RESTRICTED  
  
WT/TPR/G/333  
29 February 2016  
(16-1194)  Page: 1/24  
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW 
REPORT BY 
THE KINGDOM OF SAUDI ARABIA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trad e Organization), the policy statement by the 
Kingdom of Saudi Arabia is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Re view Body on the Kingdom of Saudi Arabia. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  Contents 
1   INTROD UCTION  .......................................................................................................... 4  
2   ECONOMIC DEVELOPMENT .......................................................................................... 5  
2.1   Economic  Growth  ...................................................................................................... 5  
2.2   Diversification of the Economy ..................................................................................... 5  
2.3   Privatization Strategy ................................................................................................. 6  
2.4   Investme nt Regime ................................................................................................... 6  
3   TRADE POLICY DEVELOPMENTS .................................................................................. 7  
3.1   Tariffs, Other Measur es Affecting Imports ..................................................................... 7  
3.1.1   Customs procedures ................................................................................................ 7  
3.1.2   Transit procedures .................................................................................................. 7  
3.1.3   Rules of origin ....................................................................................................... . 8 
3.1.4   Customs valu ation procedures .................................................................................. 8  
3.1.5   Exports and free zo nes ............................................................................................ 8  
3.2   Technical Barriers to Trade (TBT) ................................................................................. 9  
3.3   Sanitary and Phytos anitary Measur es (SPS) .................................................................. 9  
3.4   Taxation ................................................................................................................... 9  
3.5   Trade Remedy Laws (Anti-Dumping, Countervailing, and Safeguard Measures) .................. 10 
3.6   Government  Procurement .......................................................................................... 10 
3.7   Trade-Related Intellectual Property Rights .................................................................... 10 
4   SECTORAL DE VELOPMENTS ....................................................................................... 11  
4.1   Agriculture ............................................................................................................. . 11 
4.2   Food Security ........................................................................................................... 12 
4.3   Fisheries and Aquaculture .......................................................................................... 12 
4.4   Hydrocarbon and Mining Sectors ................................................................................. 13 
4.4.1   Hydroc arbon sector ................................................................................................ 13 
4.4.1.1   Oil ................................................................................................................. ... 13 
4.4.1.2   Na tural gas ........................................................................................................ 13 
4.4.1.3   Downstream ....................................................................................................... 13 
4.4.2   Minera ls sect or ...................................................................................................... 14 
4.5   Manuf acturi ng .......................................................................................................... 15 
4.6   Services ................................................................................................................ .. 16 
4.6.1   Financial Services .................................................................................................. 16 
4.6.1.1   Banking sector .................................................................................................... 16 
4.6.1.2   Cooper ative insurance ......................................................................................... 16 
4.6.1.3   Finance .............................................................................................................  17 
4.6.1.4   Capi tal Mark et .................................................................................................... 17 
4.6.2   Telecom ...............................................................................................................  18 
4.6.3   Transportation ....................................................................................................... 18 
4.6.4   Health and social se rvices ....................................................................................... 19 WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  4.6.5   Courier ................................................................................................................. 19 
4.6.6   Aviation ................................................................................................................ 20 
4.6.7   Distribution ........................................................................................................... 20 
5   FREE TRADE AGREEMENTS ........................................................................................ 21  
5.1   GCC Cu stoms Union .................................................................................................. 21 
5.2   Pan Arab Free-Trade Area (PAFTA) .............................................................................. 21 
5.3   GCC-Singapore FTA .................................................................................................. 21 
5.4   GCC- EFTA FTA ......................................................................................................... 21 
6   FUTURE DIRECTION OF SAUDI ARABIA'S TRADE POLICY .......................................... 21  
6.1   Saudi Arab ia and the G20 .......................................................................................... 21 
6.2   Saudi Arabia and New Sources of  Energy ..................................................................... 22 
6.3   Competition .............................................................................................................  23 
ANNEX ......................................................................................................................... .. 24 
 
 WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  1  INTRODUCTION 
1.1.  This is Saudi Arabia's second Trade Policy Review; it covers the period 2011-2016. 1.2.  During this period Saudi Arabia has continued to implement its trade policies consistently 
with its WTO obligations and to pursue best practices in all areas of the management of its 
international trade. The multilateral trading system is central to Saudi Arabia's conduct of its trade 
policies. Saudi Arabia has played an increasingly active role in the work of WTO Councils and Committees, as well as the Dispute Settlement Body, with a view to supporting the strengthening 
of the WTO's roles of consultation, surveillance and dispute settlement so as to improve the 
implementation, administration and operation of WTO Agreements. 
1.3.  Saudi Arabia strongly supports all efforts to bring the Doha Development Agenda (DDA) 
negotiations to a successful conclusion as soon as possible. While Saudi Arabia supports the 
conclusion of the negotiations on the basis of the existing mandates, the Kingdom made clear at 
the Tenth Ministerial Conference in Nairobi that, as a recently acceded Member, it will engage 
constructively this year under the leadership of the Director-General with other Members to find 
ways to advance the negotiations in all areas in a consensual way. The multilateral trading system 
remains at the core of Saudi Arabia's trade policy and it is determined to play its part in strengthening it.  
1.4.  Key developments in the period covered by this Trade Policy Review have been: 
a) Steps taken by the Kingdom: to facilitate and promote an increased role for the 
private sector in the economy; to impr ove the ease of doing business and to 
continue to improve the investment climate; to attract foreign investment, 
including through the introduction of a new modern Companies Law; and other 
improvements to commercial and tax legislation. The Kingdom is considering the privatization of different government-owned companies as well as privatizing some 
parts of the Government process; 
b) Measures to improve the competitiveness and productivity of the economy under 
the Ninth and Tenth Development Plans and to diversify economic activity with the 
aim of transforming the Kingdom into a knowledge-based economy by 2030; 
c) As agreed by G20 Leaders, rejection of the imposition of new trade restrictions to 
help ensure that protectionism does not aggravate the difficult global economic situation; 
d) The Kingdom's continued application of relatively low tariffs, avoidance of non-
tariff barriers and application of internal measures (such as TBT and SPS) consistently with WTO obligations and in a manner that is as least-trade restrictive 
as possible. The Kingdom has continued to improve its customs practices and is a 
strong supporter of the Trade Facilitation Agreement; 
e) Further measures to strengthen the services component of the economy, notably 
the financial services sector where the Saudi Arabian Monetary Authority (SAMA) is 
paying particular attention to ensuring that the bank and non-bank sectors are well-capitalized, profitable and liquid, and the postal services sector where steps are being taken to prepare Saudi Post for eventual privatization.  
 
