WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  
WT/TPR/M/256/Add.1 
6 March 2012  
 (
12-1258 ) 
Trade Policy Review Body 25 and 27 January 2012 Original:   English/ 
 anglais/  inglés 
 
TRADE POLICY REVIEW 
KINGDOM OF SAUDI ARABIA 
Record of the Meeting 
Addendum 
Chairperson:   H.E. Mr. Mario Matus (Chile) 
 H.E. Mr. Eduardo Muñoz Gómez (Colombia) 
 
 This document contains the advance written questions, and replies provided by the Kingdom 
of Saudi Arabia.1 
__________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
25 et 27 janvier 2012 
 
EXAMEN DES POLITIQUES COMMERCIALES 
ROYAUME D'ARABIE SAOUDITE 
Compte-rendu de la réunion 
Addendum 
Président:   S.E. M. Mario Matus (Chili) 
 S.E. M. Eduardo Muñoz Gómez (Colombie)  
 Le présent document contient les questions  écrites communiquées à l'avance et les réponses 
fournies par le Royaume d'Arabie saoudite.
1 
__________________________________________________________________________________ 
Órgano de Examen de la s Políticas Comerciales 
25 y 27 de enero de 2012 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
REINO DE LA ARABIA SAUDITA 
Acta de la reunión 
Addendum 
Presidente:   Excmo. Sr. Mario Matus (Chile) 
 Excmo. Sr. Eduardo Muñoz Gómez (Colombia) 
 
 En el presente documento figuran las pr eguntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por  el Reino de la Arabia Saudita.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/256/Add.1 
Page 2  
 
  REPLIES PROVIDED BY THE KINGDOM OF SAUDI ARABIA 
 
INDIA 
 
Questions Regarding the Secretariat Report 
 Page 37, para. 62 Saudi Arabia has been an observer at the Govern ment Procurement Agreement since December 2007 
but is yet to begin negotiations for membership.  Question 1 
Saudi Arabia is requested to indicate the time frame, if any, in which it might be seeking to join the 
GPA.  
Answer 
The Kingdom of Saudi Arabia welcomes the successful  deal reached by parties to the plurilateral 
Government Procurement revised agreement.  The S audi national committee intends to translate the 
new agreement into the Arabic language, to study it carefully and comprehensively, and to consult 
widely both within the Government and with the private sector. The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshop on the WT O Government Procurem ent Agreement.  This 
would greatly help us in our examination of the i ssue in the light of the new agreement.  Saudi Arabia 
has listed this request in the Annex to the Govern ment report as a technical assistance need of 
Saudi Arabia.  We hope that this request can be met during the first half of 2012.  After the completion of the workshop and the examina tion of the new agreement by Saudi officials, a 
recommendation will be made to the ministerial committee, which will determine appropriate steps 
with respect to the commencemen t of the accession negotiations.  
 
Page 3, para. 6 The WTO Secretariat report mentions that Saudi Ar abia is taking steps to diversify the economy and 
modernize revenue calculation.    Question 2 
What are the steps being taken?  India would appreciate if Saudi Arabia could share its experiences 
and achievements.   
Answer 
Diversification of the economic base is a primary goal  for economic development in Saudi Arabia.  It 
is a necessary condition for building a stable mode rn economy.  Diversification is based on a broad 
range of economic resources and characterized by a hi gh degree of internal in tegration, embodied in 
close interrelationships among various sectors and activities.  Diversification should be based on the 
market mechanism and the competitiveness of the Saudi economy.  A cornerstone of sustainable 
development and economic diversification in the Ki ngdom of Saudi Arabia is investment.  
 
Hence, steps have been taken to diversify the ec onomy in the Kingdom, including the improvement in 
the investment climate and the elimination of obs tacles to investments in Saudi Arabia.  There has 
been a marked increase in the sha re of Foreign Direct Investments (FDI) attracted by the Kingdom 
and the industry sector acquired the biggest share of the cumulative balance of FDI.  
It is also important not only to increase the cont ribution of non-oil sectors, but also reform the 
productive structures of these sectors by diversifying their productive activities.  
 To achieve tangible progress in diversifying the ec onomic base, there will be intensified efforts to 
reform productive structures and diversify producti ve activities in industries with competitive  WT/TPR/M/256/Add.1 
 Page 3 
 
 
  advantages, such as (i) petrochemicals and energy-in tensive industries;  (ii) high-tech and capital-
intensive industries, such as mining and pharmaceu ticals, which contribute effectively to the 
transition to a knowledge-based economy;  and (iii) capital goo ds industries, such as the 
manufacturing of metal products, machinery, equi pment and electrical appliances.  Furthermore, 
small and medium enterprises (SMEs), and export-or iented manufacturing industries should be 
strengthened and developed.    
Page vii, para. 5 and page 2, para. 3 Saudi Arabia's economy is highly dependent on intern ational trade.  The Secretariat report mentions 
that since the mid 1990s, Saudi Arabia has been implementing a development strategy aimed at, inter 
alia, reducing its high dependence on crude oil.   
 
Question 3 
Please elaborate how this strategy has affect ed production and exports of crude oil.  
 Answer 
The Kingdom's economic diversification strategy has not  affected production and export of crude oil.  
This is made clear in section IV.2 (iii) of the Secretariat's report. 
 
Page 53, table IV.I The table shows a steep fall in area unde r cultivation and production of grain. 
 
Question 4 
What are the reasons for this decline? 
 
Answer 
The reason behind the significant drop in grains pro duction is mainly due to a Government  decision 
to terminate Saudi Arabia's production support policy fo r wheat gradually within 8 years, as part of a 
water saving strategy.  Thereafter, the Kingdom wo uld be fully dependent on imports by 2016. 
 
Page x, para. 20 
The WTO Secretariat report mentions that Saudi Arab ia is trialing solar thermal and other sustainable 
electricity generation methods.  
 
Question 5 
What is Saudi Arabia's long-term strategy towa rds harnessing sustainable new and renewable energy 
sources, particularly the solar energy? 
 
Answer 
For its long-term strategy, the Government of Saudi Arabia created the King Abdullah City for 
Atomic and Renewable Energy (K.A.CARE) by Royal order # (A/35) on Apr. 17, 2010.  K.A.CARE 
contributes to a sustainable future for Saudi Arabia by  developing an alternative energy capacity that 
is substantial in size and supported by a world-cl ass local industry.  Shaped by science and research, 
and brought to life through technology developm ent and industry partnerships, the Kingdom is 
building a new generation of sustainable power pr oduction capabilities that harness renewable and 
atomic energy to create a reliable, and long-term supply of electricity. 
 
Page 38, para. 64 
Saudi Arabia maintains six-month wheat reserve stocks to face emergency situations. 
 
Question 6 
Saudi Arabia is requested to provide further details  of its wheat stocking operations to face emergency 
situations.   WT/TPR/M/256/Add.1 
Page 4  
 
  Answer  
To meet the emergency situation related to stocking operations, GSFMO has established grain 
storage at more than 11 locations.  Our stock is operated and monitored through a: 
 Pre-cleaning system; 
 Aeration system; 
 Temperature control system; and 
 Fumigation system. 
All the locations provide wheat to  flour mills as per requirements. 
 
Questions regarding th e Government Report 
 
Page 23 (Annex:  Technical Assistance Needs of Saudi Arabia) Saudi Arabia has shown interest in receiving Tech nical Assistance in certain specified areas of its 
engagement with the WTO.  It indicates which ar eas it would be seeking WTO assistance and in what 
manner, but does not indicate what kind of engagement it wants to have with other members.  
Question 7 
Saudi Arabia is requested to indicate the exact nature of engagement that other members can have 
with it in the areas of technical assistance specified by it. 
 
Answer 
Saudi Arabia has identified a need for technical assistance from the WT O Secretariat in its 
Government Report at page 23.   
 Page 12, para. 65 
Saudi Arabia has reached a high " self-sufficiency" rate for some crops such as potatoes (161%), 
eggplants (102%), cucumbers (101%), watermelons (115%), table eggs (112%), fresh milk (105%) 
and dates (105%).  The Kingdom has also achieved good rates for other crops such as okra (99%), carrots (79%), tomatoes (72%), and grapes (83%).  It has also achieved low rates for other animal 
products such as red meat (38%) and poultry meat and fish products (48%).  
 
Question 8 
Paragraph 65 of the Government report talks of se lf-sufficiency in certain crops.  How is this 
estimated?  Answer 
The formulas for calculating the self-sufficiency ratio for each agricultural product is as shown 
below. Self-sufficiency rate = domestic  production / quantity available for domestic consumption x 100. 
 Other Questions 
 Reference No., title and date of law, decree, regulation, etc. 
 WTO document no. G/AG/N/SAU/4 dated 19 April 2011 (Notification on Domestic support) 
 
Description and specific information 
Saudi Arabia provides non-product specific support to agriculture sector under the subheading (1) 
General agricultural subsidies, (2) opportunities cost  for interest free agricultural loan and (3) bad 
debts for agricultural loans (WTO document no. G/AG/N/SAU/4 dated 19 April 2011).  The 
methodological note on General subsidies explains that  these subsidies are provided to all agricultural  WT/TPR/M/256/Add.1 
 Page 5 
 
 
  products.  However, it did not put light on the va rious components (like fertilizer subsidy or water 
subsidies etc.) of "General subsidies". 
 
Question 9 
Saudi Arabia is requested to explain abou t various components of general subsidies. 
 
Answer 
General agricultural subsidies notified in WTO doc ument No. G/AG/N/SAU/4 dated 19 April 2011 
(Notification on Domestic support) are under the non-product specific support category and provided 
to all agricultural products.  These subsidies included government grants to assist farmers in 
purchasing production inputs such as engines, i rrigation pumps, irrigation systems, agricultural 
machinery, poultry equipment and dairy production equipm ent.  Other inputs such as fertilizers, seeds 
and pesticides are not subsidized.  There are no water subsidies of any kind gran ted to the agriculture 
sector.  
Question 10 Does the Saudi Government provide support to th e agriculture sector?  If so, in what way? 
 
Answer 
Yes.  The Kingdom of Saudi Arabia is providing support to the agricultural sector in the following 
forms: 
 Market price support (wheat); 
 Fixed amount of subsidy for specific products (dates); 
 Fixed amount of subsidies for some agricultural inputs; 
 Agricultural interest-free loans; and 
 General agricultural services.  
Detailed information is in the latest WTO doc ument G/AG/N/SAU/6 dated 13 September 2011 on 
domestic support as notified by Saudi Arabia. 
 
Question 11 
What are Saudi Arabia's major interests or con cerns in the Doha Round of trade negotiations? 
 
Answer 
Saudi Arabia has been engaged in many aspects of the Doha Development Agenda negotiations. The 
Kingdom's major interests or concerns include the following:  
 Saudi Arabia has been engaged in the negotia tions on the environment under Paragraph 31 
of the Doha mandate.  It submitted to the Committee on Trade and Environment in Special 
Session (CTESS) a proposal pursuant to Par agraph 31(iii).  Saudi Arabia's proposal has a 
technology drive and focuses on environmenta l goods that are components of key 
technologies for the environment:  carbon c apture and storage (CCS), gas flaring reduction 
and efficient consumption of energy technol ogies.  Saudi Arabia's proposal has been 
circulated to Members in documents JOB(09)/169, Add.1 and 2.  
 
 Saudi Arabia has also been engaged in the C TE discussions under Paragraph 32 of the Doha 
mandate, where it raised its concerns regarding trad e barriers (NTBs) to the dissemination of 
key technologies on commercial basis for the enviro nment.  In an effort to enhance Members' 
understanding of this key issue, Saudi Arabia recently submitted a proposal to the CTE for a workshop on technology dissemination issues related to CCS technologies. 
 
 In the Rules negotiations, Saudi Arabia has been involved in many aspects of the subsidies 
negotiations and provided input to ensure t hat any proposed amendments to the SCM  WT/TPR/M/256/Add.1 
Page 6  
 
  Agreement would be balanced and objecti ve and would not negate Members' natural 
comparative advantages.  Saudi Arabia has also wo rked to ensure that proposed amendments 
to the Anti-Dumping Agreement on dumping calculation methodologies do not unfairly discriminate against exporting members.    
 In the Non-Agricultural Market Access (NAM A) negotiations, Saudi Arabia has actively 
engaged in the discussions to help ensure that  any agreement would be balanced, would take 
into account the interests of developing countries and would not entail any additional commitments for Recently Acced ed Members such as the Kingd om, in line with the Hong 
Kong Ministerial Declaration.  
 The Kingdom also attaches great importance to th e negotiations on trade facilitation.  Saudi 
Arabia's main concern with the draft negotiati ng text (TN/TF/W/165/Rev.11) relates to Article 
11 on Freedom of Transit, and more specifically to the application of transit disciplines on 
fixed infrastructure including pipelines.  Th e Kingdom clarified, with support from other 
WTO Members, that pipeline transport has par ticular characteristics that make it necessary 
to ensure that the application of transit rules does not disrupt the normal conduct of pipeline 
transportation or undermine the rights of th e owners and operators of pipelines to conduct 
their business on normal commercial principles.  Saudi Arabia has made a textual proposal to address this point, which has been incorporat ed in brackets as Article 11 paragraph 1bis in 
the draft negotiating text.  Saudi Arabia's participation has also sought to ensure that the Trade Facilitation Agreement's pr ovisions on transit do not infr inge on Members' sovereign 
rights, and that "general use by third parties"  does not include acces s to infrastructure 
granted on a contractual basis.    
 
Question 12 
What is Saudi Arabia's position on regional and bila teral trade agreements and how does it view the 
current stalemate in the Doha Round? 
 
Answer 
As a member of the Gulf Cooperation Council, Saudi Ar abia is of the view that trade liberalization at 
the regional level, carried out in conformity with  WTO requirements, can be a valuable stimulus to 
economic growth and welfare, both among regiona l partners and with the broader WTO membership. 
Nevertheless, Saudi Arabia is also convinced of the necessity for multilatera l liberalization, and does 
not regard regional and bilateral agreements as a preferable or sufficient alternative to it.   
 Like other WTO Members Saudi Arabia regrets the current impasse in the Doha Round. Saudi Arabia 
has been an active participant in the Round, s ubmitting negotiating proposals in several Negotiating 
Groups, as discussed above, and it will be ready to do so again when multilateral  negotiations are 
resumed. 
 Question 13 
Food security is a major concern for Saudi Arabia.  What are the steps being taken on this front? 
 Answer 
In addition to the traditional policy of supporting loca l production, the most rec ent step taken in this 
regard is the initiative by King Abdullah - Agricult ural Investment Abroad.  Please see details at 
page 55, para. 7. 
  WT/TPR/M/256/Add.1 
 Page 7 
 
 
  Question 14 
Saudi Arabia has supported the exemption of th e World Food Programme's humanitarian food 
purchases from export restrictions.  What in Saudi Arab ia's view are the factors affecting global food 
security?  Answer 
Factors affecting global food security include the following: 
 Restrictions on exports of agricultural prima ry products imposed by some major exporting 
countries. 
 Decline in world production of agricu ltural products, particularly grains. 
 Market speculation, especially by big companies and investors. 
 The absence of an effective and advanced early warning information system, that (i) 
determines the areas of risk before they occur, (ii) provides data and information on supply, 
and (iii) predicts global conditions for agriculture and food production.   
 Increasing trade protectionism. 
 Diverting more land for biofuels. 
 Population growth. 
 Economic prosperity and demand increasing.  
 
PAKISTAN 
TRADE POLICIES BY SECTOR  Agriculture  
 At page 55, para. 7, the Secretariat report states that the King Abdullah Agricultural Initiative aims to 
improve long term food security by enabling pr ivate Saudi businesses to invest in agricultural 
projects, including fisheries in other countries.   
Question 1 
Could Saudi Arabia share the details of this initiativ e?  Besides, which countries are being focused by 
Saudi Arabia for investments under this Scheme? 
 
Answer 
Against the backdrop of the recent world food crisi s that affected many countries, especially 
developing countries, and in light of the scarcity of water and other natural resources, more attention 
is paid by the Government of Saudi Arabia to fo od security issues.  The main objective of "King 
Abdullah Agricultural investment initiative abroad" is to provide active contributions to achieve food 
security not only at the national level but also at  the international level to enhance global food 
security.  The initiative aims to prevent or at le ast to reduce the impact of shortages of food and 
agricultural commodities and to minimize the excessive  risk of world price volatility by ensuring 
sufficient and sustainable supply to meet the in creasing demand on food and primary agricultural 
products.  The initiative aims to build an integrat ed partnership with a number of countries in the 
world.  This initiative also has a humanitarian as pect as it aim to increase food production in the 
world as part of the production is allocated to th e host country for its own food security.  In this 
regard, as also referred to in paragraph 7 on p age 55, there are no countries specified.  However, 
any country that has great agricultural potentia l, available resources and attractive investment  
regulations could be targeted.  
 WT/TPR/M/256/Add.1 
Page 8  
 
  Fisheries 
 
Page 58, para. 29 
Saudi Arabia has a developing fish farming industry, as part of the Government 's efforts to promote 
food self-sufficiency and sustainability.  However, as  shown in table II.2 (page 19), this sector is not 
open for foreign investment. 
 
Question 2 
Is there a plan to allow FDI in this sector? 
 
Answer 
The entire fish farming industry is open for FDI exce pt capture fishing due to low quantities of fish in 
Saudi territorial waters.  This sector is still on the Negative List.    Manufacturing 
 Page 69, para. 88 
The Secretariat report states that "the positive tari ff escalation in some industries e.g. textiles and 
apparel, and wood products, reflects relatively high effective rates of protection, which somewhat 
impede Saudi Arabia's export competitiveness of those manufactured products."  Question 3 
Are there any plans to address this issue?  
 
Answer 
A decision by the Supreme Council for the Coopera tion Council for the Arab Gulf States was issued 
during the thirty-second session held in Riyadh in December 2011 in order to resolve outstanding 
issues that hindered reaching the final status of th e customs union.  Among the issues is the disparity 
in customs duties on certain goods in excess of 5%.  Customs Union Port was assigned to investigate 
this matter within a binding timeframe to reach the final status of the customs union by 1 January 2015.  Thus, the difference in customs duties on certain goods still exists.  The number of such goods is "565" accounting for 7% of the tota l value of imports, according to 2010 statistics.  
 
Services  
Page 74  
Services is a key component of Saudi Arabia's efforts to diversify its economy away from the 
traditionally dominant oil and hydrocarbons sectors.  Table 1.3 (Balance-of-Payments, 2005-10) 
reflects that the Saudi Arabia's Balance of Payments position has deteriorated from 
US$21,694 million to US$66,089 million, especially in  the transportation, travel and government 
services.  
Question 4 
What steps is Saudi Arabia taking to improve its BOP position in services? 
 
Answer 
The increase in the service deficit is due to growth  in domestic consumption.   The average growth 
rate of domestic consumption during 2005-2010 was about 13%.  However, Saudi Arabia continues to 
further diversify its economy.  In this respect, th e non-oil sector GDP in cu rrent prices registered an 
average growth rate of 7.8% during 2005-2010.  Moreover, during the same period, the Balance of 
Payments statistics showed that transportation export, and travel services receipt recorded an 
average growth of 4.5 and 8.2% respectively. 
  WT/TPR/M/256/Add.1 
 Page 9 
 
 
  Services (Overview) 
 
Para. 113 
During 2005-10, SAMA introduced new pruden tial and regulatory requirements, as well as 
procedures to enhance capital adequacy, liqui dity and risk management, among others.  
 
Question 5 
How far the new prudential and regulatory requirements  were instrumental in preventing the spread of 
contagion resulting from the global cr isis into the Saudi's banking sector? 
 
Answer 
The Saudi banking sector has been  well guarded against the spread of contagion resulting from the 
global crisis as shown by the following indicators:  the liquid assets ratio reached 34% at the end of 2010, the capital adequacy ratio is currently hi gh at 17.1% and the stress tests conducted recently 
also demonstrate that Saudi banks are s ound and well-equipped to withstand any shocks. 
 
UNITED STATES 
 
WT/TPR/G/256 
 
Pages 10 and 11, paragraphs 50-53 
 
Question 1 
Please provide further detail on how the elements of the review process of the GCC Common Law on 
Anti-Dumping, Countervailing and Safeguard Measures (GCC Common Law) was conducted with 
regards to its implementation into Saudi Arabia's laws. 
 
Answer 
The amended GCC Common Law will be ratified by  KSA National Authorities and will be published 
in the Saudi Official Gazette upon its implementation in Saudi Arabia.   
 
If there is a discrepancy between the GCC Common Law and Saudi Arabia's national laws, which law 
will prevail? 
 
Answer 
There will be no discrepancy between the laws b ecause the amended GCC Common Law will be 
ratified by Saudi National Authorities and will be  published in the Saudi Official Gazette.   
 
According to the GCC Common Law , would an antidumping, count ervailing duty or safeguard 
measure apply to imports into all members of th e GCC or may such measures be applied only to 
imports into certain members of the GCC?  
Answer 
The Implementing Regulation stipulates that, as  a rule, anti-dumping, countervailing duty and 
safeguard measures apply to all imports into the G CC.  However, the application of anti-dumping, 
countervailing and safeguard measures may be limited  to one or several member States of the GCC, 
as per the exceptions provided in the Implementing Regulation. 
 Page 11, paragraph 56 
The Government states in its report that it "recogni zes its commitment" to begin negotiations to join 
the WTO Government Procurement Agreement (GPA). 
 WT/TPR/M/256/Add.1 
Page 10  
 
  Question 2 
In light of the GPA Parties' agreement on the revision of the GPA at the WTO Ministerial in 
December 2011, will Saudi Arabia commence its acc ession to the GPA in the first quarter of 2012? 
 
Answer 
The Kingdom of Saudi Arabia welcomes the successful  deal reached by parties to the plurilateral 
Government Procurement revised agreement.  The S audi national committee intends to translate the 
new agreement into the Arabic language, to study it carefully and comprehensively, and to consult 
widely both within the Government and with the private sector.  
The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi 
officials a national seminar and workshop on the WT O Government Procurem ent Agreement.  This 
would greatly help us in our examination of the i ssue in the light of the new agreement.  Saudi Arabia 
has listed this request in the Annex to the Gove rnment Report as a technical assistance need of 
Saudi Arabia.  We hope that this request can be met during the first half of 2012.  
 
After the completion of the workshop and the examina tion of the new agreement by Saudi officials, a 
recommendation will be made to the ministerial committee, which will determine appropriate steps 
with respect to the commencemen t of the accession negotiations.  
 
Page 11, paragraph 58 
 
Question 3 
Please provide more information as to how Saudi law permits the judicial authorities to provide for 
costs and attorney's fees (see TRIPS Articles 45.2 and 48).  Answer 
Prosecution before state courts is free of charge .  Any Party is entitled to be represented by 
independent attorney.  Judicial authorities have the power to indent the violator to pay the right 
holder prosecution fees or costs which may include appropriate attorney fees. 
 
Page 12, paragraph 61 
The Government lists the fines, damages, confiscat ion and store closures that resulted from its review 
of 483 cases during 2010 by the Violation Review  Committee (VRC) on Copyrights and the General 
Directorate of Copyright.  
Question 4 
Were any injunctions ordered duri ng 2010?  Were there appeals of the decisions in any of the 483 
cases (presumably to the Board of Grievances)?  Did any of the 2010 cases involve recidivists (second 
offenders)?  In addition, can the Government  pr ovide any statistical data for actions to address 
copyright infringement taken during 2011?  Pl ease provide more detail on how the results of 
intellectual property infringement actions, including  the 483 actions referred to above, were made 
public within the Kingdom (See TRIPS Article 63.1). 
 
Answer 
60 of the 483 Decisions of the Violation Review  Committee ("VRC") were appealed before the Board 
of Grievances ("BoG").  The BoG upheld 58 of the VRC's decisions, and 2 decisions were revoked and 
returned to VRC for retrial. 
40 cases in 2010 involved recidivists.  Penalties and fines were increased by the Violation Review 
Committee in this regard. In 2011, the Copyrights department received 500 co mplaints, decided 364 cases, embarked on 437 
violations, carried out 980 inspection raids, a nd ordered 4 defamation penalties and 8 injunctions.   WT/TPR/M/256/Add.1 
 Page 11 
 
 
  Fines collected exceeded SAR 1.7 million, a nd compensation to right holders amounted to 
SAR 991,000.  Cases will be pub lished shortly on the website of the Copyrights department. 
The VRC grants right holders access to those cases through the website of the copyrights department.  
In addition, right holders may attend the heari ngs of the VRC and can appeal its decisions.  
Moreover, the VRC publishes a monthly press relea se containing information concerning violation 
cases. 
Cases adjudicated before the BoG are published, and all hearings are open to the public. 
 
Page 18, paragraph 113 and, WT/ TPR/S/256, page 80, paragraph 147 
 Questions 5 
What is the legal status of Voice over Internet Protocol (VoIP) services in Saudi Arabia and what 
statistics are available on the number of users?  
Answer 
Fixed and mobile facilities-based service providers licensed to provide voic e services are legally 
entitled to offer carrier grade Voice over Intern et Protocol (VoIP) services in Saudi Arabia. 
(Statistics on the number of VoIP users are not available.) 
 
WT/TPR/S/256 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
(1) M EASURES DIRECTLY AFFECTING IMPORTS   
(i) Customs registration, documentation, procedures, and valuation  
 
Page 21, paragraph 1 
 
Question 6 
Please explain why a "Saudi commercial agent is required only to import or export agricultural 
machinery"?  What is special about agricultural machinery? 
 
Answer 
This requirement ensures th e agricultural machinery's comp liance with the standards and 
specifications approved by the Ministry of Agri culture and that it is suitable for the Kingdom's 
environment.  It also exists to require the agent  to provide maintenance services, spare parts and all 
other necessary services, since these services mu st be provided by authorized agents. 
 Page 21, paragraph 2 
The Secretariat report indicates that Saudi Arabia requires a certificate of origin for all imports.  
Question 7 
Does Saudi Arabia require certificates of origin ev en for those imports not applying for preferential 
treatment?  For what reason does Saudi Arabia require certificates of origin for all imports, given that 
it does not apply non-preferential rules of origin (as noted in paragraph 13)? 
 
Answer 
A certificate of origin is required for all imports , including goods re-exported to the Saudi Arabia in 
order to determine the nationality of the goods.  Article 25 of the Common Customs Law for the 
demonstration of Origin accords to the rules of  origin agreed under the international economic and 
regional organizations with the aim of recogni zing the imported goods and controlling commercial 
fraud and counterfeiting.  Trade statistics for Saudi Arabia also depend on identifying the origin of 
imported goods. 
 WT/TPR/M/256/Add.1 
Page 12  
 
  (ii) Rules of origin  
 
Page 23, paragraph 12 
 
Question 8 
Can Saudi Arabia please confirm if it has notified its preferential rules of origin to the Committee on 
Rules of Origin?  
Answer 
All GCC products are treated as national prod ucts according to the Agreement of Economic 
Cooperation of the Gulf Cooperation Council, signed on 31 December 2001 AD.  As for the 
preferential rules of origin at the level of the Arab countries, work is underway to agree on a final 
version. 
 
(vi) Standards and other technical requirements  
(a) Standards, metrology, testing, and certification 
 
Page 32, paragraph 39 
According to the Secretariat, "SASO is al so in-charge of WTO notifications."   
 
Question 9 
Please clarify the process for the Saudi Standards,  Metrology and Quality Organization's (SASO) 
notification of WTO inquiries.  Please explain how SASO ensures that technical regulations and standards will be notified to the WTO in draft form, will allow all interested parties sufficient time to 
review and comment, and will take those comments into account before finalizing any regulation or 
standard. 
 
Answer 
In case of preparing technical regulations and standards where there is no relevant international 
standard or where the technical content of the regula tion or standard is not in accordance with the 
technical content of relevant international standar ds, and if the technical regulations and standards 
may have a significant effect on the trade of  other countries, SASO notifies the WTO. 
SASO, without discrimination, allows a period of at least 60 days for concerned parties to make 
comments in writing and to discuss these comments upon request, and for SASO to take these written comments and the results of these di scussions into consideration. 
 
Page 32, paragraph 40 
The Secretariat report states that the timeframe  for public comment and for implementation of 
regulations may be altered in the case of an emergency situation.   
 
Question 10 
Can Saudi Arabia comment on what constitutes an emergency situation and what entity determines 
when such a situation has occurred? 
 
