additional production capacity by end-201716 and continue to invest in oil 
exploration, production, and refining.17 
Table 4.6 Daily crude oil production, 2009-14 
(1,000 barrels per day) 
 2009 2010 2011 2012 2013 2014 
Daily production 8,184.0 8,165.6 9,311.0 9,763.0 9,637.0 9,710 
Source: OPEC (2015), Annual Statistical Bulletin 2014 . Viewed at: 
https://www.opec.org/opec_web/st atic_files_proje ct/media/downloads/pub lications/ASB2014.pdf   
4.43.  Saudi Arabia is the largest oil exporter in the world.18 Asia and the Far East remain the 
largest market for crude oil and refined products: more than 60% of crude oil production and over 
56% of refined products were destined for Asia in 2014. The United States is the second largest market for Saudi's crude oil whereas Europe is the second largest market for refined products
19 
(Table 4.7).  
Table 4.7 Exports of crude oil and refined products, by region, 2012-14 
(Million bbl) 
 2012 2013 2014 % share in 2014 
Destination Crude oil Refined 
products Crude oil Refined 
products Crude oil Refined 
products Crude 
oil Refined 
products 
North America 521.0 0.6 532.5 0.0 456.7 4.7 17% 1% 
South 
America 25.0 4.5 29.1 3.0 25.1 4.8 1% 1% 
Western 
Europe 362.6 40.6 347.4 27.9 347.5 41.1 13% 11% 
Middle East 102.7 55.4 99.4 43.0 99.8 67.9 4% 19% 
Africa 79.1 34.9 81.0 33.4 69.7 41.7 3% 12% 
Asia and Far 
East 1,669.6 178.5 1,670.8 182.5 1,610.0 200.3 62% 56% 
Oceania  5.8 1.1 3.2 0.0 2.1 0 0.1% 0% 
Total  2,765.8 315.6 2,763.3 289.8 2,611.1 360.6 100% 100% 
Note: Including LP/NG. 
Source: Information provided by the authorities. 
                                               
15 Joint Organization Data Initiative online inform ation, "The JODI Oil World Database". Viewed at: 
https://www.jodidata.org/oil/ .  
16 Oxford Business Group (2015). 
17 Raval A. and Kerr S. (2015). 
18 According to the International Ener gy Agency, Saudi Arabia exported around 77% of its oil production 
in 2013 (the latest available data). Viewed at: http://energyatlas.iea.org/?subject=-1920537974 .  
19 Saudi Aramco online information, "Facts & Figure 2014". Viewed at: 
http://www.saudiaramco.com/en/home/news-media/publications/corporate-reports/facts-figures-2014.html  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 72 - 
 
  4.44.  In the subsector of refining, participatio n of foreign investment takes the form of joint-
venture with Saudi Aramco. Saudi Arabia's refine ries produce substantial quantities of petrol, 
diesel, liquefied petroleum gas (LPG), propane, and butane (Table 4.8). In 2014, the refining 
capacity in Saudi Arabia was 2.9 million barrels per day.20 
Table 4.8 Domestic production and consumpt ion of refined products, crude oil, and 
natural gas, 2010-14 
(Million barrels) 
Product 2010 2011 2012 2013 2014 
Domestic production 
Liquefied petroleum gas 12.2 12.0 11.2 13.9 16.2 
Premium gasoline 137.1  142.6  145.9  134.7  160.9  
Jet fuel and Kerosene 58.1 60.7 63.8 59.5 77.3 
Diesel  231.2  229.4  234.1  219.8  274.8  
Fuel oil 162.6  152.2  168.4  166.2  175.7  
Crude oil 2980.4  3398.5  3573.4  3517.6  3545.1  
Asphalt 18.2 18.7 17.7 19.6 20.1 
Natural gas liquids 445.0  461.4 482.0  455.9  471.3  
Domestic consumption  
Liquefied petroleum gas 13.4 18.3 16.4 15.3 15.2 
Premium gasoline 151.4  162.5  175.9  184.1  190.7  
Jet fuel and kerosene 23.3 23.9 24.8 25.6 27.3 
Diesel  225.9  237.6  260.2  266.3  274.9  
Fuel oil 81.8 94.4 96.4 112.3  138.5  
Crude oil 192.9  190.8  193.6  177.0  202.5  
Asphalt 22.8 20.5 20.0 20.9 28.6 
Lubricating oil 1.9 1.8 1.6 1.6 1.9 
Natural gas 521.8  550.7  598.0  597.2  614.6  
Source: Information provided by the authorities. 
4.45.  Saudi Aramco's commercial strategy includes diversification from its energy holdings from 
oil production in order to become more "integrated across the hydrocarbon value chain"21. In this 
regard, Saudi Aramco has invested heavily in refi neries at home and abroad. In 2014, two joint-
ventures, with Total and Sinopec, became operatio nal; each of the joint-ventures has a refining 
capacity of 400,000 bbl/day. Saudi Aramco also pl ans to open another fully owned refinery in 
2017. Currently, Saudi Arabia is steadily increasing its imports of light and middle distillate 
products such as diesel and petrol (Table 4.8); however, some market observers predicted that Saudi Arabia will become a net exporter of distillates by 2020 as a result of its recent investment 
in refineries.
22 
4.46.  Saudi Aramco is also diversifying its investment into other downstream activities such as 
power generation and petrochemicals manufacturing. 
4.47.  According to the authorities, Saudi Aramco follows market-based procurement policies. 
Under its procurement policies, the major objectives are: completion of work on schedule, conformance with demanding technical standards, and lowest overall cost to Saudi Aramco. The procurement opportunities are offered to all qualif ied suppliers of goods and services from all WTO 
Members through competitive bidding. Nonetheless, Saudi Aramco also seeks to encourage the 
development of a reliable local contractor base in the company's areas of operation.
23 Saudi 
Aramco selects the most technically and financially qualified contractor whose bid represents the 
least overall cost. 
                                               
20 Saudi Aramco online information, "Facts & Figure 2014". Viewed at: 
http://www.saudiaramco.com/en/home/news-media/publications/corporate-reports/facts-figures-2014.html .  
21 Saudi Aramco (2015).  
22 Oxford Business Group (2015). 
23 WTO document WT/ACC/SAU/61, 1 November 2005. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 73 - 
 
  4.3.1.3  Natural gas 
4.48.  According to OPEC, Saudi Arabia ranks 5th in the world for gas reserves. Its total natural gas 
reserves were estimated at 293.7 trillion standard cubic feet (scf) in 2013.24 
4.49.  Saudi Aramco enjoys certain exclusive rights and privileges in the gas sector. Foreign 
investors participate in the gas upstream sectors (e.g. extractions) through joint-ventures with 
Saudi Aramco. Major foreign partners for these joint-ventures include: Shell, Total, Lukoil, Sinopec, Repsol, and Eni. Large-scale gas projects are operated in Hawiyyah, Haradh, and 
Khurasaniyah. In 2013, Saudi Arabia's natural gas feed to gas plants was 4.02 trillion scf. 
4.50.  The gas plants processing capacity of Saudi Arabia in 2013 was 13.2 billion scf/day. Natural 
gas is considered as fuel for local power and desalination, as well as feedstock for petrochemical plants. According to the authorities, Saudi Arabia ha s no plan to export natural gas due to the high 
costs for liquefying, transporting, and re-gasifying. Prices of natural gas supplied to domestic users 
are regulated at 281 halalas/mmbtu
25; the authorities note that the regulated price for natural gas 
is based on a combination of commercial reasons and environmental (flaring) concerns. 
4.51.  Natural gas liquids (NGLs) are produced either from petroleum-based or natural gas-based 
products. NGLs are also used as fuel supply and feedstock in Saudi Arabia; NGLs are also exported. In 2014, Saudi Aramco produced about 471 million bbl of NGLs. NGLs for industrial use 
are priced on a commercially agreed basis. 
4.52.  According to the authorities, Saudi Arabia has begun to develop its unconventional gas 
resources (e.g. hydro-fracking). 
4.3.1.4  Electricity 
4.53.  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 govern ment laws, regulations, policies, and standards, 
as well as international best practices in order to guarantee 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.  
4.54.  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. 
4.55.  During the period under review, Saudi Arabia began implementing a "comprehensive" 
market reform programme with an aim to enhanc e the competitiveness of the electricity market. 
The reform programme is being implemented with a 5-phase approach. In the first phase, the plan 
is to unbundle the SEC, by vertical segregation, into four generation companies, a transmission 
company, and a distribution company. An independent system operator, which manages the national grid, has been therefore established, allowing more independent power producers to compete with the SEC generation companies. The authorities are also considering creating a new 
mechanism for more transparent setting of electricity tariffs.  
4.56.  Saudi Arabia continues to promote the use of renewable energy for the electricity and 
desalination industries. For example, the ATLAS programme for monitoring and mapping 
renewable sources to enable potential users to quantify potential resources in specific locations; 
                                               
24 OPEC online information, "O il and Gas Data". Viewed at: 
http://www.opec.org/library/Annual%20Statistical %20Bulletin/interactive/current/FileZ/Main-
Dateien/SubSection3.html .  
25 For information on the regulated prices of ener gy products in Saudi Arabia, see WTO documents 
WT/ACC/SAU/61, Annex A-1, 1 November 2005. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 74 - 
 
  the ECRA has made regulatory provisions for the integration of electricity from renewable sources 
into the national system; and the King Abdullah City for Atomic and Renewable Energy (KACARE) aims to generate 9.5 GW from renewable energy by 2023.  
4.57.  Since 2010, all grids of the GCC member States have become interconnected as a Gulf 
Cooperation Council Interconnection Authority (GCCIA) Power Grid. According to the authorities, 
the aim of the GCCIA Grid is to increase the national grid reliability through reserve sharing (e.g. opportunities for electricity exchange based on the variations of the daily and seasonal electricity 
demand). In 2013, Saudi Arabia and Egypt signed a general agreement to interconnect the grids 
of both countries, and the work for interconnection began in 2014.  
4.3.2  Mining 4.58.  The Mining Investment Law opens the mining sector to private investors; it does not 
discriminate between local and foreign applicants for licences.
26 The non-hydrocarbon mineral 
extraction sector is administered by the Ministry  of Petroleum and Mineral Resources. The Ministry 
allocates mineral rights, and awards mining and extraction licences based on several factors 
including the technical and financial competence of the applicant. Licences are granted on a first-
come-first-serve basis (Table 4.9).  
Table 4.9 Number of licences for non-hydrocarbon minerals, 2010-14 
 2010 2011 2012 2013 2014 
Reconnaissance licences 43 26 26 0 0 
Exploration licences 121 104 254 414 448 
Mining and raw materials quarry licences 69 74 77 77 77 
Building materials quarry licences 1,313 1,286 1,292 1,226 1,473 
Total 1,618 1,490  1,649  1,717 1,998  
Source: Information provided by the authorities. 
4.59.  The Saudi Arabian Mining Company (Ma'aden ) is the largest extractor of non-hydrocarbon 
minerals in Saudi Arabia. Ma'aden is 50% owne d by the Saudi Government through the Public 
Investment Fund, and the other 50% is owned by Saudi institutional and individual investors. It has no monopoly over mineral rights, and extracts  minerals and exports refined gold, copper, and 
zinc. Ma'aden does not have an export monopoly; exporters in the private sector are also 
permitted to export these products.  
4.4  Construction 
4.4.1  Overview 
4.60.  Construction and building contributed 5.4% to GDP in 2014, up from 4.6% in 2010
27 and 
employed 1.4 million people or 13% of tota l employment (Table 4.10). The majority of 
construction workers are not Saudi nationals. The gr owth in construction activity over the past few 
years has been driven by government investment with annual capital expenditure having increased 
from SAR 199 billion in 2010 to SAR 370 billion in 2014.28  
                                               
26 See Articles 5 and 11, the Mining Investment Law. 
27 Central Department of Statistics and Information (2015). 
28 Saudi Arabian Monetary Agency (2015), p. 127. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 75 - 
 
  Table 4.10 Construction and building in Saudi Arabia, 2010-14 
(GDP SAR million, employment ,000 persons)  
  2010  2011  2012  2013 2014  
Total GDP SAR million 1,975,543 2,510,650 2,752,334 2,806,686 2,821,722 
 of which        
   Construction and  
  building SAR million 90,780 107,021 118,513 134,445 152,367 
Total employment ,000 .. 9,936 10,390 10,729 11,068 
 of which       
  Construction  .. 1,294 1,704 1,518 1,417 
   of which  ..     
    Saudi nationals  .. 107 141 137 130 
.. Not available. 
Source: Central Department of Statistics and Information (2015), Annual Yearbook 2014 , and Labour Force 
Surveys 2011-2014 , Tables 45 and 47. Viewed at: http://www.cdsi.gov.sa/english/index.php  
[August 2015]. 
4.61.  A large number of major investment projects are currently under way in Saudi Arabia and 
more are planned (Table 4.11). These include the construction of economic cities, of which, as at end-August 2015, three were under development. A ccording to the authorities, each of the new 
economic cities is based on at least one competitive cluster or industry with a business friendly 
regulatory environment.
29 According to the SAGIA, the Government acts as the regulator, 
facilitator, and promoter while the private sector is the capital provider, owner, and developer. The 
development of the cities is regulated by th e Economic Cities Authority (ECA), which was 
separated from SAGIA in 2014.30 To encourage investment, the ECA offers a comprehensive 
package of incentives. The three economic cities currently under development are: 
 King Abdullah Economic City (KAEC) in Rabigh located on the Red Sea, which is to have 
six main components: industrial zone, sea port, residential areas, sea resort, educational 
zone, and a central business district. The  main developer is Emaar, The Economic City 
(EEC), which is listed on the Saudi Stock Exchange and whose major shareholders are: 
Dayim Modern Co.; ME Royal Capital Co.; Em aar Middle East Co.; ME Holdings Co.; ME 
Strategic Investments Co.; and ME Partners Co.31;  
 Knowledge Economic City (KEC) in Madinah, which is to focus on knowledge-based 
industries and services with an Islamic focus. The main developer is the company 
Knowledge Economic City whose main shareholders are The King Abdullah Foundation for His Parents, the Developers of Knowledge Economic City Co., and the Savola Group (all 
of which are based in Saudi Arabia)
32; 
 Jazan Economic City (JEC) on the Red Sea is to focus on energy and labour intensive 
industries. Originally planned as a joint venture with MMC Corporation of Malaysia and the Saudi Binladin Group, the SAGIA cancelled their rights as developers in March 2013
33 
and Saudi Aramco was given the task of developing the infrastructure for the first 
phase.34 
4.62.  In addition to the economic cities, work  is also under way on a number of other cities 
including: 
 Kingdom City near Jeddah, which is being developed by the Jeddah Economic Company – 
a joint venture which includes Kingdom Holding Company, Abrar Holding Company, Qila'a 
Jeddah Company, and Saudi Binladin Group.  In the city, construction started in 
                                               