1.5.  The Saudi Arabian Council of Ministers has recently approved the long-awaited new 
Companies Law (CL) 1437H/2015G which has been promulgated by a royal decree. The new law is 
expected to promote the legal environment of inve stment in the Kingdom. The CL will come into 
effect within 150 days after publication in the Official Gazette. 
1.6.  The Ministry of Commerce and Industry and the Capital Market Authority will issue 
regulations to implement the CL. The CL introduces  five corporate forms: (i) general partnership; 
(ii) limited partnership; (iii) joint-venture company; (iv) joint-stock company, and (v) limited-
liability company. The CL will eliminate: (i) cooperative companies; (ii) partnerships limited by 
shares, and (iii) variable-capital companies. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  2  ECONOMIC DEVELOPMENT  
2.1  Economic Growth 2.1.  Saudi Arabia has adopted a development strategy that has resulted in a positive economic 
performance in the past few years in terms of GDP growth, moderate inflation, and surpluses in 
both its overall fiscal position and external current account. Between 2010-2014, the gross 
domestic product (GDP) increased from US$526 billion to US$746.25 billion.  
2.2.  In 2015, a new perspective on economic development and policy was introduced with the 
establishment of the Council of Economic and Deve lopment Affairs. The new Council is a high-level 
government entity that oversees development through mentoring and guiding all stakeholders' 
participation in the Government. The aim of establishing this Council was overseeing and supervising efforts to enhance the performance of the government sector, ensuring that the 
economy will be resilient as well as ensuring sustainable economic growth. 
2.3.  Saudi Arabia is the largest recipient of foreign direct investment in the Arab world. This 
achievement has resulted from the positive deve lopment of the national economy and steps taken 
by Saudi Arabia to improve its investment climate, including opening certain key economic 
activities to foreign investment (e.g. mini ng, petrochemicals and telecommunications). 
2.4.  The Tenth Development Plan covers the period 2015-2019. It reflects the aim of the Kingdom 
to ensure sustainable economic development and improve the performance and competitiveness of 
its economy through developing the government structure and accelerating the pace of the Kingdom's transformation into a knowledge-base d economy. The Tenth Development Plan has the 
following key objectives: 
 Economic diversification: building a modern economic structure relying on a 
broad, diversified base of economic resources and characterized by a high degree of internal integration between its various sectors and activities; 
 Improving the productivity and competitiveness of the national economy: 
accelerating the pace of economic growth and achieving a steady and sustainable increase in real income; 
 Transformation into a knowledge economy: by 2030, the Kingdom aims to be a 
knowledge-based economy with diversified resources driven by productive human capital and an active private sector; 
 Development of national human resources: the Plan clearly addresses the issues 
and challenges, which face the Saudi labor market so as to increase participation 
of Saudi nationals, particularly women, in economic activity; 
 The Plan is also keen to correct the macr o and structural distortions of the labor 
market; 
 Administrative and organizational developm ent of governmental agencies. This is 
to be achieved through improving the efficiency and productivity of the 
government agencies, developing the civil service system to ensure efficiency 
enhancing integrity and combating corruption  in the system. 
2.2  Diversification of the Economy  
2.5.  Economic diversification as envisaged by the Tenth Plan encompasses structural 
diversification of economic activities and focuses on three main constituents: 
 Diversification of the production base of the economy through increasing the 
contribution of non-oil sectors to GDP coupled with diversification of sub- activities within these sectors; 
 Institutional diversification entails increasing the share of the private sector in 
economic activity (GDP, investment, exports, employment, etc.); 
 Diversification of public revenues and exports. 
2.6.  Practical steps within the Plan to achieve diversification include: 
 Widening the base of non-oil public revenues;  WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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   Improving the efficiency of collection of direct and indirect taxes and government 
services fees; 
 Considering the imposition of charges on some free services; 
 Ensuring better collection of Zakat and income tax from all companies and 
individuals;  
 Imposing fees on vacant lands and collecting Zakat on such lands; 
 Developing an investment policy for the country's financial reserves with a view 
to maximize returns and develop the State's resources in order to ensure 
continuous government expenditure on projects and services directly related to 
citizens. 
2.7.  Some of the numerical targets for economic diversification are as follows: 
 Increasing the total value added of the no n-oil sectors at an average annual rate 
of 7.9% thereby increasing their contribution to GDP, at constant 2010 prices, 
from about 59.7% in 2014 to about 66% in 2019; 
 Increasing the private sector contribution to GDP, at constant 2010 prices, from 
about 45.7% in 2014 to about 51.5% in 2019; 
 Achieving an average annual growth rate of about 8% in the non-oil 
manufacturing industries during the Tenth Development Plan period;  
 Achieving an average annual growth rate of 8.9% for non-oil merchandise 
exports during the Tenth Development Plan period; 
 Increasing non-oil public revenues at an average annual rate of 11.2% during 
the Tenth Development Plan period; 
 Continuing to increase spending on research, development and innovation, in 
line with the "National Science and Technology Policy" to reach 2% of GDP by 
2025. 
2.3  Privatization Strategy  
2.8.  The kingdom is considering the privatization of various government-owned companies as well 
as some parts of the Government itself. Privatization on a national level is very important for the country to generate revenue and increase effici ency. Tenth Development Plan clearly envisages 
accelerating the diversification of suitable government and public services. It also stated the 
importance of studying the possible privatization of social services. For example, Saudi Post is considered to be a potential short-term privatization target. The Government has also announced commencement of the privatization of international and national airports by the beginning of 2016. 
2.4  Investment Regime  
2.9.  Under the Foreign Investment Law of 2000 and its Implementing Regulations of 2002, and 
further amendments by SAGIA resolution No. 2/74 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. 
2.10.  The Saudi Arabian General Investment  Authority (SAGIA) has launched a number of 
initiatives and programmes that aim to improve the investment environment in the Kingdom in 
accordance with the following themes; first:  to improve the investment environment and 
foster competition ; Royal Decree No. 42563 that was issued on 10/15/1435 H, directed 
concerned government agencies to continue coordination with SAGIA in order to agree on the 
appropriate mechanisms to achieve the goal of establishing the Kingdom as among the most 
competitive economies in the world.  
2.11.  Second:  directing investments to build a competitive economic sector ; the 
Consolidated Investment Plan is the most important initiative, which aimed at working closely with 
all relevant government agencies and the Kingdom's leading companies, in order to promote the integration of investment and direct it to dynamic and promising sectors; and to make the 
traditional sectors more competitive and productive. 
2.12.  Third:  marketing and attracting strategies for investments ; SAGIA established 
initiatives and programmes aimed at marketing the investment environment and the wide range of WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  potential investment opportunities in the Kingdom, for foreign investors and local investors, in 
cooperation with the Saudi Chambers of Commerce. 
3  TRADE POLICY DEVELOPMENTS  3.1  Tariffs, Other Measures Affecting Imports  
3.1.  The Kingdom has completed the implementation  of all its accession obligations in the goods 
sector with implementation of the sixth and last  phase of the reduction of customs duties on 
11 December 2015 covering 4 products in Chapter 33 (glass and mirror polishing preparations and 
metal polishing preparations). The tariff binding for these products is 5.5%, but the applied duty is 
5% so that there is no need for any reduction at this stage. 
3.2.  The applied duty rate on most products imported into Saudi Arabia is 5%, which is relatively 
low compared to most other Members. In 2014, th e simple weighted average of customs duties 
was 5.3% with total value of customs revenues collected during 2014 was SAR 27.9 billion on total 
imports, valued at SAR 652 billion (US$173 billio n). Customs duty exemptions under to the GCC 
Common Customs Law amounted to SAR 7.3 billion.  
3.3.  Saudi Arabia implemented the 2012 Ha rmonized System (HS) amendments as of 
1 January 2012. 
3.1.1  Customs procedures  
3.4.  Over the past few years, Saudi Arabia ha s substantially modernized its customs procedures. 
Ratification of the TFA is under active consideration, and the Kingdom has submitted its Category A notification to confirm implementation of all the provisions contained in Section I of the TFA, except Article 2.1 (Opportunity to Comment and Information before Entry into Force) and 
Article 10.4 (Single Window). 
3.5.  Saudi Arabia implements the GCC Common Customs Law (CCL) and its Rules of 
Implementation and Explanatory Notes, and deta iled information about the customs procedures 
applied by the Kingdom are available online (in Arabic and English).
1 In 2015, the Unified Guide for 
Customs Procedures at First Points of Entry was adopted to facilitate and simplify customs procedures across the GCC Customs Union. This Guide highlights the aim to ensure, under the 
"single port of entry" principle, that the cust oms procedures and documentation requirements are 
the same among the GCC member states.  
3.6.  The Saudi Customs Department applies a fu lly automated system in most cases, allowing 
electronic submission and processing of import  declarations. On average, provided relevant 
requirements (including with respect to documentation) are met, customs clearance of goods takes 
one day regardless of the mode of transport. Pre- arrival document verification procedures can be 
applied to certain products to allow direct clearance, and there is the intent to widen the scope of 
goods covered by such procedures. 
3.7.  Saudi Customs has also recently adopted an Authorized Economic Operator (AEO) scheme, 
for which the conditions and requirements are consistent with relevant guidelines established by 
the World Customs Organization. 
3.1.2  Transit procedures  3.8.  The GCC Member States in the Customs Union are considered one economic bloc. The transit 
status of goods imported into a GCC Member State ceases at the GCC first port of entry at which 
the consignment arrives. Likewise, transit transpor tation of exported or re-exported goods from a 
GCC Member State starts at the last GCC port of exit. 
                                               