Answer 
Emergency situation is any emerging persistent probl em that relates to Islamic legislation, safety, 
health, environment or national security. 
 Page 33, paragraph 42 
The Secretariat report states that from 1 July 2011,  the Government  transferred the responsibility for 
technical regulations and standards related to food, feed, pesticides, cosmetics, and medical devices to 
the Saudi Food and Drug Authority (SFDA).  Previ ous paragraphs, however, indicate that SASO is  WT/TPR/M/256/Add.1 
 Page 13 
 
 
  still responsible for setting all products quality  standards in Saudi Arabia as well as WTO 
notifications.    
Question 11 
Please explain the role that SFDA and SASO play in setting food and agricultural standards, medical 
device regulations, as well as in WTO notifications. 
 
Answer  
SFDA took over the responsibilities of technical regul ations and standards related to food, feed 
pesticides, cosmetics and medical devices whic h were previously assigned to different local 
organizations such as SASO and MOCI.  SFDA has  a technical committee of its own that is 
responsible for setting and adopting technical regulati ons and standards in relation to food, feed, 
cosmetics, pesticides, and animal food and feed. SF DA has the Saudi Codex contact point and it has a 
representatives, through SASO, in the Interna tional Standard Organization (ISO) and GCC standard 
Organization as well as Arab Industrial Devel opment and Mining Organization (AIDMO).  These 
responsibilities were transformed based on the memorandum of understanding which signed by both 
SASO and SFDA on 22 March 2011, and approved on 7 July 7 as Ministerial Decision No. 31344.  SFDA for the time being is notifying the WTO th rough the SPS and TBT cont act points of any new 
draft of regulations and rules related to food, f eed pesticides, cosmetics and medical devices, taking 
into account the proce dures for WTO notifications. 
 
(b) Sanitary and phytosanitary measures 
 
Page 35, paragraph 48 In instances where Saudi Arabia applies GCC SPS measures, such as in the case of the Laws on 
Veterinary Quarantine and Plant Quarantine,  
 
Question 12 
How does Saudi Arabia notify those measures to th e WTO at the draft stage, which allows WTO 
Members to comment and for those comments to be taken into account?    Answer 
Saudi Arabia notifies all WTO Members about any SPS measure 60 days before it comes into force. This allows interested members time to submit their comments for further review. 
 
Page 35, Paragraph 49 
We appreciate the Kingdom of Saudi Arabia's effort s to provide information on its draft and approved 
measures on the websites of the SFDA (www.sfda.gov .sa) and MCI (www.mci.gov.sa).  In reviewing 
those websites, we found only the overarching law of SPS measures and lists of existing measures 
(http://www.mci.gov.sa/circular/54-1.asp;  http://www.sfda.gov.sa/Ar/Home/Topics/regulations/).    
Question 13 
Please identify the website where the drafts and a pproved SPS measures, regarding BSE, AI, etc., can 
be found.  
Answer 
The website of Ban and Lifting Ban Decisions were established by SFDA as indicated in the following 
link:  http://www.sfda.gov.sa/En/Food/Topics/ Ban+and+ban+lifting+decisions/.  For other SPS 
members, the concerned website  is still under construction. 
 WT/TPR/M/256/Add.1 
Page 14  
 
  (2) M
EASURES DIRECTLY AFFECTING EXPORTS   
(iv) Export subsidies, finance, insurance, and assistance 
 
Page 41, paragraph 75 This report notes that among the main functions of  the Saudi Exports Development Authority (SEDA) 
are "providing incentives to exporters and incentiv es for marketing exports and attracting foreign 
investors".  
Question 14 
What are the "incentives" that SEDA provides, particularly with respect to those noted above?  Please 
explain these incentives in light of Saudi Arabia's  obligations under Article  3 of the Subsidies 
Agreement not to provide subsid ies contingent upon export. 
 
Answer 
Although the Saudi Exports Development Authority (SEDA) was established in 2007 pursuant to 
Council of Ministers Resolution No.59, the aut hority has not begun any activities.   
 
Page 41, paragraph 77 
The Secretariat report provides information on a duty refund allowed under Article 16 of the 
Implementing Regulation of the GCC Customs Law.  Question 15 
How does Saudi Arabia ensure that the duty refund or drawback provided is not in excess of the 
duties levied on imported inputs that are consum ed in the production of the exported product, as 
provided under item (i) under Annex I of the Subsidies Agreement?  Answer 
As required by the provisions in item 4 of Ar ticle 16 of the executive regulations of the Common 
Customs Law, the customs ports matches the foreign goods to be exported or applies a drawback 
using the import documents. 
 
(3) M EASURES AFFECTING PRODUCTION AND TRADE   
(i) Incentives   
Page 42, paragraphs 81 – 84 These paragraphs of the Secretariat report provide information on several programs that appear to 
meet the criteria for notification as provided unde r Article 25 of the Subsidies Agreement.   
 
Question 16 
When does Saudi Arabia plan to notify these progra mmes to the WTO in light of Article 25 of the 
Subsidies Agreement?  
Answer 
Saudi Arabia is going to notify any program whenever it is required to do so under Article 25 of the 
WTO Agreement on Subsidies and Countervailing Measures. 
 
(iv) Intellectual property rights  
 Page 48, paragraph 100 
The Secretariat indicates that Saudi Arabia has committed itself to full implementation of TRIPS. 
 
Question 17 
What is the current status of implementation?  WT/TPR/M/256/Add.1 
 Page 15 
 
 
  Answer 
All relevant IP offices are progressively increasing their capacities in terms of human resources and 
improve work techniques to contribut e to the acceleration of work flow. 
For example: 
- During the period from 1989-2011, 17,049 patent  applications were fil ed, 15,652 applications 
were examined and 2,815 patent  certificates were granted. 
- For Industrial Designs,3,156 app lications were submitted,2,750 applications were examined and 
1,950certificate were granted. 
- In 2011, the Industrial Property Appeal Co mmittee received 44 cases appealing from decisions 
related to industrial property and decided on 33 cases.   
-  Regarding trademarks, 13,240 applications w ere filed and 8,429 tradema rks were registered in 
2011. 
- In 2010, 3,842,742 items of counterfeiting goods were seized and destroyed, their value amounted 
to over 29 million SAR.  58,465 counterfeit items were seized and destroyed over a 3 month 
period in 2011.  
- The Board of Grievances decided 47 appeals relating to industrial property in 2010. 
- Regarding copyrights, about 415, 000 items  were seized and destroyed and 364 cases were 
reviewed in 2011.  
- The Customs department referred 1253 of count erfeited import shipments to the General 
Department for Combating Comm ercial Counterfeit in 2010. 
 Page 48, paragraph 100 and page 99 
We understand that the current copyright legislati on is based on the Copyrights Law, issued pursuant 
to Royal Decree No. M/41 of 2.7.1424H (30 August 2003) (Copyright Law of 2003) and the Implementing Regulations, issued pursuant to Ministerial Decision No. 1688/1 of 10.4.1425H 
(29 May 2004), as cited at WT/TPR/S/256-06, page 99. 
 
Question 18 
Is the Saudi Government presently undertaking, or planning in the near future to undertake, any 
changes to the current copyright regime?  
Answer 
The concerned government departm ents periodically review its la ws, regulations and enforcement 
efforts in order to improve the protection of I PR.  However, no changes in the copyrights law are 
expected in the near future. 
 
Page 49, paragraph 102 an d page 50, paragraph 106 
The Secretariat lists the numerous conventions and tr eaties to which Saudi Arabia is a party.  We note 
that the Secretariat reports that Saudi Arabia's related rights concern performers, producers of sound 
recordings and broadcasting organizations.   
Question 19 
Does Saudi Arabia plan to accede to the World Intellectual Property Organization's (WIPO's) 
Copyright Treaty (WCT) and/or WIPO's Performances and Phonograms Treaty (WPPT)? 
 
Answer 
IPR treaties, including WCT and WPPT, are bein g reviewed by the IPR Standing Committee to 
evaluate the pros and cons of acceding to them. At the time of accession to the WTO, all Saudi Arabia 
IPR laws and regulations were brought in line with the obligations set out in the TRIPs Agreement.  
In 2007, the TRIPs Council reviewed all legislation related to IPR in Saudi Arabia to ensure full compliance with the provisi ons of the TRIPs Agreement. 
 WT/TPR/M/256/Add.1 
Page 16  
 
  Page 49, paragraph 104  
The Secretariat indicates that inventions of all fiel ds except those that are "not contradictory to the 
provisions of Islamic Law or the rules of conduct" are eligible for patentability.    
Question 20 
Please provide examples of subject matter that has been or would be prevented from patentability?  
Please explain these specific provisions in Saudi Law in  view of the TRIPS Agreement, e.g. Article 
27.  
Answer 
Article 27(2) of the TRIPS Agreement gives WTO Members the right to exclude from protection 
inventions whose commercial exploitation may har m order public or morality.  Saudi Patent Law 
excludes from protection inventions which contradict public morals in Saudi Arabia and Islamic law, 
which is the main source of the Saudi Constitution.   For example, inventions related to alcoholic 
beverages are not accepted for examination under Saudi patent law.  
 
Page 49, paragraph 105 The Secretariat indicates a non-exclusive compulsory  license may be granted for unworked patented 
inventions by the Industrial Property Directorate if  the applicant "proves ab ility to use the invention 
industrially, and against fair compensation to be  paid to the patent holder."  Several other 
requirements must also be met.  
 
Question 21 
Please provide more detail on the requirements that must be met. Does importation of the patented 
invention constitute "working" the patented invention?  How many, if any, requests for compulsory 
licenses have been made in Saudi Arabia?  How many in the GCC? 
 
Answer 
Article 24 of Saudi Patent Law explains all cases and requirements for issuing compulsory licenses 
for patented inventions. 
"Article Twenty Four: 
a. King Abdulaziz City for Science and Technology  (The City) may grant a compulsory license 
to a third party to exploit an invention covered  by the patent or a layout design of an 
integrated circuit covered by a certificate of  design upon an applica tion submitted to it, 
according to the following: 
(1) The application shall be submitted after the elapse of four years from the date of filing 
the patent application or three years from the date of granting the patent, whichever 
expires later, without the owner of the prot ection document exploiting his invention or 
having exploited it in an inadequate fashion, unless he justifies that with a legitimate 
excuse. 
(2) The applicant for the compulsory license mu st prove that he has exerted -over a 
reasonable period of time- efforts in order to obtain a contractual license on the basis of 
reasonable commercial conditions, and for a reasonable financial compensation. 
However, this provision and the provisi on of the preceding paragraph do not apply 
where the applicant is a Government body or a person authorized by it, and the aim was 
to meet public interest - especially secur ity, health, nutrition or the development other 
vital sectors of the national economy- or to  meet a state of emergency or other very 
compelling circumstances, or where the aim thereof was public non-commercial 
purposes.  In the latter case, and upon knowledge of the existence of a patent or a 
certificate of design, their holder shall be promptly informed.  
(3) The compulsory license is basically granted to  make the invention or design available in 
the local markets.  But this provision does not apply where the aim of the license is to  WT/TPR/M/256/Add.1 
 Page 17 
 
 
  prevent or restrict practices against which a decision or judgment is issued declaring 
them to be acts of unlawful competition. 
(4) The decision granting the license shall specify the scope and term of the license, 
according to the purpose for which it was gr anted.  The license shall be subject to 
termination if the conditions for which it was granted cease to exist and their recurrence 
is not likely, with due regards to the lawful interests of the licensee. 
(5) The license shall not be exclusive. 
(6) Each application shall be  independently decided. 
(7) The owner of the protection document or the holder of a certificate of a design shall be 
awarded a fair compensation.  The Comm ittee shall determine the amount of the 
compensation, and the li censee undertakes to pay it. 
b. If the compulsory license is related to a pat ent of semiconductor technology, the purpose of 
the license shall be for public non-commercia l purposes only or to control acts concerning 
which a decision or judgment is issued declari ng them to be acts of  unlawful competition. 
c. If the patent involves a significant technologica l advance with a considerable economic value, 
which requires the exploitation of another patent,  the City may grant that owner of the 
protection document a compulsory license to exp loit the other patent.  In such a case the 
compulsory license shall not be assigned unless th e other patent is assigned.  The owner of 
the other patent shall be entitled to a counter license from the compul sory licensee, in 
accordance with reasonable conditions."   
Importation of the patented invention constitut es "working" of the patented invention. 
The Industrial Property Directorate and the GCC Pa tent Office have not issued any compulsory 
license, as no request was submitted in this regard.   
 
Page 50, paragraph 106  The Secretariat indicates that the Copyright Law prot ects works "as far as their distribution is allowed 
in Saudi Arabia." 
 
Question 22 
Please explain this statement and whether copyrigh t protection for copyrightable works in Saudi 
Arabia is subject or conditioned upon any type of content review. 
 Answer 
Content Review is carried out to ensure that wo rks do not conflict with Public Morals.  Prohibited 
works do not enjoy any benefits in Saudi market anyhow. 
 
Article 5 of the Copyright Law appears to impose a copyright notice requirement that would require 
authors to list their name (or the name of a repr esentative) on the work, in order to achieve the 
benefits of copyright protection.  Please explain whether the Copyright Law in fact imposes such a 
requirement.  Are works that do not include such identifying information fully protected under the Copyright Law?  To the extent such identificati on is required on all works, please explain how the 
current law complies with Article 5(2) of th e Berne Convention and the TRIPS Agreement. 
 Answer 
Indication of the name of the author or his representa tive is not a prerequisite to grant protection of 
the work according to Article 5 of the Copyrights Law.  The article is very flexible in this regard and 
does not impose any formalities as a condition for prot ection in accordance with article 5(2) of the 
Berne Convention . 
 
Page 50, paragraph 107  The Secretariat indicates that Saudi Arabia's C opyright Law provides protection for news reports.  
Article 4(2) of the Copyright Law states that "what is published in newspapers, magazines and WT/TPR/M/256/Add.1 
Page 18  
 
  periodicals" are excluded from protection.  Article 2( 7) of the Implementing Regulations of Copyright 
Law, however, lists news reports as a protected work.  
Question 23 
Please explain this discrepancy and what is actually protected.  
Answer 
Article 4(2) of the Saudi Copyrights Law "excludes from protection what is  published in newspapers, 
magazines and periodicals which are of a merely informative nature." 
Article 2 of the Implementing Regulations of th e Copyrights Law does not contain paragraph (7). 
 
The Secretariat indicates that the Copyright Law provides a reproduction right.  Is this covered in 
Article 9:  financial rights under "the author, or whoe ver he delegates, shall have the right to exercise 
all or any of the following...all forms of material ex ploitation of the work in general"?  If not, please 
indicate which provision of the Copyright Law, and/or the Implementing Regulations, provides for a 
right of reproduction. 
 
Answer 
Yes, Article 9 of the Saudi Copyrights Law warrant s reproduction rights in accordance with Article 9 
of the Berne Convention of 1886.  
Page 51, paragraph 113 
The Secretariat states that  Article 22 of the Copyrights Law of 2003 "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 by the Violation Review  Committee of the Ministry.  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 confiscation of all copies of the work."  We note that while Article 22 provides for 
the confiscation of pirated goods and "the materials us ed or intended for use in the infringement of the 
copyrights," it appears not to expressly provide for the destruction of the goods and materials, as 
required by TRIPS Article 61 in criminal actions.    Question 24 
Please provide more information with respect to curren t actions that the Government  takes to destroy 
infringing goods and materials used in the commission of the infringement, in particular in the context 
of criminal actions.  Answer 
Infringing materials and instruments used in the co mmission of the infringement are seized by virtue 
of law.  The VRC, orders the destruction of seized materials and instruments used in the commission 
of the infringement. 
 
Page 51, paragraph 113 
In paragraph 113, the Secretariat report states that the Ministry of Culture and Information enforces 
copyright protection at the ports.  In paragraph 114, the Secretariat indicates that the Customs 
Department applies border procedures against imports of counterfeit goods. 
 
Question 25 
When goods are detained, which authorities make determinations of infringement for purposes of 
seizure at the border?  In particular, must the right  holder bring a case before a court?  Alternatively, 
does the right holder request that the Ministry of Culture and Information ma ke such determinations 
with regard to copyrights, and that the Customs Depa rtment make those determin ations with regard to 
trademarks?   WT/TPR/M/256/Add.1 
 Page 19 
 
 
  Answer 
The Customs Department refers the matter to the Ministry of Commerce and Industry and the 
Ministry of Culture and Information to decide on infringements of trademarks and copyrights, 
respectively, for the purposes of seizure at the bor ders.  Customs informs the right holder of the 
suspension of goods.  
The right holder has the right to bring a case befo re the Ministry of Culture a nd Information in cases 
of copyrights or before the Board of Gri evances in cases of trademark infringement. 
Customs implements the decisions of the relevant authorities in this regard. 
 
Page 52, paragraph 115 
With regard to border enforcement,  
 
Question 26 
Are the Ministry of Culture and Information and th e Customs Department authorized to suspend the 
release of goods ex officio, i.e., on their own authority? 
 
Answer 
The Ministry of Culture and Information is authorized  to suspend the release of goods suspected of 
infringing intellectual property rights ex officio  according to Article 27 of the Implementing 
Regulation of the Copyrights Law.  The Customs Department is also authorized to susp end the release of goods suspected of infringing 
intellectual property rights ex officio according to  the Regulations for Border Procedures, Article 
2(b).  IV. TRADE POLICIES BY SECTOR  (1) A
GRICULTURE AND RELATED ACTIVITIES   
(ii) Agricultural policy   
Page 55, paragraph 7 The Secretariat states:  "In order to increase food secu rity, Saudi Arabia has encouraged companies to 
invest in farm projects abroad.  The King A bdullah Agricultural Initiative, announced in January 
2009, aims to improve long-term food security by enabling private Saudi businesses to invest in 
agricultural projects in other country.  Products targ eted by the initiative include wheat, barley, corn, 
sorghum, soybeans, rice, sugar, oil seeds, green fodder, livestock, and fish.  According to the 
authorities, any country with available resources and w ith attractive investment regulations is a target 
country.  The initiative makes available SAR 3 billion (about US$800 million) through a holding 
company belonging to the Government (SALICO)." 
 
Question 27 
What is the status of the King Abdullah Initiative for Saudi Agricultural Investment Abroad?   
 
Answer 
The Initiative has entered into force. 
 
Countries that have benefited Saudi private in vestment under this initiative include   
Sudan – Egypt – Ethiopia.  No Agricultural investment protoc ols have been signed so far. 
 
Framework agreements have been signed with Vietnam and Ethiopia.  The role that SALICO plays in supporting the Initiative includes: WT/TPR/M/256/Add.1 
Page 20  
 
   Encouraging investors on foreign investment due to  the high element of risk in agricultural 
investments. 
 Achieving the objectives of the Initiative. 
 Preparing the necessary feasibility studies and research services and to build information 
database and discuss investment opportunities. 
 Identifying suitable investment opportunities abroad. 
 
Which countries outside of Saudi Arabia have be nefitted from Saudi private investment under this 
initiative?  What agricultural investment protocols have been signed?  What role does SALICO play 
in supporting the King's Initiative? Seeking to provide assistance in the establishment of  infrastructure projects required by the areas and 
sites earmarked for Saudi investme nts in the areas of agricultural and animal production in the hosting 
countries. 
 
Page 57, paragraph 18 The Secretariat report states that "the Ministry of Agriculture is responsible for the operation of the 
GSFMO and the Minister of Agriculture is the Ch airman of the Board of Directors... The GSFMO's 
facilities have been earmarked for privatization in acco rdance with the Saudi privatization strategy..."  
 Question 28 
What is the expected timeframe for GSFMO facilities privatization?  What will be the role of GSFMO 
after its facilities are privatized?  
Answer 
The GSFMO's facilities have been earmarked for privatization in  accordance with the Saudi 
privatization strategy, and the timeframe for su ch privatization is yet to be determined. 
 
(4) S ERVICES   
(iv) Transport  
 Page 83, Paragraph 159 
The Secretariat report states:  "Saudi Arabia h as signed bilateral "open skies" agreements with 
Bahrain, European Union, Japan, Kuwait, Oman, Qata r, Syria, United Arab Emirates, United States 
(signed in March 2011) [emphasis added], and Ye men."  In reality, the United States agreed ad 
referendum  to a bilateral "open skies" agreement with Saudi Arabia in April 2011.   
 
Question 29 
Does Saudi Arabia agree that the Secretariat's re port should be corrected to reflect our bilateral ad 
referendum  agreement? 
 
Answer 
The Kingdom of Saudi Arabia agrees that the Secretariat's report should be corrected to note the 
following: 
 The Kingdom of Saudi Arabia has entered into "open skies" bilateral ag reements with Egypt, 
Jordan, Tunisia, Morocco and Sudan.  These agr eements allow for unlimited designation of 
airlines, unlimited flights to and from all specifie d international routes, and no restrictions on 
capacity and aircraft and aircraft type for passenger and cargo services.  The Kingdom of Saudi Arabia has initiated the draft text of bilateral "open skies" agreement 
with the United States of America on 18 Ap ril 2011.  The Agreement is currently being  WT/TPR/M/256/Add.1 
 Page 21 
 
 
  processed in accordance with the Saudi inter nal constitutional procedures to be signed and 
ratified upon completion.   
SWITZERLAND 
 
Report by the Secretariat 
 I. ECONOMIC ENVIRONMENT (1) MAJOR FEATURES OF THE ECONOMY  
According to para. 2, Saudi Arabia ratified an ag reement to establish a monetary union together with 
three other GCC member countries, namely Bahrain, Kuwait and Qatar.   
Question 1 
When is this Monetary Union expected to be rea lized?  What does the road map for its realization 
look like? 
 
Answer 
As a result of the ratification of the Monetary Union Agreement which entered into force on 
February 2010, the Statute of the Monetary Council became effective on 27 March 2010.  The Monetary Council Board which consists of the governo rs of the member states is meeting regularly to 
set up the necessary institutional and organization al underpinnings of the Gulf Monetary Council 
(GMCO).  The primary objective of the Gulf Monetary Council is to prepare the required 
infrastructure for establishing the Monetary Union, in particular the establishment of the Central 
Bank and laying down its analytical and operational capacities. According to article 4 of the Statute 
of the Monetary Council, the timeframe for the introduction and circulation of the single currency 
shall be specified by GMCO in light of fulfillment of the required infrastructures that include the 
following: 
 Readiness of the Payment and Settlement S ystems related to the single currency. 
 Development of necessary statistical systems with view to achieving the objectives of the 
Monetary Union. 
 Development of the necessary legal and organizati onal framework for the Gulf Central Bank. 
The four member states have already started work in earnest with the Gulf Monetary Council that 
meet regularly and they are working to ensure all th e pre-requisites are complete.  The Gulf Central 
Bank will supersede GMCO once a ll necessary steps are achieved.  
 (2) RECENT ECONOMIC DEVELOPMENTS 
 
Under para. 5 it is stipulated that the Saudi authorities have no plans to drop the peg to the U.S. dollar. 
However, in periods when the U.S. dollar is weak  and the Saudi economy is growing quickly, as it has 
been the case in 2008, Saudi Arabia su ffers from an imported inflation.  
 
Question 2 
How does Saudi Arabia cope with such situations? 
 Answer 
The exchange rate policy of the Kingdom was, for a long time, geared towards maintaining a stable 
relationship with the US dollar, which is the intervention currency.  This created a stable exchange 
rate environment for the private sector and was also conducive to foreign investment.  In the last few 
years, the average inflation rate has been stable ar ound 5 percent (2009-2011).   Inflation in Saudi 
Arabia is attributable to two major components in the CPI composite index (rent and food).  Rents 
were driven by demographic pressure and supply bottlenecks. The increase in food prices is an WT/TPR/M/256/Add.1 
Page 22  
 
  international phenomenon due to increased global  demand and higher input prices including the 
extensive use of food items, e.g. sugar and corn, as  biofuel.  Supply side inflation is better handled by 
addressing the bottlenecks.  Thus,  many initiatives ha ve been taken, including the establishment of 
the Ministry of Housing and the approval for building 500,000 housing units in all regions of the Kingdom over the coming five years with allocations of SAR 250 billion, which will help to increase 
the supply of housing and constrain the inflationar y pressures stemming from  the increase in house 
rents.  Furthermore, King Abdulla's Initiative for Agricultural Investment Abroad emerged to 
addresss food security on national and international l evels by building integrated partnerships with 
countries that have the potential to develop and man age agricultural investments to ensure sufficient 
quantities and stable prices for important crops.  
 
II. TRADE AND INVESTMENT REGIME 
(4) TRADE AGREEMENTS (ii) Regional agreements 
(a) Gulf Co-operation Council (GCC)  
The Gulf Cooperation Council has concluded free-tr ade agreement negotiations with the European 
Free Trade Association (EFTA) states and Singapore.   
Question 3 
In which stage within Saudi Arabia's ratification process is the Saudi Government?  What does the 
ratification process look like? 
 
Answer 
Saudi Arabia has already ratified the GCC - EFTA  FTA. 
 
(5) INVESTMENT FRAMEWORK  
Under paras. 30 and 31, several entities are listed that actively promote investment opportunities in 
Saudi Arabia.   
Question 4 
What are the differences between the various inv estment entities such as SAGIA, SABIC, SIDF and 
for example the Royal Commission for Jubail a nd Yanbu?  Does SAGIA also provide licenses for 
special economic zones?  Under para. 32, exceptions  are listed for cases, where SAGIA does not have 
to approve foreign investments by SAGIA and where the authority to license is assigned to an agency 
other than SAGIA.  In which cases do foreign inve stors need a license from an authority other than 
SAGIA? 
 
Answer 
The licensing authority for foreign investors is th e Saudi Arabian General Investment Authority 
(SAGIA).  For more information refer to  annex B of KSA Working Party Report. 
SABIC was established in 1976.  SABIC remains the main petrochemical producer in Saudi Arabia 
and the major catalyst producer for a number of dow nstream petrochemical products.  SABIC is the 
largest non-oil company in the Middle East, with its  industrial complexes operated by 16 affiliates.  In 
2002, SABIC's production capacity reached over 40 milli on metric tons.  SABIC is also a producer of 
methanol and MTBE.  Eight of SABIC's productio n companies are joint venture partnerships with 
international companies, including such firms as ExxonMobil, Shell Oil, Hoechst-Celanese and Duck 
Energy.  SABIC is a partner in three joint ventures in Bahrain and has two manufacturing plants in 
Germany and Holland.  SABIC has an ownership interest in the Saudi Arabian Fertilizer Company, 
which is an exporter of urea, granular fertilizer an d urea fertilizer, and is 57% privately-owned.  
SABIC also fully owns Saudi Iron & Steel Company  (Hadeed,) which is engaged in the manufacture 
of a variety of steel products.  SABIC's paid-up capital is SAR 20.0 billion.  WT/TPR/M/256/Add.1 
 Page 23 
 
 
  Seventy per cent of SABIC is owned by the Gove rnment; the remaining 30% is privatized.  The 
company has been identified for further priva tisation, but there is no timetable over which 
privatisation would occur. The Government appoints the Chairman of the B oard, the CEO and three other Board Members out 
of a total of seven.  The other two Board Members represent the private sector and are nominated and 
selected at the shareholders' general meeting.  The Government is represented on the Board, but does 
not play any role in setting company policy or in making operational decisions.   SABIC conducts its business based on commercial cons iderations.  It does not enjoy any special or 
exclusive privileges.  There are no legal impediments to competition with SABIC. 
SIDF the Saudi Industrial Development Fund (SIDF) provided loans to new industrial enterprises and 
for replacement and modernization of machinery of existing enterprises focusing principally on 
segments where private sector banks were shy.  Mo reover, SIDF loans were available, for up to 50% 
of the project cost only and were available to wholly-owned foreign companies and Saudi-owned 
companies.  SIDF filled the vacuum left by private sector banks.   Saudi Arabia does not have special economic zones. 
For investments in finance, communications, educati on, information or the medical services sectors, 
investors are required to obtain a licence from SA MA, the Telecommunications Authority and the 
Ministries of Education, Higher Education, Info rmation and Culture or Health, respectively.  In 
addition, the Ministry of Commerce and Industry i ssues licenses for foreign investors in professional 
and consulting services, e.g., engineering and accounti ng.  In other words, a licence is required for 
each business depending upon the nature of the business.   
 