29 SAGIA (2007). 
30 Driver M. (2013). 
31 King Abdullah Economic City (2014). 
32 Knowledge Economic City Company (2011), p. 15. 
33 MMC (2013). 
34 Saudi Aramco online information. Viewed at: 
http://www.saudiaramco.com/en/home/citizenship/economy/jec.html . WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  April 2013 on the Kingdom Tower which, if completed as planned, will be the tallest 
building in the world35; and 
 Several cities are under development by the Saudi Industrial Property Authority 
(MODON), including Riyadh (1, 2 & 3), Jeddah (1, 2, 3 & 4), Dammam (1, 2 & 3), 
Makkah, Qassim (1 & 2), Al-Ahssa'(1 & 2), Madinah, Al-Kharj, Sudair, Al-Zulfi, Shaqraa, 
Dhurma, Hail, Tabuk, Ar'ar, Al-Jouf, Assir, Jazan, Najran, Al-Baha(1 & 2), Taif, and Hafr 
Al-Baten. MODON was established in 2001 under Resolution No. 235 of the Council of 
Ministers.36 
4.63.  Furthermore, public and private investment includes several other large-scale projects such 
as the Riyadh Metro, the Haramain high-speed rail network, the King Abdulaziz International 
Airport, and the housing programme (Table 4.11). 
Table 4.11 Selected large-scale constr uction projects in Saudi Arabia, 2015  
Project Master developer  Approximate value  
SAR million 
King Abdullah Economic City Emaar, The Economic City  207,000  
Knowledge Economic City in Medina Quad International  8,000  
Jazan Economic City  Saudi Aramco  40,000  
Kingdom City  Kingdom Holding  20,000  
Sudair Industrial City  Saudi Industrial Property Authority (MODON)  40,000  
Saudi housing programme  Housing Ministry  70,000  
Riyadh Metro  Arriyadh Development Authority  22,480  
Sadara chemical complex, Jubail Sadara Chemical Company  20,000  
Haramain high-speed rail network Saudi Railways Organization   13,743  
Security compounds  Interior Ministry  13,000  
Yanbu Aramco Sinopec refinery  Yanbu Aramco Sinopec Refining Company  10,000  
Maaden/Alcoa aluminium complex Saudi Arabian Mining Company (Maaden)  9,900  
Manifa Arabian heavy crude programme Saudi Aramco  9,280  
King Abdulaziz International Airport General Authority of Civil Aviation  8,172  
Sipchem complex phase 3, Jubail Saudi International Petrochemical Company (Sipchem)  7,860  
Waad al-Shamal Phosphate City Mosaic/Saudi Basic Industries Corporation (SABIC)  7,225  
King Abdullah Financial District  Rayadah Investment Company  7,000  
PetroRabigh phase 2  Rabigh Refining and Petrochemical Company 
(PetroRabigh) 7,000  
Wasit Gas Development  Saudi Aramco  5,000  
Jabal al-Kaaba  Abdul Latif Jameel Real Estate Investment Company  2,666  
Source: Canadian Trade Commissioner Service (2014), Construction Sector Profile – Saudi Arabia , January; 
and developers ' websites. 
4.64.  The construction industry in Saudi Arabia is dominated by a number of domestic private 
companies including: the Saudi Binladin Group, Saudi Oger, Al Arrab Contracting Company, Al 
Fouzan Trading & General Construction Company, and El Seif Engineering Contracting Company. 
While each of these companies has its headquarters in Saudi Arabia they also have operations abroad and have interests outside of construction.  
4.4.2  WTO Commitments 
4.65.  In acceding to the WTO, Saudi Arabia ag reed to commitments concerning construction and 
related engineering services and related business se rvices as set out in Table 4.12. These included 
the reservations that commercial presence requires incorporation under the Companies Act and a 
foreign equity limit of 75% on construction-relat ed business services; and that Mode 4 would be 
unbound except for specialized personnel. Foreign companies working in the engineering sector are defined as vocational companies and are required: to form a partnership with a Saudi partner 
who has at least 25% of the company's capital; and to have the approval of the Saudi Council for 
Engineers. Foreign construction companies, on th e other hand, need the approval of the SAGIA in 
                                               
35 Jeddah Economic Company online information. Viewed at: http://www.kingdom.com.sa/  
[August 2015]. 
36 MODON online information. Viewed at: http://www.modon.gov.sa/ en/Pages/default.aspx  
[August 2015]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 77 - 
 
  order to be established in Saudi Arabia and approval from the Saudi Council of Engineers before 
they can engage in engineering, procurem ent, and construction (EPC) activities.37 
Table 4.12 Saudi Arabia's WTO construc tion-related services commitments 
 Limitations on market access  
Mode Limitations on national treatment  
Mode 
 1 2  3 4 1 2 3 4  
1 BUSINESS SERVICES 
1.D Architectural services None None  Foreign 
equity 
limited 
to 75% Unbound, 
except as 
indicated 
in the 
horizontal 
section None None None  Unbound, 
except as 
indicated 
in the 
horizontal 
section 1.E Engineering services 
1.G Urban planning and  landscape architectural 
 services 
3 CONSTRUCTION AND RELATED ENGINEERING SERVICE  
3.A General construction 
  work for buildings Unbound, 
except 
consultancy 
and 
advisory 
services None None Unbound, 
except as 
indicated 
in the 
horizontal 
section Unbound, 
except 
consultancy and 
advisory 
services None None Unbound, 
except as 
indicated 
in the 
horizontal 
section 3.B General construction 
 work for civil   
 engineering 
3.C Installation and    assembly work 
3.D Building completion 
  and finishing work 
3.E Othe r 
Commercial presence for all se rvices listed above is subject to incorporation under the Companies Act either as joint-stock 
companies or as limited liability companies. Commercial presence for business services listed above is subject to formation 
of a company, and registration of such a company under the Professional Companies Law 
Horizontal section, Mode 4, unbound except for the entry and temporary stay of natural persons in the following categories: 
business visitors; intra-corporate transferees; contractual service suppliers ; independent professionals; and installers and 
maintainers 
Note: Mode 1: Cross border supply. 
Mode 2: Consumption abroad. Mode 3: Commercial presence. Mode 4: Presence of natural persons. 
Source: WTO, World Bank I-TIP online database. 
4.4.3  Policies 
4.66.  Several government agencies are responsible for policies affecting the construction sector 
including, the Ministry of Municipal and Rural Affairs, the Ministry of Housing, and the Ministry of Transport. In particular, the Ministry of Municipal and Rural Affairs is responsible for the 
"classification of contractors, management of the construction and building sector database, 
management of the Mina and the Holy Site s Development Project, and the building and 
construction laboratories. During the Eighth Development Plan, other responsibilities were added, 
such as: managing and implementing the Building Code, applying the real-estate registration 
system in coordination with the Ministry of Just ice, and issuing municipal licences for commercial, 
industrial, artisanal and vocational activities".
38 
4.67.  The Saudi Building Code, first published in January 2007, sets out the minimum 
requirements for construction works and testing an d inspection of works. By reference, the Code 
applies the specifications developed by relevant standard-setting organizations in the United States.
39 Other standards and technical regulations apply to construction-related materials and 
works and testing methods as set out by the Saudi Standards, Metrology and Quality Organization.  
4.68.  Even though 100% foreign ownership is pe rmitted for contracting activities, many foreign 
companies choose to have joint ventures with local partners, particularly as consultants and 
engineers must be approved by the Ministry of  Commerce and Industry and the Saudi Council of 
Engineers. To tender for contracts with government agencies, a foreign entity must be classified by 
the Ministry for Municipal and Rural Affairs with classifications ranging from first (allowing the 
contractor to perform projects with a value generally in excess of SAR 420 million) to fifth 
(allowing the contractor to perform projects with a value of up to approximately SAR 0.42 million). 
                                               
37 WTO (2012). 
38 Ministry of Economic Planning (2013). 
39 General Secretariat of the Saudi Building Code National Committee (2007). WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 78 - 
 
  An application for classification will involve an examination of the applicant's financial, technical, 
administrative, and execution ability.  
4.69.  Engineering consultancy licences may be obtained from, and are regulated by, the Ministry 
of Commerce and Industry and require pre-approval  of the Saudi Council of Engineers. A foreign 
company can be licensed to conduct engineering consultancy activities in Saudi Arabia if it meets 
certain requirements, including: it is licensed to practice the same business in the country of origin; it has at least 10 years working experience, during which time it has exercised, without 
interruption, engineering consultancy work; a financial institution in Saudi Arabia certifies its 
financial viability, reputation and commercial dealings; and performance certificates are provided in respect of works it has completed either inside or outside Saudi Arabia.  
4.70.  Foreign ownership of engineering and co nsultancy companies is limited to 75% and the 
experience of the foreign investor's representative in Saudi Arabia and the national partner are 
examined. The partners are jointly and fully liable in respect of their operation and not limited to 
their shares in the professional company.
40 
4.71.  Despite strong growth in construction over the past few years and the number of large-scale 
projects actually under way or in planning, several challenges face the construction sector. Many expatriate workers have been employed in the construction industry (Table 4.10) and were 
affected by the official amnesty allowing illegal immigrants to leave Saudi Arabia by end-November 
2013 without penalties. It has also been reported that the Nitaqat Programme, 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.
41 
4.5  Services 4.5.1  Financial services 
4.72.  The financial sector in Saudi Arabia comprises the banking sector, the insurance sector and 
capital markets. The banking sector and the insura nce sector are regulated and supervised by the 
Saudi Arabia Monetary Agency (SAMA). Capital markets are regulated by the Capital Markets 
Authority (CMA). 
4.73.  As part of its WTO accession terms, Saudi Arabia undertook broad commitments on 
banking; protection and savings; insurance; non-life insurance (general insurance and health insurance); reinsurance and retrocession; insurance intermediation (brokerage and agency); and 
services auxiliary to insurance (consultancy, actuarial, risk assessment and claims settlement 
services).
42  
4.74.  In 2014, the sector was responsible for over 10% of GDP and 2% of employment in the 
economy. 
4.5.1.1  Banking sector 4.5.1.1.1  Structure 
4.75.  The sector consists of 12 commercially licensed domestic banks and 12 licensed commercial 
bank branches of foreign banks. The sector is concentrated, with the six largest banks accounting for 75% of the total assets of the banking system (Table 4.13). 
                                               
40 O'Riordan P. and Barrett R. (2015); Hatem Abbas Ghazzawi & Co (2015). 
41 Saudi Hollandi Capital (2012). 
42 WTO document WT/ACC/SAU/61/Add.2, pp. 21-23, 1 November 2005. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 79 - 
 
  Table 4.13 Saudi Arabia's banking sector, 2010-14 
 2010  2011  2012 2013 2014  
Structure 
 Number of licensed banks  23 23 23 24 24 
 Number of banks accounting for: 
 25% of total assets 2 2 2 2 2 
 75% of total assets  6 6 6 6 6 
Total assets (% of GDP) 71.6 61.5 63.0 67.8 76.2 
Total loans (% of GDP) 39.2 39.8 36.3 40.1 44.7 
Credit to private sector (% of GDP) 37.6 30.0 34.9 38.6 43.1 
Total deposits, excluding interbank (as % of GDP) 49.9 44.0 45.8 50.2 56.3 
Capital adequacy 
 Regulatory capital to risk-weighted assets  17.6 17.6 18.2 17.9 17.9 
Asset quality 
 Net loans to total assets  55.1 55.8 58.2 59.8 60.3 
 Gross NPLs to net loans  3.0 2.2 1.7 1.3 1.1 
 Total provisions to gross NPLs 115.7 132.8 145.1 157.4 182.9 
 Net NPLs to total capitala  -2.7 -3.0 -3.7 -3.4 -4.1 
 Total provisions for loan losses (as % of total loans)  3.5 3.1 2.8 2.2 2.1 
 Contingent and off-balance sheet accounts to total assets 91.4 96.2 91.7 90.8 100.2 
Profitability 
 Profits (% change) -2.6 18.4 8.4 6.5 12.5 
 Average pretax return on assets  2.0 2.1 2.1 2.0 2.5 
 Return on equity 13.6 15.0 15.1 14.6 18.2 
 Noninterest expenses to total income 52.7 46.9 47.0 47.7 45.5 
 Average lending spread 4.3 4.1 3.8 3.7 3.5 
a The negative sign reflects that provisions exceed gross NPLs. 
Source: IMF (2015), Country Report No. 15/251 . 
4.76.  As a result of SAMA's prudent regulations, the sector remained largely insulated from the 
fallout of the global financial crisis. The sector has exhibited robust performance during the review 
period, with total assets rising from US$377.4 billion in 2010 to US$568.7 billion in 2014, which is equivalent to over 76% of GDP (Table 4.13). Fu rthermore, growth in the banking sector was 
higher than GDP growth as well as non-oil GDP growth. Lending is relatively widely distributed 
across sectors, with the "other" category accounting for 42% of lending commercial sector accounting for 21% of lending and manufacturing another 13% (Table 4.14).  
Table 4.14 Bank credit to private se ctor by economic activity, 2012-14 
(SAR million) 
 2012 2013 2014 
Agriculture and fishing 9,210 12,001 11,573 
Manufacturing and production 126,203 139,764 158,441 
Mining and quarrying 12,171 16,348 20,287 
Electricity, water and other utilities 34,385 34,315 36,102 
Building and construction 75,381 76,555 83,259 
Commerce 206,023 234,768 255,645 
Transport and communications 38,396 37,924 43,263 
Finance 30,451 27,915 35,196 
Services 56,542 64,004 60,235 
Others 371,712 432,799 500,739 
Total 960,472 1,076,393 1,204,831 
Source: Saudi Arabian Monetary Agency (2015), Fifty-First Annual Report , June. Viewed at: 
http://www.sama.gov. sa/en-US/EconomicRep orts/AnnualReport/5600_R_Annual_En_51_Apx.pdf . 
4.77.  The period under review has also seen the non-performing loans (NPLs) ratio decline. The 
stock of NPLs as a proportion of total bank loans declined to 1.1% in 2014 from its peak of 3% in 
2010 and 1.7% in 2012. NPLs are concentrated in the commerce, building and construction, and services sectors. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  4.78.  The sector is very well provisioned for the NPLs; the average capital adequacy ratio is close 
to 18% with over 90% being tier 1 capital and loan loss provisioning in 2014 was 183%. 
Additionally, all banks have met the Basel III capital adequacy requirements. 
4.79.  A notable feature of the country's banking sect or is that from a regulatory point of view, no 
distinction is made by either the regulator or licensed banks between Islamic and conventional 
institutions (Box 4.1).  
Box 4.1 Islamic banking 
Islamic banking entails a financial system that is consistent with Shariah (Islamic law). Under Shariah, the 
collection and payment of interest are prohibited, as are trading in financial risk (perceived as a form of 
gambling) and investment in businesses considered haram (forbidden) such as those involving alcohol and 
pork. 
 