1 See http://www.customs.gov.sa/sites/sc/en/CustomsGuideNew/HQweb/Pages/Pages/ 
LandingPage.aspx . WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  3.1.3  Rules of origin 
3.9.  Imported goods are subject to the proof of origin adopted within the framework of 
international and regional agreements inforce.  
3.10.  Within the framework of the rules of origin principles under the GCC Customs Union 
established on 1 January 2003, Saudi Arabia grants preferential treatment to products of national 
origin from the GCC member states. 
3.11.  In addition, Saudi Arabia grants preferential treatment to products of national origin from a 
number of countries in accordance with the origin rule principles established in the Pan Arab Free-
Trade Area (PAFTA) Treaty, as well as in FTAs with the European Free Trade Association (EFTA) 
group of countries and Singapore.  
3.1.4  Customs valuation procedures  
3.12.  Saudi Arabia is implementing WTO Custom s Valuation Agreement (CVA) on the basis of the 
GCC CCL and its Rules of Implementation and Expl anatory Notes, and has provided training and 
pre-education to the customs staff and brokers in or der to familiarize them with the principles of 
the WTO Customs Valuation Agreement. 
3.13.   Consistent with the WTO CVA, the transaction va lue (using c.i.f. value) is the primary basis 
for determining customs value; if transaction value cannot be determined, the basic methods set 
out in the CVA will be used. No mini mum or reference prices are applied. 
3.14.  To ensure predictability of Saudi Arabia's customs valuation system, all relevant laws, 
regulations and decisions are published in Saudi Arabia's Official Gazette. Any customs valuation disputes may be appealed to the highest administra tive tribunal in Saudi Arabia (i.e., the Board of 
Grievances). 
3.1.5  Exports and free zones 3.15.  Saudi Arabia does not apply any export prohibitions or restrictions with respect to any 
specific country, and no export duties or taxes are applied on products. No export incentives or 
subsidies are maintained. Export bans are maintained on only a few product categories, while export licensing requirements apply to a set list of products. No fees are charged to obtain an 
export license. 
3.16.  The Kingdom continues efforts to diversify its economic base and reduce reliance on oil 
exports. To this end, two government authoritie s are important: (i) the Saudi Export Programme 
(SEP) of the Saudi Fund for Development (SFD); (ii) the Saudi Exports Development Authority 
("SAUDI EXPORTS"). 
3.17.  The SEP is the official national export credit agency, which provides financing to Saudi 
exporters or importers in other countries of non- oil goods from Saudi Arabia. The financing offered 
by SEP includes finance and credit guarantees on  commercial, market-based terms that are similar 
to, if not more stringent than, those offered by Export-Import banks in other countries. 
3.18.  The SEDC is a non-profit organization that offers, for example, export consultation services, 
information, studies and economic reports to affiliated Saudi export companies and factories. 
3.19.  "SAUDI EXPORTS" is an independent nation al authority that seeks to develop Saudi non-oil 
exports. With respect to Saudi exports, this au thority is concerned with opening up to global 
markets, promoting Saudi products in international markets, leveraging competitive capacity, and 
assisting in the development of new products.  
3.20.  In order to reach these goals, SAUDI EXPORTS is focusing on the following 3 strategic 
themes in the Saudi export ecosystem: enhancing SME export readiness, generating opportunities 
for export ready businesses, and advocating ecosys tem efficiency and international market access. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  3.21.  While the GCC CCL permits the establishment of free zones and special economic zones, 
there are currently no such zones set up in Saudi Arabia.  
3.2  Technical Barriers to Trade (TBT) 3.22.  Saudi Standards, Metrology and Quality Organization (SASO) is the National Standards 
Body (NSB) in Saudi Arabia.  
3.23.  All SASO activities fulfill all the requirem ents of the TBT Agreement. SASO is the national 
Enquiry Point for TBT in Saudi Arabia, and in charge of TBT notifications. 
3.24.  As of December 2015, the total number of Saudi Standards is 28,924. SASO notified 
631 technical regulations and conformity assessment procedures to the WTO in the period from January 2012 to December 2015. 
3.3  Sanitary and Phytosanitary Measures (SPS) 
3.25.  Saudi Food & Drug Authority (SFDA) has i ssued food Act, which aims to: (i) ensure food 
safety and improve its quality; (ii) protecting consumer's health through reducing food related risks and increasing nutritional awareness; (iii) protect consumers from harmful, adulterated, or 
otherwise mislead on foodstuff; and (iv) preventing any barriers to food trade. 
3.26.  Moreover, Saudi Food & Drug Authority (SFDA) has issued Animal feed Act, which aims to: 
(i) ensure safety and wholeness of animal feed; (i i) protect animal health; and (iii) safeguarding 
human and public health against the consumption of foodstuff originating from animals feeding on 
implicated feeds. 
3.4  Taxation 3.27.  The Kingdom of Saudi Arabia has undertaken major tax reforms in the last decade. These 
reforms include tax law and the administration and computerization of tax work. The reforms in 
the area of administration makes the Kingdom's tax authority fit to administer any future tax revenue-raising instruments that may be decided by  the higher political authorities. The utilized 
advanced information technologies and systems along with continued up-grading of its electronic 
infrastructure have enabled the tax authority to provide good services to its taxpayers, including comprehensive electronic services such as electronic registration, filing and payment, thus 
reducing the burden on taxpayers.  
3.28.  Saudi Arabia adopts self-assessment prin ciple in its tax administration. Taxpayers are 
required to make their own assessments and pay accordingly. The tax authority requires a certain percentage of taxpayers to be subject to field au dits every year. Based on its reviews and audits, 
the tax authority may reassess taxpayers. Saudi Arabia has a network of Double Taxation 
Conventions covering 43 jurisdictions 20 other Co nventions are awaiting signature and 6 more are 
being negotiated. Saudi Arabia signed the Convention on Mutual Administrative Assistance in Tax 
Matters, which will enter into force for Saudi Arabia on 1 April 2016. Once in force, it will provide 
Saudi Arabia with an Exchange of Information ne twork that covers a total of 102 jurisdictions.  
3.29.  Saudi Arabia is a member of the Global Forum for Transparency and Exchange of 
Information for Tax Purposes (the Global Forum). Saudi Arabia has passed the Peer Review 
(phase 1) conducted by the Global Forum of its members to ensure that they satisfy the world standards of transparency for tax purposes; it is also expected to pass the Peer Review (phase 2) 
soon.  
3.30.  Zakat in Saudi Arabia is based on the Basic Law of Governance, Article (21). Saudi persons 
are subject to zakat in accordance with Islamic Jurisprudence. Zakat is a tax-like fiscal burden on Saudis. It is an annual fiscal duty payable by all Saudi businesses – capital companies, partners in 
personal companies, sole proprietorships, profe ssionals and tradesmen. Zakat amounts to 2.5% of 
capital, retained earnings, certain reserves and net profits but excluding fixed assets.  
3.31.  Like taxpayers, all zakat payers are required to register with the tax authority, the 
Department of Zakat and Income Tax (DZIT). They are also required to file annual returns WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  showing business results under the self-assessmen t principle. DZIT reviews filed returns and 
subjects a certain percentage of them, based on sampling techniques, to field audit zakat is payable even for no-profit periods. It is payabl e even if the company ceases activities. Company 
liquidation only stops Zakat liability.  
3.5  Trade Remedy Laws (Anti-Dumping, Countervailing, and Safeguard Measures)  
3.32.  On 3 November 2014, the Kingdom of Saudi Arabia notified the Committee on Anti-
Dumping Practices, the Committee on Subsidies and Countervailing Measures and the Committee 
on Safeguards of the amended GCC Common Law based on the Royal Decree No. M/7 dated 
20/3/1434H (corresponding to 1/2/2013AD) implementing the amendments to the GCC Common Law. 
3.33.  The Rules of Implementation of th e Amended GCC Common Law on Anti-Dumping, 
Countervailing and Safeguard Measures had been translated into English and was notified to the 
relevant WTO Committees on 13 January 2016.
2 
3.34.  As of the date of this report, the GCC Member States have not imposed any trade remedy 
measures. 
3.6  Government Procurement  3.35.  The Kingdom of Saudi Arabia is currently conducting a study to assess the pros and cons of 
acceding to the new Government Procurement Agreement (GPA) in order to provide a basis for it 
to initiate negotiations for membership in the GPA and submit an initial entity offer.  
3.36.  The current Tenders and Government Procurement Law is being amended along with the 
Administrative Contracts on: Public Construction, Consultation Services and Operating and 
Maintenance. 
3.7  Trade-Related Intellectual Property Rights  3.37.  Since the last Trade Policy Review, Saudi Arabia has become a party to the Patent 
Cooperation Treaty and the Patent Law Treaty (3  August 2013) and it has undertaken significant 
steps to promote and disseminate intellectual property in the country.  
3.38.  The Implementing Regulations of the Law of Patents, Layout-Designs of Integrated Circuits, 
Plant Varieties, and Industrial Designs have been adopted to be more precise and efficient, and to 
improve protection of IP rights. Saudi Arabia is also proceeding to strengthen the Law of Patents, Layout-Designs of Integrated Circuits, Plant Variet ies, and Industrial Designs to meet international 
requirements. 
3.39.  Raising public awareness of Intellectual Property rights is an important objective. Saudi 
Arabia is working with the public through worksh ops, seminars, webinars and mobile applications 
to raise awareness of intellectual property rights among the public. Some of the Saudi intellectual 
property agencies launched their own websites (such as the Saudi Patent Office; 
http://www.spa.gov.sa/) to si mplify administrative proc edures for applicants. 
3.40.  Saudi Arabia has established many committees and applied a set of procedures to enforce 
the protection of Intellectual Property Rights. The Committee for Examining Patents Lawsuits has 
the power to grant injunctions to prevent infringements related to patents, industrial designs, Layout-Designs of Integrated Circuits and Plant Va rieties. A total 122 cases were filed against the 
Saudi Patent Office's decisions during the period 2012-2015, of which 93 cases have been 
resolved.  
3.41.  The Common Customs Law provides Saudi Customs with the powers to take necessary 
measures to ensure the protection of Saudi soci ety from hazards endangering its security, health 
and safety and safeguarding the national economy.  
                                               