III. TRADE POLICIES AND PRACTICES BY MEASURES  
(1) MEASURES DIRECTLY AFFECTING IMPORTS (i) Customs registration, documentation, procedures and valuation 
 With regard to para. 2 referring to a commitmen t undertaken in Saudi Arabia's accession working 
party report (document WT/ACC/SA U/61 paragraph 122 which refe rs to Council of Ministers 
Decision No. 5-B-57611 of 28.11.1424H, 20 January 2004) that Saudi Arabia does not require 
authentication of, inter alia , certificates of origin,  
 
Question 5 
Switzerland would kindly request Saudi Arabia to c onfirm that this commitment applies to original 
electronic certificates of origin.  
Answer 
We previously received an inquiry from the C hamber of Commerce of Basel, Switzerland, and we 
replied prompetly that work is underway on the el ectronic link between the Ministry of Foreign 
Affairs and the Customs Department to obtain data on certificates of origin and invoices 
electronically.  Pending the completion of the elect ronic networking between the Ministry of Foreign 
Affairs and the Customs Department, electronic certificates issued by the Swiss Chambers of 
Commerce will  be accepted.  Provide that, these certificates shall be signed and sealed manually by 
the issuing agency to concider that the certificate of origin which is currently provided as an 
electronic certificate, while in fact it is not, but it is  just a hard copy "print" attached by the importer 
within the consignment and submitted to the Cu stoms manually.  The Saudi Embassy in Bern and the 
Swiss diplomatic mission briefing in Riyadh were notifie d of the matter.  When the electronic network 
is completed, there will be no need for authentication.  
 
(iii) Tariffs, other duties, and taxes 
(a) MFN applied tariffs 
 According to para. 15 the GCC common external tariff (CET) alignment has been extended until the 
end of 2011 and certain agreed differences remain among GCC members.  WT/TPR/M/256/Add.1 
Page 24  
 
  Question 6 
Could Saudi Arabia indicate whether these agreed differences will remain after the end of 2011 and 
which and how many tariff lines these differences en compass and how many imports they represent? 
 
Answer 
A decision by the Supreme Council for the Cooperation Council for the Arab Gulf States was issued 
during the thirty-second session held in Riyadh on December 2011 in order to resolve outstanding 
issues that hinder reaching the final status of the customs union.  Among the issues is the disparity in 
customs duties on certain goods in excess of 5%. Cust oms Union Port was assigned to investigate this 
matter within a binding timeframe to reach the final  status of the customs union by 1 January 2015. 
Thus, the difference in customs duties on certain goods still exists.  The number of such goods is 
"565" accounting for 7% of the total value of imports, according to 2010 statistics.  
In para. 20, the WTO Secretariat indicates that "the gap between MFN applied duties and bound rates 
present an element of uncertainty as it gives the authorities some margin for increasing applied MFN 
tariffs."  
 
Question 7 
Could Saudi Arabia indicate whether it had to increase its MFN applied duties since its accession to 
the WTO? If yes, how many times, for which products (tariff line level) and what was the initial MFN 
applied rate and the new MFN applied rate? 
 
Answer 
Saudi Arabia has not raised their actual customs duties on any commodity since its accession to the 
WTO.  Saudi Arabia's customs duties are 5% on nearly 80% of tariff items.  
 (c) Other duties and charges 
 According to para. 22 "a charge of 0.004% of the va lue of goods in transit, is collected against the 
service rendered."  However, according to the panel report in Argentina-Textiles and apparel  
(WT/DS56/R), the panel found that "an ad valorem  duty with no fixed maximum fee, by its very 
nature, is not 'limited in amount to the approxima te cost of services rendered as required by article 
VIII:1(a) GATT. 
As it seems that the ad valorem  transit charge does not comply with article VIII:1(a) GATT, 
 
Question 8 
Could Saudi Arabia indicate how the charge comp lies with article VIII:1(a) GATT requirements and 
which measures it would undertake so that the tran sit charge will comply with article VIII:1(a) 
GATT?  
Answer 
Article "8" paragraph "1/A" of the GATT concerni ng the duties and procedures related to import and 
export which does not include transit, while Article  "5" of the GATT relates to transit but does not 
provide for a lump sum or a percentage on the se rvices rendered.  Paragraph "3" of this Article 
provides that transit shall be exempt from all cu stoms duties and transit fees or other expenses 
imposed on transit except for transportation costs or equivalent expenditures for administrative 
implications of the transit or the cost of servic es rendered.  Therefore, as stated in paragraph "235" 
of the Report of the Working Group, Saudi Arabia is  committed to the requirements of Article "5" of 
the GATT noting that this percentage is very low and is specified in Article "5" of the Convention on 
the Regulation of Transit Transport of the League of  Arab States for the purpose of road maintenance.  
  WT/TPR/M/256/Add.1 
 Page 25 
 
 
  (v) Contingency trade remedies 
 
Up to now Saudi Arabia did not have national laws  or regulations regarding trade remedies, nor did 
Saudi Arabia foresee the imposition of trade remedi es in its policy.  Nevertheless, Saudi Arabia 
adopted the GCC Common Law on Anti-Dumping, Sa feguards and Countervailing Measures in 2006. 
This law was amended in 2009 and Saudi Arabia, as we understood, is  now in the process of adopting 
these amendments.   
Question 9 
What is the relationship between the GCC Comm on Law and the absence of national laws or 
regulations regarding trade remedies in Saudi Arabia? 
 
Answer 
The amended GCC Common Law will be ratified by  the KSA national authorities and will be 
published in the Saudi Official Gazette  to be implemented in KSA.  
The WTO Secretariat mentioned in its report condu cted for the Saudi Arabia Trade Policy Review 
(WT/TPR/S/256) under III:1:v paragr aph 33 that Saudi Arabia ha s adopted the GCC Common Law 
on 14 June 2006, and currently Sau di Arabia is in the process of adopting the amended GCC 
Common Law. 
 
Do the GCC Common Law and the mentioned amendm ents affect in any way the non-application 
policy towards trade remedies of Saudi Arabia? 
 
Answer 
Although Saudi Arabia adopted the GCC Common Law on June 2006, it has not applied through 
GCC competent authorities any trade remedy measu res.  However, after the ratification of the 
amended GCC Common Law, if the GCC compet ent authorities receive a proper complaint and 
conduct an investigation that fulfills the requirem ents of the related GCC Common law and its 
Implementing Regulation, a measure may be applied according to the results of this investigation . 
If yes, what were the reasons behind such a policy cha nge?  To what extent is this change expected to 
affect the policy on trade remedies of Saudi Arabia?  Answer 
The application of the GCC Common Law is designed to be applied in the six GCC countries and the 
representation of the domestic industry in this law is defined to include the GCC industry. 
Accordingly, Saudi Arabia is committed to applying the GCC Common Law if a GCC industry submitted a proper complaint to the GCC competent authorities. 
 
(2) MEASURES DIRECTLY AFFECTING EXPORTS 
(iv) Export subsidies, fina nce, insurance and assistance 
 
The Arrangement on Officially Supported Export Credits , initially came into effect in April 1978, 
comprises a comprehensive set of disciplines which sets out the financial terms and conditions of 
providing officially supported export credits.  These disciplines include for example rules on 
repayment terms, interest rates or premium fees.  The main purpose of the Arrangement is to provide 
a framework for the orderly use of officially sup ported export credits and to foster a level playing 
field for official support.  The Arrangement receive s administrative support of the OECD Secretariat 
but it is not an OECD Act.  Non-participants of the Arrangement may be invited to become 
participants by the current par ticipants of the Arrangement. 
 
Question 10 
Would the Kingdom of Saudi Arabia be prepared to  follow the provisions of the Arrangement in the 
future, and in what time horizon?  If not, could you please explain why? WT/TPR/M/256/Add.1 
Page 26  
 
  Answer 
Currently Saudi Arabia does not have and is not invol ved in any of such arrangements.  However, 
SEP may consider being part of such an arrangement  in the future.  Also, we would like to confirm 
that all credits offered by SEP are within market  practices, norms and commercial principles.  
 
(3) MEASURES AFFECTING PRODUCTION AND TRADE (ii) Competition policy and price controls  
Para. 85 of the Secretariat's Report indicates that co mpetition legislation applies to all establishments 
in Saudi Arabia, with the exception of public and w holly state-owned enterprises.  At the same time, 
in para. 92 of the section entitled "(iii) State tradin g, state-owned enterprises and privatization", the 
Secretariat's report notes that the public sector is one of the largest employers of Saudi Arabia.   
Question 11 
Could the Saudi Arabia's authorities indicate the reason why the public sector enterprises are still 
excluded from the scope of competition legislation at a time when it is Saudi Arabia's declared 
objective (see para. 92) to diversify the economy, expand the production base, boost the role of the 
private sector, promote competition and enhance the efficient use of resources through the implementation of a privatization program?  Would submitting all public sector enterprises also to the 
rules of the competition legislation not accelerate this process of diversification and improvement of the competitiveness of the economy to absorb an in creasing labour force, jobs which the public sector 
and the highly capitalized oil and gas sector cannot provide ? 
 
Answer 
Saudi Arabia does not believe that the above-referen ced aspect of its Competition Law hampers the 
economic objectives it has identified.   State-owned enterprises in the Kingdom are subject to the 
commitment embodied in paragraph 52 of the Kingdom 's Working Party Report to act in accordance 
with commercial considerations.   
 
IV. TRADE POLICIES BY SECTOR 
(2) MINING AND ENERGY (v) Electricity  
 
Question 12 
What are the current shares of energy sources (oil,  gas, renewable sources etc.) in electricity 
production?  According to footnote 46, Saudi Arabia  is seeking to reduce its consumption of oil in 
power stations, turning to gas and other alterna tives including renewable power generation.  Could 
Saudi Arabia indicate whether it has set any concrete targets or developed energy roadmaps on the use 
of alternative energy sources to oil (gas, renewa ble sources, nuclear, others?) that underline the 
mentioned intentions of Saudi Arabia to redu ce the consumption of oil in power stations? 
 
Answer 
The current shares of energy sources are 40% out of crude oil, 34% out of gas, 22% out of diesel and 
4% out of heavy fuel oil consumed for electricity production. 
In order to reduce the consumption of oil in power stations, the Government of Saudi Arabia created 
King Abdullah City for Atomic and Renewable Energy (K.A.CARE) by a Royal order # (A/35) on Apr. 
17, 2010.  K.A.CARE is contributing to a su stainable future for Saudi Arabia by developing an 
alternative energy capacity that is substantial in size and supported by a world-class local industry. 
Shaped by science and research, and brought to life  through technology development and industry 
partnerships, the Kingdom is building a new gene ration of sustainable power production capabilities 
that harness renewable and atomic energy to create  a reliable, long-term supply of electricity. 
  WT/TPR/M/256/Add.1 
 Page 27 
 
 
  CANADA 
 
Report by the Secretariat (WT/TPR/S/256) 
 
II. TRADE AND INVESTMENT REGIME 
(5) INVESTMENT FRAMEWORK 
 
Paragraph 28, page 19 
 
The Kingdom of Saudi Arabia's Foreign Investment Law permits foreigners to invest in all sectors of 
the economy, except for activities on the Ne gative List, which includes fisheries. 
 
Question 1 
Could the Kingdom of Saudi Arabia please explain why foreign investment is not permitted in this 
sector?  
 
Answer 
All of the fisheries industry is open to FDI excep t capture fishing due to low quantities of fish in Saudi 
Arabia's territorial waters. 
 
Question 2 
Could the Kingdom of Saudi Arabia please provide information on when its Negative List will be 
reviewed?  
Answer 
Saudi Arabia annually reviews the Negative List and removes additional items from it. 
 
Question 3 
Could the Kingdom of Saudi Arabia please indicate what  the review process is and who is consulted? 
 
Answer 
The Negative List was issued by a decision of the Supreme Economic Council under Article 3 of the 
Foreign Investment Law.  Thus, the Supreme Ec onomic Council is responsible for reviewing the 
Negative List.  
 
SOUTH AFRICA 
 
(1) I NSTITUTIONAL FRAMEWORK  
 
The Secretariat notes that "…GCC Heads of States ha ve agreed that any new preferential agreement 
concluded by a member would apply pari passu to  all Members, except for agreements with the 
United States." (Page viii).  Question 1 
In light of the GCC being a customs union and having a common external tariff (CET), can Saudi Arabia explain how goods from WTO Members whic h have not concluded a free trade agreement 
with the GCC be treated after entering one GCC me mber state, and wanting to move to other GCC 
member states after 2011?  Answer 
This is not true and there may be an error in translati on.  The correct statement is that the leaders of 
the Council agreed not to sign any agreement on preferential individually and those agreements 
signed by the Sultanate of Oman and the Kingdom of Bahrain with the United States of America are WT/TPR/M/256/Add.1 
Page 28  
 
  an exception.  We request an amendment on the statement mentioned in the report of the WTO 
Secretariat. Under the principle of final destination and cleari ng mechanism currently in place between the GCC 
countries, foreign goods, including U.S. commodities a re circulating in accordan ce with the clearing 
mechanism.  If the goods are circulated to markets in the rest of the GCC countries without clearing 
documents from the destination fr om which goods are imported, the customs duties are collected in 
the border ports.  The GCC is looking forward for a mechanism to deal with these agreements in line 
with the requirements of the Customs Union. 
 
(2) C
OMPETITION  
 Page 12 
The Secretariat notes that "in order to create an effi cient competitive environment in Saudi Arabia, the 
Competition Law and its implementing regulation was promulgated in 2004  and an independent 
competition council has been established to supervi se the implementation and the enforcement of the 
law." 
 
Question 2 
In light of Saudi Arabia being a member of a customs union, GCC, does Saudi Arabia in assessing 
anti-competitive behavior cast its net wide to incl ude the whole GCC market and not only just her 
domestic market, specifically considering that the sa me approach is taken when assessing injury in the 
context of application of common trade remedy laws in the GCC? 
 
Answer 
The law is applied only to the domestic market . 
 
What are the developments on the competition policy front in Saudi Arabia in as far as the 
implementation of the competition law issued pur suant to Royal Decree No. M/25 of 4.5.1425H 
(22 June 2004) is concerned?  What is the ro le played by transaction agents who facilitate 
agreements/transactions and has there been any competition cases relating to unfair commercial 
practices involving such agents?  Answer 
The law is currently applied.  Such application has a positive preliminary effect on certain sectors of 
the market.  There are no such competition cases in relation in to the unfair practices. 
 (3) 
OIL SECTOR  
 
Page 62 The Secretariat notes that "the (upstream) oil extraction industry in Saudi Arabia is operated 
exclusively by the Saudi Arabian Oil Company (Saudi  Aramco).  Saudi Aramco is a wholly state-
owned company established by Royal Decree in 1988.   Saudi Aramco sells crude oil to domestic 
refineries, joint-venture refineries abr oad, and other foreign refineries." 
 
Question 3 
Can Saudi Arabia explain the processes to be follo wed by foreign investors interested in accessing 
upstream opportunities within the oil sector in Sa udi Arabia?  Could you please advise on how best 
such opportunities can be accessed by foreign companies in Saudi Arabia? 
 
Answer 
In recent years, foreign investors have made signific ant investments in the upstream gas sector, as 
well as in refining and downstream oil and gas indust ries. As stated in paragraph 64 of the Kingdom's 
WPR, for reasons of important national policy, restrictions on foreign investment in the upstream  WT/TPR/M/256/Add.1 
 Page 29 
 
 
  production sector remain, while those in the exp loration, drilling and oil field services sectors have 
been relaxed.  Annex B of the WPR noted that all fields are open for investment, except those on the 
Negative List.  The Negative List, set out in Ann ex C to the Kingdom's WPR, includes oil exploration, 
drilling and production.  It should also be noted  that national and international energy services 
companies are contracted to do the required explorati on, drilling and oil field services work in the oil 
and gas sector. 
 (4) P
AYMENT SYSTEM  
 
Page 40 (iii) "The SEP, established in 1999 as the official national export credit agency, aims, inter alia , to help 
exporters overcome difficulties in receiving export pr oceeds for commercial reasons, i.e. an importer's 
failure to pay or for political reasons, i.e. the importer's country hindering payment."   
Question 4 
The above seeks protection for Saudi exporters, can  you please comment on the transparency of the 
payment system and what recourse is available in  instances where a forei gn company has not been 
fully paid by a client?  
Answer 
SEP provides Saudi exporters with irrevocable in surance and guarantee credits to cover risks of non-
payment of the values of their exports. SEP does not provide insurance/guarantee facilities for import 
transactions into Saudi Arabia.  Therefore, we  believe that foreign firms dealing with buyers 
(importers) in Saudi Arabia should seek to obtai n insurance/guarantee facilities from their country's 
Export Credit Agency (ECA) or from an y regional/international credit insurers. 
 
(5) A GRICULTURE  
 
The secretariat report states:  "GCC and Saudi st andards are based on international standards" 
(page 33 (iii)).  
Question 5 
Can Saudi Arabia provide more info rmation relating to efforts to harm onize standards in the GCC?  If 
this process is not completed yet, could Saudi Arab ia clarify when the GCC or Saudi standard is 
applicable.  
Answer 
Saudi Standards, Metrology  and Quality Organization (SASO) is a member of the GCC 
Standardization Organization (GSO).  GSO form ulates standards through technical committees; 
SASO is a member of all these committees.  A ll GSO standards are unified and harmonized with 
national standards of all member states.  All GS O standards are approved and  implemented by SASO, 
and considered as Saudi Standards, these standards are also approved by all members of the GSO.  
The GSO is an Authority made up by the Arab St ates of the Gulf. GSO Standards and Technical 
Regulations need to be adopted by each GCC Government as national standards and technical 
regulations.  The GSO is concerned with setting tec hnical regulations and standar ds.  It consists of 
GCC member states including Saudi Arabia as represen ted by SFDA which is in  charge of controlling 
food, feed, pesticides, drug and medical devices.   
The Secretariat notes that "international agreements in [Saudi Arabia] enter into force as domestic 
laws following their ratification by Royal Decr ee and enactment by the Consultative Council and 
Council of Ministers.  In general, conflicts or in consistencies between international agreements and 
treaties and other provisions of domestic law are resolved in accordance wi th the same rules of WT/TPR/M/256/Add.1 
Page 30  
 
  interpretation applied to domestic  legislation, for example, more recent laws take precedence over 
older laws" (page 13).   In light of the above, it would be appreciated if Saudi Arabia could explain why agricultural products 
are still subjected to the Saudi modified standard esp ecially when they already meet the international 
standard upon which the Saudi Standa rd is based?  In addition, does the Saudi standard supersede the 
international standard?  
Answer 
The Saudi food technical regulations and standards are in compliance with international standards 
such as (Codex Alimentarius and ISO) in addition to the WTO TBT and SPS Agreements.  
 (6) I
NTELLECTUAL PROPERTY RIGHTS  
 
The Secretariat Report states that:  "Intellectual pr operty rights legislation in Saudi Arabia comprises 
mainly the:  Copyright Law and Implementing Re gulations;  Law on Patents, Layout-Designs of 
Integrated Circuits, Plant Varieties and Indus trial Designs and Impl ementing Regulations;  
Trademarks Law and Implementing Regulations;  Regulations for the Protection of Confidential 
Commercial Information;  and Regulations for Border Procedures" (page 48(iv)).  
Question 6 
What process and institutions are in place consiste nt with the regulation for the Protection of 
Confidential Commercial Information available to foreign companies?  
Answer 
Saudi Arabia has issued the Regulations for the prot ection of Confidential Commercial Information to 
protect Test data and other trade secrets.  
Each competent authority is responsible for protection of the confidential information submitted to it.  
According to Article 8 of the Regulations "any party suffering injury from the violation of the provisions of these Regulations may bring a ca se before the Board of Grievance to request 
indemnification for damages." 
 
CHINESE TAIPEI 
 
Part I - Questions regarding the Secretariat Report 
 I. ECONOMIC ENVIRONMENT 
 
Page 9 (Para. 15) The Report states that "foreign businessmen ma y now obtain a multiple-entry visa, valid for 
12 months, without requiring a letter of invitatio n from a Saudi host or approval from the local 
Chamber of Commerce."  
It is observed in practice, however, that the a bove does not generally apply.  Only exceptional 
applications by high-ranking persons ap pear to be afforded this treatment. 
 
Question 1  
Could Saudi Arabia please describe in detail how the above-mentioned easing of requirements for the 
issuance of visas is applied in practice. 
 
Answer 
Council Of Ministers Resolution No. 286 concer ning "foreign businessmen may now obtain a 
multiple-entry visa" issued 5/9/1428H (17/9/2007), is in the implementation phase.   WT/TPR/M/256/Add.1 
 Page 31 
 
 
  Page 11 (para. 20) 
Footnote 21 to Para 20 states that "the "Saudiza tion" programme seeks to…, encourage the private 
sector to give job opportunities to  qualified and skilled citizens willing to work, and to rationalize the 
recruitment of the foreign labour force and restrict it  only to specializations not sufficiently available 
among Saudis." 
 
It is our understanding, however, that the impl ementation of the new Saudization scheme (known as 
the Nitaqat system), effective from 27 November 201 1, divides all companies into four categories – 
"excellent", "green", "yellow" or "red" based on wh ether they employ sufficient nationals to comply 
with required quotas.  Nitaqat applies 205 categories of quotas that vary based on the line of work and 
size of the company, and those companies falling into  the "red" or "yellow" category will suffer severe 
penalties, such as being barred from renewing the wo rk visas of expatriates.  To be a qualified 
enterprise (green category), a company must meet a co mpulsory percentage of hiring 5% to 65% of its 
total staff from KSA citizens.  This not only incr eases the cost of doing business in the Kingdom of 
Saudi Arabia, but also distorts the rationalization of  labour force recruitment, thus going against the 
spirit of encouraging foreign investment expressed in  Article 5 of the "Executive Rules of the Foreign 
Investment Act" as "the licensed entity is entitled to sponsor the fo reign investor and his non-Saudi 
staff."  
Question 2 
How does the Saudi Government view the possible impact of the Nitaqat policy on Saudi Arabia's 
attractiveness as an investment destination? 
 
Answer 
Nitaqat Program has a high degree of flexibility.  Foreign investment compani es are treated the same 
as national companies in the same activity in t erms of rates of Saudization and the application of 
incentives and sanctions.  
IV . TRADE POLICIES BY SECTOR 
 
Page 61 (para. 41) As indicated in the Report, the Saudi government  has been implementing a development strategy 
since 1990 aimed at reducing its dependence on oil for its economic growth.  However, 90% of 
government receipts and 86% of export earnings still rely on oil and gas revenues, meaning that oil 
continues to have a huge impact on Saudi Arabia's economy.   
Question 3  
Could we please have an update on the content of the latest, on-going economic development strategy 
for Saudi Arabia?  What is the possibility that polic ies might be improved or adjusted in the future? 
 
Answer 
The long-term economic development strategy aims  to move the Kingdom to the ranks of advanced 
countries from its current position in the upper stratum of middle-income countries.  More 
specifically, the objective is to increase per capita real GDP from SR 43.7 thousand at the beginning 
of the strategy in 2004 to SR 86. 5 thousand by the end of the strategy  in 2024 - an overall increase of 
about 98%.  The economic development strategy aims for sustainable development based on the 
diversification of the economy.  A key objective of  economic and social development ever since the 
development planning system was initiated, the economic development strategy aims for the 
development and appropriate employ ment of human resources to endow national human resources 
with the skill levels needed to meet demands of th e labour market, as well as to correct the imbalances 
that hinder substitution of expatriates with national labour.  The economic development strategy aims 
for a balanced regional development to stimulate ec onomic activity in the least developed regions. 
Other parts of the on-going economic develop ment strategy include the enhancement of WT/TPR/M/256/Add.1 
Page 32  
 
  competitiveness, laying the foundations for a k nowledge-based economy in the Kingdom of Saudi 
Arabia as well as further regional and Arab integr ation.  The current Ninth Development Plan 
(2010-2014) is the second implementation phase of the long term development strategy.  
Any possibility that policies might be improved or adjusted in the future depends on any mismatches 
between the actual path of development and the target  path set by the strategy that will be addressed 
in the five-year review of the strategy.  This r eview process will be conducted simultaneously with the 
preparation of future development plans.   
Page 61 (paras. 42 and 43) 
Foreign investors play a significant role in the ups tream development of non-associated gas as well as 
the downstream oil and gas sector, including oil refi ning.  It is recognized that Saudi Arabia has 
worked hard on the introduction of foreign invest ment, and has created so me successful cooperation 
experiences with foreign investors.  Neverthele ss, foreign investment in upstream oil and gas 
industries, such as oil exploration, drilling and produc tion, is still restricted under the "Negative List."  
 Question 4 
Does the Saudi Government have any plans to fu rther open the upstream sector of the oil and gas 
industry to foreign investment?  
Answer 
In recent years, foreign investors have made signific ant investments in the upstream gas sector, as 
well as in refining and downstream oil and gas i ndustries.  As stated in paragraph 64 of the 
Kingdom's WPR, for reasons of important national policy, restrictions on foreign investment in the upstream production sector remain, while those in  the exploration, drilling and oil field services 
sectors have been relaxed.  Annex B of the WPR not ed that all fields are open for investment, except 
those on the Negative List.  The Negative List, set out  in Annex C to the Kingdom's WPR, includes oil 
exploration, drilling and production.  It should also be noted that national and international energy 
services companies are contracted to  do the required exploration, dr illing and oil field services work 
in the oil and gas sector. 
 
Page 67 (paras 78,79, 80 and 81) As indicated in the Report, Saudi Arabia consum es approximately 228 million barrels of oil on 
electricity production.  Current projections suggest  that electrical power generation could consume 
900 million barrels of oil per year as of 2032.    Saudi Arabia has been exploring renewable energy  sources for the production of electricity for some 
time, as well as the use of nuclear energy.  Furthermore, it has several joint R&D projects and 
cooperation agreements or memorandums with a number of other countries. 
 
Question 5 
In line with the global trend towards energy conservation and carbon reduction, has Saudi Arabia 
proposed any corresponding effective energy-saving measures in its trade policy? 
 
Answer 
Saudi Arabia's proposal to the Committee on Trade and Environment in Special Session (CTESS) focuses on key environmental technologies, notably carbon capture and storage (CCS), gas flaring 
reduction and efficient consumpti on of energy technologies.  These technologies are essential in order 
to achieve large environmental benefits.  Moreover , the Government of Saudi Arabia has established 
the King Abdullah City for Atomic and Renewable Energy (KACARE) to promote sustainable energy, 
as described in para. 130 of the Government's Re port.  The Government also established the Saudi 
Energy Efficiency Center (SEEC) to work on initia tives geared toward achieving higher energy 
efficiency in Saudi Arabia. 
  WT/TPR/M/256/Add.1 
 Page 33 
 
 
  Would the Saudi Government be willing to share w ith us any concrete experiences or outcomes with 
regard to its use of renewable energy and nuclear energy.  
Answer 
Many research bodies in Saudi Arabia conducted sci entific researches in renewable energy and 
implemented many solar energy plants for research purposes.  An example of these plants is the solar 
city in Al-Oyayna and solar desalination plant in Ah-Khafji which was established by King Abdul Aziz 
City for Science and Technology.  Concerning the Saudi  Arabia experience in the field of nuclear 
energy, this experience is limited to the protec tion against radiation, the use isotopes and radiant 
materials in the industrial and health sector under the supervision of the Energy Research Institute in 
King Abdul Aziz City for Science and Technology.  
Has Saudi Arabia encountered any particular challe nges in these areas so far an d what goals has it set 
for the future?  Answer 
King Abdullah City for Atomic and Renewable En ergy will supervise and organize laying down of 
policies and objectives, granting the economic incenti ves and determining the research trends for both 
atomic and renewable energy in Saudi Arabia.  The challenges faced by Saudi Arabia later on are 
completely different from those expected to face KA-CARE as the body responsible for the 
development and improvement of the alternative energy in Saudi Arabia.  
 
Page 74 (para. 114) Several state-owned enterprises participate in the services sector on the basis of commercial 
considerations according to the authorities in Sa udi Arabia, including the National Commercial Bank, 
Saudi Real Estate Company, Saudi Telecom Company and Saudi Post. 
 
Question 6  
Do these state-owned enterprises generate any competition with those in the private sector? 
 