However, Islamic banking does allow gains on capital, and banking activity is guided by four basic principles:  
• risk-sharing: the terms of financial transactions n eed to reflect a symmetrica l risk/return distribution 
each participant to the transaction may face;  
• materiality: a financial transaction needs to have a "material finality", that is directly or indirectly linked 
to a real economic transaction;  
• no exploitation: a financial transaction should not lead to the exploitation of any party to the 
transaction; and  
• no financing of haram (sinful) activities. Islami c financial instruments take the form of contracts 
between providers and users of funds to manage risk. 
 
In order to ensure compliance with Shariah law, Isla mic banks and banking institutions that offer Islamic 
banking products and services are required to establis h Shariah advisory committ ees/consultants to advise 
them and to ensure that the operations and activities of the bank comply with Shariah principles. 
Taking these principles into account, the main Shariah compliant financial instruments prevalent today are: 
• Mudarabah (profit sharing), which is a contract, wi th one party providing 100% of the capital and the 
other party providing its specialized knowledge to invest the capital and manage the investment project. Profits 
generated are shared between the parties according to a pr e-agreed ratio. If there is a loss, the first partner 
"rabb-ul-mal" will lose his capital, and the other party "mudarib" will lose the time and effort invested in the 
project. 
• Murabahah, which to the sale of goods (such as real estate, commodities, or a vehicle) where the 
purchase and selling price, other costs, and the profit margin are clearly stated at the time of the sale 
agreement. Murabahah has become "the most prevalen t" Islamic financing mechanism. Murabahah works as 
finance when the lender/buyer pays the bank/seller fo r the good over a period of time, compensating the 
bank/seller for the time value of its money in the form of "profit" not interest. With a fixed rate of profit 
determined by the profit margin for the purchase of a real asset, this is a fixed-income loan. The bank is not 
compensated  for the time value of money outside of the contracted term (i.e., the bank cannot charge 
additional profit on late payments); however, the asset remains as a mortgage with the bank until the default 
is settled. 
• Hibah (gift), which is a token give n voluntarily by a debtor in return  for a loan. Hibah usually arises 
when Islamic banks pay their customers a "gift" on sa vings account balances, repr esenting a portion of the 
profit made lending funds from savings account balances. Unlike interest and like dividends on shares of stock, 
Hibah cannot be guaranteed. Additi onally, it is not time bound. 
• Istisna (manufacturing finance), which is a process wh ere payments are made in stages to facilitate the 
work of manufacturing/processing/construction. An instalment of Istisna, for example, may enable a 
construction company to finance construction of sections of a  building or help manufacturers pay for an order 
of raw materials.  
• Ijarah, which means lease, rent or wage. Generally,  the Ijarah concept refers to selling the benefit of 
use or service for a fixed price or wage. Under this conc ept, the bank makes available to the customer the use 
of service of assets / equipment such as plant, office  automation, or motor vehicles for a fixed period and 
price. 
• Musharakah (joint venture), which is a relationship between two parties or more that contribute capital 
to a business and divide the net profit and loss pro rata . This is often used in investment projects, letters of 
credit, and the purchase or real estate or property. In th e case of real estate or property, the bank assesses an 
imputed rent and will share it as agreed in advance. All providers of capital are entitled to participate in 
management, but not necessarily required  to do so. The profit is distribute d among the partners in pre-agreed 
ratios, while the loss is borne by each partner strictly in  proportion to respective capital contributions. This 
concept is distinct from fixed-income investing (i.e. issuance of loans).  
• Sukuk (Islamic bonds); a major difference between conventional bonds and sukuk is that the structure 
of sukuk removes interest based elements which are replaced by an asset based income structure using most 
typically Ijara or Wakala contracts. According to data published by the Islamic Fina ncial Services Board, total 
outstanding sukuk as of end of 2014 was US$294 billion. 
 
As of 2014, Islamic banking assets were in excess of US$1.5 trillion, which is more than 1% of global banking WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  assets. Furthermore, Islamic banking has been growing much faster than conventional banking, although from 
a much lower base. During the period 2009-13, Islamic ba nking assets grew at an average annual rate of 18% 
and were expected to grow at an average annual rate of 20% during the period 2014-20. 
Source: Islamic Financial Services Board. 
4.80.  In principle all banking activity undertaken in Saudi Arabia is Islamic or Shariah- (Islamic 
law) compliant. However, no local bank has been officially classified as an Islamic bank and it is up to each bank to satisfy its customers on Shariah compliance with regards to services and products 
that they offer. 
4.81.  With its prominent position in the Islamic world and the status of Shariah in Saudi Arabia's 
legal system, Islamic banking plays an important role in Saudi Arabia's banking sector. The Islamic banking sector comprises four banks, which are run completely in accordance with Shariah, while 
all other banks offer both conventional and Shariah-compliant products. Approximately, 48% of 
the banking sectors assets in 2014 were Shariah-co mpliant. Furthermore, in terms of profitability, 
the Islamic banking segment has outperformed the conventional banking sector. Shariah- 
compliant lending grew by a compound annual growth rate of 16.3% between 2007 and 2012 
compared with 9.8% for conventional loans over the same period.
43  
4.5.1.1.2  Regulation 
4.82.  The main legislation governing the banking sector continues to be the Banking Control Law 
of 1966, which is administered by SAMA.44 Under the provisions of the Law and the Charter of 
SAMA, SAMA is responsible for inter alia : developing and administering the regulatory and 
supervisory framework, including issuing guidelines pertaining to supervision, operations and 
inspections; issuing licences; and onsite and offsite inspection. Under Article 2 of the Banking 
Control Law, a natural or legal person is required to have a licence to engage in a banking business. Under Article 3 of the Law, the licensing  requirements for a Saudi national bank or a 
joint venture bank stipulate that it must be a public Saudi joint-stock company. Upon the 
recommendation of SAMA, the Minister of Financ e and the Council of Ministers evaluate each 
recommendation before granting a licence for a branch of foreign bank, a Saudi national bank or a 
joint venture bank. The licensing criteria are prudential in nature and deal with issues such as 
capital adequacy, liquidity, profit ability and corporate governance. 
4.83.  Foreign banks are allowed to operate in Saudi Arabia either as a locally incorporated joint-
stock company or as a branch of an international bank. Non-Saudi participation in a joint venture 
is permitted up to 60%. 
4.84.  With regards to Islamic banking, Saudi Arabia allows financial institutions to ensure 
compliance with respect to the Shariah compatibilit y of the products and services they offer. The 
compliance is monitored by an internal Shariah Board within each bank. 
4.5.1.2  Insurance 4.5.1.2.1  Structure 
4.85.  The insurance sector in Saudi Arabia is based on a "Cooperative" model, which is Shariah- 
compliant, and based on the following principles
45: 
 The policyholders co-operate actively for their common good; 
 Every policyholder pays his subscription in order to help those who need it; 
 It spreads liability in the community by a pooling system; 
 It does not aim at deriving undue advantage for one at the cost of other individuals; and 
                                               
43 Oxford Business Group (2014). 
44 Royal Decree No. M/5, 22/2/1386H (11 June 1966). The Charter of SAMA is contained in Article 1 of 
Royal Decree No. 23, 23/5/1377H (15 December 1957). 
45 Institute of Islamic Banking and Insurance online information. Viewed at: 
http://www.islamicbanking.com/basi s_and_principle_of_takaful.aspx.  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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   The element of uncertainty is eliminated as far as determination of the premiums is 
concerned. 
4.86.  The insurance sector in Saudi Arabia comprises 35 companies, with 16 companies licensed 
to provide both insurance and reinsurance policies, and one sole reinsurer. Additionally there are 
89 insurance brokers, 82 insurance agents, two actuaries, 15 loss assessors and adjusters, 
9 insurance claims settlement specialists and 8 insurance advisors. 
4.87.  In Saudi Arabia, general insurance, which includes accident and liability, motor, property 
and fire, marine, aviation, energy and engineering insurance, is offered as are health insurance 
and protection and savings insurance.  
4.88.  During the period under review, the insura nce sector has grown considerably, albeit from a 
low base. Gross written premiums more than doubled from SAR 15 billion in 2009 to 
SAR 30.5 billion in 2014. The increase has come about due to the provision of health insurance by 
many businesses for their employees and the requirement of at least third-party insurance for all motorists. 
4.5.1.2.2  Regulation 
4.89.  Insurance is undertaken through licensed public joint-stock insurance companies operating 
in a cooperative manner, as provided by the Cooperative Insurance Companies Control Law.
46 
SAMA is tasked with administering the Law as well as subsidiary implementing regulations.47 SAMA 
monitors and supervises the entire insurance sector for compliance with regulatory requirements, and assists in the development of future government policy in the sector. 
4.90.  Cooperative insurance allows policyholders and shareholders to benefit from their 
contributions and investments through the distribution of surpluses in the ratio of 90% for the 
shareholders and 10% for the policyholders. The accounting methods for the distribution of surpluses are set out in the Law's Implementing Regulations.
48 A  s e p a r a t e  L a w  o n  C o o p e r a t i v e  
Health Insurance is concerned primarily with the consumption side.49 The Council of Cooperative 
Health Insurance headed by the Minister of Health  is responsible for the enforcement of this Law. 
4.91.  Under the terms of accession to the WTO, Saudi Arabia undertook extensive commitments 
in the insurance sector in all modes of supply.50 
4.92.  A foreign insurance company may establish a commercial presence but it must be in the 
form of a locally incorporated cooperative insurance joint-stock company, or as an established direct branch of an international insurance company operating in Saudi Arabia as a cooperative 
insurance provider. Non-Saudi investment in such a joint-stock company in Saudi Arabia is 
permitted up to 60%. 
4.93.  To establish a new locally incorporated public joint-stock cooperative insurance company, a 
foreign insurance company is required to: (i) obtain a licence from SAMA (per Articles 4-11 of the 
Cooperative Insurance Companies Control Law); (ii) obtain approval from SAGIA; (iii) apply to the Ministry of Commerce and Industry pursuant to the Companies Law; (iv) obtain approval from the 
Council of Ministers and a Royal Decree; and (v) obtain an authorization to conduct business from 
SAMA. In accordance with Article 7 of the implementing regulation: the applicant must pay the Agency a non-refundable licensing application proc essing fee of SAR 10,000. Upon approval of the 
application, the applicant must pay the Agency the following licensing fee: SAR 100,000 for an 
insurance company; SAR 200,000 for a re-insurance company; SAR 300,000 for an insurance and 
re-insurance company; SAR 25,000 for insurance and re-insurance services providers, except actuaries and insurance advisors and SAR 5,000 for actuaries and insurance advisors. 
                                               
46 Royal Decree No. M/32, 2/6/1424H (31 July 2003). 
47 For the legislation governing the insurance se ctor, see SAMA online information. Viewed at: 
http://www.sama.gov.sa/sites/samaen/Insurance/Pages/LawsandRegulations.aspx . 
48 For a detailed description of Saudi Arabia's cooperative insurance market, see WTO document 
WT/ACC/SAU/61, paragraphs 289-295, 1 November 2005. 
49 Royal Decree No. M/10, 1/5/1420H. 
50 See WTO document WT/ACC/SAU/61/Add.2, 1 November 2005. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  4.94.  To reinforce the resilience of the Saudi insu rance sector to enable it to withstand potential 
market turbulences a number of prudential requir ements are applied by SAMA. For instance, SAMA 
requires each insurance company to deposit in SAMA or a local bank an amount equivalent to 10.0% of its paid-up capital as a statutory deposit to meet any unexpected obligations towards 
policy holders. These deposits cannot be withdraw n without the approval of SAMA. In addition, 
SAMA prohibits Saudi insurance firms from extending reinsurance to non-Saudi companies that have received a rating below BBB from S&P, or  its equivalent from another internationally 
recognized credit rating agency: the objective be ing to add to the resilience of the market and 
enhance its ability to withstand shocks resulting from interconnectedness with global markets.  
4.95.  The Saudi insurance sector nearly meets the solvency margin requirement set by the 
insurance law and the implementing regulations. Its reported solvency margin rose by 
29.5 percentage points to 99.0% of the 100% benchmark in 2014. Recognizing the need for 
insurance companies to raise their solvency margins and return to the required levels, SAMA advised them to submit plans as to how they woul d bring the solvency margins up to the required 
level. In addition, SAMA also took various steps to enhance profitability in the market such as 
actuarial pricing, and required companies to take into consideration the loss experience during the underwriting process. As a result the solvency ma rgin in the second quarter of 2015 rose to 111%. 
4.5.1.3  Capital markets 
4.5.1.3.1  Structure 4.96.  Saudi Arabia has the largest stock market of the GCC countries, with 169 listed companies 
that are classified into 15 sub-sectors. As of end-2014, market capitalization was approximately 
SAR 1,813 billion and the Tadawal All Share Index (TASI) was 8,333 points, up from 6,621 at end-
2010 (Chart 4.4). The market is highly concentr ated, with the banking and financial services 
sector, and the petrochemicals sector accounting for more than half the market capitalization. 
Furthermore, during the review period activity in the market has increased, as the number of 
shares traded rose slightly above 33 billion in 2010 to over 70 billion in 2014, and trading in Sukuk (deeds and financial certificates) and bonds reached SAR 108 million in 2014. 
Chart 4.4 Market capitalization, 2010-14 
05001,0001,5002,0002,500
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
2010 2011 2012 2013 2014Market capitalization (SAR billion) (right axis)
 TASI (left axis)
 
Source: Information provided by the Saudi authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  4.5.1.3.2  Regulation 
4.97.  Under the provisions of Article 20 of the Capital Market Law of 200351, "A market shall be 
established in the Kingdom for the trading in securities which shall be known as 'the Saudi Stock 
Exchange', and will have the legal status of a joint stock company in accordance with the 
provisions of this law…". Consequently, the Saudi Stock Exchange was established by the Royal Decree No. 15 of 2007. Under the provisions of the Law, Tadawal is the only entity authorized to 
trade in securities in Saudi Arabia.  
4.98.  The Capital Market Law also established the Capital Market Authority (CMA) as sole 
regulatory authority. The CMA has the authority to promulgate and enforce rules for the regulation of all aspects of securities trade. The CMA ha s established a Committee for the Resolution of 
Securities Disputes, which has jurisdiction over di sputes falling under the provisions of the Capital 
Market Law, its Implementing Regulations, and the regulations, rules, and instructions issued by the Authority and the Exchange, with respect to public and private actions. The Committee's 
decisions may be appealed before the Appeal Pa nel within 30 days of their notification date. 
4.99.  Direct share trading in Saudi Arabia is restricted to Saudi citizens, GCC nationals, and 
foreign residents, but there are no restrictions on investment by non-resident foreign investors in 
government bonds, treasury bills or Saudi inve stments funds, ETFs, and swap agreements. Non-
GCC nationals that hold shares of public joint-stock companies traded in the equity share market must obtain permission from the CMA prior to buying or selling their shares. The CMA has also permitted the trading of Sukuk in order to promote a market in instruments less exposed to risk 
than ordinary equities. 
4.100.  Saudi Arabia permits foreigners to invest in open-ended investment funds that invest in 
the Saudi Stock Exchange and are managed by an authorized person licensed by the CMA. Foreign 
investors are permitted to participate directly in corporate debt, government debt, and mutual 
funds. The participation of foreign investors in the stock market to buy and sell shares is under consideration by the CMA. ETFs and swap agreem ents were recently added as two additional 
channels through which non-resident foreign inve stors may invest in the Saudi Capital Market. 
4.101.  In June 2015, the Saudi government took a policy decision that allows certain qualified 
foreign institutional investors (QFIs) to directly invest in the Saudi stock market. This further opening of the market to QFIs is expected to further promote stability as these are qualified 
investors that can add to the level of maturity and sophistication in the market.  
4.102.  Furthermore, the capital market regulato r has continued issuing and amending rules and 
regulations to create an investment-conductive environment that supports investor confidence and 
protection. In addition to the qualified foreign investors (QFIs), Credit Rating Agencies Regulations 
became effective on September 2015. The Special Purpose Entities Regulations are being drafted, 
while the Investment Funds and Authorized Persons Regulations are being revised. 
4.5.2  Transport 
4.103.  Under its GATS commitments, Saudi Arabia do es not maintain restrictions on Modes 1 to 3 
with regard to market access and national treatment in the sectors of maritime transport, air transport, rail transport, and pipe line transport, except that Mode 3 in railway transport is limited 
to foreign investment in the form of "build, operate and transfer" (BOT) arrangements.
52 Saudi 
Arabia did not make any commitments under Mode 4 other than those indicated in the horizontal section. 
4.5.2.1  Aviation 
4.104.  The basic legislation pertaining to civil aviation services is the Civil Aviation Law. The 
General Authority of Civil Aviation (GACA) is the competent authority for implementing the 
legislation and overseeing the development of the aviation transport sector. In addition to making 
                                               