2 WTO documents G/ADP/N/1/SAU/2/Suppl.1; G/SCM/N/1/SAU/2/Suppl.1; and 
G/SG/N/1/SAU/2/Suppl.1. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  3.42.  The Saudi Customs has prioritized tackling commercial fraud and counterfeiting. It prohibits 
admission of imported goods which do not bear an origin mark in a clear and secure manner, whether engraved, woven, printed or attached to the goods. Goods which do not bear a clear origin mark are not admitted into the country. 
3.43.  Customs treat cases of fraud and counterfe iting as customs smuggling cases according to 
the provisions of Articles 142 and 143 of the Co mmon Customs Law, which provide that admission 
or an attempt to admit goods violating the provisions of prohibition and restriction is considered 
customs smuggling. The penalties imposed on such violations are those prescribed in Article 145 of 
the Common Customs Law. The goods shall be confiscated and destroyed on a case by case basis in accordance with the Common Customs Law.  
4  SECTORAL DEVELOPMENTS  
4.1  Agriculture  
4.1.  The agricultural sector in the Kingdom of Saudi Arabia has witnessed considerable changes 
during the last few years. It has undertaken a very important role in the overall development of 
the Kingdom's economy and has achieved outstandin g growth rates for many years. It has also 
had a significant impact on the standard of living of Saudi people. Historically, notwithstanding the fact that climate conditions are very difficult and not ideal for agriculture, Saudi Arabia has long 
acknowledged the great importance of the agricultural sector and has given it increasing priority in 
successive development plans. 
 
4.2.  The sector was expected to participate in achieving the goals of economic development plans, 
such as enhancing food security, diversification of the production base and minimization of the 
reliance on oil as the main source of national income. Various government policies and 
programmes have been formulated and implemented in the past so as to permit the successful achievement of such goals. 
 
4.3.  In recent years, the agricultural sector has been facing a number of serious challenges, and 
the Government has increasingly recognized that reform of agricultural policy is essential to face those challenges effectively in parallel with achieving balanced development objectives.  
4.4.  Reforming current agricultural policy was influenced by two central concerns; the scarcity of 
water resources and ensuring food security. Considering that the Arabian Peninsula is one of the world's driest regions, with rainfall averaging less than 130 millimeters per year, water is becoming the main determinant and the biggest challenge for the development of the agricultural 
sector in the Kingdom of Saudi Arabia. Agricultural irrigation relies heavily on limited and non-
renewable groundwater resources and accounts for the largest share of water consumption, amounting to 86.5 % of total water consumed in the Kingdom. Consequently, in the absence of 
alternative water resources, groundwater is being depleted at a very fast rate. The sustainable use 
of water is thus a top priority for the Kingdom.
 