Answer 
Details related to SOEs are provided in KSA Working Party Report Para. (38-44). 
 As indicated on page 47, paragraph 98, Saudi Arabia  allows foreign investors acting as "strategic 
partners" to participate in the privatization of these state-owned enterprises.  Are there any cases of 
foreign investors' participation?  Answer 
Yes, there are several foreign investors who participat e as strategic partners in the mobile and fixed 
services.  For example, Mobily, Zain Saudi Arabia  and Etihad Atheeb Telecom all have foreign 
investors as strategic partners.  
 
Questions regarding the Government Report 
 II. ECONOMIC DEVELOPMENT 
 
Page 8 (para. 28) It is stated that the Saudi Arabian General Investment Authority (SAGIA), through its One-Stop-Shop 
(OSS), will be the only communications channel betw een investors, residents, and the Government, 
which include the seven ministries and en tities that participate in the OSS.  
 Nevertheless, SAGIA seems not to have been fully empowered to coordinate between the different 
ministries.  For it to be a proper one-stop-shop platform, SAGIA should surely possess all the WT/TPR/M/256/Add.1 
Page 34  
 
  necessary resources or channels to assist investors in resolving any problem, such as difficulties in 
obtaining residency for foreign workers.  Howe ver, its focus remains primarily on investment 
promotion, therefore if foreign investors do encounter a problem, they must go to a different ministry.  
 
Question 7  
It would be appreciated if Saudi Arabia could pl ease explain SAGIA's functions and powers in terms 
of handling the problems of investors in cooperation with other ministries within the Government, and 
suggest how SAGIA's functions as a one-stop-shop for investors might be enhanced in the future? 
 
Answer 
SAGIA established a new department for government relationships to coordinate with government 
entities regarding specific issues faced by local and foreign investors.  
 
IV . SECTORAL DEVELOPMENTS 
 Page 16 (para. 93) 
The services sector is very important to Saudi Arabia's economy. Saudi Arabia encourages the services sector by providing market access and national treat ment to foreign services suppliers.  This is 
reflected in the number of services sub-sector commi tments undertaken by Saudi Arabia during its 
accession to the WTO, when it undertook commitm ents on 120 services sub-sectors out of 160. 
 Question 8 
Which services sectors and sub-sectors has Saudi Arabia  not yet opened to foreign services providers 
in line with commitments undertaken in the GCC, and FTAs signed by the GCC?  
Answer 
Saudi Arabia opened most of its services sectors and sub-sectors to foreign services providers in the 
context of the Economic Agreement between the GCC States. 
 
Are there any plans to gradually liberalize those ser vices not yet opened to foreign services providers 
in line with commitments undertaken in the WTO?  Answer 
Saudi Arabia undertook commitments on 120 services s ub-sectors out of 160, consequently Saudi 
Arabia currently has no plans to  further liberalize services sectors. 
 
CHINA 
 Questions regarding the Secretariat Report 
 II. TRADE POLICY REGIME 
 
Page 18 (para. 22) 
As a group, the GCC has concluded free-trade agre ement (FTA) negotiations.  In addition, the GCC 
has received requests for negotiations, inter alia , from the Association of South-East Asian Nations 
(ASEAN);  Azerbaijan;  Common Market for East and Southern Africa (COMESA);  Georgia;  Hong 
Kong, China;  Peru, and Ukraine.  In the annotatio n 39 of this paragraph, it is mentioned that "in 
September 2010, the GCC decided to put its negotia tions on hold until the completion of a feasibility 
study to better perform in curre nt and future negotiations". 
 
Question 1  
Please let us know if the feasibility study is concluded. 
If so, could Saudi Arabia please elaborate on the main conclusions of that feasibility study?  WT/TPR/M/256/Add.1 
 Page 35 
 
 
  Answer 
Saudi Arabia attaches great importance to the negotia tion and conclusion of FTAs that are beneficial 
to the Kingdom and to the GCC as a whole.  As noted  in the Secretariat's re port, the GCC feasibility 
study on this matter is on-going, and relevant internal discussions are underway.  Once these discussions have concluded, the GCC will make appropriate decisions on next steps. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
Page 37 (para. 61) 
Saudi Arabia grants a 10% price preference for Sa udi products and 5% price preference for GCC 
products in all government procurement. 
 
Question 2 
Could the Government of Saudi Arabia kindly expl ain the criteria to identify the products as Saudi 
products and GCC products? 
 
Answer 
This question is answered with the reference to Ar ticle 2 of the Decision of the GCC Supreme Council 
in its 5th session, which states that: 
"It shall be required for granting the preference set forth in Article 1 of this Decision that 
the national ownership in the capital of the producing industr ial establishment shall not be 
less than 51% and that the added value arising fr om the production of th e goods shall not be 
less than 40% of its costs".    
How could the Government of Saudi Arabia solve the problem when it comes to disputes regarding 
the products accreditation? 
 
Answer 
Disputes regarding product accreditation should be  settled through the indication of origin. 
 
Page 37 (para. 62) 
Saudi Arabia became an observer to the WTO Plurilateral Agreement on Government Procurement 
(GPA) in December 2007;  it has not begun negotiati ons for GPA membership.  In the annotation 60, 
it is mentioned that "in its WTO accession commitment s, Saudi Arabia indicated that it would initiate 
negotiations for GPA membership".  
Question 3 
Does the Saudi Arabian Government intend to join  the WTO Agreement on Government Procurement 
in the near term?  
Answer 
The Kingdom of Saudi Arabia welcomes the successful  deal reached by parties to the plurilateral 
Government Procurement revised agreement.  The S audi national committee intends to translate the 
new agreement into the Arabic language, to study it carefully and comprehensively, and to consult 
widely both within the Government and with the private sector.  The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi officials a national seminar and workshop on the WT O Government Procurem ent Agreement.  This 
would greatly help us in our examination of the i ssue in the light of the new agreement.  Saudi Arabia 
has listed this request in the Annex to the Governme nt report as a technical assistance need of Saudi 
Arabia.  We hope that this request c an be met during the first half of 2012.  
 WT/TPR/M/256/Add.1 
Page 36  
 
  After the completion of the workshop and the examina tion of the new agreement by Saudi officials, a 
recommendation will be made to the ministerial committee, which will determine appropriate steps 
with respect to the commencemen t of the accession negotiations.  
 Questions regarding the Government Report 
 Page 33 (para. 44) 
Saudi Arabia has concluded mutual recognition agreements with Argentina, China, Egypt, Germany, 
Indonesia, Jordan, Korea (Rep. of), Malaysia, Pakist an, Philippines, Singapore, South Africa, Tunisia, 
and Turkey.  The GCC Standards Committee is deve loping a conformity assessment scheme to be 
adopted by each of the seven member countries, and has set 2011 as deadline for full implementation 
in the case of children toys.  
Question 4 
Could the Government of Saudi Arabia kindly elaborate on the above mentioned "conformity 
assessment scheme"?  Answer 
The GSO conformity assessment sc heme focuses on procedures and prac tices to verify the conformity 
of imported and locally-produced products. The target of this scheme is to  serve the national and regional in terests of GCC member states, in 
order to streamline the commercial activities of GCC member states and between GCC member states 
and other countries and regions. 
 
China is concerned that the scheme might disrupt no rmal trade.  Could Saudi Arabia explain how to 
make sure the conformity assessment scheme do es not constitute a technical barrier to trade? 
 
Answer  
The scheme does not constitute any kind of technical barrier to trade;  given that the object of the 
conformity assessment regulation for children toys is to unify regulation of the toys within all member 
states.  Moreover, the children toys regulation was notified to the WTO. 
 
Other Questions 
 
Saudi Arabia has made great efforts since its ac cession to establish a set of laws and regulations 
corresponding to WTO laws and regulations.   
Question 5 
Could Saudi Arabia kindly elaborate on its effort to  improve laws and regulations since its accession 
into the WTO?   
Answer 
KSA has listed all of its amended laws and regulati ons since its WTO accession in table Al.l1 of the 
Secretariat Report WT/TPRY/S/256 (Page 97). 
 
The Competition Law of Saudi Arabia is applicable to all enterprises and institutes except public and 
state wholly-owned enterprises.   
Question 6 
Does Saudi Arabia share the view that such a stipulation constitutes discriminations against 
enterprises of other types?   WT/TPR/M/256/Add.1 
 Page 37 
 
 
  Answer 
Saudi Arabia does not agree that the referenced aspect of its Competition Law constitutes 
discrimination against other enterprises.  State-owne d enterprises in the Kingdom are subject to the 
commitment embodied in paragraph 52 of the Kingdom's Working Party Report to act in accordance with commercial considerations.  
 In 2010, Saudi Arabia issued a measure requiring  that the product conformity program (PCP) be 
implemented on all imported consum er products.  In 2011, the Saudi Arabia Government further 
required that a unified Certificate of Conformity (CoC) shall be attached to each batch of goods on 
their arrival at any port of Saudi Arabia, and an y batch of goods without CoC would be denied to 
enter.  In practice, however, the products wit hout CoC are usually confiscated by the Customs 
authorities.   
Questions 7  
Could the Government of Saudi Arabia please explai n the reason and the rationale for applying this 
programme?   
 
Answer 
Due to huge amounts of imported goods into Saudi Arabia and the limited number of private labs for 
testing within the Kingdom, a Certificate of Conform ity is required for the consignment of all goods 
exported to Saudi Arabia, with the exception of f ood and feed.  In addition, these Conformity 
Certificates must be issued from accredited bodies in the country of origin.  
Has the Saudi Arabian Government made sufficien t preparations for implementing such mandatory 
certification?  Answer 
Yes, Saudi Arabia has made sufficient preparations, including the following actions: 1- SASO has signed Mutual Recognition Program s (MRPs) of Certificates of Conformity with 
accredited Certification Bodies in different countries. In China, SASO signed with:  CQC, Intertek, SGS, TUV SUD, Bureau Veritas, and TUV Rheinland. 
MRPs are one type of Conformity Assessmen t Procedure that is recognized in the TBT 
Agreement.  They facilitate trade and the Cust oms clearance process, as the goods have been 
tested in the country of origin and a Confor mity Certificate from an accredited Certification 
Body is issued by the country of origin. 
2- For Electric and Electronic products  
Saudi Arabia joined IECEE since August 2009.  Also, SASO is the national IECEE CB in the 
Kingdom, and recognizes certificates issued by oth er member bodies of the IECEE in order to 
facilitate trade between Saudi Arabia and other members. 
  
If so, how could the Government make sure that th e normal importation will not be adversely affected 
by the mandatory certification? 
 
Answer 
Certificate of Conformity is applied to ensure t hat products conform to the related standards.  Saudi 
Arabia applies the program for legitimate objecti ves:  protection of the health and safety of 
consumers;  protection of the environment; na tional security;  and preventing deceptive practices.  
These objectives are recognized by the TBT Agreement.  
Please explain how the customs would deal with the products without CoC label?  
 WT/TPR/M/256/Add.1 
Page 38  
 
  Answer 
In case no CoC's are attached, the fo llowing procedures are carried out: 
1- Documents sent with consignment are verified. 2- Random samples are withdrawn from consi gnment and sent to private labs within the 
 Kingdom for testing.  The importer will be notified with the results of tes ting.  If the samples 
 conform to the relevant standards, they will be cleared.  
The Saudi Arabian Government expressed upon its  accession to the WTO that, the CoC would no 
longer be needed when the Government has "suf ficient capability" to inspect the imported and 
domestic goods.  China would like to ask the Saudi Ar abian Government to explain or interpret what 
"sufficient capability" means and what effo rts have been made in this respect.  
 
Answer  
"Sufficient capability" means the required infra-structur e for conformity assessme nt procedures.  This 
includes, inter alia, testing labs and the conformity assessment bodies' development of 
standards. 
SASO has carried out the following: 1- Adoption of standards from ISO and IEC and other international organizations. 2- Accreditation of 30 private labs to test locally produced and imported goods.  This 
accreditation is carried out by the Saudi Accreditation Committee (SAC). 
3- Establishment of the National Measurement & Calibration Center (NMCL) in 1986. 
4- Mutual Recognition Programs with differen t countries and accredited Certification Bodies. 
 
Question 8 
What progress has been made in respect of the la ws on import and export inspection, and quarantine 
in Saudi Arabia? 
 
Answer 
As far as import inspection is concerned, there is a regulation for impor ted food product inspection 
and procedures under consideration.  However, this regul ation is still in the draft stage.  With regard 
to plant and plant products and live animal;  the Kingdom applies the Veterinary Quarantine Law and Plant Quarantine Law and their Executive Regula tion in the Cooperation Council for the Arab 
States of the Gulf, also recognized international standards and regulations are applied on imports 
and exports. 
 
Please confirm that the law concerned is consistent with the requirements stipulated in the SPS Agreement. 
 
Answer 
Yes, it is in compliance with the SPS Agreement. 
 
Has the business enquiry point in this respect been established? 
 Answer 
If China means the SPS Enquiry Point, the answer is  yes.  The SFDA established a Saudi SPS Contact 
Point which is responsible for receiving and answ ering the enquiries of the interested WTO Members; 
it is responsible for notifying WTO Members about any new or amended SPS measures. 
 Please explain if the procedures have accepted any methods recommended by other members. 
 
Answer 
The underlying procedures are drafted in accordance with the recognized international standards and 
guidelines, taking into account WTO Member comments.  WT/TPR/M/256/Add.1 
 Page 39 
 
 
  It is explicitly stipulated in Government Purchasing and Bid Invitation Law of Saudi Arabia that, the 
principle of government purchasing and bid invitati on is "through bid invitation, to select suppliers 
and engineering contractors on a fair and just bas is with the aim of maximizing the economic 
efficiency of government purchasing, and to promot e fair competition between suppliers or between 
engineering contractors."  
 
Question 9  
China would like to seek the comments of the Saudi Arabia Government on this.  
 
Answer 
This is not accurate.  Suppliers or engineering contractors, whether Saudi, foreign or mixed 
companies or joint ventures, have the same right and are given equal treatment if licensed as required 
by the law. 
 
Some restrictions remain in certain areas incl uding fishery, the explor ation, exploitation and 
production of petroleum oil for foreign investors.   
 
Question 10 
Could the Government of Saudi Arabia please elabor ate on the restrictions for foreign investment?  
 
Answer 
Foreign investment is permissible in all activiti es, except those which are included in a short 
"Negative List".  A full list of economic activ ities in which foreign investment is currently not 
permitted can be found in the Secretariat Repor t (p. 19).  The Supreme Economic Council of the 
Kingdom periodically reviews the Negative List.  Saudi Arabia strives to attract foreign investment in order to facilitate innovation a nd economic development.  The investment climate (rules, regulations, 
incentives, etc.) in the Kingdom is continuously im proving to attract foreign investors of all types, 
consistent with the WTO agreements and other invest ment agreements to which Saudi Arabia is a 
party.  It should also be noted that nationa l and international en ergy services companies are 
contracted to do the required exploration, drilling an d oil field services work in the oil and gas sector.  
 
Does the Saudi Arabian Government intend to eliminat e or relax those restrictive measures in the near 
term?  
 
Answer 
Currently, no, given that all of the fisheries industry is open to FDI, except capture fishing due to low 
quantities of fish in Saudi territorial waters. 
 
The problem of "Asia Premium" has long existed in the sales of crude oil from Mid-East countries, including Saudi Arabia, to Asian countries.   
Question 11 
Could Saudi Arabia explain the reason of "Asia Prem ium" and whether it is c onsistent with relevant 
WTO rules? 
 
Answer 
It should be noted that the "Asia Premium" does not exist; instead, global prices are the result of 
market forces.  As it is very well known, there are three major global markets:  North America, Europe 
and Asia.  All crude oil sales and pricing are performed by companies operating on a commercial 
basis and following the international market fundam entals of supply and demand.  Prices in these 
three markets determine the price of crude oil.  Price differences among the three market segments 
reflect differences in the type of crude oil ma rketed by different sellers and the supply-demand 
conditions for the different crude o il types in the given market segment. WT/TPR/M/256/Add.1 
Page 40  
 
  Overall, Saudi Arabia's Government investment pr ojects are not open to international contractors. 
Meanwhile, foreign contractors face a lot of barriers when they try to acquire qualifications under the 
qualification administration system of Saudi Arabia .  In addition, according to Chinese enterprises, 
relevant departments of the Saudi Arabian G overnment and state monopoly enterprises (e.g. 
ARAMCO, SEC, etc.) control the qualifications of c ontractors and equipment and material suppliers 
accessing the market through various short lists of qualifications, wh ich further constitutes a technical 
barrier to access Saudi Arabia's contract market.   
Question 12 
We would like to know whether Saudi Arabia ha s plans to further open government investment 
projects in the project contract market to international contractors.  
If so, please elaborate on the future plans.   
Answer 
As noted in section III(1)(vii) of the Secretariat' s Report, most of the Saudi Government's investment 
projects are subject to open tendering.  As the scope  of Government contracts is limited, and as Saudi 
Arabia's accession commitments on services make th e Kingdom one of the most open markets among 
the WTO membership, the existing limitations on  contracting in the Kingdom are relatively 
insignificant. State-owned enterprises in the Kingdom, including  Saudi Aramco, follow market-based procurement 
policies consistent with customary business practi ces, as noted in paragraph 44 of the Kingdom's 
Working Party Report.  
Saudi Arabia has greatly improved the performance of its telecommunication market through opening 
the market by issuing operating licenses.   Question 13 
Will Saudi Arabia continue issuing operati ng licenses in the area of telecommunication? 
 
Answer 
Yes, Saudi Arabia intends to continue issuing opera ting licenses in the area of telecommunications.  
 If so, what types of licenses will be issued, mob ile telecommunication business licenses, fixed data 
business licenses or other types?  
 
Answer 
CITC has issued licenses in many areas within the telecommunications sector.  These areas include 
Mobile, Fixed, ISP , Data, VSAT, SMS, Telecom Ho tels, Call Center Services, and many more.  Further 
details are available at http://www.citc.gov.sa.   
How could foreign companies apply for the licences?  
 
Answer 
For class licences (e.g. ISP , SMS etc.), the process and licensing requirements are detailed on CITC's 
web site:  http://www.citc.gov.sa.  For individual facilities-based mobile and fixed services licenses, CITC follows a licensing process 
which includes public consultatio n and consideration of the availability of scarce resources.  
Typically, media announcements are made for su ch licensing initiatives, and CITC's website is 
continually updated to provide details to interested parties.     
Could the Government of Saudi Arabia explain how the foreign companies get access to the requirements and procedures of application?   WT/TPR/M/256/Add.1 
 Page 41 
 
 
  Answer 
Please see the answer to the previous question. 
 
Regarding the Communications and Information Technology Commission of Saudi Arabia(CITC), 
 Question 14  
Is CITC an independent regulating authority? 
 
Answer 
Yes, and it fully meets the requirements set out in paragraph 5 of the WTO Telecom Reference Paper. 
 
Please introduce its main functions  apart from issuing licenses. 
 
Answer 
Apart from issuing licenses, CITC is the sole re gulatory authority for the telecommunications sector.  
Further details on CITC functions are available at:  http://www.citc.gov.sa/English/RulesandSystems/ 
CITCSyste/Documents/LA_002_E_CITC%20Ordinance.pdf. 
 
With respect to foreign investment licensees, plea se explain the division of responsibilities between 
CITC and the General Investment Authority  (SAGIA) in the telecommunication area.  
 Answer 
Para. 58 of KSA Working Party Report describe the relation between CITC and the General Investment Authority (SAGIA).  
 
Does CITC have plans to issue "Unified Licen ses" and "Reselling Business Licenses" as reported? 
 
Answer 
Unified licensing and resale are currently under study. 
CITC has recently issued a public consultatio n process (please see details on its web site: 
http://www.citc.gov.sa) for MVNO, a form of resale of mobile services.  
 If so, please explain the meaning of the "Unified Licenses".  
 
Answer 
The ITU defines Unified Licensing as "the unific ation of all services under a single license or 
concession allowing licensees to provide all form s of service under the umbrella of a single 
authorization using any type of communications infrastructure and technology capable of delivering 
the desired service." 
 
The Saudi Post Corporation (SPC) is a wholly state-owned corporation that monopolizes the post services in Saudi Arabia. Although the Government of Saudi Arabia has approved the privatization 
plan of SPC, a clear timetable to carry out the plan is not yet available.  
 
Question 15 
Does Saudi Arabia have any plan to introdu ce new competitors into the post service area? 
 
Answer 
This sector is partially competitive at this stage.  The Saudi Arabian Government is currently in the 
process of evaluating a possible expansion of this sector's competitiveness.  
With regard to the operation of fore ign accounting firms in Saudi Arabia, 
 WT/TPR/M/256/Add.1 
Page 42  
 
  Question 16 
Are foreign investors allowed to set up accounting firms in Saudi Arabia? 
 
Answer 
Yes. 
If so, please elaborate the requirements and restrictions for foreign investors. 
 
Answer 
The requirements and restrictions are listed in the Kingdom's Working Party Report 
(WT/ACC/SAU/61 para. 280) and set forth in Saudi Arabia's Schedule of Specific Commitments. 
 
Will the regulatory authority in Saudi Arabia accept the auditing report issued by a foreign accounting 
firm for a foreign corporation listed in Saudi Arabia's capital market?   
Answer 
Currently, all companies listed on the Saudi Stock Exchange are Saudi companies. 
 If so, are there any specific restrictions?  Please specify.   
Answer 
Not applicable. 
 
Are foreign accounting firms allowed to operate te mporary auditing business in Saudi Arabia?  For 
example, can a foreign accounting firm entrusted by a foreign company conduct auditing for one of 
that company's subsidiaries located in Saudi Arabia?  Answer 
Yes. 
 
If so, is the foreign accounting firm required to apply for a specific license?  Please specify the 
application conditions and procedures.  Answer 
The foreign accounting firm is required to have a license, as set forth in paragraphs 280 and 285 of the Professional Companies Law and its implementing regulations. 
 
The local companies of Saudi Arabia pay only religious tax at the rate of about 2% and their income is 
not subject to personal income tax.  Although th e tax on profits imposed on foreign companies has 
been reduced from 45% to 20%, it is still much highe r than that imposed on the local companies.  
 
Question 17 
It seems that the above practice in Saudi Arabia  is not consistent with the National Treatment 
principle, one of the fundamental principles of the WTO.  Could Saudi Arabia please provide an 
explanation? 
 
Answer 
This question is answered in full detail in KS A Working Party Report under the title "taxation and 
Zakat". 
 
When a foreign citizen works or runs a company in  Saudi Arabia, s/he needs a Saudi Arabian with 
business qualification to serve as guarantor.  Some cases indicate that the rights and interests of 
foreign labors have been violated by their guarantors.    WT/TPR/M/256/Add.1 
 Page 43 
 
 
  Question 18 
Are there any laws or measures in Saudi Arabia to protect the legal rights and interests of foreign 
labors?   
Answer 
Yes. 
 
A foreign company must guarantee that 25% of its employees are Saudi Arabian citizens when recruiting employees in Saudi Arabia.  There is also a minimum wage requirement.  Otherwise, foreign employees in the same company are not able  to get work visas.  In 2011, Saudi Arabia 
published different Saudi-based proportions in differ ent industries.  The new systems and measures 
classify enterprises in light of their actual employment of Saudi Arabians.   
Question 19 
Could Saudi Arabia please introduce the above ne w measures if they are already implemented? 
 
Answer 
The Ministry presented new legislation through wo rkshops and joint meetings with the concerned 
players in the labor market, which were announced through various media.  The Ministry gave private 
sector companies ample time to identify and remedy th eir positions before the start of the program in 
the 12/10/1432 AH corresponding to 10 / 09/2011 AD .  It also gave facilities in the Red Area an 
exemption from penalties as per their status in  the program until 01/01/1433 AH 26/11/2011 AD. 
Accordingly, it granted the facilities in the Yellow Ar ea an exemption from penalties as per their status 
in the program in the program until 03/01/1433 AH 24/01/2012 AD. 
 
Saudi Arabia committed during its accession to the WTO that, if necessary, Saudi Arabia would 
revise its policies of employment to keep them consistent with its specific services commitments. 
Please explain whether the new measures are consistent with the above commitment.  
Answer 
The Nitaqat Program is consistent with the Kingdom's WTO obligations.  
 
How would the Saudi Arabian Government ensure  that the above measures will not affect the 
operation of foreign companies in Saudi Arabia?  
Answer 
The new legislations of Nitaqat Program will not affect foreign investment companies because it does 
not differentiate between foreign and national companies.  
 
STATE OF ISRAEL 
 
The Secretariat Report in Part II, paragraph 16, st ates that the Kingdom of Saudi Arabia accords "at 
least MFN treatment" to all its trading partners. 
 
Could the Kingdom of Saudi Arabia please confirm this statement? 
 
Answer  
The Kingdom of Saudi Arabia accords MFN treatment to all its trading partners. 
 
Can the Kingdom of Saudi Arabia please provide info rmation regarding its current legislation and 
practices concerning trade with Israel? 
 WT/TPR/M/256/Add.1 
Page 44  
 
  Answer 
Answer to this question to be found in the Kingdom  of Saudi Arabia Working Party Report para. 104. 
 
JAPAN 
 
The Secretariat Report (WT/TPR/S/256) 
 
II. TRADE  AND  INVESTMENT  REGIME 
(5) INVESTMENT FRAMEWORK 
Page 20, paragraphs 30 and 32 
 Question 1 
According to paragraph 32, Saudi Arabia has some authorities which may issue an investment license 
other than the Saudi Arabian General Investment  Authority (SAGIA), such as the Saudi Arabian 
Monetary Agency (SAMA) and the Capital Market Au thority (CMA).  Do you have any intention to 
unify authorities to issue an investment license on the grounds that the SAGIA has established as a 
one-stop shop?  
Answer 
No. 
 
IV. TRADE POLICIES BY SECTOR 
(4) SERVICES (ii) Financial services 
(a)  Banking and (c) Cooperative insurance 
 
Pages 74 and 77, paragraphs 117 and 133 
 
Question 2 
The Secretariat notes that "non-Saudi investment in such a joint-stock company in Saudi Arabia is 
permitted up to 60%" in the banking services and c ooperative insurance.  Could you provide the 
purpose of the limitation on foreign capital invest ment in the banking services and cooperative 
insurance?  Also, we would like to know the pl an for review of the limitation, if any. 
 
Answer 
The up to 60 percent limitation is based on the Saudi Arabia GATS commitment and it is considered 
to be high.  In addition, the banking and co operative insurance sectors in the Kingdom are very 
liberal with strong foreign participation.  Saudi Ar abia currently has no plans to eliminate or relax 
foreign equity cap restrictions beyond its GATS commitments. 
 
(iv) Transport 
 
Page 83, paragraph 157  Question 3 
The Secretariat notes that "foreign investment is not permitted in land transport services, excluding 
inter-city passenger transport by train".  Could yo u provide the purpose of the limitation on foreign 
investment in other land transport services?  Also, we  would like to know the plan for review of the 
limitation, if any. 
  WT/TPR/M/256/Add.1 
 Page 45 
 
 
  Answer 
Foreign investment is not permitted in land tr ansport services, excluding inter-city passenger 
transport by train, since the regulations do not a llow for such investment and there is no plan right 
now to liberalize the limitations placed on the pa rticipation of foreigners in land transportation 
services.  
 
The Government Report (WT/TPR/G/256) 
 IV. SECTORAL DEVELOPMENTS (5) SERVICES 
(iv) Health and Social Services  
Page 20, paragraph 120 
 
Question 4 
In order to invest in health institutions to promote the transfer of technology, are there any restrictions 
on the health and social services sectors for foreign investment?  
Answer 
The Ministry of Health encourages foreign investme nt in hospitals services in accordance with the 
KSA services schedule of specific commitments. 
 
Japan would like to know the details of the limita tions "subject to formation of a company between a 
foreign hospital company and a licensed Saudi medi cal professional" stipulated in mode 3 of 
limitation on market access in the sectors of hospita l services and other human health services in the 
schedule of specific commitments of UR. 
 
Answer 
Such limitations are inscribed in  KSA services sche dules of specific commitments, the Law of the 
Private Health Institutions, and its Executive Regula tion, issued by the Royal Decree No. (M/40) 
dated 3.11.1423H as stated in Chapter No. II -Tabl e No. II.I of the secretariat report, which sets forth 
the details for such limitation. 
 