51 Royal Decree No. M/30, 2/6/1424H (13 July 2003). 
52 WTO document WT/ACC/SAU/61/Add.2, 1 November 2005. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  sector development policies (e.g. infrastructure privatization or open services for private sector 
participation), other functions of the GACA include licensing carriage operators, licensing ground services operators, "adopting" air tariffs and prices, and navigation. 
4.105.  The policy objectives for the aviation sector are set out in Saudi Arabia's Air Transport 
Strategy, which, at end-2015, was not available to the public. According to the authorities, GACA's 
strategy is to encourage investment in all the sub-sectors in civil aviation and to implement initiatives for privatization in areas such as airports and navigation. In addition, GACA is seeking to 
meet rising demand for air transport and improve quality for passengers with infrastructure 
development to meet these needs. The strategy also includes measures to improve GACA's legislative and regulatory role, including improvin g standards and implementation of an evaluation 
programme.  
4.106.  Saudi Arabian Airlines (Saudia), the flag carrier, has the largest market share of passenger 
air transport in Saudi Arabia. Saudia is a public and independent corporation, 100% owned by the Saudi Government. According to the authorities, Saudia is represented by the Director-General 
who is appointed by the Prime Minister
53; and is managed by a board of directors.54 
4.107.  The market for domestic flights was about 12 million passengers in 2014.55 Since 2007, 
Nas Air (now Flynas) has operated in competition with Saudia. Flynas also operates several 
regional international flights.56 Since 2011, GACA granted rights to three applicants for operating 
domestic flights: Al Maha, Saudi Gulf, and Nesma (all majority-owned by Saudi nationals). The authorities stated that, once the economic and technical requirements set out in their licences have been certified, they may commence operations. 
4.108.  Cargo flights are open to all licensed carriers including express delivery companies. There 
are currently 11 carriers licensed for cargo flights, among which 10 are foreign carriers. Similar to domestic passenger transport, air freighters operating on domestic routes must be locally 
incorporated in Saudi Arabia. For domestic air freight transport, Saudi Airlines Cargo continues its 
dominance in the air shipment business. At the end of 2014, air cargo shipments stood at 1,019 million tonnes, slightly below the 1,059 million tonnes in 2013.
57  
4.109.  Saudi Arabia has about 80bilateral air services agreements (Table A4.1), all of which are 
provisionally applied. None of these agreements covers the seventh freedom rights; the authorities 
note that the fifth freedom rights is allowed only by special approval from competent authorities. Moreover, all these agreements allow free pricing.  
4.110.  Almost all airports in Saudi Arabia are owned and managed by the GACA However, as a 
reflection of the authorities' strategy of partial privatization, in 2012 the GACA signed a US$1.2 billion public-private-partnership (PPP) contract with an international consortium led by 
Turkish airport operator, TAV, for the building and operation of the New Prince Muhammad bin 
Abdulaziz International Airport; the PPP contract  maintains the ownership of the airport by the 
GACA but allows the private consortium to undertake the revenue risks associated with operating 
the airport. 
4.111.  The slot management is overseen by the Airport Sector of the GACA, however it is planned 
to outsource it to an independent slot coordinator in the near future. The authorities note that the time slot management follows international practice. 
4.112.  There are two licensees of general ground handling services. Saudia is the dominant 
services provider of ground handling services. Swissport was granted a licence to provide ground handling. According to the authorities, other operators were granted licences for specific ground 
handling services such as catering.  
                                               
53 By-Laws of the Saudi Arabian Airlines Corporation. 
54 The board of directors is composed of 11 members including the Director-General, and the chair is the 
President of the General Authority of Civil Aviation (GACA). 
55 GACA (2015).  
56 GACA granted domestic routes carrier licences to Fl ynas and Sama Airlines in 2007; Sama Airlines has 
not operated since August 2010. 
57 GACA (2015).  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  4.5.2.2  Maritime Transport 
4.113.  The National Shipping Company of Saudi Ar abia (Bahri) is the largest shipping company in 
Saudi Arabia; it is also the first national carrier. Bahri's business includes transportation of general cargo, crude oil, chemicals, liquefied petroleu m gas (LPGs) and dry bulk. Bahri, through its 
subsidiaries, also provides ship management services. Bahri is a publicly listed company; 28% of 
its shares are owned by the Public Investment  Fund of the Saudi Government; 20% by Saudi 
Aramco Development Company; and the rest by Saudi nationals.  
4.114.  Vela International Maritime Limted (Vela) was another major maritime transport company 
focused on transporting crude oil and petroleum-based chemicals. Vela was merged into the National Shipping Company of Saudi Arabia (Bahri) at the end of 2014, and now operates as part of Bahri. As a result of the merger, Bahri owns a fleet of 69 vessels, including 32 "very large crude 
carriers" (VLCCs), which gives Bahri the world's th ird-largest fleet of VLCCs. Bahri has also become 
the exclusive supplier of VLCC shipping to Saudi Aramco.  
4.115.  The Saudi Ports Authority (SEAPA) owns the majority of port facilities in Saudi Arabia. 
However, the SEAPA contracts out the operations of sea ports to the private sector, including the 
largest sea port, the Jeddah Islamic Port (JIP). Currently, 27 private companies provide port services. The contract for JIP's north and south container terminals is due to expire in 2019. 
4.116.  Saudi Arabia continues to seek more private sector participation through the model of 
public-private-partnership (PPP), in particular th e "build-operate-transfer" (BOT) model. The King 
Abdullah Port is the first port in Saudi Arabia entirely financed by private capital; it is owned and developed by the Ports Development Company, a joint venture between Emaar Economic City (an 
UAE company) and the Binladin Group.
58 The King Abdullah Port aims to increase its capacity to 
20 million twenty-foot-equivalent units (TEUs) per year.  
4.117.  The Yanbu Port experienced a rapid expansion in the last few years: the deadweight 
tonnes (DWT) throughput in Yanbu was 45 million in 2014, up from 28.9 million in 2010; a 
US$559.8 million expansion programme began in 2014 to further increase its capacity.  
4.118.  Piloting services are provided by SEAPA only and cabotage is not permitted for foreign 
services providers. 
4.5.2.3  Railway transport 4.119.  The basic legislation regarding the railway sector is the Railways Transportation 
Regulation, the Council of Ministers Resolution No. 155. The Saudi Railways Commission was 
established in 2013 as the regulator to implem ent the Regulation and to oversee the railway 
transport sector. Currently, the authority of the Railways Commission is exercised by the Saudi Railway Organization on an interim basis. The authorities indicated that the Railway Commission 
will become an independent organization once the Council of Ministers approves and relevant 
legislative procedures are completed.  
4.120.  The Saudi Railways Organization (SARO) is a fully state-owned entity under the Ministry of 
Transportation.
59 In addition to being a national carrie r, SARO is responsible for railway network 
planning and infrastructure management. According to the authorities, SARO operates its business in accordance with commercial considerations. 
4.121.  The Saudi Railway Company (SAR) is anot her state-owned railway transport company with 
its own railway network. The SAR transports passen gers, freight, and minerals on its network.  
4.122.  Saudi Arabia is in the process of developing its railway strategies in the Saudi Railway 
Master Plan 2015-2030. As at the end of 2014, the total length of the railway network was 
                                               
58 The partnership between Emaar Economic City and Binladin Group for the Ki ng Abdullah Port project 
began in 2010. 
59 The budget of the Saudi Railway Organization (SAR O) is covered by the General Budget of the Saudi 
Government; the Government appointed all members of th e SARO board of directors, of which the Minister of 
Transportation is the chair. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  1,412 kilometres. The network links two regions: Eastern Province and Riyadh where 40% of the 
population is located as well as 50% of the economic activity. Saudi Arabia is in the process of upgrading and expanding the rail network through four large-scale construction projects: the 2,750-km north-south railway connecting Riyadh and Al Hadetha on the Saudi-Jordan border; the 
450-km Haramain high-speed rail connecting Makkah and Medina via Jeddah and King Abdullah 
Economic City; the 1,400-km Saudi Land Bridge railway linking the Jeddah Islamic Port and Al Jubail; and the 663-km GCC railway line through Saudi Arabia (from its border with Kuwait to its 
border with the UAE). These construction projects are supervised by transport companies. 
4.123.  All of the current railway projects are fu lly funded by the Saudi Government, with private 
sector participation through tendering of operation and management concessions once the facilities have been completed. The authorities did indicate that private sector involvement through public-
private-partnership in the Saudi Land Bridge project was considered but it was not successful. 
4.5.2.4  Pipeline transport 4.124.  Saudi Arabia has 8,664 kilometres of petroleum pipelines: 212 km for condensate; 
1,880 km for natural gas; 1,183 km for LPG; 4,241 km for oil; and 1,148 km for refined products. 
A crude oil pipeline supplying Bahrain is under development. 
4.125.  All pipelines in Saudi Arabia are owned by Saudi Aramco; the management of pipelines is 
contracted out to the private sector. Upon its accession to the WTO, Saudi Arabia committed to 
impose no restrictions on pipeline transport services for both market access and national treatment for Modes 1 to 3; Mode 4 was unbound except as indicated in the horizontal section. 
4.5.3  Tourism 
4.126.  On account of having the two holiest sites in Islam (Mecca and Medina); Saudi Arabia has 
a captive religious tourism market. However, according to the authorities the Government generates no revenue from Hajj and Umrah. In 2014, nearly 14.5 million people visited the 
Kingdom of Saudi Arabia; of these over 11 million were Muslim pilgrims who came to perform Hajj 
and Umrah. In 2014, the sector's direct contribution to GDP was over US$21.3 billion (2.9% of GDP) and indirectly over US$33.2 billion (4.5% of GDP). Furthermore, the tourism sector is 
directly responsible for nearly 7% of total employment in Saudi Arabia and indirectly for over 11% 
of total employment. Furthermore, as already stat ed (Section 2), real-estate investment in Mecca 
and Medina and land transportation services (exclu ding intercity passenger transport by trains) is 
reserved for Saudi nationals.
60  
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.  
4.5.3.1  Regulation 
4.128.  The Saudi Commission for Tourism and Natural Heritage (SCTH) is the body responsible for 
regulating the tourism industry. The SCTA is responsible for formulating and implementing a strategy to drive growth and investment in the se ctor by increasing the number of offerings as well 
as facilitate tourism through human resource development and infrastructure upgrades. 
                                               