4.5.  Therefore, the Kingdom has recently ma de a strong policy shift towards enhancing 
sustainable development in the agricultural sector, including reform of domestic support policy. 
This has helped in restructuring the crop cultivation pattern, resulting in reduced areas of high water consuming crops, such as wheat and barley and more recently fodder crops.  
4.6.  The Ninth Development Plan (2010-2014) aimed to continue restructuring the agricultural 
sector, in order to enhance production of highly water-efficient crops; develop and improve the 
efficiency of agricultural markets; and improve the level and effectiveness of extension services, 
particularly for small farmers. Moreover, the Plan aims to encourage investment in the agricultural 
sector and improve the entire agricultural value chain, and continue to consolidate regional and 
international cooperation and partnerships, in order to achieve food security, maintain natural 
resources and preserve the environment
. 
4.7.  Although the government decision to phase-out wheat production in Saudi Arabia was 
primarily targeted at saving water resources, th e Government realized that many Saudi farmers 
switched from wheat cultivation to producing fodder  crops, such as alfalfa and other green grass, 
which consume three times the amount of water needed for wheat production. The total area WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  cultivated with fodder crops increased from 161,000 ha in 2007 to 196,000 ha in 2013 and total 
fodder production has increased from about 3 million MT in 2008 to nearly 4 million MT in 2013. Therefore, the Saudi government has recently issued a new decree to phase-out green fodder production gradually over three years, depending on imports to meet the country's green forages 
requirements. 
4.8.  From a future perspective, the Kingdom will continue in its Tenth Development Plan 
(2015-19) to promote balanced sustainable deve lopment by enhancing sustainable water use and 
achieving significant reduction in water consumption in the agricultural sector. Farmers will, in 
general, be encouraged to engage in alternativ e sustainable agricultural activities such as 
greenhouse farming and organic farming; moving away from traditional open-field cultivation and high water consuming products like wheat or fodders; and, to adopt modern cultivation techniques 
such as advanced drip irrigation.  
4.2  Food Security 4.9.  The global food crisis in 2007-08 led to unprecedented spikes and volatility of staple food 
prices in international commodity markets and provoked substantial food security concerns, 
particularly in developing and net food importing countries.  
4.10.  In this context,
 Saudi Arabia, as a net food importing country, is emphasizing the 
fundamental priority of ensuring food security. 
4.11.  In November 2015, the Council of Minist ers approved regulatory arrangements for 
restructuring the Grain Silos and Flour Mills Organization (GSFMO) and for the establishment of four milling companies as part of the Government's privatization strategy. Under this decision the 
Grain Silos and Flour Mills Organization (GSFMO) will be replaced by the Saudi Grain Organization 
(SAGO). 
4.12.  In order to sustain food security objectives, as the Kingdom fully relies on wheat imports. 
SAGO has been mandated to increase the country's strategic wheat reserves levels to meet annual 
consumption needs and to face emergency conditions and any possible disruptions in international wheat markets. In the past, wheat strategic stocks were kept at levels sufficient for six months of 
consumption requirements. 
4.3  Fisheries and Aquaculture  4.13.  Fisheries sector is one of the basic pill ars of the economic development strategy in the 
Kingdom. As it is contributing, together with the agriculture sector, to the achievement of many 
goals, most notably, access to the self-sufficien cy of fisheries products and enhancing national 
food security, as well as diversification of the production base for the national economy, optimization of available resources and improving the economic and marketing efficiency. 
4.14.  Although fisheries is a relatively small sector in Saudi Arabia, the Kingdom has a great 
potential and extraordinary comparative advantages for fish farming investment practices, considering the characteristics offered by climate, location, land, costal water and market. Most 
types of tropical aquaculture practices are feasible in the Kingdom and most sorts of aquatic 
organisms can be cultured successfully.  
4.15.  Roughly 2,400 km of coastal line is availa ble along the Red Sea and Arabian Gulf, and even 
if 10% of this area is developed for aquaculture industry, it could earn a billion riyals for investors. 
The climate also contains appropriate conditions for the economic cultivation of different types of 
fish, shrimp and other aquatic animals. The strategic geographical location near regional and global marketing centers, infrastructure, and the availability of different means of communications 
constitute added value to the sector.  
4.16.  Therefore, the Ministry of Agriculture (MOA) in the Kingdom of Saudi Arabia has identified 
aquaculture for intense focus, and proposes to enhance the development of investments in all 
coastal and interior areas. Fisheries resources in the Kingdom include all fisheries products and 
aquatic animals produced from marine resources and lakes or produced through aqua farming of 
fish and shrimp species in fresh and marine waters. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  4.4  Hydrocarbon and Mining Sectors  
4.17.  Saudi Arabia's hydrocarbon sector has contributed to the economic development, growth 
and prosperity of Saudi Arabia. The Kingdom has applied diversification policies broadly throughout the economy and specifically in the hydrocarbon sector to develop downstream refining, 
processing and converting industries.  
4.18.  Beyond hydrocarbons, the Kingdom is pursuing a successful diversification strategy to 
reduce the country's dependence on primary products and to encourage the development of higher 
value-added activities in the areas of services and manufacturing, based in particular on Saudi 
Arabia's comparative advantage in energy-intensive industries and using trade policy tools and specific measures that are consistent with Saudi Arabia's WTO obligations. 
4.19.  In 2014, the hydrocarbon and mining sector's share of GDP in 2010 prices is about 39%. 
The sector is expected to grow in volume terms on average by 6.9% per annum over the next five 
years, increasing the sector's share to 41%, but be cause of the forecast decline in nominal prices 
of hydrocarbon and mining products, the sector's share in GDP is expected to fall from 39% to 
29% by 2019. 
4.4.1  Hydrocarbon sector 4.4.1.1  Oil 
4.20.  Saudi Arabian Oil Company (Saudi Aramco) is a state-owned company established by Royal 
Decree in 1988. Saudi Aramco's oil operations encompass the Kingdom of Saudi Arabia, including territorial waters in the Arabian Gulf and the Red Sea, totaling more than 1.5 million square km. 
4.21.   Most production comes from fields in the coastal plains of the Eastern Province in an area 
extending 300 km. Saudi Arabia's total crude oil reserves at the end of 2014 stood at 
266.578 billion barrels and the Kingdom continues to maintain maximum sustainable oil production capacity at 12.5 million bpd. The Kingdom's aver age daily crude oil production in 2014 amounted 
to 9.7 million bpd and crude oil exports totaled 2.6 billion barrels to customers around the world.  
4.22.  Saudi Aramco's exploration programme discovered eight new fields, the most in the 
company's history: five gas fields, Abu Ali, Faras, Amjad, Badi, and Faris; two oil fields, Sadawi 
and Naqa; and one oil and gas field, Qadqad. 
4.4.1.2  Natural gas 4.23.  The Master Gas System (MGS) enables use of  nearly all the gas produced. The system adds 
the equivalent of more than a million barrels of oil a day to the world energy supply and provides 
fuel and feedstock for Saudi Arabia's rapidly growing industries.  
4.24.  In 2014, 11.3 billion standard cubic feet per day (scfd) of raw gas were processed with an 
increase of nearly 3% compared to 2013. The strong  growth in gas production capacity will ensure 
that Saudi Aramco will efficiently meet the Kingdom's rising energy demand with gas for power 
and industry while also meeting the global call on crude oil.  
4.25.  Unconventional gas will make a significant contribution in Saudi Arabia's plans to increase 
overall gas production. The unconventional gas programme continued to gain momentum in 2014. 
A sizeable investment in this complementary so urce will help in assessing, developing, and 
producing gas from shale and tight sand formations in three target areas: northern Saudi Arabia, the greater Ghawar area, and the eastern Jafurah Basin. 
4.4.1.3  Downstream 
4.26.  As stated in paragraph 4.18 above, Saudi Arabia is pursuing a successful diversification 
strategy to reduce the country's dependence  on primary products and to encourage the 
development of higher value-added activities in  the areas of services and manufacturing, in a 
manner that is consistent with Saudi Arabia's WTO obligations.  WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  4.27.  Independent of the Government's diversification initiatives, Saudi Aramco has pursued a 
commercially based corporate policy of diversifyi ng its operations downstream by increasing 
production of refined products, such as gasolin e, kerosene, and long residue (bunker). A core 
element of the downstream strategy is integrat ing chemicals production with refining assets 
domestically and across key international markets. The cumulative effect of the company's efforts 
will be a world-leading, fully integrated downst ream system that maximizes the value of every 
hydrocarbon molecule produced and a portfolio that is more robust and resilient to market 
variability. 
4.28.  Saudi Aramco worldwide refining capacity stood at 5,375 thousand barrels per day at the 
end of 2014, consisting of 1,006 thousand barrels per day for wholly-owned domestic refineries, 1,904 thousand barrels per day for domestic joint ventures and 2,464 thousand barrels per day for 
international joint ventures. Of the total participated worldwide refining capacity, Saudi Aramco's 
share is 3,104 thousand barrels per day.  
4.29.  Saudi Aramco has integrated chemicals production in six of its refineries, creating world-
class integrated chemicals complexes. In addition , it is currently expanding Petro Rabigh, with 
partner Sumitomo Chemical of Japan, and building the Sadara Chemical Project boosting its total participated chemicals production capacity to more than 15 million tonnes per year. 
4.30.  Sadara, which is a Saudi Aramco's joint venture with The Dow Chemical Company was on 
schedule for an initial startup in Jubail Industrial City in the 4
th quarter of 2015. Sadara is to be the 
world's largest integrated chemicals complex ever built in a single phase, with the production capacity to produce more than 3 million tonnes of diversified chemicals and plastics per year. 
Fourteen of Sadara's 26 world scale manufacturing plants are new to the Kingdom. 
4.31.  Rabigh Refining and Petrochemical Company (Petro Rabigh) is another project increasing 
the value of hydrocarbon molecules by integratin g chemicals production with refining. Rabigh 
Phase II will add specialty ethylene- and propylene-based products by de-bottlenecking the 
existing steam cracker. In addition, the project wi ll enable the conversion of 4,000 kilo tonnes per 
year of naphtha into higher value aromatic products. 
4.32.  The Fujian Refining & Petrochemical Compan y (FREP), is Saudi Aramco's joint venture with 
Fujian Petrochemical Company Li mited, ExxonMobil, China Petroleum and Petrochemical Company 
Limited (Sinopec), and the Fujian provincial gove rnment. FREP is a key element in Saudi Aramco's 
Asia chemicals strategy. In 2014, FREP increased its existing steam cracker capacity from 800 to 
1,100 metric tonnes per annum and the refine ry capacity from 2 40,000 bpd to 280,000 bpd. 
4.4.2  Minerals sector 4.33.  The accomplishments of the mineral resources sector include activities in minerals exploited 
that amounted to 430 million tonnes of mineral ores while the number of mining licenses reached 
2094. The number of exploration licenses grew from 119 in 2009 to 416 in 2014. Revenues collected by the Deputy Ministry for Mineral Resources from all levies, severance fees and fines 
reached SAR 541 million. License holders revenues fr om this sector amounted to SAR 18 billion, 
while total revenues by whole sector reached to SAR 70 billion, profits made by license holders only were approximately SAR 8.3 billion based on a total capital investment of over SAR 200 billion. The Ministry of Petroleum and Mine ral Resources is keen to increase value-added 
outputs. 
4.34.  By 2014, the most important mining production was about 4 million tonnes of phosphate 
concentrate. Cement production amounted to 56 million tonnes, clinker; ceramics around 
70 million m
2; sanitary ware 3.78 million pieces; and gypsum board in excess of 12 million m2. 
The exploitation of base and precious metals re sulted in the production of 153,000 oz. of gold, 
154,700 oz. of silver, 40,000 tonnes of copper conc entrate and 33,000 tonnes of zinc concentrate. 
4.35.  Other minerals produced include 1.7 mil lion tonnes of gypsum products; 1.9 million tonnes 
of salt; 1.2 million tonnes of limestone for the ornamental stone industry; 1.16 million tonnes of 
silica sand for glass and chemical industries and construction operations that require building materials free of impurities and oxides; 6.88 million tonnes of clay used in making red bricks and 
cement; 160,000 tonnes of feldspar for the glass and ceramics industries; 3 million tonnes of WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  crushed marble used in paints; 934,000 tonn es of bauxite used by cement companies; 
644,000 tonnes of low grade iron ore used in making cement; 1.1 million tonnes of granite and marble blocks used as ornamental stones; 460,000 tonnes of pozzolan used in light weight concrete; 300 million tonnes of all sizes of crushe d gravel; and 29 million tonnes of ordinary sand 
used in concrete construction. 
4.36.  The Ministry continued its efforts to: 
  Reduce environmental impact using locations for mining investment (named "Mining 
Complexes"), which were reserved for the expl oitation of various types of minerals and 
rocks (e.g. granite, limestone, aggregates an d sand) in 13 regions of Saudi Arabia. A total 
of 338 mining complexes were reserved throughout the Kingdom; the area of these locations amounted to 65,000 km
2; 
  Delineating mining areas in other locations for the exploitation of granite, silica sand, gold, 
zinc, copper, granite, crusher materials and aggregates. The Ministry focused on encouraging mining investment in exploration and exploitation through its participation in 
conferences, symposia, workshops and exhibi tions inside and outside the Kingdom. The 
staff of the Ministry conducted follow-up via over 2,000 field trips to mining licensees in remote areas; 
  Conduct a mining strategy study for mid- and long- term periods (20 years) in order to 
increase the sector's contribution to GDP; to improve value chain opportunities in the categories of metals, fertilizers, construction materials, industrial compounds and industrial minerals that will supply downstream industries; to maximize economic development and 
competitiveness; to develop remote areas; to  create jobs; and to ensure environmental 
sustainability and best in class safety performance. 
4.5  Manufacturing 
4.37.  According to the Tenth Development Plan: 
 The manufacturing sector's share of GDP in 2010 prices was about 11% in 2014. 
The sector is expected to grow by 7.7% per annum on average until 2019. Saudi Arabia's current industrial production includes ceramics, plastics, chemicals, steel, 
aluminium, building material s, textiles and foodstuffs; 
 The average annual growth in the petrochemi cals industry is expected to be 6.2% 
until 2019, which is significantly higher than the 2.3% annual growth recorded during the 2010-2014 period. 
 