Are foreign diplomas and licenses for physicians, nurses and other medical professionals recognized?  
Answer 
Qualifications are assessed and registration is conducted for all healthcare workers in Saudi Arabia 
by the independent Saudi Commission for Health Speci alties to ensure the criteria are met.  To find 
out more information, visit the webs ite:  http://English.scfhs.org.sa  
 III. TRADE POLICY DEVELOPMENTS (5) Trade-Related Intellectual Property Rights  
 Page 12, paragraph 59 
 
Question 5 
Paragraph 59 of the Saudi Govern ment's Report states that over 423 thousands counterfeited items 
were seized last year. Japan would like to know sp ecific data by types of intellectual property rights 
(including trademark rights and copyrights), item, a nd final disposal (the destruction of infringement 
goods, etc.).  Japan also would like to learn the current and planned training programmes for customs officials, which will make customs further effective.  Furthermore, Japan would like to know the legal 
basis for informing right holders on the final disposal of infringement goods by the enforcement authorities (Ministry of Commerce and Industry or Customs). WT/TPR/M/256/Add.1 
Page 46  
 
  Answer 
The seizure of over 423 thousands counterfeited items  that was mentioned in paragraph 59 of the 
Saudi's Government Report, was made by the Ministry of Commerce and Industry in 2010 with respect to violations of the Trademarks Law.  They mainly consists of perfumes, cosmetics, spare 
parts, accessories, CDs, USB flash memories, tex tile products, video games, watches, sunglasses and 
mobile phones.  The procedure relating to th e disposal of these items is described below. 
 The Ministry of Commerce and Industry is transparent in the enforcement of the Trademarks Law.  As 
soon as the Ministry seizes any goods suspected of being counterfeit, it informs the right holder and 
seeks its technical assistance to c onfirm the counterfeit.  The testim ony of the trademark owner is 
included in the investigation file, which is then hande d over to the public atto rney in preparation for 
judicial process carried out at the Board of Gri evances (BOG).  The right holder has the right to 
attend hearings at the BOG, to intervene in the case,  to get a copy of the final decision and to witness 
the destruction of the counterfeit goods when  the decision imposes such destruction. 
 
6,760 customs officials, constituting 67% of the to tal Saudi Customs workforce, were trained locally 
and abroad, in organization such as WIPO ,WCO and USPTO, in 2010 in the areas of the border protection of IPR "Trademarks and Copyright".  The Saudi Customs has signed a number of memoranda with the right holders or their represent atives to train Customs officials.  For more 
details regarding capacity building, including training, please see the "Annual Report Saudi Customs 
2010G" at:  http://www.customs.gov.sa    
 
Regarding the legal basis for informing the right hol ders regarding the final disposal of goods seized 
by the Customs Authority, Article 2/a of the "Regulations Of Border Procedures For Protection Of 
Intellectual Property Rights of Trademarks and Copyri ghts", issued by the Ministerial Decision No. 
(1277) of 15 Jumada I 1425H (corresponding to 3 July 2004) states that "the Customs Authorities 
may suspend the clearance of goods suspected of bearing imitated trademarks upon having prima 
facie evidence to this effect, and they shall notify  the importer and the trademark owner, if his address 
is known, of the suspension".  The right holders may then follow the case up to the final disposal of 
infringement goods. 
 
EUROPEAN UNION 
 Report by the Government  
 
III. TRADE POLICY DEVELOPMENTS (4) G
OVERNMENT PROCUREMENT  
 Page 11, para. 56  
Parties to the GPA concluded in December 2011 the negotiations on the revised GPA text and on new 
and enhanced market access commitments.  Saudi Ar abia is an observer to the GPA since December 
2007.   
Given the recent conclusion of the GPA negotiations , the EU would be interested in knowing when 
Saudi Arabia will initiate its accession negotiations? 
 
Answer 
The Kingdom of Saudi Arabia welcomes the successful  deal reached by parties to the plurilateral 
Government Procurement revised agreement.  The S audi national committee intends to translate the 
new agreement into the Arabic language, to study it carefully and comprehensively, and to consult 
widely both within the Government and with the private sector.   WT/TPR/M/256/Add.1 
 Page 47 
 
 
  The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi 
officials a national seminar and workshop on the WT O Government Procurem ent Agreement.  This 
would greatly help us in our examination of the i ssue in the light of the new agreement.  Saudi Arabia 
has listed this request in the Annex to the Governme nt report as a technical assistance need of Saudi 
Arabia.  We hope that this request c an be met during the first half of 2012.  
 
After the completion of the workshop and the examina tion of the new agreement by Saudi officials, a 
recommendation will be made to the ministerial committee, which will determine appropriate steps 
with respect to the commencemen t of the accession negotiations.  
 
Report by the Secretariat 
 
I. ECONOMIC ENVIRONMENT  
The EU is pleased to note that Saudi Arabia has ratif ied five of the core IL O Conventions and one of 
the priority Conventions.  It also welcomes Sa udi Arabia's vote for the ILO Convention Concerning 
Decent Work for Domestic Workers at the 100
th Session of the International Labour Conference. 
 
Question 1 
Could Saudi Arabia please indicate its intentions in  relation to the ratification of the following core 
and priority ILO Conventions which it has not  yet ratified:  Convention 87 on Freedom of 
Association, Convention 98 on Collective Bargai ning, Convention 138 on Minimum Age, Convention 
122 on Employment Policy, Convention 129 on Lab our Inspection (Agriculture) and Convention 144 
on Tripartite Consultation?  Could Saudi Arabia explain how it ensures that th e eight fundamental ILO Conventions are respected 
in the informal sector? 
 
Answer 
Those two questions are outside of the WTO scope and could be discussed in the relevant 
international bodies.  
(1) M
AJOR FEATURES OF THE ECONOMY  
 
Page 2, para. 2 
According to the Secretariat's Report, in Decemb er 2009, Bahrain, Kuwait, Qatar, and the Kingdom 
of Saudi Arabia ratified an agreement to establish a monetary union.  Further integration within the 
GCC area, including planned single currency is expected.  
 
Question 2 
Could Saudi Arabia elaborate further on technical details of the monetary union that are currently 
under discussion in the Gulf Monetary Council? 
 
Answer 
The primary objective of the Gulf Monetary C ouncil (GMCO) is to prepare the required 
infrastructure for establishing the Monetary Union, in particular the establishment of the Central 
Bank and its analytical and op erational capacities. GMCO n eeds to make the necessarily 
preparations for the Monetary Un ion to be successful, such as: 
  Integrated GCC payment and settlement system. 
 Harmonization of banking regulations and the national central bank laws. 
 Defining the legal criteria for adopting a common currency. 
 Defining a common financial stability and crisis management framework. WT/TPR/M/256/Add.1 
Page 48  
 
   Harmonizing national monetary and financial statistics and producing union wide 
statistics that take into account intra-trade statistics.  
 Setting conversion rates of national currency to the new currency. 
However, the details of all technical issues are the sole responsibilities of GMCO. 
 
(3) T
RADE PERFORMANCE AND INVESTMENTS  
(ii) Foreign direct investment 
 
Question 3 
Could Saudi Arabia confirm that economic activity  undertaken in relation to a new or existing 
investment respects Saudi Arabia's national labou r law and the fundamental rights at work as 
embodied by the ILO's 2008 Declaration on Social Ju stice for a Fair Globalisation?  How does Saudi 
Arabia ensure that these are in fact respected?  
Answer 
This question is outside of the WTO scope and coul d be discussed in the relevant international bodies. 
 
Page 8, para. 14 
The Secretariat's report indicates that "Saudi Arabia has become the eighth biggest recipient of foreign 
direct investment (FDI) in the world./…/".  It furt her elaborates that this was largely the result of 
positive developments in the economy over the peri od, and the steps taken by Saudi Arabia to 
improve its investment climate, including through the opening up to foreign investment of certain key 
economic activities (e.g. mining, petrochemicals, te lecommunications), and the development of four 
economic cities and special economic zones. 
 
Question 4 
In this context, could Saudi Arabia elaborate on its  specific plans to further improve its investment 
climate?  
Answer 
Saudi Arabia plans to attract quality foreign and domestic investments to ensure sustainable 
development in line with national goals, such as hi gh-value-added job creation; to enhance the role of 
the private sector in socioeconomic and envi ronmental development and expand the domains of 
private investments (domestic and foreign) and pub lic-private partnerships;  and to enhance human 
development, expand the range of options open to individuals to enable them to acquire and use 
knowledge, skills and expertise, and to pr ovide appropriate healthcare services. 
 
What additional steps Saudi Arabia intends to u ndertake so as to improve governance and enhance 
transparency further?  In particular, could Saudi  Arabia provide information on where exporters to 
Saudi Arabia can find information about the laws, rules, and regulations including information about 
the import and export taxes applied to each product category and how these taxes are administered? 
 
Answer 
All related laws and regulations are published on th e official web site of Ministry of Commerce and 
Industry at the following link:  http://mci.gov.sa/english/moci.aspx?PageObjectId=713.  II. TRADE AND INVESTMENT REGIME (1) T
HE INSTITUTIONAL FRAMEWORK  
 
Page 12, para. 2  According to the Secretariat's Report, the judicial sy stem of Saudi Arabia is based on Shariaa (Islamic 
law) and the Basic Law of Governance. At the top of the judicial system is the King.  The independence of the judiciary and judges is protected by the Constitution.    WT/TPR/M/256/Add.1 
 Page 49 
 
 
  Question 5 
Could Saudi Arabia elaborate further on how ju dicial and arbitration decisions are enforced? 
 Answer 
The final judicial orders are enfo rced by the enforcement judge.  The Code of Procedures provides for 
all procedures of enforcement and the powers of the judge.  Arbitrati on awards are enforced after the 
enforcement order is rendered by th e competent court as per the provisions set forth in the Saudi 
Arbitration Law.  Then, the awards are final and enforceable and have the power of judicial judgments.   Foreign judgments and arbitration awards are enforced  after an order is rendered by the Board of 
Grievances after ensuring the reciprocity of treatmen t measures or inconsistency with public order.  
Saudi Arabia has signed many agreements on reciprocity  of treatment and the enforcement of judicial 
judgments and arbitration awards.  (4) T
RADE AGREEMENTS  
 
Question 6  
Could Saudi Arabia elaborate on the extent to which, and how, social and labour issues are addressed 
within each of the preferential agreements referred to in the Secretariat and the Government reports? 
 
Answer 
Saudi Arabia is of the view that social and labour issues should not be dealt with under WTO.  These 
issues could be discussed in the relevant international bodies.   
 (ii) Regional Agreements  
(a) Gulf Co-operation Council (GCC) 
 
Pages 16 – 17 para-s 17 and 19 
The Secretariat's Report states that "on 1 January 2008, the Members of the GCC also formed a common market /…/". 
 
Question 7 
Could Saudi Arabia provide an update on the status  of the GCC efforts to develop a common market? 
Are there any barriers remaining to free movement of goods within GCC? 
 
Answer 
GCC countries agreed in 28 December 2007 sessi on to announce the establishment of the Gulf 
Common Market that was implemented as from 1 January 2008.  GCC countries implemented the 
requirements of the customs union in January 2003, which is based on the single point of entry and on the application of single tariff rate and single cust oms law.  This has led to the free movement of 
goods within the GCC countries.   
Page 17, para. 20 The Secretariat's Report states that while all GCC Members apply the 5% CET on most imports, 
certain differences remain (e.g. on alcohol products ).  In addition, customs checks between GCC 
members are maintained for security and other reas ons (e.g. statistics, and to avoid piracy and 
commercial cheating).  Prohibited goods may not circ ulate between Members' territories;  restricted 
products may transit the territory of Members who restrict their import, presumably with the 
appropriate documentation. 
 WT/TPR/M/256/Add.1 
Page 50  
 
  Question 8 
Could Saudi Arabia provide a complete up-to-dat e list in HS codes with all the industrial and 
agricultural products and corresponding duties with re spect to which it has reserved its right to impose 
differential duties? 
 
Answer 
A list of agricultural and industrial goods of differen t customs duties percentage in Saudi Arabia from 
the rest of the GCC countries is attached.  
Page 17, para. 22 The Secretariat's report states that GCC is in the process of FTA negotiations with several countries. 
 
Question 9 
Could Saudi Arabia furnish information on how many FTAs it is currently negotiating, and when they 
are envisaged to enter into force?  Could Saudi Arabia also spell out the main objectives pursued 
under the FTAs that it is negotiating? 
 
Answer 
Saudi Arabia does not negotiate any FTA individua lly.  All FTAs are negotiated through a GCC 
unified team.  The GCC, at this time, is evalua ting the entire FTA negotiations process, including the 
main objectives.  All negotiations are on hold until the evaluation is finalized and approved. 
 Could Saudi Arabia elaborate on the objectives of its regional and bilateral trade policy, in particular 
on the consistency between its FTA  policy and its participation in  the customs union with the GCC 
countries?  Answer 
As mentioned in the answer to the previous ques tion, the FTA policy of all GCC member states is 
linked to the GCC custom union.  It is a well- founded policy by the leaders of the GCC countries. 
 
Could Saudi Arabia confirm whether it aims at  negotiating an ambitious and comprehensive FTA 
with China?  If so, what is the e nvisaged scope of this Agreement? 
 Answer 
Please refer to answer to question no. 12.  
Page 18, para. 22 The Secretariat's report mentions that some GCC members (e.g. Bahrain and Oman) also have FTAs 
on an individual basis.  The GCC states have ope rated the common external tariff (CET) and since 1 
January 2008, also formed a common market.   
Question 10 
In the light of the above, how is the issue of free circulation of goods entering the GCC common 
market under these individual FTAs addressed under the GCC rules? 
 
Answer 
Under the principle of final destination and the clearing mechanism currently in place between the 
GCC countries, all foreign goods, including U.S.  commodities circulates in  accordance with the 
clearing mechanism.  If the goods are circulated to  the markets of the rest of the GCC countries 
without clearing documents from the destination from which the goods are imported, the customs 
duties are collected at the border ports.  The GCC is  looking forward for a mechanism to deal with 
these agreements in line with the requi rements of the Customs Union.   WT/TPR/M/256/Add.1 
 Page 51 
 
 
  (5) I NVESTMENT FRAMEWORK  
 
Page 18, para. 26  
The Secretariat's Report states that "under the Fo reign Investment Law of 2000 and its Implementing 
Regulations of 2002, foreign investment may take the form of an enterprise owned by foreign and 
national investors (i.e. joint-ventures but with no requirement for minimum share for national 
investors); or an enterprise wholly owned by fore ign investors (i.e. 100% foreign equity). Foreign 
investment projects benefit from all of the incen tives and privileges offered to local projects". 
 
Question 11 
Related to foreign investment, the rule that it may take the form of an enterprise wholly owned by 
foreign investors does not apply for the Saudi Ar abian engineering consultancy sector.  Does Saudi 
Arabia envisage any modification in their requireme nts on foreign capital participation specifically in 
Saudi Arabian engineering consultancies?  
 
Answer 
Foreign investment in the engineering consultan cy sector is permitted by the Saudi schedule of 
specific commitments on services (WT/ACC/SAU/61/Add. 2), subject only to a foreign equity limit of 
75%.  The applicable legislation is consistent w ith this commitment: the Professional Companies Law 
(enacted Royal Decree No. M/4 of 18.2.1412H, and its Implementing Rules) allows foreign 
participation of up to 75% in the capital of cons ulting firms, including engineering consultancy firms. 
There is no present intention to modify this requiremen t.  There is a proposal to reconsider the law of 
vocational companies to be in line with the accel erating developments in the vocational activities, 
including engineering consulting  
 
Moreover, in Saudi Arabian engineering consulta ncies it seems highly recommended for partners to 
be physical people while not legal entities.  Does  Saudi Arabia contemplate the removal of this 
condition in relation to Saudi Arabia  partners being physical people? 
 
Answer 
The requirement for a partner in an engineering cons ultancy firm to be a ph ysical person applies to 
Saudi partners, who must be duly licensed professionals in Saudi Arabia.  There is no present 
intention to modify this requirement.  The Professional Companies Law permits such licensed 
professionals to partner with a foreign juridical p erson to supply engineering consultancy services, 
provided that foreign equity is limited to 75%,  as explained in the answer to question 16.  
 
Further related to foreign investment, legal cons ultancy services cannot be exercised without a local 
partner.  Does Saudi Arabia contempl ate the removal of this condition? 
 
Answer 
There is no intension in the mean time to remove this condition. 
 
Page 20, para. 33  The Secretariat's Report states that "Foreign invest ors may obtain more than one licence in diverse 
activities, provided they are not the owner of or a shar eholder in a project that is in financial default. 
SAGIA set up an Investor's Service Centre (ISC) to issue licences to foreign companies, provide 
support services to investment projects, offer deta iled 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". 
 WT/TPR/M/256/Add.1 
Page 52  
 
  Question 12 
In practice, foreign companies operating in Saud i Arabia cannot simultaneously register as an 
engineering and construction company, even when they have capabilities for offering their services in 
both markets. This rule implies some constrai nts for foreign companie s when bidding for EPC 
contracts. Is there any practical way to circumvent th is situation?  Does Saudi Arabia plan to alter this 
regulation in the near future? 
 
Answer 
The foreign companies working in the engineering sector are vocational companies established in 
partnership with a Saudi partner, provided that th e share of such Saudi partner is not less than 25% 
of the company's capital.  A company is estab lished in the General Department for Companies 
without the need to obtain the approval of Genera l Investment Authority.  The approval of the Saudi 
Council for Engineers for the establishment of the engineering companies is p er the requirements set 
forth in the law of the vocational companies. Foreign construction companies are commercial compani es that need the approval of the General 
Investment Authority for their establishment.  They may practice the EPC activity in enforcement of 
the directive of the Council of Ministers communica ted in the letter of H.E. the second deputy of the 
Cabinet No. 6827/MP dated 11/8/1430 AH, directing the Ministry of Commerce and Industry to permit businesses to include in their purposes the m anagement of construction projects, laying down 
detailed engineering designs, purchasing materi als and implementing technically complicated 
projects under their management, as determined  by the Ministry of Commerce and Industry in 
coordination with the Saudi Council for Engineers.  These projects are particularly in the energy, 
water and petrochemicals sectors. A company needs to obtain the preliminary approval  of the Saudi Council for Engineers to perform 
the EPC activity.  After the application is co nsidered, it is referred to  the notary public for 
registration. Prior to the registration in the co mmercial register for new companies or the amendment 
of the commercial register for existing companies, it is required to obtain a final approval of the 
Saudi Council for Engineers.  III. TRADE POLICIES AND PRACTICES BY MEASURE (1) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs registration, documentation, procedures, and valuation 
 Page 21, para. 2 
The Secretariat's Report states that "all imports" into Saudi Arabia must be accompanied by a certificate of origin.  
 
Question 13 Could Saudi Arabia elaborate on whether this oblig ation also covers non preferential imports? If so, 
on the basis of which rules does this non preferentia l origin have to be established? Which are the 
forms and procedures for the issuance of this certificate? 
 
Answer 
Yes, Saudi Arabia requires that a certificate of orig in to be attached for all products, including non-
preferential imports and products re-exported to Saudi Arabia under Article 25 of the Common 
Customs Law.  This requirement exists to iden tify the nationality of the goods and the country of 
production in order to combat commercial fraud a nd counterfeiting and exchange  trade statistics.  
Customs authorities accept a copy of the certificate of origin.  The certificate is issued by the 
competent authorities in the exporting country in acco rdance with procedures of these countries. It is 
noted that Saudi Arabia has committed itself in paragraph 167 of its Worki ng Party Report to apply 
the WTO Convention on Rules of Origin as of the date of accession.  To date, the WTO did not issue 
the rules of origin for non-preferential trade.   WT/TPR/M/256/Add.1 
 Page 53 
 
 
  Page 21, para. 4 
The Secretariat's Report outlines that Saudi Arab ia has been applying the GCC Common Customs 
Law and its Rules of Implementation and Explanatory Notes.  Under the "single port of entry" principle, items imported into Saudi Arabia (or an y other GCC State), and destined for another GCC 
market, are subject to customs duty only at the first point of entry into the GCC.  
 Question 14 
What policies is Saudi Arabia following or will fo llow in order to ensure uniform and consistent 
application and implementation by custom official s of existing import rules and procedures?  How 
does it ensure uniformity in customs decisions acro ss the country in relation to customs valuation, 
training of custom officials, disclosing internal procedures to companies, respect of schedules and 
written queries? 
 
Answer 
GCC leaders agreed at the meeting held in Decem ber 2011 on the establishment of the Board for the 
GCC customs union that will start on 1 June 2012. Th e Board composed of general directors of the 
Customs agencies of the GCC countries and chaired p eriodically. The Board's functions will be to 
unify customs procedures and to verify the implemen tation of all requirements of the Customs Union 
in the ports of first entry in all GCC countries.  Also, working teams was formed from all Member 
States, and their mission to make periodic infield visi ts to the customs outlets in all GCC countries in 
order to ensure compliance with  the Common Customs Law and the requirements of the Customs 
Union. 
 (iv) Import prohibitions, restrictions and licensing  
Page 28, para. 28 
The Secretariat's Report states that "Under th e GCC Common Customs Law, each GCC state 
determines its own list of prohibited or restri cted products, although members are developing a 
common list. /…/".    Question 15 
Could Saudi Arabia provide an update on the status of the GCC efforts to develop a uniform list of 
import prohibitions, restrictions and licensing? 
 
Answer 
Work is underway within the framework of the customs union of the GCC countries on the 
development of individual and common lis ts of prohibited and restricted goods.  
 
(vi) Standards and other technical requirements  
The Secretariat's Report does not state it but to EU's latest knowledge the imports of milk and milk 
products from the EU must be accompanied by a certificate declaring them to be free of radiation.   
Could Saudi Arabia provide information whether it is considering reviewing the radioactivity 
certificate requirement for the importation of im ports of milk and milk products from the EU? 
 
Answer 
The certificate in question is no longer required  for the import of milk and milk products. 
 Page 33, para. 42 
The Secretariat's Report refers to the fact that "S audi Arabia is harmonizing its technical regulations 
and standards at the GCC level./…/", and that "/…/ In general, GCC and Saudi standards are based on 
international standards./…/". WT/TPR/M/256/Add.1 
Page 54  
 
  The Saudi Food and Drug Administration (SF DA) had notified on 19 May 2011 the draft "GCC 
Guide for Control on Imported Foods" (hereinaft er the "draft Guide") to the WTO SPS Committee 
(ref. G/SPS/N/SAU/14).  The draft Guide includes gene ral requirements applicable to foodstuffs (not 
live animals) and makes references (without listin g them) to other more specific standards and 
regulations.  Question 16 
Could Saudi Arabia provide a list of existing SPS regul ations and standards applicable at the level of 
the GCC and, where different standards and regula tions exist, in Saudi Arabia, to the import of: 
 
a) Foodstuffs, including processed foods, meat of bovi ne, meat of ovine, meat of caprine, meat 
of poultry and other birds, and also  fish, eggs and dairy products?  
 
Answer 
All GSO-GCC standards are applicable to all G CC members, but where the GSO standard does not 
exist, Saudi standards shall apply.  WTO Members can find the relevant sta ndards and regulations on 
the GSO-GCC standardization organiza tion website:  http://www.gso.org.sa. 
 
b) Live bovines, live ovines, live caprines, live pou ltry and other birds, fish, and their genetic 
material?  
Answer 
The Kingdom applies the Veterinary Quarantine Law and its Executive Regulation in the Cooperation Council for the Arab States of the Gulf.  Import perm its are required for all live animals will be added 
to the list of goods subject to non-automatic impor t licensing , also all standards and regulations of 
the World Organization for Animal Health OIE are applied. 
 Could Saudi Arabia provide a list of existing SPS regul ations and standards applicable to the import at 
the level of the GCC and, where different standards and regulations exist, in Saudi Arabia, of plants 
and plant products?  
Answer 
- Plant Quarantine Law and its Executive Regul ation in the Cooperation Council for the 
Arab States of the Gulf, and all of the standards and requirements set by the International Convention for Plant Protection and the WTO Agreement on Sanitary and Phytosanitary (SPS).  
 
- The Kingdom applies the quarantine law for th e cooperation Council for the Arab States 
of the Gulf (GCC), all SPS regulations are cons istent with this law ,any differences with 
this law it will be amended according to it . 
 
Could Saudi Arabia indicate if and if yes, by when, it intends to notify to the WTO any relevant 
change to the existing or new SPS standards or re gulations of Saudi Arabia or of the GCC?  
 
Answer 
The Kingdom of Saudi Arabia has made 20 SPS notifications to notify WTO Members of new or 
amended SPS Measures since March 2010. Saudi Arabia is still notifying WTO Members of amended 
or new SPS measures. 
 Could Saudi Arabia indicate when would the final ve rsion of the draft Guide be made available to the 
public? 
  WT/TPR/M/256/Add.1 
 Page 55 
 
 
  Answer 
Saudi Arabia notified WTO Members on 19 May 2011 about  the concerned draft.  Since then, Saudi 
Arabia and the GCC states have been modifying or amending the draft on the basis of WTO Members' comments.   
Could Saudi Arabia indicate whether the GCC or Saudi Arabia intend to make publicly available a 
guide for control on imported live animals (similar to the mentioned draft Guide)?  
 
Answer 
The Kingdom would prepare this guide and will be published and notifie d when completed. 
 Could Saudi Arabia indicate, in the SPS field, the list of standards and regul ations being harmonizing 
in Saudi Arabia and at the level of the GCC, and the respective work programme? 
 
Answer 
All technical regulations and standards are listed in  the GSO on the basis of a decision from the GSO 
Technical Committee, of which Saudi Arabia is a Member.  (b) Sanitary and phytosanitary measures  
Page 34, para. 47 The Secretariat's Report refers to the fact that "the national enquiry point under the WTO SPS 
Agreement is the Saudi Food and Drug Authority (SFDA) (…), which "/…/aims to ensure food and drug safety for humans and animals, and the safety of biological and chemical substances /…/". In the draft Guide (points 1 and 9), it is mentione d that each shipment imported into the GCC states 
must be accompanied by the health certificate issu ed by a competent authority or an officially 
recognized organization of the exporting country in  compliance with the GCC regulations on food 
safety.  The EU has the view that, generally, co mpetent authorities have surveillance programmes in 
place to monitor the presence of several undesirable subs tances or to evaluate the impact of regulatory 
and non-regulatory measures on the maintenance of a desirable SPS level of protection. Such official surveillance programmes complement other official and management tools (e.g. HACCP) put in place 
by business operators.  On their own, these surv eillance or monitoring programmes are not designed 
to guarantee that individual products or consignments are safe . 
 
Question 17 
Could Saudi Arabia indicate the reasons to ask that  control of undesirable substances in foods (which 
results in deviation from the veteri nary standard procedure for the e xport of animal products) are to be 
guaranteed by the competent authority of the e xporting country and not by the food business operator 
or exporter? 
 
Answer 
The competent authorities in the exporting country shall be responsible for ensuring that the animal 
products comply with the technical regul ations and standards of Saudi Arabia. 
 
Page 35, para. 48 
The Secretariat's Report refers to the fact that "since 2003, Saudi Arabia has been applying the GCC 
Laws on Veterinary Quarantine and Plant Quarantin e.  Imports, exports, a nd domestic production of 
plants and animals are subject to inspection by th e Ministry of Agriculture, which also examines and 
issues SPS certificates for all agricultural products prior to their export.  All imports of plants must be 
accompanied by agricultural clearance certificates i ssued by the appropriate authorities in the country 
of export. /…/" 
 WT/TPR/M/256/Add.1 
Page 56  
 
  The draft GCC Guide for Control on Imported Foods makes a number of references to audits, i.e. 
"audit of systems in exporting countries" (point 4 of the draft Guide), "GCC countries or their agents" 
(point 5.1 of the drat Guide), the authenticity and accuracy of official certification and certification by 
officially-recognized bodies will be periodically ve rified and audited by the countries of the GCC 
(point 6 of the draft Guide). 
 
Question 18 
Could Saudi Arabia provide deta iled information about the proce dures and requirements (including 
pre-audit questionnaires, duration of the visits to th e exporting country, types of sites to be visited, 
associated costs, number of inspector/auditors, repo rting procedures) applicab le to the auditing by 
Saudi Arabia of competent authorities of exporting c ountries, to verify the compliance with hygiene, 
food safety and animal and plant health requirements? 
 
Answer 
Detailed information about the procedures and re quirements in question can be found at the 
following link:  http://www.sfda.gov.sa/En/Food/ Topics/System+and+proce dures+of+food+control/. 
 