60 See document WT/ACC/SAU/61, 1 November 2005. 
61 The Cabinet Resolution No. 246 issued in May 2013 specified that the exhibition and convention 
permanent committee, which was formed by the Royal De cree (7863/MB), shall be transformed into a national 
programme called "the Saudi Exhibition and Conventi on Bureau". The Bureau aims at developing and 
organizing the exhibition and convention sector in the Kingdom through preparing the required plans so as to 
meet the Bureau's objectives, tasks, and needs. The re solution also specified the formation of a committee 
supervising the Bureau. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  4.129.  The SCTH also encourages the formation of associations that can take on the SCTH's roles 
as the industry matures. In this regard proposals have been submitted to establish professional groupings for accommodation, travel and tour guides. 
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. 
4.131.  Religious pilgrimage (Hajj and Umrah) are regulated by the Ministry of Hajj. As per Council 
of Ministers Resolution No. 179, dated 26/6/1429H and the Council of Ministers Resolution No. 93, 
dated 10/6/1420H, the responsibi lities of the ministry are inter alia :  
 receiving the pilgrims at all entry ports of the Kingdom, including air, sea, and land ports, 
and completing their procedures in coordination with the concerned authorities at the 
ports;  
 ensuring the availability of adequate and licensed accommodations for the pilgrims, and 
the availability of suitable means of transportation. These duties also include monitoring 
deficiencies in the services and any resulting consequences, providing any necessary field treatment for them, and preparing the necessary status confirmation report to inflict the 
disciplinary punishment specified by the regulations; 
 approving the operational plans of the companies and establishments licensed to provide 
services, following up their performance, and ensuring their performance;  
 field and electronic monitoring of the arrival rates of pilgrims;  
 participating in the work of the committees concerned with pilgrims' affairs, led by the 
Hajj Supreme Committee, Hajj Ce ntral Committee, and the Hajj Committee in Medina. 
This is in addition to coordinating with the authorities concerned with planning the 
system of Hajj; 
 referring ideas to the authorities concerned by suggesting ways to organize the pilgrims, 
regulations, or any amendments;  
 supervision of the pilgrims within Saudi Arabia. 
4.132.  The Ministry of Hajj also issues licences for a number of companies and establishments to 
provide the pilgrims with direct services under its supervision. Under Saudi Arabia's protocol of accession, foreign investment is prohibited in tourist orientation and guidance services related to 
Hajj and Umrah. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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 5  APPENDIX TABLES 
Table A1.1 Merchandise exports by  product and HS section, 2010-14 
(US$ million and %) 
Description 2010  2011  2012 2013 2014  
Total exports 251,143  364,698  388,401 375,873 342,433  
 (% of total exports)  
1 - Live animals; animal products 0.5  0.4 0.4 0.4 0.5  
2 - Vegetable products 0.2 0.1 0.1 0.1 0.1 
3 - Animal or vegetable fats and oils; prepared edible fats  0.1 0.1 0.1 0.1 0.1  
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco  0.5 0.4 0.4 0.4 0.5 
19 Preparations of cereals, flour, starch or mil k 0.1 0.1 0.1 0.1 0.1  
20 Preparations of vegetables, fruit, nuts or other parts of plants  0.1 0.1 0.1 0.1 0.1 
17 Sugars and sugar confectionery 0.1  0.1 0.1 0.1 0.1  
22 Beve rages, spirits and vinega r 0.1 0.1 0.0 0.1 0.1 
5 - Mineral products 85.8  87.2 86.9 85.7 83.2  
27 Mineral fuels, mineral oils and products of their distillation  85.7 87.1 86.9 85.6 83.1 
6 - Products of the chemical or allied industries 4.3  4.5 4.7 4.9 5.8  
29 Organic chemicals 3.0 3.3 3.3 3.5 4.1 
28 Inorganic chemicals; organic or inorganic compounds of 
 precious metals 0.1 0.2 0.3 0.5 0.7  
7 - Plastics and articles thereof; rubber and articles thereof  4.5 4.0 4.0 4.6 5.5 
39 Plastics and articles thereof 4.5  4.0 4.0 4.5 5.5  
8 - Raw hides and skins, leather, fu r skins and articles thereof; travel 
 goods, handbags; articles of animal gut 0.0 0.0 0.0 0.0 0.0 
9 - Wood and articles of wood; wood charcoal; cork and articles of 
 cork 0.0 0.0 0.0 0.0 0.0  
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
  paperboard and articles thereof 0.4 0.3 0.3 0.2 0.3 
48 Paper and paperboard; articles of paper pulp, of paper or of 
 paperboard 0.4 0.3 0.2 0.2 0.2  
11 - Textiles and textile articles  0.2 0.2 0.2 0.2 0.2 
12 - Footwear, headgear, umbrellas; prepared feathers and articles; 
  artificial flowers 0.0 0.0 0.0 0.0 0.0  
13 - Articles of stone, plaster, cement, etc.; ceramic products; glass 
  and glassware 0.2 0.1 0.1 0.1 0.2 
14 - Natural or cultured pearls, precious or semi-precious stones, 
  precious metals 0.0 0.0 0.0 0.0 0.0  
15 - Base metals and articles of base metal 0.9 0.7 0.7 0.9 1.2 
76 Aluminium and articles thereof 0.2  0.1 0.2 0.3 0.6  
73 Articles of iron or steel 0.3 0.3 0.3 0.2 0.3 
72 Iron and steel 0.3  0.2 0.2 0.2 0.1  
16 - Machinery and mechanical appliances; electrical equipment;  
 television image and sound recorders 1.0 0.8 0.7 0.8 0.8 
85 Electrical machinery and equipment; sound recorders and 
 reproducers 0.4 0.3 0.3 0.4 0.3  
84 Nuclear reactors, boilers, machinery and mechanical 
 appliances 0.6 0.5 0.4 0.4 0.5 
17 - Vehicles, aircraft, vessels and associated transport equipment  0.9 0.7 1.0 1.1 1.3  
89 Ships, boats and floating structures 0.3 0.3 0.4 0.6 0.7 
87 Vehicles other than railway or tramway rolling-stock, parts 
  and accessories 0.5 0.3 0.4 0.4 0.5  
18 - Optical, photographic, precision, medical or surgical 
 instruments; clocks and watches; musical instruments 0.1 0.1 0.0 0.0 0.0 
19 - Arms and ammunitions 0.0  0.0 0.0 0.0 0.0  
20 - Miscellaneous manufactured articles 0.1 0.1 0.1 0.1 0.1 
21 - Works of art, collectors' pieces and antiques 0.0  0.0 0.0 0.0 0.0  
Other 0.0 0.0 0.0 0.0 0.0 
Source: Central Department of Statistics  and Information (CDSI), Saudi Arabia.  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 93 - 
 
  Table A1.2 Merchandise imports by product and HS section, 2010-14  
(US$ million and %) 
Description 2010  2011  2012 2013 2014  
Total 106,862  131,587  155,593 168,155 173,833  
 (% of total imports) 
1 - Live animals; animal products 4.0  4.1 3.6 3.6 3.8  
02 Meat and edible meat offal  1.8 1.9 1.6 1.7 1.5 
04 Dairy produce; birds' eggs; natural honey; edible products   
 of animal origin, n.e.s. 1.4 1.4 1.3 1.2 1.4  
2 - Vegetable products 6.2 5.7 5.4 5.7 5.3 
10 Cereals 3.8  3.3 3.2 3.6 3.1  
3 - Animal or vegetable fats and oils; prepared edible fats  0.7 0.9 0.7 0.6 0.6 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco  4.9 4.6 4.2 4.5 4.4  
21 Miscellaneous edible preparations 0.9 0.9 0.9 0.9 0.9 
19 Preparations of cereals, flour, starch or mil k 0.8 0.7 0.7 0.7 0.8  
5 - Mineral products 1.9 1.9 1.8 2.5 2.6 
27 Mineral fuels, mineral oils and products of their distillation; 
 bituminous substances; mineral waxes 0.2 0.3 0.4 1.3 1.5  
26 Ores, slag and ash 1.4 1.4 1.1 0.8 0.8 
6 - Products of the chemical or allied industries 8.7  8.5 8.3 8.0 8.6  
30 Pharmaceutical products  3.1 2.9 2.8 3.1 3.1 
29 Organic chemicals 1.5  1.6 1.4 1.3 1.4  
38 Miscellaneous chemical products 1.5 1.4 1.4 1.2 1.4 
33 Essential oils and resinoids; perfumery, cosmetic or toilet 
 preparations 1.1 1.0 1.0 0.9 1.1  
7 - Plastics and articles thereof; rubber and articles thereof  3.6 3.8 3.6 3.4 3.4 
39 Plastics and articles thereof 2.1  2.2 2.1 2.0 2.0  
40 Rubber and articles thereof 1.5 1.6 1.5 1.4 1.4 
8 - Raw hides and skins, leather, furskins and articles thereof; 
 travel goods, handbags; articles of animal gut 0.3 0.3 0.3 0.3 0.3  
9 - Wood and articles of wood; wood charcoal; cork and articles of 
 cork 1.1 1.0 1.0 0.9 0.9 
44 Wood and articles of wood; wood charcoal 1.1  1.0 1.0 0.9 0.9  
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
  paperboard and articles thereof 1.6 1.5 1.3 1.2 1.2 
48 Paper and paperboard; articles of paper pulp, of paper or of 
 paperboard 1.4 1.3 1.1 1.1 1.0  
11 - Textiles and textile articles  3.3 3.4 3.1 3.0 3.1 
62 Articles of apparel and clothing accessories, not knitted or 
  crocheted 1.5 1.4 1.3 1.3 1.3  
61 Articles of apparel and clothing accessories, knitted or 
 crocheted 0.5 0.7 0.5 0.5 0.6 
12 - Footwear, headgear, umbrellas; prepared feathers and   
  articles; artificial flowers 0.5 0.5 0.5 0.5 0.5  
13 - Articles of stone, plaster, cement, etc.; ceramic products;   
  glass and glassware 1.4 1.4 1.4 1.4 1.3 
69 Ceramic products 0.6  0.6 0.6 0.6 0.6  
14 - Natural or cultured pearls, precious or semi-precious stones, 
  precious metals 1.2 1.9 1.9 3.0 2.9 
71 Natural or cultured pearls, precious or semi-precious 
 stones, precious metals, metals clad with precious metal  and articles thereof; imitation jewellery; coin 1.2
 1.9 1.9 3.0 2.9  
15 - Base metals and articles of base metal 12.4 13.4 13.8 12.4 12.2 
73 Articles of iron or steel 3.8  4.1 4.2 4.5 4.7  
72 Iron and steel 4.3 4.7 5.0 3.6 3.3 
74 Copper and articles thereof 2.0  2.3 2.1 2.0 1.9  
16 - Machinery and mechanical appliances; electrical equipment; 
  television image and sound recorders 24.7 26.7 26.4 26.2 26.2 
84 Nuclear reactors, boilers, machinery and mechanical 
 appliances; parts thereof 15.1 15.6 15.8 15.6 15.3  
85 Electrical machinery and equipment and parts  thereof; 
 sound recorders and reproducers, television image and 
 sound recorders and reproducers, and parts and 
 accessories of such articles 9.6 11.2 10.6 10.6 11.0 
17 - Vehicles, aircraft, vessels and associated transport equipment  18.4 15.6 17.7 17.1 16.7  
87 Vehicles other than railway or tramway rolling-stock, and 
 parts and accessories thereof 15.3 13.3 15.5 14.7 14.6 
89 Ships, boats and floating structures 0.6  0.7 1.1 1.2 0.9  
88 Aircraft, spacecraft, and parts thereof 2.0 1.4 1.0 1.0 1.0 
18 - Optical, photographic, precision, medical or surgical   
  instruments; clocks and watches; musical instruments 2.6 2.3 2.5 2.6 2.8  
90 Optical, photographic, cinematographic, measuring, 
 checking, precision, medical or surgical instruments and 
 apparatus; parts and accessories thereof 2.3 2.0 2.1 2.2 2.4 
19 - Arms and ammunitions 0.7  0.7 0.7 1.2 0.9  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 94 - 
 
  Description 2010  2011  2012 2013 2014  
20 - Miscellaneous manufactured articles 1.8 1.8 1.9 2.0 2.2 
94 Furniture; bedding, mattresses, mattress supports, 
 cushions and similar stuffed furnishings; lamps and lighting  fittings, not elsewhere specified or included; illuminated  signs, illuminated name-plates and the like; prefabricated  buildings 1.2
 1.3 1.3 1.4 1.6  
21 - Works of art, collectors' pieces and antiques 0.0 0.0 0.0 0.0 0.0 
Other 0.0 0.0 0.0 0.0 0.0  
Source: Central Department of Statistics  and Information (CDSI), Saudi Arabia. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 95 - 
 
  Table A1.3 Merchandise exports by trading partner, 2010-14  
(US$ million and %) 
Description 2010  2011  2012 2013 2014  
Total exports 251,143 364,698 388,401 375,873 342,433 
 (% of total exports) 
 America 15.1 15.7 16.0 15.9 14.4 
 United States 13.2 13.7 14.3 14.1 12.7 
 Other America 1.9 2.0 1.6 1.8 1.8 
 Brazil 0.8 0.9 0.8 0.9 0.9 
 Canada 0.8 0.7 0.7 0.7 0.6 
 Mexico 0.2 0.2 0.1 0.1 0.1 
 Europe 10.6 13.0 13.3 12.7 13.3 
 EU(28) 9.5 12.0 12.1 11.6 12.2 
 France 1.7 1.8 1.8 2.3 2.5 
 Spain 1.9 2.0 2.0 2.0 2.1 
 Italy 1.6 2.8 2.7 2.4 2.0 
 Belgium 1.4 1.3 1.4 1.4 1.9 
 The Netherlands 1.4 2.3 2.3 1.6 1.9 
 EFTA 0.1 0.1 0.1 0.0 0.0 
 Other Europe 1.0 0.9 1.1 1.1 1.1 
 Turkey 1.0 0.9 1.1 1.1 1.1 
 Commonwealth of Inde pendent States (CIS)a 0.0 0.0 0.0 0.1 0.0 
 Africa 4.5 4.3 4.7 4.8 5.1 
 South Africa 1.2 1.3 1.9 1.9 1.7 
 Egypt 1.0 0.8 0.7 0.9 1.1 
 Morocco 0.9 0.8 0.7 0.7 0.7 
 Middle East 10.8 9.1 8.8 8.7 9.8 
 United Arab Emirates 3.5 2.8 2.7 2.8 3.5 
 Bahrain, Kingdom of 3.2 2.7 2.7 2.7 2.7 
 Jordan 1.4 1.2 1.3 1.1 1.4 
 Asia 59.0 57.9 57.3 57.8 57.4 
 China 11.9 12.5 12.9 13.4 12.5 
 Japan 14.4 13.2 13.2 12.8 12.2 
 Six East Asian Traders 20.6 20.5 18.9 18.6 19.4 
 Chinese Taipei 4.0 3.4 3.5 3.7 3.4 
 Singapore 4.0 4.4 3.7 3.1 3.6 
 Korea, Rep. of 9.8 10.0 9.2 9.3 9.6 
 Malaysia 0.7 0.7 0.6 0.6 0.8 
 Thailand 1.9 1.8 1.9 1.8 1.8 
 Hong Kong, China 0.2 0.1 0.1 0.1 0.1 
 Other Asia 12.1 11.7 12.2 13.1 13.3 
 India 7.6 7.6 8.3 9.2 8.9 
 Indonesia 1.5 1.3 1.4 1.5 1.6 
 Pakistan 1.3 1.2 0.9 1.1 1.1 
 Philippines 1.0 1.0 0.9 0.7 0.9 
 Other 0.0 0.0 0.0 0.0 0.0 
a Commonwealth of Independent States (CIS) includes Armenia; Azerbaijan; Belarus; Georgia; 
Kazakhstan; Kyrgyz Republic; Moldova, Rep. of ; Russian Federation; Ta jikistan; Turkmenistan; 
Ukraine and Uzbekistan. 
Source: Central Department of Statistics  and Information (CDSI), Saudi Arabia. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Table A1.4 Merchandise imports by trading partner, 2010-14  
(US$ million and %) 
Description 2010  2011  2012 2013 2014  
Total imports 106,862 131,586 155,594 168,155 173,833 
 (% of imports) 
 America 18.7 18.2 18.6 18.9 17.5 
 United States 13.2 12.6 13.5 13.5 13.0 
 Other America 5.5 5.6 5.1 5.3 4.5 
 Brazil 2.9 2.9 2.0 2.0 1.7 
 Canada 1.4 1.2 1.5 1.0 1.0 
 Mexico 0.4 0.5 0.6 1.0 0.9 
 Argentina 0.4 0.5 0.6 1.0 0.6 
 Chile 0.2 0.2 0.2 0.1 0.1 
 Guatemala 0.1 0.1 0.1 0.1 0.0 
 Europe 32.8 31.5 30.1 30.5 30.8 
 EU(28) 28.4 27.0 25.3 25.3 26.3 
 Germany 7.7 6.9 7.1 7.1 7.2 
 France 4.1 3.7 3.2 3.1 3.4 
 Italy 3.2 3.5 3.0 3.2 3.4 
 United Kingdom 3.2 2.9 2.7 2.5 2.6 
 Spain 1.2 1.1 1.2 1.2 1.3 
 EFTA 2.3 2.6 2.5 3.2 2.9 
 Switzerland 2.1 2.5 2.3 3.1 2.8 
 Norway 0.2 0.1 0.1 0.1 0.1 
 Other Europe 2.1 1.9 2.3 2.0 1.7 
 Turkey 2.1 1.9 2.3 1.9 1.7 
 Commonwealth of Inde pendent States (CIS)a 1.9 1.8 2.0 1.6 1.8 
 Russian Federation 0.8 0.9 0.9 1.0 1.1 
 Ukraine 1.0 0.9 1.0 0.6 0.7 
 Africa 3.2 3.2 3.0 3.1 3.4 
 Egypt 1.5 1.4 1.3 1.3 1.3 
 South Africa 0.4 0.4 0.3 0.5 0.6 
 D.R. Congo 0.2 0.3 0.4 0.4 0.5 
 Sudan 0.2 0.3 0.3 0.3 0.3 
 Somalia 0.1 0.2 0.1 0.2 0.2 
 Zambia 0.4 0.3 0.2 0.1 0.1 
 Middle East 7.3 8.0 7.9 8.8 8.4 
 United Arab Emirates 3.5 4.1 4.2 5.1 4.8 
 Bahrain, Kingdom of 1.0 1.0 0.9 1.0 1.1 
 Oman 0.4 0.7 0.9 0.9 0.8 
 Jordan 0.6 0.5 0.5 0.5 0.5 
 Qatar 0.2 0.4 0.4 0.4 0.3 
 Kuwait, the State of 0.3 0.4 0.3 0.3 0.3 
 Lebanon 0.3 0.3 0.3 0.3 0.2 
 Asia 36.1 37.4 38.5 37.1 38.0 
 China 11.7 13.1 12.7 12.4 13.4 
 Japan 7.5 6.3 6.7 5.6 5.7 
 Six East Asian Traders 9.3 10.7 11.1 10.7 9.9 
 Korea, Rep. of 4.4 5.9 6.1 5.7 5.0 
 Thailand 2.2 2.1 2.2 2.1 2.1 
 Chinese Taipei 0.9 1.0 1.1 1.1 1.1 
 Singapore 0.6 0.5 0.7 1.0 0.8 
 Malaysia 1.1 1.2 1.0 0.8 0.8 
 Hong Kong, China 0.1 0.1 0.0 0.0 0.0 
 Other Asia 7.7 7.2 8.0 8.4 9.0 
 India 3.8 3.3 3.4 3.5 3.6 
 Viet Nam 0.2 0.3 0.8 1.3 1.5 
 Indonesia 1.1 1.1 1.3 1.2 1.4 
 Australia 1.6 1.3 1.4 1.4 1.3 
 Other 0.0 0.0 0.0 0.0 0.0 
a Commonwealth of Independent States (CIS) includes Armenia; Azerbaijan; Belarus; Georgia; 
Kazakhstan; Kyrgyz Republic; Moldova, Rep. of ; Russian Federation; Ta jikistan; Turkmenistan; 
Ukraine and Uzbekistan. 
Source: Central Department of Statistics  and Information (CDSI), Saudi Arabia. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 97 - 
 