4.38.  The value added of non-oil manufacturing in dustries has increased by 6.1% in 2014, and is 
projected to increase annually by 8.4% until 20 19. The share of investment in the overall 
industrial sector is expected to grow from 31.1% in 2014 to 32.2% in 2019. The share of 
employment in the industrial sector is projecte d to drop in 2019 to 7.3% from its 2014 level of 
8.5%; however, it is worth noting that the Saudization level in the sector is expected to increase 
from 15.7% in 2014 to 18.0% in 2019. 
4.39.  The total number of productive factories th at are operating and licensed by the MCI in the 
Kingdom of Saudi Arabia reached 6,943 at the end of  the third quarter of 2015. The total capital of 
these operating factories amounted to approx imately 1,101,509 million (or 1,102 billion) Saudi 
Riyals (SAR), and their total registered  employees reached 973,463 employees. 
4.40.  The total number of operating factories in creased from 4,363 in 2005 to 6,953 at the end of 
2014, and their total registered capital increased from approximately SAR 33.6 billion in 2005 to 
approximately SAR 99.9 billion at the end of 201 4. The total employees of operating factories 
increased from approximately 407 thousand empl oyees in 2005 to approximately 946 thousand 
employees at the end of 2014. 
4.41.  According to reports by the Central Depart ment of Statistics and Information (CDSI) of the 
Kingdom of Saudi Arabia, the value of only manufacturing activities in the Kingdom's GDP during 
the second quarter of 2015 amounted to SAR 71, 599 million at current prices and to SAR 73,023 
million 2010-constant prices.  WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  4.42.  According to the National Accounts Indicato rs Report from the CDSI for preliminary annual 
data indicators, the total value of only manufacturing activities in the Kingdom's GDP at the end of 2014 amounted to SAR 306,189 million and to SAR 279,987 million at 2010-constant prices.  
4.43.  The CDSI's report indicates that, the annua l growth rate of manufacturing activities as a 
share of GDP from 2013 to 2014 was 10.11% at current prices and 9.54% at 2010-constant 
prices. Manufacturing activities as a share of the Kingdom's GDP during 2014 was reported by the CDSI to be 10.8% at current prices and 11.5% at 2010-constant prices. 
4.6  Services 
4.44.  The services sector is very important to Sa udi Arabia's economy. During the review period it 
contributes 42% to real GDP and employs about th ree quarters of the workforce. Saudi Arabia 
encourages the services sector by providing ma rket access and national treatment to foreign 
service suppliers. This is reflected by the number of services sub-sectors commitments undertaken 
by Saudi Arabia during its accession; the Kingdom undertook commitments on 120 Services sub-sectors out of 160.  
4.6.1  Financial Services  
4.6.1.1  Banking sector 4.45.  Since the last trade policy review, the bank ing industry has been enjoying steady growth 
and stability as evidenced by a number of key banking indicators. As of October 2015, total bank 
assets grew by 3.0% year-over-year(yoy) to reac h SAR 2.2 trillion. Total bank deposits increased 
by 3.3% reaching SAR 1.6 trillion while credit to the private sector increased by 5.0% reaching SAR 1.3 trillion.  
4.46.  Automated teller machines increased by 11.2% to 16,840 while point of sales terminals 
increased by 57% to 204,175.The branch network in creased by 4.4% to 1965 branches. Currently, 
24 banks are operating in the Kingdom compared to 21 banks in 2012. Of these, 12 are foreign 
bank branches and 6 are joint-venture banks, which shows the highly significant foreign presence 
in the Saudi banking sector. The banking industry is well capitalized, profitable and liquid. The average Capital Adequacy Ratio (CAR) has been maintained between 17-18% since 2012, which is 
above the Basel regulatory minimu m requirement of 8%. As of the third quarter of 2015, the Basel 
capital and Tier 1 capital adequacy ratios were at 17.8% and 15.8%, respectively. The Basel III leverage ratio was 12.34% compared to the Basel minimum requirement of 3%. Non-performing loans were 1.2% of total Loans and the provisions coverage ratio was 166.7%. Banks recorded 
strong profitability with an average Return on Equity (ROE) of 15.0% and an average Return on 
Assets (ROA) of 2.0%. Banks have also maintain ed an abundant liquidity based on the Basel 
Liquidity Cover Ratio (LCR) and Net Stable Funding Ratio (NSFR), which recorded, on average, 
177% and 125%, respectively.  
4.47.  The Banks liquidity ratio recorded 26.3%. The aggregate loan to deposit Ratio was 76.3%, 
which is still below the regulatory requirement of 85%. The recent stress tests conducted by both 
the Saudi Arabian Monetary Agency (SAMA) and banks demonstrate that the banking industry is 
sound, liquid and well equipped to withstand shocks. 
4.48.  The robustness of the banking industry reflec ts SAMA's vision and its continuous efforts in 
maintaining sustainable growth and a stable in dustry. Furthermore, SAMA has been working on 
various initiatives such as financial inclusion, financial education and consumer protection to 
further deepen the Saudi banking industry.  
4.6.1.2  Cooperative insurance 
4.49.  Saudi Arabia's insurance market remains one of the largest and fastest-growing markets 
within the Gulf region where premiums more th an doubled between 2009 and 2014. This growth is 
expected to continue over the near and medium term driven mainly by the compulsory insurance 
products. For the period ended September 2015, GWP reached SAR 28.4 billion compared to 
SAR 23.6 billion in September 2014, which repr esents a growth rate of 20%. Moreover, the 
persistent growth in both the Saudi population an d GDP continued to spur insurance activities and WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  thereby improved most key insurance indicators such as insurance density and insurance 
penetration. The insurance density, which indicates gross written premium per person, increased by 64% to SAR 991 in 2014 from SAR 604 in 2010. Insurance penetration, which measures insurance expenditure as a percentage of GDP, also increased to 1.08% in 2014 from 0.97% in 
2010. SAMA's vision for the insurance industry is based on the following main objectives: stability, 
resilience and deepening of the in dustry. Implementation of various initiatives is underway such as 
enhancing consumer awareness and enforcement of compulsory lines.  
4.6.1.3  Finance 
4.50.  Three finance laws, namely the Real Estate Finance Law, Finance Lease Law, and Finance 
Companies Control Law were promulgated in 2012. These laws and their implementing regulations provide the regulatory framework for the real estate finance sector and non-bank finance sector, 
and entrust SAMA with the regulation and supervisio n of those two sectors. They provide effective 
prudential measures that aim at ensuring the stability and soundness of these sectors. The regulatory framework for the real estate finance sector aims at maintaining the stability of the 
finance sector as well as fostering development and sustainable growth of the sector. The Financial 
Leasing Law and its Implementing Regulations regulate financial leasing contracts provided by banks and non-bank finance companies licensed to perform leasing activity through setting clear 
controls in respect of the rights of the lessor and the lessee in a stable and sustainable manner.  
4.51.  The Finance Companies Control Law and its Implementing Regulations aim to form a new 
competitive sector to extend credit while facilitating its soundness and stability. Up to November 2015, SAMA has licensed five real-estate finance companies and twenty-one finance 
companies to carry out one or more of the following finance activities: productive asset finance, 
small-and-medium enterprise finance, financial leasing, credit card finance and consumer finance. In addition, there are also additional six finance companies in the process of licensing. 
4.6.1.4  Capital Market  
4.52.  The Saudi Capital Market Authority (CMA) has adopted various Implementing Regulations to 
implement the provisions of the Capital Market La w (CML). A notice-and-comment period preceded 
the adoption of these regulations during whic h the CMA sought comments and feedback on the 
proposed regulations.  
4.53.  In 2014, the CMA adopted a policy manual that sets the formal procedures that need to be 
applied in the consultation exercise on its draf t implementing regulations, for the purpose of 
conducting such exercise by following a formal and methodical approach.
 
4.54.  Since 2012, the following Implementing Regula tions were issued by the CMA: (i) Prudential 
Rules, based on the three-pillar Basel framework, which require Authorized Persons (APs) to 
maintain adequate financial resources; (ii) Instructions and Procedures related to Listed 
Companies with Accumulated Losses reaching 50% or more of their capital; (iii) Credit Rating Agencies Regulations; (iv) Rules for Qualified Foreign Financial Institutions Investment in Listed 
Shares.  
4.55.  The following Implementing Regulations we re amended during the same period: (i) Anti-
Money Laundering and Counter-Terrorist Financing Rules; (ii) the Glossary of Defined Terms used in the Regulations and Rules of the Capital Market Authority; (iii) Listing Rules; (iv) Merger and 
Acquisition Regulations; (v) Authorized Persons Regulations.
 
4.56.  In 2015, The CMA finalized and implemented the Rules for Qualified Foreign Financial 
Institutions Investment in Listed Shares and allowed qualified foreign investors to invest directly in 
the shares listed on the Saudi Stock Exchange. Th ese Rules set out the procedures, requirements 
and conditions for the registration of qualified foreign investors with the CMA, and specify the obligations of APs in their dealings with qualified foreign investors.
 