Page 35, para. 50 
The Secretariat's Report states that "Saudi Arabia is a member of the World Organization for Animal 
Health (OIE), the International Plant Protecti on Convention (IPPC), and Codex Alimentarius".  
 
Question 19 Could Saudi Arabia indicate whether Saudi Arabia follows, without any exception, the international 
standards laid down by the World Organization for Animal Health (OIE), regarding the import of 
animals and animal products (e.g. Chapter 11.5 on Bovine Spongiform Encephalopathy) or, if not, 
what are the criteria (e.g. scientific justification) that Saudi Arabia may use for not adhering to them? 
 Answer 
Saudi Arabia is compliant with the OIE regulations and standards.  However, Saudi Arabia has reviewed the scientific report of the European Food Safety Authority (EFSA), which indicates that 
although the slaughter age, according to OIE, has been raised above 48 months, there are still BSE 
cases expected to be reported.  In addition, SFDA m andate is to protect the safety of Saudi citizens, 
taking the necessary precautionary actions, even if there are assurances in the EU BSE control 
system.  
Could Saudi Arabia indicate where can the list of quarantine plant pests of Saudi Arabia be found? 
 
Answer 
A list of all quarantine pests which annexed to the Quarantine Law for the Cooperation Council for 
the Arab States of the Gulf (GCC) is attached.  
Could Saudi Arabia indicate whet her import permits are required for all plants and plant products, if 
the International Standard on Phyt osanitary Measures ISPM 20 (point 4.2) has been or will be taken 
into consideration, and if import perm its include phytosanitary requirements? 
 
Answer 
Import permits are applied to the plants and plant products used for propagation such as seedlings 
and seeds. 
 Could Saudi Arabia indicate whether phytosanitary  certificates are required for all plants and plant 
products, and whether the International Standard on  Phytosanitary Measures ISPM 32 has been taken 
into consideration? 
  WT/TPR/M/256/Add.1 
 Page 57 
 
 
  Answer 
Yes. 
 
Could Saudi Arabia indicate for which plants or plant products is a Pest Risk Assessment (PRA) 
required prior to import, and what is  the timeframe to perform a PRA? 
 Answer 
All quarantine pests listed in the attached tables are prohibited to inter into the kingdom    
Could Saudi Arabia indicate whether it entirely follows , in the context of the import of food and of the 
evaluation of the competent authorities of exporting countries, the "principles for food import and 
export inspection and certification" of the Codex Alimentarius (CAC/GL 20-1995) and, if not, what 
parts are not followed and why and, in this case, what other procedures/requirements are followed? 
 
Answer 
Saudi Arabia entirely complies with the Codex Alimentarius (CAC/GL 20-1995) as adopted in 2007 by GSO-GCC Standardization organization (refer to GSO CAC/GL 20-2007).  
Could Saudi Arabia indicate whether it entirely follows, in the context of the import of food, the 
"guidelines for the design, operation, assessmen t and accreditation of food import and export 
inspection and certification systems" of the Code x Alimentarius (CAC/GL 26-1997) or, if not, what  
parts of these guidelines are not followed and why and, in this case, what other 
procedures/requirements are followed? 
 
Answer 
Saudi Arabia complies with the Codex Alimentarius (CAC/GL 26-1997). 
 
(c) Marking, labelling, and packaging requirements  
Page 35, para. 51 
The Secretariat's report states that "SASO is resp onsible for establishing ma rking, labelling, and 
packaging requirements.  Saudi Arabia is updating its packaging and product labelling standards in 
line with the GSO norms.  In June 2007, two new stan dards for the labelling and expiry period of food 
products were approved at the GCC level.  They el iminate the long-standing requirement that at least 
half of a product's shelf-life must be valid when  a product reaches a GCC port of entry.  Moreover, 
mandatory shelf-life is now stipulated only for perishable food products and baby food, while 
voluntary shelf-life standards apply to other food products".  Question 20 
Exporters often find difficulties on complying with SA SO regulations when dive rse interpretations are 
made at different points of the entry in the Saudi Ar abian market or at different moments of time.  In 
this sense, technical training needs to be further en hanced in order to improve understanding of these 
rules and encourage a greater convergence in their prac tical application.  Is Saudi Arabia planning any 
step in that direction?  
 
Answer 
SFDA is designing courses and training programs for its inspectors at the BIPs in order to improve 
their understanding of the rules and regulations that are related to export and import missions. 
 Page 35, para. 53 
According to the Secretariat's report food products mu st carry a label indicating i.a. their country of 
origin.   WT/TPR/M/256/Add.1 
Page 58  
 
  Question 21 
Could Saudi Arabia explain under which rul es is this country of origin determined? 
 
Answer 
Saudi standard No. 1/2007 (Labelling of prepackaged food stuffs), Pa ragraph 5/5 country of origin 
states that: 
5/5/1 The country of origin of the food shall be  declared on the food containers if its omission 
would mislead or deceive the consumer about the item, especially in the case of repacking. 
5/5/2 When a foodstuff undergoes processing in a second country which may probably change 
its fundamental nature, the country where the pro cessing has taken place shall be considered 
as the country of origin for labelling purposes. 
 
Page 35, para. 53 
The Secretariat's report refers to the fact that "As an Islamic country, Saudi Arabia has strict marking 
and labelling requirements for meat and poultry produc ts, including that the product was slaughtered 
according to Islamic Halal procedures, if so required. /…/". 
The Halal attestations (6.3 of the draft Guide) applicable to import of meat, meat products and 
products of meat origin and the health attestati ons applicable to import of a number of foodstuffs 
(points 6.1, and 6.2 of the draft Guide), contain a number of cross references to other more specific 
requirements, which include hygiene, inspections by competent authority, animal health in general, 
infectious diseases in particular approval proce dures, slaughtering procedures, quarantine pests and 
approved Islamic Authorities. 
 
Question 22 
Could Saudi Arabia indicate whether it entirely follows , in the context of the import of food and of the 
evaluation of the competent authorities of exporting countries, the "general guidelines for use of the 
term "Halal" (CAC/GL 24-19971), and, if not, what parts are not followed and why and, in this case, 
what other requirements are followed? 
 
Answer 
Refer to the answer to question 44.  
Could Saudi Arabia indicate when would the competent authorities of Saudi Arabia, or of the GCC, 
make publicly available de tailed Halal requirements − including slaughtering procedures and 
structural requirements to be complied with by  business operators and competent authorities in 
slaughterhouses of exporting countries − applicable to the import of bovines, ovines, caprines, poultry 
and their products (including genetic mate rial, meat, eggs and dairy products)? 
 Answer 
Refer to the answer to question 44.  
Could Saudi Arabia provide detailed informati on about the procedures, timing and requirements 
applicable to approval by Saudi Arabia of Halal competent authorities in exporting countries? 
 Answer 
Refer to the answer to question 44.  
Could Saudi Arabia provide detailed informati on about the procedures, timing and requirements 
applicable to the evaluation/audit by Saudi Arabia of Halal competent authorities in exporting 
countries? 
  WT/TPR/M/256/Add.1 
 Page 59 
 
 
  Answer 
Saudi Arabia implements the following standards: 
1. GSO 1931/2009 HALAL FOOD Part (1 ):  General Requirement.  
2. GSO 2055/2010 HALAL FOOD - Part (2):  Guid elines for HALAL Food Certification 
Bodies and their Accreditation Requirement.  
3. GSO 993/1998 Animal slaughtering requirements according to Islamic law. 
 
(vii) Government procurement  
Page 36, paras. 56–57  The Secretariat's report states that "there is no central government procurement authority in Saudi 
Arabia;  each government agency may procure goods , works, and services under its own decentralized 
budget.  Government works and procurements mu st be put up for public tender, unless exempted 
under the Procurement Law (Article 6).  The Proc urement Law also applies to projects and works 
executed by government authorities outside Saudi Arab ia (Article 70), but does not apply to certain 
procurements, including (Article 47) :  weapons and military equipment;  consultancy;  spare parts;  
goods and services available only through one supplier;  and medical supplies urgently needed in 
outbreaks of epidemics." According to the authorities, Saudi Arabia em ploys mostly open tendering procedures. Other 
procurement procedures used include:  selective te ndering;  limited tendering, and single tendering. 
The value of a single-tender purchase must not exceed SAR 1 million.  Foreign suppliers that 
participate in government procurement are required, inter alia , to register with the Saudi Arabian 
General Investment Authority (SAGIA), and estab lish a training programme for Saudi nationals. 
There is frequently an offset requirement for la rge military projects, which is determined on a 
project-by-project basis".  Question 23 
Could Saudi Arabia provide further information on how it ensures transparency in public procurement 
processes and how it ensure that it applies to all bidders (whether domestic or foreign)?  Does Saudi 
Arabia have any plans in amending its curre nt public procurement legislative framework? 
 
Answer 
The Kingdom of Saudi Arabia government procurem ent is regulated under government tenders and 
the procurement law which was enacted by Royal Decree No. M/58 of 4.9.1427 H (September 2006) 
which aims at:  
(i) Regulating procedures of tenders and procurements carried out by 
government authorities and ensuring they are not influenced by personal 
interest in order to protect the public funds; 
(ii) Achieving the maximum degree of economic efficiency in government 
procurements and carrying out government projects at fair competitive prices; 
(iii) Promoting honesty and competition and ensu ring fair treatment of suppliers 
and contractors in accordance with the principle of equal opportunity; 
(iv) Guaranteeing transparency at all stages of government tender and 
procurement procedures. 
I. All government works and procurement are offe red for in public tender except for those 
exempted under the provisions of the Tender and Procurement Law. Article 6 of the Law 
states: 
"All government works and procurement are put for in public tender except for those 
exempted under the provisions of this Law". 
II. All government tenders are announced in the O fficial Gazette (Um Al-Qura), in two local 
newspapers and by electronic means of advertisement. Article 7 (a) of the Law states: WT/TPR/M/256/Add.1 
Page 60  
 
  "All government tenders shall be announced in the Official Gazette, in two local 
newspapers and by electronic means of ad vertisement in accordance with the 
Implementing Regulations of this Law. The bid submission date and the sealed-bid opening date as well as places thereof shall also be specified in the tender announcement". 
III. Article 10 (d) of the Implementing Regulation of the Law states: 
 "The announcement of the tender shall in clude clear and comprehensive information 
 about the works announced and shall at least include the following: 
- Name of the advertising authority. 
- Number, description and purpose of tender. 
- Scope of classification. 
- Price of documents and place of sale. 
- Time and place of submission and opening of bids".  
IV. The Committee announces to the bidders or th eir representatives present in the opening 
session, the name of the bidder, his total pr ice and any increase or decrease thereon in the 
original bid.  Article 27 (b) of the Regulation states: 
 "The Committee shall announce to the bi dders present or their representatives, the 
name of the bidder, his total price and any increase or decrease thereon in the 
original bid letter". 
V. Government authorities invited to the tender announce the results of public tenders and 
government procurements for which they cont racted and whose values exceed (SAR 100.000) 
one hundred thousand riyals.  Article 74 of the Law states: 
 "Government authorities shall announce th e results of public tenders and government 
procurements which they contract for th eir execution and whose values exceed one 
hundred thousand riyals. The Implementing Regulations shall determine the announcement method and procedures".  
VI. An excluded bidder is informed of the grounds  for exclusion by an official letter upon his 
request. Article 40 of the regulation states:  "An excluded bidder shall be informed of  the grounds for exclusion by an official 
 letter upon his request".  As for whether there is an action plan for making any amendments on the existing  Government Tenders and Procurement Law, th ere is always a possibility to amend  any 
provisions of the law if needed. 
 (2) M
EASURES DIRECTLY AFFECTING EXPORTS  
 
What measures – if any – does Saudi Arabia take to ensure that goods destined for export are 
produced in full respect of these fundamental rights at work? 
 
Answer 
The Kingdom of Saudi Arabia requests furt her clarification regarding this question. 
 (ii) Export duties and taxes 
 Page 38, para. 67 
The Secretariat's report states that Saudi Arabia a pplies an export duty to untanned hides and skins at 
a rate of SAR 2000/tonne (about 20%).  It is being reduced by 20% annually (as from 10 September 2008), and will be co mpletely eliminated on 10 Sept ember 2013.  Currently, Saudi 
Arabia does not apply any other export duty. 
 
Question 25 
Could Saudi Arabia provide information on where e xporters can find information about export duties 
and taxes and how are these administered?  WT/TPR/M/256/Add.1 
 Page 61 
 
 
  Answer  
Exporters may find information about the administra tion of Saudi Arabia's export procedures at the 
website of Saudi Customs:  http://www.customs.gov.sa. 
 
In view of the above, could Saudi Arabia qualify the rule (laid down in customs circular number 
850/11/m dated 25/10/1430) according to which upo n export of bitumen water insulation rolls the 
difference between the local prices and the internati onal prices will be collected by customs for 60% 
of the weight of the total net product as lump sum revenue? 
 
Answer  
Customs collects the difference as follows:  60% of th e net weight of the waterproofing roll "bitumen" 
* the price difference =the amount paid by the export to the State on exportation.  (3) M
EASURES AFFECTING PRODUCTION AND TRADE  
 
Question 26 Could Saudi Arabia explain what it is doing to help its producers: 
 a) Produce goods which are environmental and socially sustainable?  
 b) Access niche markets overseas through a dherence to voluntary sustainability standards 
 (for example, Fair Trade, UTZ Certified, Global G.A.P.)?  
Answer 
1) Apply General Environmental Law and Rul es for Implementation, where the ultimate 
achievement is the implementation of sustainable development concept. 
2) Environmental approval certificates (Envir onmental permits) which required for all 
manufactures we make sure it is environmen tally and socially sustainable through 
Environmental Impact Assessment studies, wh ich include environmentally and socially 
impacts assessment. 
3)   Implement Environmental standards dur ing operation of the producers' activity. 
4) Encourage producers to have international cert ifications to help them to access to 
international markets. 
5) Establishment of Saudi National Committee for energy efficiency, which will regulate energy 
efficiency for goods used or produce in the country. 
 
(iv) Intellectual property rights  
Page 48, para-s 100–101 a nd page 49 para. 104  
Pharmaceutical companies have to submit their Exclusive Marketing Rights (EMR) applications 
under the Exclusive Marketing Rights Royal Decree (joint ly formulated by the Ministry of Health and 
King Abdul Aziz City for Science and Technology (KACST)) to KACST, which will then review the 
applications and forward eligible applications to  the Saudi Food & Drug Authority (SFDA) to ensure 
that the pharmaceuticals identified in the appli cation receive exclusive rights for marketing and 
manufacturing in the Kingdom.  The mechanism app lies to pharmaceutical products for which patent 
applications had been submitted under the repealed Patent Law issued by Royal Decree No. 38/M of 
1989 and were still pending at the time of comi ng into force of the Royal Decree No. 27/M 
on 17 July 2004.  
Question 27 
How is it ensured that pharmaceutical companies ar e informed in a transparent and reliable way about 
the outcome (status) of their Exclusive Marketing Rights applications?  
 
Answer 
All decisions are notified to the company in writing. WT/TPR/M/256/Add.1 
Page 62  
 
  How is it ensured that in case of refusal to gran t an EMR, the company is duly informed of the 
underlying reasons for the refusal? 
 
Answer 
The company is informed on writing. 
 
Can companies launch an appeal against a refusal to grant an EMR? 
 
Answer 
Yes, according to Article 13(b) of the Law of  the Board of Grievances, any party may appeal 
decisions issued by administrative authorities, public agencies or independent bodies before the 
Board of Grievances.  
Page 48, para. 100 and Government 's Report, page 11, para. 57  
The Secretariat's report states that Saudi Arabia committed itself to full implementation of the TRIPS 
Agreement without a transition period during its WTO accession negotiations. 
 
Question 28 
How has Saudi Arabia implemented its obligati on under Article 39 of the TRIPS Agreement to 
protect undisclosed test or other data submitted in  the framework of a regulatory approval procedure 
against disclosure and against unfair commercial use?  Answer 
The Regulations for the Protection of Confidentia l Commercial Information provides protection for 
undisclosed test or other data submitted in the fr amework of a regulatory approval procedure against 
disclosure and unfair commercial use in accordance with the provisions of Article 39 of the TRIPs 
Agreement.  
Could Saudi Arabia specify the relevant domestic ac ts providing for data protection and explain their 
main provisions and how they are being implemented in practice? 
 
Answer 
Saudi Arabia has issued the Regulations for the Protection of Confidential Commercial Information to protect test data and other trade secrets  in accordance with the TRIPs Agreement.  
 Article 5 of the Regulations provides for the protection of test data for pharmaceuticals and 
agricultural-chemical products.  Oth er provisions of the same regulation provide for the protection of 
confidential commercial data in general. 
Each competent authority is responsible for the prot ection of the confidential information submitted to 
it.  According to Article 8 of the Regulations, any party suffering injury from the violation of the provisions of the Regulations may bring a ca se before the Board of Grievances to request 
indemnification for damages. 
 Page 49, para. 102  
The Secretariat's report states that Saudi Arabia has joined the GCC amended Patent Law (29 August 2001). 
 
Question 29 Could Saudi Arabia explain what is the legal stat us of a Gulf Cooperation Council patent in Saudi 
Arabia and the conditions under wh ich said patent can be revoked? 
  WT/TPR/M/256/Add.1 
 Page 63 
 
 
  Answer 
Article 1/7 of the GCC Patent Law states:  "the Do cument granted by the Patent Office to the owner 
of the invention so that his invention shall enjo y legal protection within all Cooperation Council 
States according to the provisions of this Regulation and its Bylaws."  Also the Gulf Cooperation Council is defined under Article 1/1 to comprise th e Arab States of the Gulf, including Saudi Arabia. 
Thus, any granted patent issued by the GCC Patent  Office will enjoy full protection in Saudi Arabia. 
Regarding revocation of a granted patent, any int erested party can file a complaint before the GCC 
Committee requesting the revocation of a granted patent  in the GCC.  Article 25 of the GCC Patent 
Law states that "the decision of the committee can be appealed before the competent authority 
according to the regulation complied with in the host country (Saudi Arabia).  Settlement of such 
appeal shall be made in conformity  with the provisions of this re gulation and requirements of the laws 
of the said state respectively; otherwise, settleme nt shall be made according to general rules." 
 
Page 51, para-s 111–115  
Prior to the entry into force of the current patent law (Law of Patents, Layout Designs of Integrated 
Circuits, Plant Varieties, and Industrial Models in force as of July 2004) pharmaceutical companies 
could file so-called "importation" patents before the General Director ate of Industrial Property (GDIP) 
under the patent law in force at that time (Patent Law No. M/38 of  10/06/1409H (January 18, 1989)). 
A significant number of patent applications were reviewed and either granted or substantively 
examined prior to the new law coming into effect. At the entry into force of the new patent law re placing Patent Law No. M/38, a transitional kind of 
protection (EMR) was put in place for those patent  applications which were pending under the old 
law, but not yet substantively examined when the new law took effect.  However, for those patents which were already granted or substantively examin ed, this transitional protection was not available. 
The new patent law did not supersede the law in ef fect for patents actually granted or substantively 
reviewed under Patent Law No. M/38, and it should in  principle not be applicable to retroactively 
revoke patents examined under the prior law. 
 
Question 30 
Could Saudi Arabia explain what is  the legal and enforcement status  of patents duly granted under the 
provisions of patent law M/38? 
 
Answer 
Article 64 of the Law of Patent, Layout Designs of  Integrated Circuits, Plant Varieties and Industrial 
Design (New Law) states:  "this Law shall repla ce the Patent Law issued by the Royal Decree No. 
(M/38) dated 10/6/1409H, and its pr ovisions shall govern the patent applications and the patents in 
force, and shall supersede all provisions that are inc onsistent therewith."  Thus, the New Law will be 
applied on all applications and patents.  
 IV. TRADE POLICIES BY SECTOR (1) A
GRICULTURE AND RELATED ACTIVITIES  
(ii) Agricultural policy  
Pages 54–55, para. 5  
The Secretariat's Report states that "/…/other govern ment agencies involved include two fully state-
owned enterprises:  the Agricultural Development F und (ADF), which disburses subsidies, and grants 
interest-free loans;  and the Grain Silos and Fl our Mills Organization (GSFMO), which purchases and 
stores wheat, constructs flour mills, and produces anim al feed.  The Government also offers indirect 
support to farmers, such as extension, training, pest and disease control services, and agricultural 
research". 
 WT/TPR/M/256/Add.1 
Page 64  
 
  Question 31 
Could Saudi Arabia elaborate on the subsidies (oth er than import subsidies) and interest-free loans 
provided to producers by the Agricultural Developmen t Fund? (type of support, calculation, eligibility 
requirements)  Answer 
All agricultural subsidies, direct and indirect, were classified in the latest WTO document 
G/AG/N/SAU/6, dated 13 September 2011 (Notification on Domestic Support). 
 
Page 55, para. 7 The King Abdullah Agricultural Initiative enables private Saudi Arabian businesses to invest in 
agricultural projects in other countries. 
 
Question 32 
What types of measures (subsidies, loans, technical assistance) are provided to private businesses that 
decide to invest abroad?  Are there any conditions that apply? 
 
Answer 
The Government promised to provide financial fa cilities to encourage Saudi private investors to 
invest abroad, as well as off-taking agreements to allow them to bring their pro ducts to Saudi Arabia.  
Many kinds of support are ava ilable to all Saudi investors. 
 Page 55, para. 9 
The Secretariat's report states that "following a 200 7 government decision, Saudi Arabia's agriculture 
sector is being restructured to focus on value-ad ded crops such as fruits and vegetables, and to 
implement new water-saving and irrigation technologies".   
 
Question 33 
Could Saudi Arabia provide more details on the ongoing changes to its agricultural policy? 
Particularly concerning the measures aimed at  reducing production of  high water intensive  
agricultural commodities?  Apart from wheat what are the other agricultural commodities of which 
production is to be reduced, and over what timeline?  Answer 
The Agricultural sector in Saudi Arabia has been res tructured in recent years because of the scarcity 
of water.  The aim is to reduce water consum ption in agriculture and to focus only on value–added 
crops and on crops using less water.  Apart from wheat, open- field crops such as green fodder, 
potatoes, onions, watermelon are also targeted.  By the end of 2012, no export of such products will 
be allowed.  
Page 56, para. 14 
The Secretariat's report states that "barley pr oduction has also continued to decline, from 
47,000 tonnes in 2005 to some 20,000 tonnes in 2009.  No subsidies were paid for production of 
barley in 2007 and 2008.  Purchase of domestically pr oduced barley by the GSFMO for sale as feed to 
livestock producers stopped in 2003.  In 2007 and 2008,  the Government continued to subsidize 
imported barley for use as a livestock feed:  6.4 million tonnes in 2007 (total support of SAR 
499 million), and 8.6 million tonnes in 2008 (SAR 1,800 million)".  
 
Question 34 Could Saudi Arabia provide details  of its subsidy scheme for importing feed grains?  How is the 
support calculated and which products  it covers (only grains or also other feed components, in the 
Secretariat's Report only barley imports are mentioned as subsidised)?   WT/TPR/M/256/Add.1 
 Page 65 
 
 
  Answer 
For the objective of water conservation, barley pr oduction has been stopped since 2003.  Instead, 
imported barley is subsidized to make it available at  a low cost for local u sers.  However, all animal 
feed ingredients are subsidi zed for the same objective. 
 
(2) MINING AND ENERGY 
(iv) Natural gas 
(a) Gas processing 
 
Page 66, para-s. 73-75 The Secretariat's report in para. 73 states that "for several decades, Saudi Arabia has made available 
petroleum-based and natural-gas-ba sed products to domestically locat ed consumers (Saudi or foreign 
owned) at regulated prices./…/" 
 
Question 35 
Could Saudi Arabia elaborate on how the dual prici ng (differential between domestic price and world 
market price) is enforced?  How are products wh ich are based on the input of price-regulated gas 
treated when exported? 
 
Answer 
As an initial matter, Saudi Arabia notes that "dua l pricing" does not exist in the Kingdom.  As 
explained in the Kingdom's Working Party Report (paras. 26-37), under Saudi law prices of natural 
gas liquids (NGLs) are commercially-based, non- discriminatory and variable over time according to 
changes in market conditions.  The law – promulgated  in Council of Ministers Resolution No. 260 and 
Decision No. 15 – establishes that prices will not va ry on the basis of the producer's identity, or the 
type or destination of the downstream product.  
 Council of Ministers Resolution (CMR) No. 260 of 23.10.1422H (7 January 2002), which 
cancelled Council of Ministers Resolution No. 68,  serves as the basis for regulating the prices 
of NGLs, including butane, propane and natural gas oline, used as feedstock in Saudi Arabia.   
 CMR 260 requires that pricing of NGLs supplie d to all domestic industrial users, without 
exception, be commercially based.  Decision No . 15 of the Supreme Council for Petroleum 
Affairs implemented CMR 260 and established a pric ing structure that is intended to ensure 
the full recovery of production costs and a reasonable profit.   
 Under CMR 260 and Decision No. 15, NGLs are available to all recipients within Saudi 
Arabia on a non-discriminatory basis, whether Saudi or non-Saudi, and regardless of the 
ultimate destination of the downstream products produced from the NGLs.  
 The domestic pricing structure set forth in CMR 260 and Decision No. 15 establishes detailed 
formulae, based on international market pric es, for determining the applicable domestic 
prices of propane, butane and natural gasolin e.  The difference between domestic and 
international NGL prices reflects Saudi Arabia's natural comparative advantages and several cost-saving factors that are unique to domestic  NGL sales in the Kingdom.  These cost saving 
factors include (i) cost savings in infrastruc ture; (ii) cost savings in marketing; (iii) 
commercial advantage associated with long-term contracts; (iv) commercial value of reduced 
volatility; (v) commercial value of large volume purchases. Thus, there is no "differential" 
between domestic and world market prices. 
 Because the commercial pricing formula is ba sed on market prices, NGL prices derived from 
the formula can vary on a periodic basis.  These prices apply to all sales of all supplies of 
NGLs for domestic industrial users, without exception. 
As the Kingdom's price regulations are non-discrimi natory, exports of products derived from price-
regulated NGLs (and natural gas) are treated just like all other exports (i.e., they are subject to applicable Saudi laws and re gulations, without exception). 
 WT/TPR/M/256/Add.1 
Page 66  
 
  HONG KONG, CHINA 
 
Questions regarding the Secretariat Report 
 Tariffs, other duties, and taxes 
 Pages 23-27 (para-s. 14-20;  tables III.2 and III.3) 
 
Question 1 
Upon its accession to the WTO, Saudi Arabia bound 100%  of its tariff at rates ranging up to 200% (on 
tobacco and tobacco-related products) and averagi ng 10.9%, i.e. average bound rates of 15.4% on 
agricultural products, and 10.1% on non-agricultu ral goods.  The gap between overall average MFN 
applied tariff and the bound rate at 5.7 percentage points presents an element of uncertainty as it gives 
the authorities some margin for increasing applied MFN tariffs.  Saudi Arabia also made seasonal 
tariff binding commitments for some fruits and vegetables. 
 
In this regards, does Saudi Arabia have plans to:  
(a) reduce the gaps between the applied a nd bound rates so as to provide greater 
predictability in its tariff regime;  and 
(b) further reduce its applied tariff rates th at exceed international tariff peaks? 
 Answer 
There is no plan to reduce the margin of diff erence between the bound customs duty and the applied 
customs duty, on the grounds that applied cust oms duties are very low and there is no value-added 
tax.  In addition, Saudi Arabia is a developing country and has recently acceded to the WTO.  By 
comparing the margin of the difference between the bound and applied duty rates with the rest of the 
developing Member States in the WTO, we find that margin of difference is very small – not exceeding 
5.7%.  In addition to that, 10.6% of the total numbe rs of items are exempted from customs duties as 
outlined in the table III.2 of th e Report of the WTO Secretariat. 
 Import prohibitions, restrictions and licensing  
Page 29 (para. 30) 
 
Question 2 
It is noted that although the law provides for automatic licensing, Saudi Arabia does not have 
automatic licences on any products.  Does Saudi Ar abia have any plans to implement automatic 
licensing on products subject to import restrictions/licensing? 
 