  Table A2.1 Main trade-related legislation at end-2015  
Issue  
Customs tariffs  - GCC Common Customs Law (1999), Royal Decree No. M/41 dated 
3/11/1423H (5 January 2003), and its rules of implementation 
 - Royal Decree No. 104 dated 20/4/1423H (30 June 2002) (applying GCC 
Common Customs Tariff) 
 - Royal Decree No. 40 dated 12/12/1424H (3 February 2004) (tariff rates 
for sensitive items) 
Import licensing  - Council of Ministers Decision No. 84 dated 1.4.1421H (3 July 2000) 
(Import Licensing Guide) 
 - The Import Licensing Law, Council of Ministers Decision No. 88 dated 
6/4/1423H (16 June 2002) (Import Licensing Procedures) 
Quantitative import restrictions  - Ministry of Commerce and Industry Decision No. 1308 dated 27/5/1424H 
(27July 2003) 
Customs valuation  - Royal Decree No. 190 dated 16/12/1409H (19 July 1989) 
 - Royal Decree No. M/41 dated 3/11/1423H (5 January 2003) (Common 
Customs Law of the GCC) 
 - Council of Ministers Decree No. 162 dated 17/6/1423H (28 August 2002) 
 - Ministerial Decision No. 1207 dated 9/5/1425H (27 June 2004) 
Trade in transit  - Ministerial Decree No. 5618 dated 15/11/1424H (8 January 2004) 
Preshipment inspection  - Council of Ministers Decision No. 213 dated 3/8/1424H 
(30 September 2003) (cancelling the ICCP) 
 - Ministerial Decision No. 6386 dated 21/6/1425H (8 August 2004) 
(establishing the ICCP Replacement Committee) 
Contingency measures - GCC Amended Common Law on Anti-Dumping, Countervailing Measures 
and Safeguard Measures of 1432H (2011) 
Technical barriers to trade  - Saudi Arabian Standards Organization (SASO) Technical Directive, Parts I 
through 4, issued 18 July 2000, as amended on 19 July 2005 
Sanitary and phytosanitary 
measures  - Shelf Life of Food Products, WT/ACC/SAU/27 
 - Ministerial Decision No. 943 dated 1/5/1424H (1 July 2003) ("Sanitary and 
Phytosanitary Unified Procedures") 
 - Council of Ministers Decision No. 109 dated 30/4/1424H (30 June 2003) 
 - Council of Ministers Decision No. 85 dated 1/4/1421H (4 July 2000) 
 - Council of Ministers Decree No. 207 dated 26/1/1396H (28 January 1976) 
 - Royal Decree No. M/10 dated 3/3/1392H (16 April 1972) 
 - Royal Decree No. M/3 dated 8/2/1423H (21 April 2002) (Law of Private 
Laboratories) and Implementing Regulations, issued pursuant to Ministerial 
Decision No. M/3 dated 21/2/1424H (23 April 2003) 
 - Royal Decree No. M/4905 dated 1/6/1430H (26 May 2009) "Transferring 
SPS Responsibility from MCI to SFDA" 
Trading rights  - Law on Commercial Registration, issued pursuant to Royal Decree No. M/1 
dated 21/2/1416H (19 July 1995) 
 - Law on Commercial Names, issued pursuant to Royal Decree No. M/15 
dated 12/8/1420H (20 November 1999) and the associated rules and regulations 
 - Professional Companies Law, issued pursuant to Royal Decree No. M/4 
dated 18/2/1412H (29 August 1991) 
 - Commercial Agencies Law, issued pursuant to Royal Decree No. M/11 
dated 20/2/1382H (22 July 1962) 
 - Implementing Regulations for Commercial Agencies Law, Ministerial 
Resolution No. 1897 dated 24/5/1401H (29 March 1981) 
Trade and environment - General Environment Regulations and Rules for Implementation in the 
Kingdom of Saudi Arabia 
Competition policies  - Law on Competition Policies, issued pursuant to Royal Decree No. M/25 
dated 4/5/1421H (22 June 2004) 
Pricing policies  - Council of Ministers Resolution No. 68 dated 29/5/1412H 
(1 December 1991) 
 - Council of Ministers Resolution No. 260 dated 23/10/1422H 
(7 January 2002) (cancelling Council of Ministers Resolution No. 68 dated 
1 November 1992) 
 - Supreme Council for the Petroleum and Mineral Affairs Resolution No. 15 
dated 11/3/1422H (3 June 2001) 
 - Law of the Pharmaceutical Established and Pharmaceutical (Preparations) 
and its Executive Regulations, issued by the Royal Decree No. (M/31) dated 
1/6/1424H WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
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  Issue  
Privatization  - Council of Ministers Decision No. 219 dated 6/9/1423H 
(11 November 2002) (Privatization Strategy) 
 - Supreme Economic Council Decision No. 1/23 dated 23/3/1423H 
(4 June 2002) 
 - Council of Ministers Resolution No. 60 dated 1/4/1418H (5 August 1997) 
 - Council of Ministers Resolution No. 257 dated 11/11/1421H 
(5 February 2001) 
 - Royal Decree No. 7-B-16941 dated 6/11/1417H (15 March 1997) 
 - Council of Ministers Resolution 169 dated 11/8/1419H 
(30 November 1998) (restructuring electricity sector) 
Investment regime  - Foreign Investment Law, Royal Decree No. M/1 dated 5/1/1421H 
(9 April 2000) and implementing regulations issued 14/4/1423H 
(24 June 2002) (replacing the 1979 Foreign Capital Investment Law) 
 - "Negative List", issued by Supreme Economic Council Decision No. 17/23 
dated 1/12/1423H (22 May 1993) 
 - Foreign Capital Investment Law, Royal Order No. M/4 dated 2/2/1399H 
(1 January 1979) 
 - Capital Market Law, Royal Decree No. M/30 dated 2/6/1424H 
(13 July 2003) 
 - Council of Ministers Decision No. 50 dated 21/4/1415H 
(27 September 1994) 
 - Council of Ministers Bureau Letter 8/490 dated 28/6/1414H 
(13 December 1993) 
Government procurement  Government Tenders and Procurement Law, Royal Decree No. M/58 dated 
4/9/1427H (27 September 2006) and Government Tendering and Procurement Regulations, Council of Ministers Resolution No. 223, dated 
2/9/1427 (2 September 2006) 
 GCC Unified Rules on Granting Priority in Government Procurements to 
National Products and Products of National Origin, Resolution of the Council 
of Ministers No. 139, dated 25/6/1470 (24 February 2007), Resolution of 
the Council of Ministers No. 23, dated 17/1/1428 (5 February 2007), 
Resolution of the Council of Ministers No. 155 dated 9 June 2008 
Trade-related intellectual property  - Copyright Law, Royal Decree No. M/41 dated 2/7/1424H (30 August 
2003), and Implementing Regulations, Ministerial Decision No. 1688/1 
dated 10/4/1425H (29 May 2004) 
 - Law of Trademarks, issued pursuant to Royal Decree No. M/21 dated 
29/5/1423H (7 August 2002) and Implementing Regulations, issued 
pursuant to Ministerial Order No. 1723 dated 26/7/1423H (4 October 2002) 
 - Law of Trade Names, Royal Decree No. M/15 dated 12/8/1420H 
(20 November 1999) 
 - Law of Commercial Data, Royal Decree No. M/15 dated 15/4/1423H 
(25 June 2002), and Regulations for the Protection of Confidential 
Commercial Information, Council of Ministers Decision No. 50 dated 
25/2/1426H (4 April 2005), as amended by Ministerial Decision No. 3218 
dated 25/3/1426H (4 May 2005), and Ministerial Decision No. 431 dated 
1/5/1426H (8 June 2005) 
 - GCC Patents Law 
 - Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and 
Industrial Designs, Royal Decree No. M/27 dated 29/5/1425H 
(17 July 2004), and Implementing Regulations, Ministerial Decision No. 
118828/M/10 dated 14/11/1425H (26 December 2004) 
 - Border Measures Regulations, Ministerial Decision No. 1277 dated 
15/5/1425H (3 July 2004) 
Agricultural policy  - Royal Decree No. 58 dated 3/12/1382H (6 May 1963) (founding the Saudi 
Arabian Agricultural Bank) 
 - Royal Decree No. 184 dated 24/9/1419H (14 December 1998) (ending 
issuance by GSFMO of permits for im porting or exporting any product) 
 - Royal Decree No. 4/B/49434 dated 8/12/1423H (10 February 2003) 
(ending GSFMO receipt of domestic barley) WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 99 - 
 
  Issue  
 - Council of Ministers Resolution No. 335 dated 19/11/1428H "Phasing out 
local wheat production received by GSFMO within 8 years" 
 - Royal Decree No. (M/9) dated 1/2/1430H (27 January 2009), The 
Agriculture Development Fund (ADF) re placing the Saudi Arabian Agriculture 
Bank (SAAB) 
 - Decision of the President of the Council of Ministers No. 35 of 27/1/1437H 
(9 November 2015) dissolving the Grain Silos and Flour Mills Organization (GSFMO), creating the Saudi Grain Organization (SAGO), and providing for 
privatization of flour mills 
Industrial policy  - Rules for the coordination of Industrial Establishments in the GCC States 
 - Saudi Industrial Development Fund Law, promulgated by Royal Decree 
No. M/3 dated 26/2/1394H (20 March 1974) 
 - Law for the Protection and Encouragement of National Industries 
Services  - Cooperative Insurance Companies Control Law, Royal Decree No. M/32 
dated 2/6/1424H (31 July 2003), and Implementing Regulations, issued 
pursuant to Ministerial Decision No. 1/596 dated 1/3/1425H (20 April 2004), 
as amended by Royal Decree No. 3120/MB dated 4/3/1426H (13 April 2005) 
 - Compulsory Auto Insurance Act, Council of Ministers Decision No. 222 
dated 12/8/1422H (29 October 2001) 
 - Law of Cooperative Health Insurance, Royal Decree No. M/10 dated 
1/5/1420H (12 August 1999) 
 - Royal Decree No. M/5 dated 17/5/1405H (18 January 1986) 
(establishment of National Company for Co-operative Insurance) 
 - Banking Control Law of 1966, Royal Decree No. M/5 dated 22/2/1386 
(11 June 1966) 
 - Capital Market Law, Royal Decree No. M/30 dated 2/6/1424H 
(13 July 2003) 
 - Credit Information Law, Royal Decree No. M/37 dated 5/7/1429H 
(9 July 2008) 
 Council of Ministers Resolution No. 179, dated 26/6/1429H (30 June 2008), 
and Council of Ministers Resolution No. 93, dated 10/6/1420H 
(20 September 2009) (regulating religious pilgrimages) 
Source: Saudi authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 100 - 
 
  Table A2.2 Dispute settlement cases with Saudi Arabia as a third party  
Case description  WTO document series 
United States – Definitive  Anti-Dumping and Counterva iling Duties on Certain 
Products from China WT/DS379 
China — Measures Related to the Ex portation of Various Raw Materials WT/DS394 
China — Measures Related to the Exportat ion of Various Raw Materials WT/DS395 
China — Measures Related to the Ex portation of Various Raw Materials WT/DS398 
Canada — Certain Measures Affecting the Renewable Energy Generation 
Sector WT/DS412 
China — Countervailing and Anti-Dumpi ng Duties on Grain Oriented Flat-
Rolled Electrical Steel from the United States WT/DS414 
Moldova — Measures Affecting the Impo rtation and Internal Sale of Goods 
(Environmental Charge) WT/DS421 
Canada — Measures Relating to the Feed-In Tariff Programme WT/DS426 
China — Anti-Dumping and Countervailing Duty Measures on Broiler Products 
from the Unit ed States WT/DS427 
China — Measures Related to the Export ation of Rare Earths, Tungsten and 
Molybdenum WT/DS431 
China — Measures Related to the Export ation of Rare Earths, Tungsten and 
Molybdenum  WT/DS432 
China — Measures Related to the Export ation of Rare Earths, Tungsten and 
Molybdenum WT/DS433 
United States — Countervailing Measures on Certain Hot-Rolled Carbon Steel 
Flat Products from India WT/DS436 
United States — Countervailing Duty Measures on Certain Products from 
China WT/DS437 
Argentina — Measures Affecting the Importation of Goods WT/DS438 
China — Anti-Dumping and Countervail ing Duties on Certain Automobiles 
from the Unit ed States WT/DS440 
Australia — Certain Measures Conc erning Trademarks, Geographical 
Indications and Other Plain Packaging Requirements Applicable to Tobacco 
Products and Packaging WT/DS441 
Argentina — Measures Affecting the Importation of Goods WT/DS444 
Argentina — Measures Affecting the Importation of Goods WT/DS445 
Argentina — Measures Relating to  Trade in Goods and Services WT/DS453 
China — Measures Imposing Anti-Dumping Duties on High-Performance 
Stainless Steel Se amless Tubes ("HP-SSST") from Japan  WT/DS454 
India — Certain Measures Relating to Solar Cells and Solar Modules WT/DS456 
Australia — Certain Measures Conc erning Trademarks, Geographical 
Indications and Other Plain Packaging Requirements Applicable to Tobacco 
Products and Packaging WT/DS458 
United States — Anti-dumping and Countervailing Measures on Large 
Residential Washers from Korea WT/DS464 
United States — Certain Methodologies and their Application to Anti-Dumping 
Proceedings Involving China WT/DS471 
European Union — Anti-Dumping Measures on Biodiesel from Argentina WT/DS473 
European Union — Cost Adjustment Me thodologies and Certain Anti-Dumping 
Measures on Imports from Russia WT/DS474 
China — Measures Related to Demonstration Bases and Common Service 
Platforms Programmes WT/DS489 
Source: WTO Secretariat. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 101 - 
 