4.57.  Since its inception in 2004, the CMA has been  keen on creating an encouraging environment 
for listing and investment. Accordingly, the numbe r of listed companies rose from 73 in 2004 to 
171 at the end of the third quarter of 2015. Si nce 2012, money raised from the Saudi capital 
market has amounted to around US$50 billion through all types of securities offerings.  WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  4.58.  The number of Authorized Persons (APs) operating in the Kingdom reached 87 (including 
local, regional and international affiliates) by the end of the third quarter of 2015 with a total paid-
up capital of US$4.2 billion. Products and servic es are provided by the APs to capital market 
participants. 
4.59.  The CMA has been continuing its efforts aimed at making the capital market more stable 
and supportive of the national economy and more a ppealing for investment. As part of its role in 
regulating and developing the capital market and protecting investors, the CMA has developed a 
comprehensive strategic plan covering the period 2015–2019.3 
4.6.2  Telecom  4.60.  CITC issued new licenses for a number of different services. The total number of licenses 
issued reached 325 by the end of 2014 compared  to 309 at the end of 2013, which demonstrates 
the attractiveness of investment in Information and Communications Technology (ICT). 
4.61.  Two licenses were issued in 2014 for Mobile  Virtual Network Operator (MVNO) services with 
a view to promoting competition in the mobile services market, increasing investment in this 
important sector and enhancing choice for users.  
4.62.  In addition in 2014, CITC initiated the pr eparation of necessary documentation for a public 
consultation on licensing of broadband satellite services with the objective of extending the reach 
of broadband services that have become essential for e-based applications, in particular 
e-government applications, and to meet the needs of individuals and businesses. 
4.63.  Furthermore, pursuant to its mission of promoting competition, protecting the interests of 
users and encouraging the provision of reliable ICT services at affordable prices, CITC undertook 
the following initiatives and studies: 
  Studied the prices for wholesale termination of voice calls on mobile and fixed 
telecom networks;  
  Initiated a project to update the ICT market definition, designation and dominance 
report with a view to establishing regula tions to prevent anti-competitive behavior; 
  Initiated a project to study the ICT market and to develop indicators for that market; 
  Worked on updating the Interconnection Guidelines as well as developing Guidelines 
on implementation of shared fiber infrastructure; 
  To further promote competition, implemented new procedures for mobile number 
portability and worked to resolve related user complaints, which amounted to about 
1100 in 2014. This resulted in 500,000 numbers being ported between licensed service providers. 
 
4.6.3  Transportation  
4.64.  Saudi Arabia has witnessed a notable deve lopment in the transportation sector since the 
first TPR. The road length has increased by more than 8% to reach a total length of 62,735 km, in 
order to improve mobility, trade, and tourism. 
4.65.  Saudi Arabia has adopted a national vision, through its National Transportation Strategy 
(NTS), which is "to develop and maintain a multimodal transportation system, serving the needs of 
society by ensuring a safe, efficient and technologically advanced transport system that promotes 
social and economic development and international competitiveness for the Kingdom, and ensures a healthy and secure environment for its citizens". 
4.66.  Saudi Arabia has adopted five public transport projects in different major cities: Riyadh, 
Jeddah, Makkah, Dammam and Madinah. The projects will provide the cities with a giant public transport system (metro and buses) to meet their existing and future demand and will be of great 
benefit to the cities' traffic, economy, societ y and environment. Currently, the King Abdulaziz 
                                               