Answer 
Please refer to the Kingdom of Saudi Ar abia's Working Party Report Para. 126. 
 Standards and other technical requirements 
 Page 33 (para. 43) 
 
Question 3 
There is a requirement that every shipment of pr oducts sold in Saudi Arabia be accompanied by a 
document certifying that the product conforms to the relevant Saudi technical regulation or standard.  
The conformity certificate has to be issued by an accredited certification body, or an accredited 
laboratory as a third party.   WT/TPR/M/256/Add.1 
 Page 67 
 
 
  Would Saudi Arabia consider eliminating this requi rement so as to further facilitate trade and to 
reduce the costs on traders?  
Answer  
Saudi Arabia requires a Conformity Certificate for goods imported into Sau di Arabia.  This 
requirement applies to all products, with the exception of food, feed and public health pesticides.  The 
purpose of this Certificate of Conformity is, as stat ed in Para 43, to enhance and speed-up the release 
and declaration of products exporte d to Saudi Arabia. This requirement is for a legitimate objective: 
protection of health, environmen t and safety, and the prevention of  deceptive practices.  All these 
requirements are consistent with the TBT Agreem ent.  Saudi Standards, Metrology and Quality 
Organization (SASO) signed mutual recognition programs for Conformity Certificates with 
accredited Certification Bodies in sev eral different countries.  In Hong Kong; SASO signed with TUV 
SUD, Bureau Veritas, TUV Rheinland, SGS, and Intertek.  Services – Financial Services 
 Page 77 (para. 133);  page 79 (para-s. 139 and 140) 
 
Question 4 
It is noted that in the field of cooperative insu rance, a foreign insurance company may establish a 
commercial presence in the form of a locally inco rporated cooperative insurance joint-stock company 
by obtaining relevant licences and approvals fro m the various government authorities, or as an 
established direct branch of an international in surance company.  Currently, more than 91% of 
licensed insurance and reinsurance comp anies have foreign participation. 
 Would Saudi Arabia share with us how long it tak es in general to establish a locally incorporated 
public joint-stock cooperative insurance compan y and a direct branch in Saudi Arabia? 
 
Answer 
In accordance with Article 6 of the Implemen ting Regulations of the Cooperative Insurance 
Companies Control Law, the following time frame applies: 
1. SAMA shall notify the applicant within 30 working days confirming that 
the application is complete.  Where the applic ation is incomplete, SAMA shall notify the 
applicant of any further requirements or missing documents. 
2. All incomplete and/or missing documents shall be provided within 30 
working days from SAMA's notification, otherwi se the application shall be cancelled and the 
applicant must re-submit a new application for consideration. 
3. SAMA shall notify the applicant within 90 wo rking days from the receipt of a completed 
application of its approval or rejection by providing reasons. 
 
Following SAMA's issuance of the license, further steps shall be ta ken that involve other government 
authorities.  
Services – Telecommunications and postal services 
 
Page 80 (para. 146);  and page 81 (para. 148) 
 
Question 5 
Saudi Arabia has currently undertaken broad co mmitments in telecommunications under the GATS 
and its telecommunications networ k has grown considerably during the last few years, with a 
substantial number of new companies entering the market.  How many new companies have entered 
the market since its opening in 2005?  How many of them have fo reign participation? 
 WT/TPR/M/256/Add.1 
Page 68  
 
  Answer 
The following table details the number of li censes issued by CITC since the year 2004.  
 
 2004 2005 2006 2007 2008 2009 2010 
Total 49 128 223 294 290 298 313 
 A number of these licensees have foreign equity participation.  Questions regarding th e Government Report 
 
Government procurement 
 
Page 11 (para-s. 55-56) 
 
Question 6 
Saudi Arabia revealed in the report that it had been  examining the issue of joining the Agreement on 
Government Procurement but the examination was delayed because of the unfinished negotiation by 
GPA Parties.  Now that the negotiation for a revised Agreement,  the Decisions of the Committee on Government 
Procurement as well as the coverage negotiations have been politically concluded in December 2011.  
We would therefore like to know when Saudi Ar abia would resume considering its accession to the 
(revised) GPA so as to reap the significant mark et access opportunities for its local suppliers and 
bring its government procurement system in line with the improved agreement. 
 
Answer 
The Kingdom of Saudi Arabia welcomes the successful  deal reached by parties to the plurilateral 
Government Procurement revised agreement.  The S audi national committee intends to translate the 
new agreement into the Arabic language, to study it carefully and comprehensively, and to consult 
widely both within the Government and with the private sector.  The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi 
officials a national seminar and workshop on the WT O Government Procurem ent Agreement.  This 
would greatly help us in our examination of the i ssue in the light of the new agreement.  Saudi Arabia 
has listed this request in the Annex to the Governme nt Report as a technical assistance need of Saudi 
Arabia.  We hope that this request c an be met during the first half of 2012.  
 
After the completion of the workshop and the examina tion of the new agreement by Saudi officials, a 
recommendation will be made to the ministerial committee, which will determine appropriate steps 
with respect to the commencemen t of the accession negotiations.  
 Services – Transportation  
Page 19 (para. 119) 
 
Question 7 We note from the Government Report that a mar itime trade law regulating the maritime transport 
sector is being developed.  We would like to know  the scope and details of the proposed maritime 
trade law, the latest legislative progress, and its implementation schedule. 
 Answer 
The regulations of maritime transport sector were  fragmented among different governmental entities. 
Therefore, the goal of the Saudi maritime trade law is to compile all regulations governing maritime  WT/TPR/M/256/Add.1 
 Page 69 
 
 
  trade into one coherent law. Currently the Saudi ma ritime trade law is being studied by the Expert 
Authority of the Council of Ministers for preparing an d endorsing the final draft.  Once it is endorsed 
by the Council of Ministers, it will be availabl e at the website of the Ministry of Transport. 
 AUSTRALIA 
 Secretariat Report (WT/TPR/S/256)  
Summary - paragraph 13, page ix 
 
Question 1 Has Saudi Arabia eliminated the requirement to authenticate import documentation as of 
31 December 2007?  
 
Answer 
Yes, the authentication requirement of trade docum ents at the Saudi consulate, including certificates 
of origin, invoices and related fees applicable to all exports to the Saudi Arabia was abolished under 
the Council of Ministers Decision No. 5 - b -57 611 dated 28/11/1424 AH (January 20, 2004).  A 
circular letter of the Director General of Customs No. 99 / 11 / dated 27/2/1427 AH corresponding to 
27 March 2006 AD. 
I. ECONOMIC ENVIRONMENT 
(3) TRADE PERFORMANCE AND INVESTMENT 
(ii) Foreign Direct Investment 
 
Paragraph 15, page 9  
 
Question 2 
The report states that a foreign businessperson can obtain a multiple entry visa, valid for 12 months, 
without requiring a letter of invitation from a Sa udi host or approval from the local Chamber of 
Commerce.  Could Saudi Arabia advise if this is correct?  Australia has experienced problems for businesspeople receiving a 12-month multiple-entry visa without a sponsorship letter from a Saudi 
host and the relevant Saudi Chamber of Commerce.  Answer 
Council of Ministers Resolution No. 286 con cerning "foreign businessmen may now obtain a 
multiple-entry visa" issued 5/9/1428H 17/9/2 007 is in the implementation phase.  
 
II. TRADE AND INVESTMENT REGIME 
(4) TRADE AGREEMENTS 
(ii) Regional Agreements  
Paragraph 22, page 17 
 
Question 3 Could Saudi Arabia advise on progress with their inte rnal review of Free Trade Agreements (FTAs) 
and when can a decision be expected?  
 
Answer 
The review, which the GCC Secretariat is conducting, is  at an advanced stage.  When it is finalized, 
the GCC member states will examine it in preparation for approval.  If there is a need, some further WT/TPR/M/256/Add.1 
Page 70  
 
  work may be required which may necessitate more tim e.  Thus, no expected date can be forecasted at 
this time.  III. TRADE POLICIES AND PRACTICES BY MEASURE (3) MEASURES AFFECTING PRODUCTION AND TRADE 
(i) Incentives  
 
Page 42 
 
Question 4 
Could Saudi Arabia describe the activities of the Nati onal Industrial Clusters Program (NICPD)?  We 
would appreciate Saudi Arabia's assessment of th e contribution made by the NICPD towards the 
development of industry in Saudi Arabia, in particular in the motor vehicle assembly sector. 
 
Answer 
The National Industrial Clusters Development Program  is tasked with facilitating the development of 
competitive manufacturing industries.  To achieve th is mission, the Program's primary activities are: 
coordinating with various entities to streamline a nd upgrade the services provided to industry; 
encouraging the private sector to invest in i ndustry; working with the private sector to define 
industrial human capital requirements and working w ith institutes to provide training; promoting 
industrial investment to international and national investors; facilitating work between private sector 
and technology institutes. 
 The contributions of the Program include: advis ing stakeholders on ways to diversify and add value 
to the economy; identifying the required institu tes for training the Saudi workforce; supporting 
investors with information on local conditions and suppliers; and conducti ng promotional activities 
for the industrial clusters locally and internationa lly.  For the automotive sector, the contributions 
also include coordinating with companies in setting up their projects in the Kingdom."  (ii) Competition Policy and Price Controls  
Paragraphs 85-88, page 43 
 Question 5 
Saudi Arabia appears to have competition laws s upported by executive and judicial style mechanisms, 
being the Competition Law, Competition Council and Saudi Arabia's Courts and Judiciary 
respectively, though it is not clear in the report.  Is Saudi Arabia able to clarify how active and 
effective these mechanisms  are?  For example, the Competition Law is said to prohibit mergers and 
acquisitions that distort the competitive structure of  the market, however it would be interesting to 
know how many merger applications the Competitio n Council generally consid ers and/or rejects on 
an annual basis.  
 
Answer 
The Council has a semi-judicial committee that considers, as per the law, any cases referred thereto in order to issue an innocence or condemnation award. 
1- The law does not prohibit the mergers or acquisitions unless they are proved to affect the mechanism of the market. 2- There are only (4) applications  for merger and acquisition submitted to the Council.  
 
Would Saudi Arabia be able to provide statistics on the number of instances in which penalties were 
imposed for violations of the Competition Law, or  examples of times when the Competition Council 
has acted (perhaps through the Court System) to take action to safeguard the competitiveness of markets in Saudi Arabia?  WT/TPR/M/256/Add.1 
 Page 71 
 
 
  Answer 
To date, the Council, through the Consideration Comm ittee, has not imposed any  penalties. However, 
there are certain cases under consideration pend ing judicial rulings to be issued. 
 
Saudi Arabia's Competition Law does not apply to pub lic or wholly state-owned enterprises.  Is there 
any consideration of the Competition Law being ex tended to apply to such entities in the future, 
especially given what appears to be a high level of state participation in the economy of Saudi Arabia? 
 
Answer 
Saudi Arabia does not agree that the reference d aspect of its Competition Law constitutes 
discrimination against other enterprises.  State-owne d enterprises in the Kingdom are subject to the 
commitment embodied in paragraph 52 of the Kingdom 's Working Party Report to act in accordance 
with commercial considerations.   
Paragraph 89, page 44 
 Question 6 
There appears to be a relatively high level of pri ce regulation in Saudi Arabia.  Is Saudi Arabia 
intending to undertake price deregulation in any of the sectors currently regulated? 
 
Answer 
The prices of goods and services listed in Annex A of the Working Party Report of the Kingdom of 
Saudi Arabia are consistent with WTO requirements . For further details please refer to KSA Working 
Party Report Para 26-37.  
It is noted that the Competition Council can  impose penalties on companies that breach the 
Competition Law, and a company has a right of app eal to a Board of Grievances.  Given issues 
regarding separation of powers, is Saudi Arabia able  to clarify whether the Board of Grievances is a 
judicial or administrative body?  What rights of appeal are generally available for companies whose 
actions the Competition Council has restrained/sanctioned? 
 
Answer 
The Board of Grievances is an administrative c ourt (administrative judiciary), and until now the 
Council did not issue any decision through the Co nsideration Committee.  Consequently no appeals 
have been filed before the Board of Grievances.   (iv) Intellectual Property Rights  
 Pages 48-51 
 
Question 7 
Does Saudi Arabia intend to accede to the WIPO Copyright Treaty and/or the WIPO Performances 
and Phonograms Treaty?  If so, what is the likely timeframe for accession? 
 Answer 
IPR treaties, including WCT & WPPT, are being revi ewed by the IPR Standing Committee to evaluate 
the pros and cons of acceding to them.  At th e time of accession, all Saudi Arabian IPR laws and 
regulations were brought in line with the obligations set out in the TRIPS Agreement.  In 2007, the 
TRIPS Council reviewed all legislation related to IP R in Saudi Arabia ensure full compliance with the 
provisions of the TRIPS Agreement. 
How does Saudi Arabian law protect computer-gen erated works such as non-original databases? WT/TPR/M/256/Add.1 
Page 72  
 
  Answer 
Article 3(5) of the Saudi Copyrights Law states that "this Law shall also protect:  databases, whether 
they are mechanically readable or can be read in any other manner, if they are creative as to 
selection or arrangement of their contents."  
Has Saudi Arabia ever issued a compulsory license for integrated circuits?  If so, what were the 
circumstances?  If not, under what circumstances would this occur? 
 
Answer 
No compulsory licenses were issu ed for integrated circuits.  
 
A compulsory license may be issued for the paten t of semiconductor technology to satisfy public 
demand with the condition that the license will not be used for commercial or unlawful activities. 
Articles 24, 26, 27, 28, 29, 30 and 31 of the Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and Industrial Designs provides for all the conditions and requirements related to 
compulsory licenses. 
 
Does the Ministry of Culture and Informati on commence enforcement action on requests from 
copyright owners? 
 
Answer 
Yes, Article 18.1 of the Saudi Copyrights Law provid es that "detection of violations of provisions of 
the Law and the Regulations shall be carried out in any of the following cases:  pursuant to a 
complaint or written notice filed by owne rs of the right or their representatives." 
 
Are there any intellectual property enforcement ( both civil and criminal) statistics available? 
 Answer 
The Saudi Government conducted 2,000 raids and inspected  5,000 outlets.  It also reported seizure of 
3.83 million units of pirated products.  Violation Review Committee VRC branches were established 
in Jeddah and Dammam.  Moreover, the VRC incr eased administrative penalties, including some 
cases involving the maximum penalty of SR 100, 000.  These efforts were carried out in 2009. 
 
In 2010, raids of street vendors continued actively.  The VRC improved its workflow and transparency 
by allowing rights holders to attend its meetings  and to submit comments on the final decision and 
penalties.  The website of the Copyrights Office is open to the right holders to follow-up on their 
cases.  The website was updated with cases pertaining to 2010. 
 Does Saudi Arabian law contain provisions to prot ect and facilitate the digital economy such as ISP 
safe harbours and/or provisions concerning the circ umvention of technological protection measures? 
 
Answer 
The question is not sufficiently clear for us to pr ovide an appropriate response;   Saudi Arabia would 
welcome further clarification from the Government  of Australia, including examples of applicable 
legislation in Australia.   
Is the violation of trade secrets a significant issu e for Saudi Arabian businesses?  If so, what are the 
existing legislative protections available?  Answer 
Saudi Arabia recognizes the importance of the protection of trade secrets.  Accordingly, trade secrets are protected under the "Regulation for the Prot ection of Confidential Commercial Information". 
  WT/TPR/M/256/Add.1 
 Page 73 
 
 
  Does Saudi Arabia have any enforcement activities related to online copyright infringement (i.e. 
illegal file sharing or unauthorized  downloading)?  Are there any statistics on the scale or extent of 
this kind of activity in Saudi Arabia?  
Answer 
Any right holder suffering damages from online copyri ght infringement (i.e. illegal file sharing or 
unauthorized downloading) is entitled to file a compla int before the copyrights office in the Ministry 
of Culture and Information.  The complaint will be  referred to the VRC who will decide on the matter. 
If the VRC decides that the complaint is valid , the right holder can submit the decision to the 
Communication and Information Technology Commissi on which will block the website;  in cases 
where the IP Address exists in Saudi Arabia, the Cop yrights office will take the necessary steps in this 
regard in accordance with the copyrights law.  There are no official statistics on the scale and exten t of this kind of activ ity in Saudi Arabia. 
 
Are there any reported figures on the impact of copyright infringement on Saudi Arabia's economy 
and relevant industries? 
 
Answer 
Protection of intellectual property rights is import ant in Saudi Arabia like any other country.  Such 
protection ensures better investment climate, encourages research and attracts technologies. 
Saudi Arabia is fully aware of the negative impacts  of copyright infringement on the economy, even 
though official statistics on such impact do not exist.  To this end, Saudi Ar abia has enhanced its IPR 
enforcement through raids and legal actions.  IPR la ws and regulations are enforced strictly with 
severe penalties imposed to deter violators.  
IV. TRADE POLICIES BY SECTOR 
(1) A
GRICULTURE AND RELATED ACTIVITIES  
Page 53 
 
Question 8  
Australia notes and welcomes the significant reforms to agricultural policy and marketing 
arrangements over a number of years as Saudi Arabia has sought to reduce the opportunity cost of 
previous domestic support polici es and continued its efforts to fully integrate itself with the 
international agricultural market.  Does the Saudi Government plan to continue to review applied 
tariffs as part of this process? 
 
Answer 
The Kingdom of Saudi Arabia already has low applied tariffs on a wide range of products.  Moreover, 
in 2009, the Government has undertaken many proce dures to address food crises situations.  One of 
them was the decision to lower tariffs on 180 goods, most of which are agricultural. 
 ARGENTINA 
 
Report by the Secretariat (WT/TPR/S/256) 
 
I. ECONOMIC ENVIRONMENT 
(1) M AJOR FEATURES OF THE ECONOMY  
 
Paragraph 3 states that since the mid-1990s, Saudi  Arabia has been implementing a development 
strategy, accompanied by structural reforms,  to reduce its high de pendence on crude oil. WT/TPR/M/256/Add.1 
Page 74  
 
  Would Saudi Arabia please detail what specific m easures have been taken to implement structural 
reforms to create a more business-friendly environment? 
 
Answer 
Business Environment 
 
The Kingdom adopts a comprehensive business-en vironment development strategy, based on 
integrating institutional and regulatory developmen t of government agencies, especially those 
relating to private sector activities, with oth er efforts to create an investment climate.  
 
The pace of implementation of electronic transac tions has been accelerated, and the e-government 
initiative was launched.  These measures were rein forced through the issuance of several regulations 
and rules, such as the Corporate Governance Regula tions, the Investment Funds Regulations, and the 
Mergers and Acquisitions Regulations.  
According to the Doing Business report issued by the International Finance Corporation (IFC) of the 
World Bank, the Kingdom has made remarkable prog ress in improving the business environment.  It 
jumped from 35
th among 175 states in 2006, to 24th among 181 in 2008.  The Kingdom continued to 
improve its ranking further, and in 2009, it reached 15th among 181 countries;  in 2010, 12th among 
183 countries, and in 2011, 11th among 183 countries.  
 
The Private Sector and the Privatization Strategy 
 Council of Ministers Resolution 219 of 11/11/2002 list ed the facilities and activities to be privatized. 
Several important developments followed, the most important of which was a Council of Ministers 
Resolution in 2004 that offered for public subscription all state-owned shares in the National 
Company for Cooperative Insurance, whic h amounted to 50% of total shares. 
 In 2006, studies of privatization of the Salin e Water Conversion Corpor ation were completed and 
implementation of the transitional phase started: a plan for implementing the requisite organizational 
structure and administrative, financial and le gal procedures was drawn, and a timetable for 
implementation set.  The private sector was also al lowed to contribute to electricity generation and 
transmission services, under the umbrella of the Sa udi Electricity Company, which has attracted 
investments in important power generation projects,  such as Rabigh on the Red Sea coast, and the 
eleventh generation plant in Riyadh.   In 2007, privatization contracts for a number of port facilities were completed, such as the general 
cargo and the bulk grain terminals at King Fahd Indus trial Port, as well as the container terminal 
and cargo berths at Jubail Commercial Port.  In addition, the northern and southern support 
terminals at Jeddah port and the cargo terminal at Yanbu Commercial Port were leased.  Likewise, the Saudi Industrial Property Authority began implemen ting the privatization of industrial cities, by 
allowing the private sector to implement project s to develop and expand these cities, as well as by 
privatizing the support services therein.  
 
Currently, privatization plans for Saudi Arabian Airlin es are being finalized, and the private sector is 
operating the free markets in the international air ports.  Telecommunications have been given over to 
a Saudi joint-stock company and the sector has been  opened up for competition, while conversion of 
the railways to a Saudi joint-stock company also is underway. 
 
(2) R
ECENT ECONOMIC DEVELOPMENTS  
 
Paragraph 4 mentions fiscal stimulus measu res that limited the impact of the crisis.  WT/TPR/M/256/Add.1 
 Page 75 
 
 
  Would Saudi Arabia please specify which sector s have benefitted from this fiscal stimulus 
programme? 
 
Answer 
Saudi Arabia announced on 22 December 2008 a SR  475 billion (US$126.7  billion) economic 
stimulus budget for the year 2009, allocating mo re money for education and increasing public 
spending by 15.8% (SR 65 billion)  As part of the year 2009 overall budget of SR 475 billion, there has been allocated a record SR 225 billion for new projects and SR122 billion wa s slated for education, training and scholarship. 
 
The countercyclical fiscal policies adopted by Saudi Arabia, coupled with the fiscal stimulus plan 
provided towards infrastructure enabled Saudi Arab ia to post real GDP growth of 0.6% for 2009 
despite a sharp drop in oil prices.  
With the fiscal stimulus plan of the public in vestment program worth US$37 3 billion in public sectors 
and oil sectors budgeted for 2011-2014, the Saudi economy will benefit from  the fiscal stimulus plan. 
Saudi Arabia's economic stimulus  programme was aimed at strengthening the capabilities of the 
economy, increasing the oil production capac ity and developing the infrastructure.  
 (4) O
UTLOOK  
 
The Report includes comments on Saudi Arabia's po licy aimed at increasing the Saudi labour force 
employment rate.  In particular , paragraph 20 details the objectives and goals of the "Saudization" 
programme.  
Would Saudi Arabia please elaborate on what would be the situation of international firms, should 
they be unable to meet the percentag es set for employment of Saudi nationals? 
Answer  
The Kingdom's policy aimed at increasing the Saudi labour force employment rate will not affect the 
ability of global investment fir ms to hire non-Saudi nationals.  
 With regard to paragraph 20. 
 Would Saudi Arabia please specify how and what me asures it intends to take in order to accelerate 
growth in non-oil sectors? 
 
Answer 
Despite the differing conditions of the non-oil sect ors and their varying levels of performance under 
the Eighth Development Plan (2005-2009), they all s hared a strong direct relationship between the 
rate of growth of investment and the rate of growth  of value added.  Sectors that had high rates of 
investment growth experienced the highest growth in value added, irrespecti ve of whether they were 
production or service sectors.  Accelerating the ra te of investment in a sector lead to expansion and 
enhancement of its productive capacities, as well as to enabling it to use modern technologies and to 
adopt advanced management systems capable of eleva ting partial and total factor productivity;  all of 
which resulted in continuous improvem ent of value added, and hence, acceleration of growth rates.  
The higher rates of investment under the Ninth D evelopment Plan (2010-2014) are anticipated to 
result in employing capital-intensive production methods that rely on modern, highly productive 
technologies. 
 The value added of "other manufacturing industr ies" during the Ninth Development Plan (2010-2014) 
is expected to grow at a compound annual growth rate of 7.6%, compared with 6.8% under the WT/TPR/M/256/Add.1 
Page 76  
 
  Eighth Plan.  To realize that, it is envisaged that  both investment and employment in these industries 
would grow at compound annual growth rates of about 15.3% and 0.3%, respectively.  The construction sector is expected to grow at a co mpound annual growth rate of 7.2% in the sector 
compared with 4.7% under the Eighth Plan.  To rea lize these growth rates it is envisaged that both 
investment and employment in construction would grow at compound annual growth rates of about 
23.7% and 1.3%, respectively.   Also in the Service Sectors, an acceleration of growth rates will be realized by the growth in 
investment and employment in these sectors. 
 
Besides growth of investment and employment, th e Kingdom of Saudi Arabia takes steps to support 
competitiveness and the increase of  labor productivity through government efforts aimed at 
expanding and developing training and skill–buildi ng programmes; improv ing management and 
organization techniques;  expanding utilization of information and communications technology (ICT) 
in all sectors;  encouraging research, development and innovation; encouraging private-sector 
establishments to develop their technological research and development capabilities;  helping to improve the competitiveness of national products in domestic and international markets;  and to 
increase productivity of all factors of production as well as to achieve optimum utilization of 
resources.  
II. TRADE AND INVESTMENT REGIME 
(4) T
RADE AGREEMENTS  
(ii) Regional agreements 
(a) Gulf Co-operation Council (GCC) 
 
Paragraphs 17 to 22 refer to the measures adopted  in the framework of the GCC, of which Saudi 
Arabia is a member.  Pursuant to the decisions adopted at the Summit of Heads of GCC States in 
Riyadh in December 2011, preliminary steps have been taken for Jordan and Morocco to join 
the GCC.  How does Saudi Arabia hope to infl uence the transition process that w ill begin with the entry of these 
two countries in order to preserve the essential as pects of the regional agreement by harmonizing 
tariffs in a WTO-consistent manner? 
 
Answer 
Possible fields of cooperation between GCC countries and the above mentioned countries are 
currently being considered.  
 
With regard to paragraph 15: 
 Would Saudi Arabia please provide further details regarding the notifications outstanding for 2011? 
 
Answer 
Saudi Arabia has recently submitted all outstanding notifications, in order to fulfill the WTO's 
notification and transparency requirements. 
 
(5) I NVESTMENT FRAMEWORK  
 Paragraph 26 states that foreign investment may take the form of an enterprise wholly owned by 
foreign investors.   WT/TPR/M/256/Add.1 
 Page 77 
 
 
  What would be the channels of appeal (for example administrative or judicial) available to investors 
in the case of enterprises wholly owned by foreign investors? 
 
Answer 
Please refer to KSA Working Party Report, Para. 82. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) M EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Standards and other technical requirements 
 Paragraph 42 mentions that the Gulf Standard s Organization (GSO) is responsible for the 
development of technical standards.  However, fro m 1 July 2011 technical regulations and standards 
related to food, feed, pesticides, cosmetics, and medical devices were transferred to the Saudi Food 
and Drug Authority (SFDA). 
 
Would Saudi Arabia please state the reasons for this measure? 
 
Answer 
SFDA has been established by Royal Decree to unify  and improve regulations and legislation on food, 
feed, pesticides, cosmetics, and medical devices in Saudi Arabia, whereas GSO is GCC entity.  Any 
GSO standard and technical regulation needs to be  adopted by each GCC government as national 
standard and technical regulation. 
 (2) M
EASURES DIRECTLY AFFECTING EXPORTS  
(iv) Export subsidies, finance, insurance, and assistance 
 Paragraph 72 lists the main entities aiming to e xpand non-oil exports, including the Saudi Export 
Programme (SEP).  Would Saudi Arabia please state the requirements for exporters to be eligible for credit under this 
programme?  Answer 
Basic requirements for exporters to be eligible for SEP support include: 
 Exports must be Saudi origin (Made in Saudi Arabia). 
 SEP does not support exports of prohibited goods or crude oil. 
 Sufficient securities and collaterals have to be obtained by SEP. 
 Audited annual reports (financial statements ) of exporters, importers and guarantors have to 
be submitted to SEP. 
 All necessary legal and trade documents/registr ation are submitted to SEP for exporters, 
importers and guarantors. 
 
IV. TRADE POLICIES BY SECTOR (3) M
ANUFACTURING  
(i) Overview 
 
Paragraph 97 states that the Saudi Industria l Development Fund (SIDF) contributes to the 
development of the Saudi industry by providing loans to finance new industrial projects. 
 
Would Saudi Arabia please indicate what types of  industrial project have  been approved and the 
amounts disbursed to this end?  WT/TPR/M/256/Add.1 
Page 78  
 
  Answer 
SIDF has approved for industrial loans for 87,391 milli on of Saudi Riyals since its establishment.  See 
Table 2 of page 44 of SIDF Annual Report of the calendar year 2010 for the distribution of this amount across the approved industrial sectors.  http://www.sidf.gov.sa/En/MediaCenter/ Documents/Annual_Report_2010_En.pdf. 
 