  Table A2.3 Bilateral investment treaties  
No. Short title Status Date of 
signature Date of entry 
into force 
1 Austria  In force 30-06-2001 25-07-2003 
2 Azerbaijan Signed 09-03-2005   
3 Belarus  In force 20-07-2009 07-08-2010 
4 BLEU (Belgium-Luxemburg-Economic Union)  In force 22-04-2001 11-06-2004 
5 China  In force 29-02-1996 01-05-1997 
6 Czech Republic  In force 18-11-2009 13-03-2011 
7 Egypt  Signed 13-03-1990  
8 France  In force 26-06-2002 18-03-2004 
9 Germany In force 29-10-1996 08-01-1999 
10 India  In force 25-01-2006 20-05-2008 
11 Indonesia  In force 15-09-2003 05-07-2004 
12 Italy  In force 10-09-1996 22-05-1998 
13 Japan  Signed 30-04-2013   
14 Korea, Republic of  In force 04-04-2002 19-02-2003 
15 Malaysia  In force 25-10-2000 14-08-2001 
16 Philippines  In force 17-10-1994 11-11-1996 
17 Singapore  In force 10-04-2006 05-10-2007 
18 Spain  Signed 09-04-2006   
19 Sweden  In force 11-03-2008 01-10-2009 
20 Switzerland  In force 01-04-2006 09-08-2008 
21 Chinese Taipei  Signed 31-10-2000   
22 Turkey  In force 08-08-2006 20-02-2009 
23 Ukraine  Signed 09-04-2008   
24 Uzbekistan Signed 06-06-2011   
Source: UNCTAD (2013). Viewed at: http://unctad.org/Sections/dite_ pcbb/docs/bits_saudi_arabia.pdf  
[January 2016]. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 102 - 
 
  Table A2.4 Agreements and conventions on double taxation and prevention of tax 
evasion  
  Effective 
1. Austria 01.01.2008 
2. Azerbaijan Signed 13.05.2014 (not in force) 
3. Bangladesh 01.01.2012 
4. Belarus 01.01.2011 
5. China 01.01.2007 
6. Czech Republic 01.01.2014 
7. Ethiopia Signed 28.02.2013 (not in force) 
8. France 01.01.1981 
9. Greece 01.01.2011 
10. Hungary Signed 23.03.2014 (not in force) 
11. India 01.01.2007 
12. Ireland 01.01.2014 
13. Italy 01.01.2010 
14. Japan 01.01.2012 
15. Kazakhstan Signed 07.06. 2011 (not in force) 
16. Korea, Republic of 01.01.2009 
17. Kyrgyz Republic Signed 02.12.2014 (not in force) 
18. Luxembourg 01.01.2015 
19. Macedonia, Former Yugoslav Republic of  Signed 15.12.2014 (not in force) 
20. Malaysia 01.01.2008 
21. Malta 01.01.2013 
22. Netherlands 01.01.2011 
23. Pakistan 01.01.2007 
24. Poland 01.01.2013 
25. Romania 01.01.2013 
26. Russian Federation 01.01.2013 
27. Singapore 01.01.2012 
28. South Africa 01.01.2009 
29. Spain 01.01.2009 
30. Syrian Arab Republic 01.01.2011 
31. Tunisia 01.01.2014 
32. Turkey 01.01.2010 
33. Ukraine 01.01.2013 
34. United Kingdom 01.01.2010 
35. Uzbekistan 01.01.2011 
36. Viet Nam 01.01.2012 
37. Venezuela Signed 11.11.2015 (not in force) 
38. Sweden Signed 19.10.2015 (not in force) 
39. Portugal Signed 08.04.2015 (not in force) 
40. Tajikistan Signed 13.05.2014 (not in force) 
Source: Ministry of Finance on line information. Viewed at: 
https://www.mof.gov.sa/a rabic/DownloadsCenter/Pages/Agreements.aspx  (Arabic); treatypro.com 
online information. Viewed at: http://www.treatypro.com/treaty_ tables/saudi_arabia.asp#updates  
[December 2015]; and the Saudi Authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 103 - 
 
  Table A3.1 MFN applied duties partially in excess of bound duties, 2015  
HS12 code MFN description MFN 
rate Ex Bound description Bound 
rate 
39172100 - - Of polymers of ethylene 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 6.5 
39172200 - - Of polymers of propylene 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 6.5 
39172300 - - Of polymers of vinyl chloride 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 6.5 
39172900 - - Of other plastics 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 6.5 
39173100 - - Flexible tubes pipes and hoses, having 
a minimum burst pressure of 27.6 MPa  5 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 6.5 
39173300 - - Other, not reinfo rced or otherwise 
combined with other materials, with fittings 5
 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 6.5 
39173900 - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 6.5 
39174000 - Fittings 5  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 6.5 
40169300 - - Gaskets, washers and other seals  12 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 15 
73043100 - - Cold-drawn or cold-rolled (cold-
reduced)  5 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73043900 - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73044100 - - Cold-drawn or cold-rolled (cold-
reduced)  5 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73044900 - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73045100 - - Cold-drawn or cold-rolled (cold-
reduced)  5 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73045900 - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73049000 - Othe r 5  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
73064000 - Other, welded, of circular cross-section, 
of stainless steel 5 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
73065000 - Other, welded, of circular cross-section, 
of other alloy steel 5 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
73121090 - - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73129010 - - - Lifting ropes 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
73129090 - - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
76081000 - Of aluminium, not alloyed 8  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
76082000 - Of aluminium alloys 8  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
81089000 - Othe r 5  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
84138110 - - - For agricultural use 12  ex01 - - - - For use in civil 
aircraft 0 
   ex02 - - - - Other 15 
84183000 - Freezers of the chest type, not 
exceeding 800 L capacity 12 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 15 
84184000 - Freezers of the upright type, not 
exceeding 900 L capacity 12 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 15 
84186910 - - - Potable water coolers 12  ex01 - - - - For use in civil 
aircraft 0 
   ex02 - - - - Other 15 
84186940 - - - Refrigerating or freezing rooms of a 
capacity exceeding 900 L 12 ex01 - - - - For use in civil 
aircraft 0 
   ex02 - - - - Other 15 
84212300 - - Oil or petrol-filters for internal 
combustion engines  12 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 15 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 104 - 
 
  HS12 code MFN description MFN 
rate Ex Bound description Bound 
rate 
84213100 - - Intake air filters for internal 
combustion engines  12 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 15 
84241000 - Fire extinguishers, whether or not 
charged  12 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 15 
84251100 - - Powered by electric motor  5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
84251900 - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
84254200 - - Other jacks and hoists, hydraulic  5 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
84254900 - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
84269900 - - Othe r 5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
84281000 - Lifts and skip hoists 5  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
84282000 - Pneumatic elevators and conveyors  5 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 8 
84283300 - - Other, belt type  5  ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 8 
85021200 - - Of an output exceeding 75 kVA but not 
exceeding 375 kVA  12 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 15 
85021300 - - Of an output exceeding 375 kVA  12 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 15 
85043300 - - Having a power handling capacity 
exceeding 16 KVA but not exceeding 
500 kVA 12 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 15 
85049000 - Parts 5  ex01 - - Printed circuit 
assemblies for products 
falling within this 
agreement, including such assemblies for external connections such as cards that conform to the PCMCIA 
standard. Such printed 
circuit assemblies consist of one or more printed circuits of heading 0
 
   ex02 - - Other 5 
85071000 - Lead-acid, of a kind used for starting 
piston engines  12 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 15 
85086000 - Other vacuum cleaners 5   - Other vacuum cleaners 0  
85229000 - Othe r 5 ex01 - - For use in civil aircraft 0 
   ex02 - - Printed circuit 
assemblies for products falling within this agreement, including such 
assemblies for external 
connections such as cards that conform to the PCMCIA standard. Such printed circuit assemblies consist of 
one or more printed circuits 
of heading 0
 
   ex03 - - Other 13 
85238000 - Othe r 5  8523801
0 - - Unrecorded 0  
   8523809
1 - - - Gramophone records 8 
   8523809
2 - - - For reproducing 
phenomena other than 
sound or image 0 
   8523809
3 - - - For videotape and 
recorders 0 
   8523809
4 - - - For computers 0  
   8523809
9 - - - Other 0 
85261000 - Radar apparatus  5  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 7 
85269200 - - Radio remote control apparatus  5 ex01 - - - For use in civil aircraft 0  
   ex02 - - - Other 7 WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 105 - 
 
  HS12 code MFN description MFN 
rate Ex Bound description Bound 
rate 
88031000 - Propellers and rotors and parts thereof :  5 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 7 
88032000 - Unde r-carriages and parts thereof :  5 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 7 
88033000 - Other parts of aeroplanes or helicopters  5 ex01 - - For use in civil aircraft 0  
   ex02 - - Other 7 
88039000 - Other  5  ex01 - - For use in civil aircraft 0  
   ex02 - - Other 7 
90109000 - Parts and accessories 5   - Parts and accessories 0  
90149000 - Parts and accessories 5 ex01 - - For use in civil aircraft 0 
   ex02 - - Other 8 
90251100 - - Liquid-filled, for direct reading 5 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 5 
90301000 - Instruments and apparatus for 
measuring or detecting ionizing radiations 5 ex01 - - For use in civil aircraft 0 
   ex02 - - Other 8 
90303100 - - Multimeters without a recording device  5 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 8 
90318010 - - - Appliances for checking motor 
vehicle engines 5 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 5 
90318090 - - - Othe r 5 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 5 
90321000 - Thermostats  5 ex01 - - For use in civil aircraft 0 
   ex02 - - Other 8 
90322000 - Manostats 5 ex01 - - For use in civil aircraft 0 
   ex02 - - Other 8 
90328100 - - Hydraulic or pneumatic 5 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 8 
90328900 - - Othe r 5 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 8 
90329000 - Parts and accessories 5 ex01 - - For use in civil aircraft 0 
   ex02 - - Other 8 
94011000 - Seats of a kind used for aircraft 15 ex01 - - For use in civil aircraft 0 
   ex02 - - Other 15 
94032010 - - - Wardrobes  15 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 15 
94032020 - - - Clothes stands for placing on the 
floor 15 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 15 
94032030 - - - Microscope tables; laboratory 
benches (whether or not with glass cases, 
gas nozzles and tap fittings, etc.) 15 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 15 
94032040 - - - Floo r-mounted portable curtains  15 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 15 
94032090 - - - Othe r 15 ex01 - - - For use in civil aircraft 0 
   ex02 - - - Other 15 
94037000 - Furniture of plastics 15 ex01 - - For use in civil aircraft 0 
   ex02 - - Other 15 
Source: WTO Secretariat estimates based on data provided by the authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 106 - 
 
  Table A3.2 Products affected by stan dards and technical requirements, 2012-15  
Item Harmonized System commodity codes 
Group I – Toys 
Toys, including video games and other electronic toys  8712.00 / 9501 / 9502 / 9503 / 9504.10 / 9504.90 / 9505 / 
From 9506.99 
Playground, amusement and fairground equipment  9508 / From 3407  
Group II - Electrical and electronics 
Air conditioning systems up to 60,000 btu (5 tonnes)  8415.10.20 / 8415.81.20 / 8415.82.20 / 8415.83.20 
Combined function audio and/or video systems (non-
professional) 8518.30 / 8518.50 / 8520.30.  Combinations of II-03, II-04, II-
41, II-43 
Non-professional stand-alone audio products (except radio 
receivers) 8518.21 / 8518.22 / 8518.29 / 8518.40 / 8519.21 / 8519.29 / 
8519.31 / 8519.39 / 8519.92 / 8519.93 / 8519.99 / 8520.20 / 8520.90 
Video playing and recording systems (non-professional)  8521.10 / 8521.90 / 8525.40  
Generator sets up to 12 kw  8502.11 / 8502.20  
Motors up to 12 kw  8501.10 / 8501.31 / 8501.32 / 8501.40 / 8501.51 / 8501  
Fax and telex machines 8517.21 / 8517.22  
Household cooking appliances  8516.60 / 8516.72  
Clothes washing machines up to 10 kg and household 
dish-washing machines 8450.11 / 8450.12 / 8450.19 / 8422.1 
Clothes drying machines up to 10 kg 8451.21  
Electric irons, ironers and clothes steamers 8451.30 / 8516.40 / 8516.32  
Domestic electromechanical kitchen appliances incl. food 
processors, meat choppers and grinders 8509.40 / 8509.80  
Personal care/grooming appliances (shavers, hair clippers, 
hair-removal devices and massagers)  8510.10 / 8510.20 / 8510.30 / 9019.10  
Lift and elevator systems 8428.10 / 8431.31  
Household microwave ovens 8516.5  
Electric ovens up to 10 kw  8516.6  
Copy machines and accessories  9009.11 / 9009.12 / 9009.30 / 9009.21 / 9009.22 / 9009.90  
Personal computers (desktops/portables), storage units, 
peripherals and other input/output devices 8471.41 / 8471.49 / 8471.50 / 8471.60 / 8471.70 / 8473.30  
Power transformers and distribution transformers up to 
1,000 kva 8504.21 / 8504.22 / 8504.31 / 8504.32 / 8504.33 / 8504.34  
Household refrigerators and freezers up to 40 cu ft.  
including household refrigerating display cabinets  8418.10 / 8418.21 / 8418.22 / 8418.29 / 8418.30 / 8418.40 / 
8418.50 
Telephone sets, incl. mobiles, cordless telephones, and 
modems  8517.11 / 8517.19 / 8517.50 / 8525.20  
Non-industrial vacuum cleaners, water suction appliances 
and shampooers  8509.10 / 8509.80  
Household electric fires and heaters  8516.29 / 8516.21  
Drinking water coolers and fountains 8418.69.10  
Evaporative air coolers (desert coolers and humidifiers) up 
to 1.5 kw 8415.10.10 / 8415.82.10 / 8415.82.90 / 8415.83.10 / 
8415.83.90 
Domestic electric fans 8414.51 / 8414.60  
Compressors for cooling units up to 60,000 btu 8414.3  
Tea and coffee brewing appliances, and appliances for 
heating liquids 8516.71  
Incandescent, fluorescent and discharge luminaires, fixtures and lamp holders 9405.10 / 9405.20 / 8536.61 
 