3 See: http://www.cma.org.sa/En/Pages/CMAStrategicPlan.aspx . WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  project for Riyadh public transport is under constr uction, and is expected to be finished over the 
three coming years. 
4.67.  The north-south line project, which is 2,400 km long and designed to connect the north-
west border of Saudi Arabia (Saudi/Jordan border) via Riyadh to the new port being built on the 
Arabian Gulf, is partially operational. Also, the Haramain high speed rail project, which is 450 km 
long and designed to connect Madinah with Makkah through Jeddah and Rabigh on the Red Sea, is expected to be operated at full capacity by the end of 2016. 
4.68.  Saudi Arabia is currently working on developing many other projects and plans to integrate 
the national and international freight and passen ger transport systems, such as: the GCC railway 
project, the multimodal logistics development plan  and the national transport infrastructure plan. 
4.69.  The maritime trade law, which regulates the maritime transport and merchant shipping 
sector in Saudi Arabia, has reached the final procedure to be issued, while the freight forwarder 
regulation, which regulates marine shipping, has been issued. The participation of the private sector has increased, especially with respect to the provision of port services in Saudi Arabia.  
4.6.4  Health and social services  
4.70.  Saudi Arabia encourages foreign investment in large hospitals to promote the transfer of 
technology, which leads to strengthening the quality of health services, creating an economic 
impact and increasing employment opportuni ties for the citizens of the Kingdom. 
4.6.5  Courier 4.71.  The Saudi Post is a state-owned government corporation providing services such as: mails, 
parcels, services, distribution and financial service as its main activities. However, the Board of 
Directors has made a decision to convert the corporation to a holding company encompassing 
several companies such as: EMS Company, Ersal Fi nancial Company, and Postal Services Company 
as a first step in the privatization of Saudi Post. 
4.72.  In addition, the Kingdom is working to set up an authority for Saudi Post in order to play the 
role of regulator and operator of mail services in Saudi Arabia. The primary purpose of establishing the Saudi Post Authority is to complete separation between the legislative and implementation 
authorities, to ensure there is no conflict between  the organizer of the postal sector and providers 
of e-mail services in Saudi Arabia and also to ensure an open market for all companies wishing to exercise a business activity subject to conditions determined by the Authority. 
4.73.  Saudi Post provides mail services and licenses private companies to transport packages. 
Approximately nine licenses have been awarded. In  addition, Saudi Post provides postal boxes to 
subscribers in cities and villages.  
4.74.  Saudi Post has covered all regions by large network of post offices, as well as Sub-owned 
companies that have a license and owned by private sector. Saudi Post is also providing mobile 
phone services in the cities and villages. Saudi Post is an active participant in e-commerce and e-government. It dealt with 740 million items in 2014 – 99% of it mailings, 0.5 express mail and 
the remainder parcels. Saudi post also provides e-services and e-mail service. 
4.75.  Saudi Arabia has a timetable for the transformation of Saudi Post Corporation to a private 
company with the introduction of licenses to rival companies to provide postal services in the Kingdom. In addition, it is planned to establish an organization called Organization of the Saudi 
Mail to act as legislator and sponsor of companies providing mail services. 
4.76.  The primary purposes of the establishmen t of an organization of the Saudi mail (the 
organizer) include, but are not limited to: 
 Complete separation between the legislative (the organizer) and the executive (Saudi 
Post Corporation) and the absence of conflict of interest between the regulator for the postal sector and postal services providers in the Kingdom; WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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   Regulation, oversight and supervision of the postal sector in the Kingdom (of Saudi 
Post Corporation and other licensed service providers); 
 The development of mandatory standards for the provision of postal services and 
products via the postal sector in the Kingdom; 
 Licensing of providers of postal services in the Kingdom; 
 Awareness of the beneficiaries of postal services in all aspects of mail and services; 
 Creation of the postal sector in the Kingdom to achieve financial independence, and 
promoting investment opportunities. 
4.6.6  Aviation  
4.77.  The aviation industry is playing an impo rtant role in the growth and development of the 
Kingdom of Saudi Arabia with a combination of both domestic and international services. Most importantly, the Kingdom has recently decentra lized the domestic aviation market: three new 
domestic air carriers (Al Maya, Saudi Gulf and Nesma) are likely to operate in the domestic market 
in the near future.  
4.78.  National Carriers (Saudia and Fly Nas) have initiated Vision 2020 to focus towards capacity 
expansion, which would lead to a massive fleet expansion programme and would enable Saudi 
Arabia's air travel market to connect to new international destinations in the years to come.  
4.79.  As of 2015, the Kingdom of Saudi Arabia connects 70 destinations, 57 on international and 
13 on domestic routes. There are 81 internatio nal and 2 domestic airlines operating in the 
Kingdom.  
4.80.  Saudi Arabia has invested heavily in its aviation infrastructure in recent years, particularly 
its airports. Airports are also in the phase of development to provide world class services and 
capacity augmentation. GACA's Vision 2020 includes  establishment, development and expansion of 
27 regional and major airports, strengthening the capacity of all airports across the Kingdom to handle over 100 million passengers annually.  
4.81.  KAIA and KKIA airports are under phased development. By 2040 the two airports are 
expected to handle 127.5 million passengers.  
4.82.  Economic growth manifests a strong correla tion with air transport growth. In the Kingdom, 
the air travel market has been growing at an average annual rate of 8.2%; 7.68%; and 5.3% in 
passenger, cargo and aircraft movements respectively during the last four years (2011-2014).  
4.83.  During the year 2014, the total traffic handled at the Kingdom of Saudi Arabia's airports, 
was 74.75 million passengers and 0.59 million aircraft movements with a growth of 9.7% and 
4.2% respectively over 2013. Cargo traffic has show n a decline of 3.7% during the same period.  
4.84.  Airlines and airports are acting as a key factor in the development of global 
competitiveness. They contribute SAR 30.20 bi llion in absolute terms and 1.8% toward the 
country's GDP in percentage terms. Saudi Arabian airline witnessed a major leap in its privatization 
process and is expected to undergo complete privatization in the next few years. 
4.6.7  Distribution  
4.85.  Saudi Arabia recently announced its plan to allow 100% foreign ownership in wholesale and 
retail services. The change is part of the broa der reform agenda that seeks to diversify the 
economy and decrease its reliance on oil.  
4.86.  The change should bring more foreign direct investment into the sector but also enable the 
creation of supply chains and other desirable spill-overs.  WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  5  FREE TRADE AGREEMENTS  
5.1  GCC Customs Union 5.1.  Saudi Arabia believes that regional trade agreements can be a useful complement to the 
multilateral system, by deepening the integration of markets, reinforcing the role of trade in 
economic growth, promoting gains of scale for dome stic firms and providing an expanded base to 
face global competition. Saudi Arabia was one of the six founding States of the GCC in 1981. The basic objectives of the GCC are to effect coordination, integration and inter-connection between 
member states in all fields, strengthen ties betw een their peoples, formulate similar regulations in 
various fields such as economics, finance, trade, customs, tourism, legislation, administration, as 
well as foster scientific and technical progress in industry, mining, agriculture, water and animal resources, establish scientific research centers, set up joint ventures, and encourage the 
cooperation of the private sector. 
5.2.  The GCC Common Customs Law was promulgated on January 2003. Since then, the GCC 
states have operated on the basis of the common external tariff (CET). On 1 January 2008, the 
members of the GCC also formed a common market, allowing the free movement of services 
between the members. 
5.2  Pan Arab Free-Trade Area (PAFTA) 
5.3.  Saudi Arabia is a member of the Pan Arab Free-Trade Area (PAFTA) Treaty, which entered 
into force on 1 January 1998. Under the PAFTA, almost all trade barriers among its members were eliminated as of 1 January 2005, with some products excluded from liberalization. 
5.4.  The treaty also provides for rules of origin requiring the value added not be less than 40% of 
ex-factory cost. Recently, efforts have been made to include trade in services.  
5.3  GCC-Singapore FTA 5.5.  The Kingdom grants preferential treatment to the goods of national origin imported from 
Singapore as of 1 April 2015 within the framew ork of the free trade agreement between the GCC 
states and Singapore. 
5.4  GCC-EFTA FTA 
5.6.  The Kingdom also grants preferential treatment to the EFTA group (Iceland, Norway, 
Switzerland and Liechtenstein) to the goods of na tional origin within the framework of the free 
trade agreement between the GCC states and the EFTA as of 1 July 2015. 
6  FUTURE DIRECTION OF SAUD I ARABIA'S TRADE POLICY  
6.1  Saudi Arabia and the G20  
6.1.  As a member of the G20, Saudi Arabia has fully endorsed and 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 th e restoration of sustainable growth. Saudi Arabia 
has fully supported the WTO Secretariat's exercise of periodically monitoring 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. 
6.2.  Saudi Arabia adjusted its Growth Strate gy within the G20 framework for the year 2015 and 
identified 6 key commitments in line with its key national priorities that aim at boosting domestic investment, enhancing competitiveness, and facilitating trade. These key commitments are to: 
i) reduce the regulatory burden and increase government investment; ii) shift to greater private 
sector funding and management of investment through PPPs; iii) improve institutional settings including rules and regulations; iv) Enhance technical and vocational training; v) boost female 
labor force participation; vi) implement trade fa cilitation agreement and improve port capacity. 
The choice of those key commitments benefited from technical consultation with the IOs to ensure that the identified commitments are expected to have the greatest impact on growth. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  6.2  Saudi Arabia and New Sources of Energy 
6.3.  In the past four years, Saudi Arabia, re presented by the Atomic Energy Sector in King 
Abdullah City for Atomic and Renewable Energy (KACARE), has worked on several projects to 
begin defining the objectives of the KSA Nuclear Programme. These projects includes but are not 
limited to the following: 
  Establishing a new atomic energy programme directed to civil purposes and having 
the following properties:  
 safety first;  
 transparent; 
 worldwide cooperation; 
 highest standards and best practices; 
 clean and environmentally friendly.  
  Establishing a new sustainable economic sector characterized by the following 
properties:  
 based on viable economic business models;  
 managed by a trained and qualified national workforce; 
 having a high rate of technology localization;  
 enabling high participation by the Kingdom's industrial and services 
sectors, and; 
 using licensed and reliable technologies. 
  Creating radiation and nuclear regulatory body that is independent and credible. 
  Adapting and developing, in partnership, new atomic energy technologies. 
6.4.  Today, KACARE:  
  Houses an independent regulatory body that is in a developmental stage and is 
being developed by KACARE. On an interim basis, the competent authority is a unit within the atomic energy sector in KACARE; 
  Has a technical partnership with STUK (Finnish Radiation and Nuclear Regulatory 
Authority); 
  Is licensing the LPRR (Low Power Research Reactor) Project; 
  Achieved bilateral nuclear cooperation agreements with eight countries. 
6.5.  In the past four years, Saudi Arabia repr esented by KACARE, has worked on several projects 
that are divided into the following three categories: utility scale, water desalination, and small renewable energy applications. Below we briefly describe projects in each category. 
6.6.  Utility scale:  this category includes several projects:  
  The first project is King Salman's Initiative for Green Energy in Al Madinah. Al 
Madinah has an abundance of renewable energy resources. Hence, this initiative aims at making Al Madinah a global pioneer in the field of renewable energy; 
  The second project is the utilization of th e Jeddah old landfill; the aim of this project 
is to use the generated gases from biodegradable waste known as Landfill Gas (LFG) 
and to convert the gases into energy.  
6.7.  The last project is the development an d deployment of large-scale renewable energy 
projects. The aim of this project is to utilize th e resources available in Saudi Arabia and to help 
reduce domestic hydrocarbon demand for electricity generation. The Saudi electricity system is the largest in the Arab world, where peak load in 2014 reached 56,547 Mw and the electricity generation capacity in 2014 reached 76,839 Mw. 
6.8.  As for Water desalination: KACARE has started working on a feasibility study for using 
renewable energy resources for water desalination. The aim of this project is to capitalize on the renewable resources available to reduce Saudi Arabia's high oil consumption for water 
desalination.  
6.9.  As for the small renewable energy applications: KACARE is working on multiple projects on 
this regard. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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    The first project is to utilize rooftops of buildings to produce energy. This project 
aims at reducing the electricity demand on buildings, in line with the kingdom-wide energy conservation efforts and to support the grid in peak-load shaving; 
  The second project is the use of solar ener gy with batteries in remote areas. This 
project aims to support off grid remote locations in the Kingdom of Saudi Arabia with 
reliable renewable energy solutions. 
6.10.  KACARE has made great efforts to pave the way for these projects. A concrete milestone 
was the Resolution of the Electricity Regulator (ECRA) Board of about 20 amendments to enable 
the integration of renewable energy into the power grid with different technologies and sizes. The 
technologies that will be used are the following:  
1. Photovoltaic (PV); 
2. Concentrated Solar Power (CSP); 
3. Wind; 
4. Geothermal; and 
5. Waste to Energy. 
6.3  Competition  
6.11.  The main features of the Competition Law are: 
 Expanding the scope of application of the Law to all establishments, organizations 
and authorities that conduct commercial and economic activities, notwithstanding 
their ownership; 
 Confirming the legal personality and the financial and administrative independence 
of the Council and that its employees are subject to Labor Law; 
 Stipulating the possibility of exemption from the application of the law for some 
anti-competitive practices, if doing so , would improve the market's performance 
and generate net benefits for the consumer; 
 Determining the competencies of the Board of Directors as a high authority and 
the competencies of the General Secretariat as an executive body, in a clear way 
in line with the competition promotion strategy; 
 Including an Article that exempts a viol ating establishment that cooperates in 
investigations from referral to the Committee for Resolution when such an 
establishment provides evidence on the violations of the Competition Law that 
have been committed by its partners. This procedure is in line with the 
international practices and is considered as a good tool to detect monopolistic 
entities. WT/TPR/G/333 • The Kingdom of Saudi Arabia 
 
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  ANNEX 
TECHNICAL ASSISTANCE NEEDS OF SAUDI ARABIA 
 
1.  As a very recently acceded country, Saudi Arabia is interested to be provided with 
technical assistance in various WTO agreements to ensure effective participation in the 
multilateral trading system. Thus, Saudi Arabia welcomes the host of national seminars 
and workshops organized by the WTO Secretariat or in cooperation with other international 
organizations. Technical assistance in the following fields is required:  
 
 Agreement on government procurement; 
 Rules of origin; 
 Customs valuation; 
 Trade facilitation; 
 RTAs. 
 
2.  Within the context of the ITTC's University Programme, Saudi Arabia is looking forward to 
WTO assistance to set up a cooperation programme between the WTO and a selected 
Saudi Arabian University in order to meet th e objectives determined for this programme. 
 
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