Manually operated household switches, circuit breakers and 
fuses up to 40 a  8536.10 / 8536.20 / 8536.50  
Incandescent, fluorescent and discharge lamps  8539.21 / 8539.22 / 8539.29 / 8539.31 / 8539.32 
Ballasts for discharge type lamps (including tubular 
fluorescent lamps) 8504.1  
Starters for discharge type lamps (including tubular 
fluorescent lamps)  8532.1  
General use mains plugs, socket outlets and mains 
configuration adapters  8536.69  
Luminaires for road and street lighting 9405.4  
Batteries, including rechargeable and automotive 8506.10 / 8506.30 / 8506.40 / 8506.50 / 8506.60 / 8506.80 / 
8507.10 / 8507.30 / 8507.40 
Immersed swimming pool luminaries 9405.4  
Hair care equipment (hand-held hair dryers, hair curlers, 
waving apparatus and curling tong heaters)  8516.31 /  8516.32  
Water pumps up to 12 kw 8413.7  
TV sets (colour, black and white) 8528.12 / 8528.13  
General use mains voltage converters, power supplies and 
battery chargers  8504.4  
Standalone radio receivers 8527.12 / 8527.13 / 8527.19 / 8527.21 / 8527.29 
Storage and instant type water heaters up to 200 litres  8516.1  
Watt hour meters 9028.3  
Household sewing machines  8452.1  
Group III – Automotive 
Passenger automobiles, trucks, buses and multi-purpose 
vehicles (new) 8701 / 8702 / 8703 / 8704 / 8705  
Passenger automobiles, trucks, buses and multi-purpose 
vehicles (used) 8701 / 8702 / 8703 / 8704 / 8705  
Automotive glass (windshield, side and rear glass)  7007.21  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 107 - 
 
  Item Harmonized System commodity codes 
Vehicle spare parts (new), including radiators and hoses, 
brakes and parts, lights, filters, silencers and exhaust 
pipes, clutches and parts, child restraints, spark plugs, 
wiper blades and motors, safety belts, fuel tanks, mirrors, 
bumpers, door locks and hinges, tyre tubes, and v-belts, 
gauges, rims and steering rods 40.09 / 4010.22 / 4013.10, 4013.90 / 70.09 / 8301.20 / 
8302.30 / 8421.23 / 8421.31 / 8501.10 / 8511.10 / 8512.20 / 
8512.40 / 8539.10 / 8708.10 / 8708.70 / 8708.21 / 8708.29 / 
8708.91. 8708.92 / 8708.93 / 8708.94 / 8708.99 / 9026.20 / 
9026.80 / 9401.20 
New tyres for passenger automobiles, trucks, buses and 
multi-purpose vehicles 4011.10 / 4011.20  
Group IV – Chemical 
Engine, transmission, hydraulic, turbine, and transformer 
oils, brake fluid and anti-freeze coolant 2710.00.52 / 2710.00.53 / 2710.00.54 / 2710.00.55 / 
2710.00.94 .2710.00.95 / 2710.00.96 / 38.19 / 38.20 
Paints All 3208 / All 3209  
Perfumes and cosmetics 3302.90 / All 3303 /  All 3304 / All 3305 / All 3306 / 3307.10 / 
3307.20 / 3307.30 / 3307.49.10 / 3307.90.10 / 3401.1 
Domestic-use pesticides and insecticides  3808 
Group V – Others 
Aluminium and aluminium alloy products for architectural 
application 7604 / 7606 / 7608 / 7609 / 7610 / 7616 
Steel and iron alloy pipes 7304 / 7305 / 7306 / 7307  
Gold and silver jewellery (including gemstones) 7113.11 / 7113.19 / 7113.20 / 7114.11 / 7114.19 / 7114.20 / 
7116.10 / 7116.21 
Head dress for men - cotton shemagh and ghutras  6505.90.10 / 6505.90.30  
Fire extinguishers up to 24 kg  8424.1  
Cement 2523.21 / 2523.29.10 / 2523.29.20 
Safety matches 3605 
Source: Information provided by the authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 108 - 
 
  Table A3.3 SPS measures: products and countries affected, 2012-15  
HS No  Description of 
products  Nature of SPS Measure  Affected WTO Members and non-WTO members  
201 
202 
2060200 
20602001 2066200 2062900 
15020010 
16025010 16025090 16029010 16029021 
16029030 
16030010 All types of bovine 
meat and its 
products Banned because of BSE 
(Bovine Spongiform 
Encephalopathy)  All EU countries (except the Netherland; Ireland; Denmark;
 
France); Switzerland; Japan; and the United States 
201 
202 
2060200 
20602001 
2066200 
2062900 
15020010 
16025010 
16025090 
16029010 
16029021 
16029030 
16030010 All types of bovine 
meat and its 
products 
  Banned because of FMD 
(Foot and Mouth Disease) All African countries (except Ethiopia; Tunisia; Djibouti;  
Sudan; Kenya); China; Mala ysia, Yemen; Iran, Chinese 
Taipei; Lebanon; Bahrain, Kingdom of; Kuwait, the State 
of; Palestine; Syrian Arab Republic; Cyprus; North Korea; 
Myanmar; Kazakhstan; Korea, Rep. of; Japan; Mongolia; 
Russian Federation; Tajikistan; Bangladesh; Paraguay; and 
Egypt 
  
204 
2068010 2068090 2069011 
2069012 
2069019 2069090 All types of sheep 
and goat meat and their products   Banned because of FMD 
(Foot and Mouth Disease)  All African countries (except Ethiopia; Tunisia; Djibouti;
 
Sudan; Kenya); China; Malaysia; Yemen; Chinese Taipei; 
Lebanon; Bahrain, Kingdom of; Kuwait, the Sate of; Palestine; Syrian Arab Republic; Cyprus; North Korea; 
Myanmar; Kazakhstan; Korea, Rep. of; Japan; Mongolia; 
Russian Federation; Tajikistan; Bangladesh; Paraguay; and Egypt  
204 All types of sheep 
and goat meat and 
their products Banned because of Scrapie  
virus 
  All EU countries and Palestine  
207 407 
  
        Poultry meat and 
its products 
  
        Banned because of Avian 
Influenza with the 
exception of thermally 
treated poultry products       
  Japan;
 Korea, Rep. of; Viet Nam; China; Thailand; Hong 
Kong, China; Lao PDR, Cambodia; Indonesia, Russian 
Federation; Kazakhstan; Mongolia, Azerbaijan, Bulgaria, 
Slovenia; Greece; Germany; India; Iran; Nigeria; Iraq; Bosnia and Herzegovina; Burkina Faso; Côte d'Ivoire; Niger; Afghanistan; Cameroon; Sudan, Serbia; Montenegro; Djibouti;Bangladesh; Ukraine and the United 
Kingdom, Egypt; Turkey; Myanmar; Netherlands; Italy; 
South Africa; Canada; Mexico; Ghana; Nepal; Libya; Palestine; Chinese Taipei; the United States; and Bhutan 
Source: Information provided by the authorities. WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 109 - 
 
  Table A4.1 Air Transport agreements, 2015  
Partner Date Entry 
into 
force 7th Cabotage  Designation  Withholding Pricing Stat 
Afghanistan 2 Nov 2010 PA  N N M SOEC Lib Y  
Albania 26 Feb 2014 PA N N M SOEC Lib Y 
Australia 10 Apr 2011 PA  N N M SOEC Lib Y  
Austria 
 13 Jun 1989 
18 Oct 2008 PA N N M SOEC Lib Y 
Azerbaijan  10 Dec 2012 PA  N N M SOEC Lib Y  
Bangladesh 10 Dec 2012 PA N N M SOEC Lib Y 
Belgium 13 Apr 1986 
1 Jul 2010 PA N N M SOEC Lib Y  
Botswana 19 Nov 2014 PA N N M SOEC Lib Y 
Brazil 10 Dec 2012 PA  N N M SOEC Lib Y  
Brunei Darussalam 9 Feb 1992 
7 Jul 2009 PA N N M SOEC Lib Y 
Burkina Faso 10 Dec 2012 PA  N N M SOEC Lib Y  
Cameroon 18 Nov 2014 PA N N M SOEC Lib Y 
Canada 11 Dec 2012 PA  N N M SOEC Lib Y  
China 6 May 1986 
23 Jul 2007 
12 Dec 2012 PA N N M SOEC Lib Y 
Colombia 18 Nov 2014 PA  N N M SOEC Lib Y  
Cote d'Ivoire  11 Dec 2013 PA N N M SOEC Lib Y 
Cyprus 17 Jul 1998 
22 Apr 2002 PA N N S SOEC Lib Y  
Czech Republic 18 Oct 2011 PA N N M SOEC Lib Y 
Denmar k 3 May 1985 
19 Mar 1987 PA N N M SOEC Lib Y  
Ecuado r 19 Nov 2014 PA N N M SOEC Lib Y 
Egypt 21 Feb 2006 PA  N N M SOEC Lib Y  
Ethiopia 26 May 2002 PA N N M SOEC Lib Y 
France 21 Jan 2009 PA  N N M SOEC Lib Y  
Gambia 9 Mar 2003 PA N N M SOEC Lib Y 
Germany 19 Sep 1973 
12 Nov 2008 PA N N M SOEC Lib Y  
Greece 23 May 1989 
9 Dec 2013 PA N N M SOEC Lib Y 
Hong Kong, China 20 Nov 2005 
24 Feb 2009 PA N N M PPoB Lib Y  
Hungary 18 Nov 2014 PA N N M SOEC Lib Y 
Iceland 17 Oct 2011 PA  N N M SOEC Lib Y  
India 23 Jan 2008 PA N N M SOEC Lib Y 
Iran 2 May 1999 
21 Nov 2007 PA N N M SOEC Lib Y  
Iraq 16 May 1957 PA N N M SOEC Lib Y 
Italy 17 Dec 1969 
+ 
Exchange of 
diplomatic 
notes 
in 
18/10/1933H PA N N M SOEC Lib Y  
Japan 7 Apr 2006 
18 Aug 2008 PA N N M SOEC Lib Y 
Kazakhstan 18 Nov 2014 PA  N N M SOEC Lib Y  
Korea, Republic of 12 Nov 1976 
29 Sep 2011 PA N N M SOEC Lib Y 
Kyrgyz 20 Jun 2012 PA  N N M SOEC Lib Y  
Lebanese Republic 14 Jan 1961 
15 Jun 1975 PA N N M SOEC Lib Y 
Luxembourg 26 Jan 2011 PA  N N M SOEC Lib Y  
Maldives 12 Nov 2014 PA N N M SOEC Lib Y 
Malta 26 Mar 2014 PA  N N M SOEC Lib Y  
Mauritania 24 Mar 2013 PA N N M SOEC Lib Y 
Mauritius  9 Oct 2012 PA  N N M SOEC Lib Y  
Mexico 22 Aug 2014 PA N N M SOEC Lib Y 
Morocco 7 Mar 1976 PA  N N M SOEC Lib N  
Nepal 4 Oct 1999 PA N N M SOEC Lib Y 
Netherlands 13 Feb 1985 
5 Aug 2008 PA 
PA N 
N N 
N M 
M SOEC 
SOEC Lib 
Lib N 
Y 
New Zealand 10 Dec 2013 PA N N M SOEC Lib Y 
Niger 7 Jan 2004 PA  N N M SOEC Lib Y  
Norway 15 Mar 1987 PA N N S SOEC Lib Y 
Norway 3 May 1985 
19 Mar 1987 PA N N M SOEC Lib Y  
Pakistan 16 Jun 2015 PA N N M SOEC Lib Y 
Paraguay 10 Dec 2013 PA  N N M SOEC Lib Y  WT/TPR/S/333 • The Kingdom of Saudi Arabia 
 
- 110 - 
 
  Partner Date Entry 
into 
force 7th Cabotage  Designation  Withholding Pricing Stat 
Philippine 25 Sep 2012 PA N N M SOEC Lib Y 
Qatar 14 May 2001 PA  N N M SOEC Lib Y  
Romania 28 Ap r 2015 PA N N M SOEC Lib Y 
Russian Federation 29 Nov 2005 
11 Feb 2007 PA N N M SOEC Lib Y  
Rwanda 11 Dec 2013 PA N N M SOEC Lib Y 
Serbia 18 Nov 2014 PA  N N M SOEC Lib Y  
Seychelles  11 Dec 2013 PA N N M SOEC Lib Y 
Singapore 22 Aug 2008 PA  N N M SOEC Lib Y  
South Africa 28 May 2000 PA N N M SOEC Lib Y 
Spain 29 Sep 1987 
21 Nov 2014 PA N N M SOEC Lib Y  
Sri Lanka 8 Jun 1991 
21 Oct 2011 PA N N M SOEC Lib Y 
Swaziland 11 Dec 2013 PA  N N M SOEC Lib Y  
Sweden 3 May 1985 
19 Mar 1987 PA N N M SOEC Lib Y 
Switzerland 17 Mar 1976 
18 Nov 2014 PA N N M SOEC Lib Y  
Tajikistan 14 Jun 2010 PA N N M SOEC Lib Y 
Tanzania 13 Dec 2013 PA  N N M SOEC Lib Y  
Thailand 10 May 2005 PA N N M SOEC Lib Y 
Togo 10 Dec 2013 PA  N N M SOEC Lib Y  
Tunisia 12 Mar 1969 PA N N M SOEC Lib Y 
Turkey 20 Nov 2014 PA  N N M SOEC Lib Y  
Turkmenistan 8 May 2012 PA N N M SOEC Lib Y 
Ukraine 12 Sep 2013 PA  N N M SOEC Lib Y  
United Arab Emirates 25 Sep 1991 PA N N M SOEC Lib Y 
United Kingdom 24 Jun 2008 PA  N N M SOEC Lib Y  
United States 2 Oct 1993 
28 May 2013 PA N N M SOEC Lib Y 
Uzbekistan 31 Oct 2007 PA  N N M SOEC Lib Y  
Viet Nam 10 Feb 2012 PA N N M SOEC Lib Y 
Yemen 13 Nov 2007 PA  N N M SOEC Lib Y  
Zambia 10 Dec 2013 PA N N M SOEC Lib Y 
Zimbabwe 11 Dec 2013 PA  N N M SOEC Lib Y  
PA Provisional applicable. 
M Multiple designation. S Single designation. SOEC Substantial ownership and effective control. PPoB Principal place of business. Lib Liberal pricing. 
Note: The term "Air Transport Agreements" is used he re to refer to Air Servic es Agreements, Memoranda 
of Understanding, Exchange of Notes, and other such rele vant instruments. 
Source: Table provided by the authorities. 
__________