TURKEY 
 Report by the Secretariat (WT/TPR/S/256)  
 (I) ECONOMIC ENVIRONMENT  
 
Foreign direct investment 
 
Paragraph 15, page 9 
With regard to foreign direct investment policies,  the Secretariat report underscores the improvements 
in the business environment of Saudi Arabia.  In th is respect, it is stated that, "the minimum capital 
requirement for starting a business (SAR 500,000) had been removed on 16 July 2007, and foreign 
businessmen would obtain a multiple-entry visa, vali d for 12 months, without requiring a letter of 
invitation from a Saudi host or approval from the local Chamber of Commerce."   Question 1 
However, as we understand from the reports of Turkish businessmen, minimum capital requirements 
(ranging from SAR 2 million to SAR 20 million) defi ned in the Foreign Investment Law dated 2000 
and its Implementation Regulations ha ve a deterrent effect on foreign investments.  In this respect, 
could the Saudi Arabian Government clarify if minimum capital requirements for starting a business 
in all sectors are removed?  If not, given that Saudi  nationals are not required to obtain investment 
licenses and are not subjected to burdensome mini mum capital requirements; do the Saudi authorities 
have any reform plans to ease the requirements on foreign investments?   
Answer 
In the past, there was a minimum capital investment  requirement of SAR 25 million for agricultural 
projects, SAR 5 million for industrial projects and SAR 2 million for services projects.  However, 
Saudi Arabia removed these requirements by applyi ng national treatment pursuant to SAGIA Board 
of Directors Decision No. 1/44 of 19 April 2005, except as noted in Saudi Arabia's Schedule on Specific Commitments in Services.  
Question 2 
In addition, could the Saudi Arabian Government confirm that, foreign businessmen- including those 
who do not have any establishment in Saudi Arabia but  engaging in business visits for the purpose of 
making investments or seeking to enter into services sales negotiations or contracts- irrespective of 
their nationality, would obtain a multiple-entry visa, valid for 12 months, without a letter of invitation 
from a Saudi host or approval from the local Chamber of Commerce?   Answer 
Council Of Ministers Resolution No. 286 concer ning "foreign businessmen may now obtain a 
multiple-entry visa" issued 5/9/1428H (17/9/2007), is in the implementation phase.  
Labor and employment policies 
 Paragraph 20, page 10-11 
Concerning the employment policies of Saudi Arabia, the Secretariat Report notes that "given that the 
oil sector is not labour-intensive, and increasing public sector employment is not sustainable in the  WT/TPR/M/256/Add.1 
 Page 79 
 
 
  long-run, Saudi Arabia is trying to  enhance the employability of nati onals by reducing the educational 
mismatch between Saudis' qualifications and pr ivate-sector needs through the "Saudization" 
programme."   
Question 3 
Could the Saudi Arabian Government elaborate on the specifics of the "Saudization" programme? 
Given that restrictions on the employment of qua lified foreign personnel may have negative impacts 
on investment decisions;  do the Saudi authorities fo resee contractions in foreign investments due to 
this policy?    Answer 
There is no contraction in foreign investment due to this policy, and it is consistent with Saudi 
Arabia's Mode 4 commitments under the GATS.  
 
Report by the Secretariat (WT/TPR/S/256)  
 
Summary 
 
Trade Policy Instruments 
 
Paragraph 13, page ix 
As stated in the Secretariat report, "the use of a Saudi commercial agent is required only to import or 
export agricultural machinery."  
Question 4 
Could Saudi Arabia explain the reasoning behind this requirement? 
 
Answer: 
This requirement is in place in order to ensure (i) the agricultural machin ery's compliance with the 
standard and specifications approved by the Ministry  of Agriculture to be suitable for the Kingdom's 
environment and (ii) to bind the agent to prov ide maintenance services centers and spare parts and 
all other necessary services, since these services can only be provided by authorized agents. 
 
I. ECONOMIC ENVIRONMENT  
 
Paragraph 16, page 10 As stated in the Secretariat report, "on the basis of UNCTAD's Inward FDI Performance Index, Saudi 
Arabia ranked 17
th out of 141 economies in 2009 (55th in 2007).  Saudi Arabia was 29th in UNCTAD's 
Inward FDI Potential Index in 2008 (the same as in  2007), which reflects, in general, inhibited FDI 
since foreign companies still face inv estment restrictions in certain activities, including fisheries and 
oil exploration/drilling/production."  
Question 5 
Could Saudi Arabia identify the types of investment restrictions that foreign companies still face in 
the country?  Are the restrictions planned to be eased as part of future development plans? 
 
Answer 
Foreign investment is permissible in all activ ities, except those which are included in a short 
"Negative List".  A full list of economic activitie s in which foreign investment is currently not 
permitted can be found in the Secretariat Repor t (p. 19).  The Supreme Economic Council of the 
Kingdom periodically reviews the Negative List.  Saudi Arabia strives to attract foreign investment in order to facilitate innovation and economic development.  The investment climate (rules, regulations, 
incentives, etc.) in the Kingdom is continuously impr oving to attract foreign investors of all types, WT/TPR/M/256/Add.1 
Page 80  
 
  consistent with the WTO agreements and other investment agreements to which Saudi Arabia is a 
party.  It should also be noted  that national and internationa l energy services companies are 
contracted to do the required exploration, drilling an d oil field services work in the oil and gas sector.  
 IV. TRADE POLICIES BY SECTOR 
 
Paragraph 92, page 70 In the Secretariat report it is stated that "Saudi Ar abia considers many of its industries to be emerging 
industries, struggling to become internationally co mpetitive, particularly in the context of Saudi 
Arabia's low tariff levels.  Saudi Arabia is seeking to set standards (e.g. technical, safety, quality) or 
improve such standards to attract more local and foreign industrial investments." 
 
Question 6 
Could Saudi Arabia provide further information on those standards? How will those standards be 
utilized to attract more local a nd foreign industrial investments? 
 
Answer 
Standards are documents approved  by a recognized body, that provide for common and repeated use, 
rules, guidelines or characteristics for products  or related processes and production methods.  If 
industries produce products according to Saudi standards which are based on international standards, then their products will be accepted and compete all over the world.  This means better 
business and profits and will attract loca l and foreign industrial investments. 
 
Paragraph 104, page 72 
The Secretariat report states that, "in 2009, Ma'ade n announced a joint venture with Alcoa to establish 
an integrated aluminium production plant using Sa udi Arabia's advantages in feedstock, and raw 
miner materials.  The facility will be constructed in  RazAzZawr on the east coast.  The joint venture is 
intended to be a lowest-cost supplier of primary aluminium, alumina and aluminium products.  The 
project will eventually be a fully-integrated industr ial complex, starting from a bauxite mine with an 
initial capacity of 4,000,000 tonnes per year;  an alum ina refinery with an initial capacity of 1,800,000 
metric tonnes per year (mtpy);  analuminium smelter with an initial capacity of ingot, slab, and billet 
of 740,000 mtpy; and a rolling mill, with initia l hot-mill capacity of between 250,000 and 460,000 
mtpy." 
 
Question 7 
Could Saudi Arabia provide a general assessmen t on the potential spill-over effects of the new 
production plant on other sectors such as automotive, wh ere aluminum sheets are used as part of the 
production process?  Moreover, based on an evaluation, if there exists one with respect to the planned 
capacity building, approximately how much of it would likely to be directed to exports?  
Answer 
Spill-over effects, for example the use of alumin um sheets in the assembly of automobiles, would 
depend on the growth of consum ing industries in Saudi Arabia's conversion sector.  The Saudi 
Government considers that the prospects for growth in this value-added sector are promising.  None 
of the output of the new production plant is directed to exports. 
  WT/TPR/M/256/Add.1 
 Page 81 
 
 
  Report by the Government (WT/TPR/G/256)  
 
II. ECONOMIC DEVELOPMENT 
 
Paragraph 26, page 8 
The Government report states that "according to the Foreign Investment Law, a foreign investor may 
apply for multiple licenses permitting different activities,  provided that the foreign investor is not the 
owner of /or a shareholder in a project which is or has in financial default." 
 
Question 8 
Could Saudi Arabia provide inform ation on for how many licenses a foreign investor is allowed to 
apply at a time, and for how long these licenses are valid?   
Answer 
The Foreign Investment Law Article (4) stated that  "subject to article (2) the foreign investor may 
obtain more than one license in different activities"  and the license validity is one year for the 
services sector and two years for the industrial sector.  
 
III. TRADE POLICY DEVELOPMENTS 
 
Paragraph. 34, page 9 
It is stated in the Government report that "although the bound tariff commitments of the GCC 
Member States towards the WTO are different, all the GCC member States have harmonized its applied tariffs in order to create unified external customs tariff."   
Question 9 
Could Saudi Arabia elaborate on whether harmonize d applied tariffs of the GCC member States are 
published and whether there are waivers for some countries?   
Exports and Free Zones  
 
Paragraph 47, page 10 
It is indicated in the Government report that "no free zones exist in the territory of Saudi Arabia." 
 
Answer 
Yes the harmonized applied tariffs are publis hed and there are waivers for some countries. 
 
Question 10 
Could Saudi Arabia give information on whether ther e is a future plan for establishing such zones and 
the reasoning behind not having established exports and/or free zones so far? 
 
Answer 
No free zones exist in the Kingdom and currently there is  no decision taken so far in this regard.  This 
is due to the free open market policy adopted by the Kingdom and the very low tariff rates applicable 
in this respect. 
 
Government procurement  
 Paragraph 54, page 11 
It is explained in the Government report that " government procurement is regulated under government 
tenders and the procurement law which was en acted by Royal Decree No. M/58 of 4.9.1427 H 
(September 2006) which aims at:  WT/TPR/M/256/Add.1 
Page 82  
 
  -Regulating procedures of tenders  and procurements carried out by government authorities and 
ensuring they are not influenced by personal interest in order to protect the public funds; -Achieving maximum degree of economic efficiency  in government procurements and carrying out 
government projects at fair competitive prices; -Promoting honesty and competition and ensuring fa ir treatment of suppliers and contractors in 
accordance with the principle of equal opportunities; 
-Guaranteeing transparency at all stages of government tender and procurement procedures." 
 
Question 11 
Could Saudi Arabia elaborate on how is the transp arency ensured in government procurements?  
 
Answer 
The Kingdom of Saudi Arabia government procurem ent is regulated under government tenders and 
the procurement law which was enacted by Royal Decree No. M/58 of 4.9.1427 H (September 2006) 
which aims at:  
(i) Regulating procedures of tenders and proc urements carried out by government 
authorities and ensuring they are not influen ced by personal interest in order to 
protect the public funds; 
(ii) Achieving the maximum degree of economic efficiency in government procurements 
and carrying out government projects at fair competitive prices; 
(iii) Promoting honesty and competition and en suring fair treatment of suppliers and 
contractors in accordance with the principle of equal opportunity; 
(iv) Guaranteeing transparency at all stages of government tender and procurement 
procedures. 
I. All government works and procurement are off ered for in public tender except for those 
exempted under the provisions of the Tender and Procurement Law. Article 6 of the Law 
states: 
"All government works and procurement are put  for in public tender except for those 
exempted under the provisions of this Law".  
II. All government tenders are announ ced in the Official Gazette (Um Al-Qura), in two local 
newspapers and by electronic means of advertisement. Article 7 (a) of the Law states: 
"All government tenders shall be announced in the Official Gazette, in two local 
newspapers and by electronic means of ad vertisement in accordance with the 
Implementing Regulations of this Law.  The bid submission date and the sealed-bid opening date as well as places thereof s hall also be specified in the tender 
announcement". 
III. Article 10 (d) of the Implementing Regulation of the Law states: 
"The announcement of the tender shall in clude clear and comprehensive information 
about the works announced and shall at least include the following: 
- Name of the advertising authority. 
- Number, description and purpose of tender. 
- Scope of classification. 
- Price of documents and place of sale. 
- Time and place of submission and opening of bids".  
IV. The Committee announces to the bidders or their representatives present in the opening 
 session, the name of the bidder, his total pr ice and any increase or decrease thereon in the 
 original bid.  Article 27 (b) of the Regulation states: 
 "The Committee shall announce to the bidd ers present or their representatives, the name 
 of the bidder, his total price and any increase or decrease thereon in the original bid 
 letter". 
V. Government authorities invited to the tender announce the results of public tenders and 
government procurements for which they cont racted and whose values exceed (SAR 100.000) 
one hundred thousand riyals.  Article 74 of the Law states:  WT/TPR/M/256/Add.1 
 Page 83 
 
 
   "Government authorities shall announce th e results of public tenders and government 
 procurements which they contract for their execution and whose values exceed one 
 hundred thousand riyals.  The Implementing Regulations shall determine the  announcement method and procedures". 
VI. An excluded bidder is informed of the gr ounds for exclusion by an official letter upon his 
 request. Article 40 of the regulation states: 
 "An excluded bidder shall be informed of th e grounds for exclusion by an official letter 
 upon his request". As for whether there is an action plan for making any amendments on the existing Government Tenders and Procurement Law, th ere is always a possibility to amend any 
provisions of the law if needed. 
 
Paragraph 55-56, page 11 It is stated in the Government report that Saudi  Arabia is carefully considering the issue of 
participating in the WTO Agreement on Govern ment Procurement, "however, the Kingdom's 
examination has been adversely affected and thus delayed because of the following factors: 
-The revised Agreement on Government Pr ocurement has not yet been finalized; 
-The Draft Decisions are yet to be agreed upon and finalized; -A successful conclusion of the negotiations among party Members on the revised text has not been 
reach yet.  Such a conclusion would give all concerned Government agencies the opportunity to set the stage for the next steps." 
 
Question 12 
Considering the revision of this Agreement has been finalized during the VIII
th Session of the WTO 
Ministerial Conference, Turkey would like to ask if  Saudi Arabia would reconsider her participation 
into the WTO Agreement on Government Procurement?  
 
Answer 
The Kingdom of Saudi Arabia welcomes the successful  deal reached by parties to the plurilateral 
Government Procurement revised agreement.  The S audi national committee intends to translate the 
new agreement into the Arabic language, to study it carefully and comprehensively, and to consult 
widely both within the Government and with the private sector. 
The Kingdom of Saudi Arabia would be grateful if the WTO Secretariat could organize for Saudi 
officials a national seminar and workshops on the WTO Government Procurement Agreement.  This 
would greatly help us in our examination of the i ssue in the light of the new agreement.  Saudi Arabia 
has listed this request in the Annex to the Governme nt report as a technical assistance need of Saudi 
Arabia.  We hope that this request c an be met during the first half of 2012.  
 
After the completion of the workshop and the examina tion of the new agreement by Saudi officials, a 
recommendation will be made to the ministerial committee, which will determine appropriate steps 
with respect to the commencemen t of the accession negotiations.  
 
IV. SECTORAL DEVELOPMENTS  
 
Paragraph 67, page 13 In the 67
th paragraph of the Government report, it is  noted that the Kingdom of Saudi Arabia 
Government issued a Resolution No. 335 on 19 November 2007 aiming to phase out local wheat 
production within 8 years and import all wheat from abroad  by 2016.  It is further understood that this 
new practice is a part of the government's ne w agricultural policies for restructuring domestic 
agricultural sector.   WT/TPR/M/256/Add.1 
Page 84  
 
  As it is well known, volatility in commodity prices is one of the most urgent problems of global 
economy as price hikes of main agricultural products continue in a manner threatening food security. Increasing agricultural production and productivity is  essential to promote food security and foster 
sustainable economic growth.  In this regard, at  the Cannes Summit, G-20 countries, including Saudi 
Arabia, decided to, among others; invest in research  and development of agricultural production and 
productivity.  The so called "International Resear ch Initiative for Wheat Improvement (Wheat 
Initiative)" is the concrete indication of this determination among G-20 countries.  Taking into 
account the fact that wheat is one of the core crops constituting the predominant basis of human 
nutrition worldwide and that Saudi Arabia as one of the G-20 countries, support this Initiative. 
 Question 13 
Could Saudi Arabia evaluate its new agricultural policy in light of above mentioned G-20 Wheat 
Initiative.    
Answer 
Saudi Arabia, as a member of G-20, supports th e "Wheat Initiative" from a global concern 
perspective.  In contrast, the new agricultural poli cy in Saudi Arabia is ma inly based on the current 
status of natural resources, especially water, whic h in recent years has been the main constraint to 
agricultural development in Saudi Arabia. 
 
Paragraph 68, page 13 
The Government report states that "King Abdulla 's Initiative for Agricultu ral Investment Abroad 
emerged to achieve food security on national an d international levels by building integrated 
partnerships with countries that have the potential to develop and manage agricultural investments to 
ensure sufficient quantities and stable prices for im portant crops.  King Abdullah's Initiative is meant 
to provide mutual benefits to Saudi Arabia a nd the country which receives Saudi's investment." 
Question 14 
Could Saudi Arabia provide information on with which countries Saudi Arabia cooperated regarding 
this issue up until now and for which crops?  Accord ing to which criteria are the partners and crops 
are determined? 
Answer 
Countries with which Saudi Arabia cooperated regar ding this issue and which were targeted for 
agricultural investment are:  Ukraine,  Senegal ,  India, China, Mali, Canada, Turkey, Ethiopia, 
Poland, Russia, Cambodia, Sudan, Indonesia, Viet Nam, Philippine, Tanzania, Kazakhstan, 
Turkmenistan, Uzbekistan, Kyrgyzstan, Romania, Brazil, Argentine, Kenya, Egypt and Uruguay. 
The crops at issue are all strategic crops, such as  wheat, barley, corn, soybeans, sugar, rice, animal 
feed, livestock, and fisheries 
The choice of investments is made by the Saudi priv ate sector, which is the real investor.  The Saudi 
Government will not provide direct invest ment;  instead it will provide support. 
The main criteria for selecting a count ry for agricultural investment are: 
 Availability of resources. 
 Attractive FDI rules and regulations. 
 Political stability.   
The criteria for selecting targeted countries for agricultural investment include the following: 
 Selecting countries with good agricultural pot ential and attractive investment regulations.  WT/TPR/M/256/Add.1 
 Page 85 
 
 
  Report by the Secretariat (WT/TPR/S/256)  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) M EASURES DIRECTLY AFFECTING IMPORTS  
(v) Contingency trade remedies 
 
Page 31, paragraph 35 WTO Secretariat's Report states that the GCC finally  reached the last step on amendment of the GCC 
Common law on Anti-dumping, Countervailing and Safeguard Measures in December 2010. 
 
Could Saudi Arabia kindly elaborate more on the progress of adopting and notifying its new 
regulation to the WTO, i.e. approximate time of  its publication in the Official Gazette and the 
language of its publication?  
Answer 
The amended GCC Common Law is in the process of ratification by the Saudi national authorities 
and will be published in the Saudi Official Gaze tte.  Saudi Arabia expects that the ratification 
procedures will end very soon then the amended GCC Common Law will be  translated into English to 
be notified to the WTO. 
 
INDONESIA 
 III. TRADE POLICIES AND PRACTICES BY MEASURES 
 
Measures Directly Affecting Imports 
 
Government Procurement 
 
As noted in the report by Secretariat, Saudi Arab ia employs mostly open tendering procedures, such 
as:  selective tendering, limited tendering, and single tendering.  Foreign suppliers that participate in 
government procurement are required to register  with the Saudi Arabian General Investment 
Authority (SAGIA) and also establish a training program for Saudi Nationals.  
 
Question 1 
Could Saudi Arabia explain what is the minimu m tender for foreign suppliers in establishing a 
training program for Saudi Nationals?  (Referred to Document:  WT/TPR /S/256, page 36, paragraph 57) 
 
Answer 
There is no minimum tender for foreign suppliers in establishing a training program for Saudi 
Nationals. 
 
Trade Policies and Practices by Measure 
 
Price Regulation, 2011 
 
Referring to document WT/TPR/S/256, page 44, para graph 89, prices for goods and services in Saudi 
Arabia are determined by market forces with the exception of the products and services subject to 
price regulation (Table III.9). 
 
Question 2 
How does the Government of Saudi Arabia ensure that its regulated price of products and services 
have already consist of the profit margin of 10%, 15% or 20%? WT/TPR/M/256/Add.1 
Page 86  
 
  Answer 
With regards to profit margin of Pharmaceutic als products referred to in the Secretariat report 
paragraph 86 table III.9 "goods subject to profit regulation", the Kingdom of Saudi Arabia ensures 
that its regulated price of pharmaceutical products  are in accordance with paragraph 35 of its 
Working Party Report and the amended laws and regulations stated in the Secretariat report 
Appendix Table AII.1 "pricing policies".  
EGYPT 
 
Report by the Secretariat 
 
Import licensing 
 
In document (WT/TPR/S/256), page (28), (iv) im port prohibitions, restrictions and licensing, 
paragraph 30, it is mentioned that "although the la w provides for automatic licensing, Saudi Arabia 
does not have automatic licenses on any product"  
 
Question 1 
Egypt needs to listen to more clarific ation and explanation in this regard. 
 
Answer 
Please refer to the Kingdom of Saudi Arabia's Working Party Report Paragraph 126. 
 
Services 
 
Page 10, paragraph 16  
 
Foreign direct investment 
 
The Report states that Saudi Arabia was 29th in UNCTAD's Inward FDI Potential Index in 2008, 
which reflects, in general, inhibited FDI since fore ign companies still face investment restrictions in 
certain activities, including fisheries and oil exploration/ drilling/production. 
 
Question 2 
The Government of Egypt would like more elabora tion on  the restrictions that foreign companies 
face, and when, if they are expected to be removed.  Answer 
Foreign investment is permissible in all activiti es, except those which are included in a short 
"Negative List".  A full list of economic activ ities in which foreign investment is currently not 
permitted can be found in the Secretariat Report (p. 19 ).  The investment climate (rules, regulations, 
incentives, etc.) in the Kingdom is continuously im proving to attract foreign investors of all types, 
consistent with the WTO Agreements and other in vestment agreements to which Saudi Arabia is a 
party.   
Page 11, Paragraph 20  
Outlook  
 
The Report stated that Saudi Arabia is trying to  enhance the employability of nationals by reducing 
the educational mismatch between Saudis' quali fications and private-se ctor needs through the 
"Saudization" programme.  Almost 6 million foreign workers (some 80% of the total labour force) 
contribute to Saudi Arabia's economy.  WT/TPR/M/256/Add.1 
 Page 87 
 
 
  Question 3 
The Government of Egypt would like more elabora tion on Saudi Arabia's policy for the replacement 
process of foreign labor force (saudization), and wh ether the Government w ill provide for adequate 
compensations upon layoffs?  Answer 
The theme of the New rules is to increase the partic ipation of Saudi nationals in private sector and it 
didn't include any article for layoffs foreign la bour force, and regarding the compensation it depends 
on the contract and Saudi labour law.  
 Question 4 
Egypt would also like to know whether there is any e xpected change within the "kafeel" system that is 
now pursued in the Saudi labour market?  
Answer 
Saudi Laws do not include any reference to Kaf eel system.  Residence Law is the applicable 
legislation.  This law is explained under Pa ragraph 283 of the report of the Working Party on the 
Accession of the Kingdom of Saudi Arabia dated 1/11/2005.   Financial services 
 
Banking sector 
 
Page 75, paragraph 120 The report stated that the foreign presence in the Saudi banking sector is significantly high since it 
represents about 74% of the total number of opera ting and approved licensed banks in Saudi Arabia, 
and that there are 11 licensed foreign bank br anches and 12 commercial banks operating in 
Saudi Arabia.  
Question 5 
Are all foreign banks in Saudi Arabia governed by  Islamic principles (i.e. operate as Islamic banks), 
and if not how do foreign banks operate in the Saudi market? 
 
Answer 
Banks are regulated by SAMA, pursuant to the Banking Control Law.  The existing banking 
regulatory framework is a risk-based supervisi on approach that is flexible and sufficient enough to 
cover risks arising from banking services.  Thus , the banking industry provide full range of banking 
services, including Shari'ah – compliant products.  
Page 75, paragraph 123 The report stated that Commercial banks' profits dr opped by 10.4% to SAR 26.8 billion at the end of 
2009 (SAR 29.9 billion in 2008).   Question 6 
Egypt would like to know the reason behind the drop in profits and whether it is related to the 
regulatory developments that Saudi Arabia has recently undertaken in the financial market. 
 
Answer 
On the contrary, sound supervisory and regulatory framework has contributed significantly to 
strengthening the capacity of the Saudi banking sector to withstand financial stress, which is 
well-capitalized and has high liquidity level.  Thus, th e drop in profits of 10.4% is considered to be 
low given the global financial crisis. 
 WT/TPR/M/256/Add.1 
Page 88  
 
  Page 77, paragraph 130 
The Report stated that the CMA has also perm itted the trading of Sukuk (deeds and financial 
certificates) in order to promote a market in instru ments less exposed to risk than ordinary equities. 
 
Question 7 
Egypt would like to know whether the CMA allows  for the trading of sukuk for foreigners.  
 
Answer 
Currently, non-resident foreigners cannot trade in the Sukuk listed on the Saudi Stock Exchange. 
 
Transport 
 
Page 83, paragraph 157 
 
Land transport 
 
The Report stated that foreign investment is not permitted in land transport services. 
 
Question 8 
Egypt questions whether that restriction is in terms of both specific commitments and domestics laws 
or is it in term of specific commitments only as the Saudi laws may permit that foreign investment. 
 
Answer 
The Kingdom of Saudi Arabia made no commitments in the land transport and it is in the negative list.   
 
Paragraph 159 
 
Aviation transport 
 
The Report stated that Saudi Arabia has signed b ilateral "open skies" agreements with different 
countries. 
 
Question 9 The Government of Egypt would like more elaborat ion on the criteria for countries with which it has 
concluded such agreements.  
Answer 
The Kingdom of Saudi Arabia made its commitments  in accordance with Annex on Air Transport. 
 ECUADOR  
 Secretariat Report - WT/TPR/S/256 
 I. ECONOMIC ENVIRONMENT 
According to paragraph 1 (page vii), "this is being done by promoting downstream industries".  
Would Saudi Arabia please specify which are these industries?  
Answer 
The Kingdom of Saudi Arabia has followed a gen eral policy of diversifying from hydrocarbons by 
adopting measures that have broad downstrea m application throughout the economy. 
Under the Eighth Development Plan (2005-2009), the to tal refining capacity of the seven refineries in 
the Kingdom amounted to about 2.1 million barrels per day, while the refining capacity of overseas  WT/TPR/M/256/Add.1 
 Page 89 
 
 
  refineries that are partly owned by Saudi Aramco amounted by the end of 2008 to about two million 
barrels per day.  In an effort to increase economic returns and added value of oil resources, Aramco's 
investment plan aims to raise domestic refining capacity and invest in foreign markets to increase 
refining capacity. Independent of the Government's diversification initiatives, Saudi Aramco has pursued a 
commercially based corporate policy of divers ifying its operations downstream by increasing 
production of refined products.  The output of refin ed products increased with the recent expansion of 
the Petro Rabigh complex. Future plans for downstream expansion include a re finery and chemical complex in Jubail, a refinery 
in Yanbu, and another refin ery and terminal in Jazan. 
Saudi Aramco has agreed with Dow Chemicals to establish an integrated chemical complex joint 
venture in Jubail  Domestic Refining Projects Underway: •  Building a joint refinery between Saudi Aramco  and Total of France, with a capacity of 
400 thousand barrels per day for export.  30% of the shares of the project will be offered for public 
subscription within the context of the priv atization strategy approved by the State. 
•  Building a joint refinery between Saudi Aramco and Conoco Phillips of America, with a capacity of 400 thousand barrels per day.  30% of th e shares of the project will be offered for public 
subscription  •  In 2005, Aramco, in partnership with Sumitomo  Chemical of Japan, established Petro Rabigh 
to develop the Rabigh Refinery and build a facility for integrated oil refining and petrochemical 
production.  This company was turned into a Saudi joint stock company in 2007 upon offering 25% of 
its shares for public subscription. •  Within the framework of the National Strategy  for Oil and Gas, the Ministry of Petroleum and 
Mineral Resources opened the way for investment in  building, owning and operating oil refineries.  
An export refinery is expected to be built in the Jazan region. 
 
According to paragraph 2, Saudi Arabia establis hed a "US$400 billion invest ment and development 
programme".  Would Saudi Arabia please explain th e consistency of these measures with its subsidy 
and domestic support commitments, and to which sectors these funds were destined?  
Answer 
Please see paragraph 21 page 11 of the Secretariat report. 
 
According to paragraph 9, the GCC members have ag reed that new preferential agreements concluded 
by Members will apply equally to all Members.  Why are agreements with the United States 
excluded? 
 
Answer 
The Kingdom of Bahrain and the Sultanate of Om an have individually entered into a free trade 
agreement with the United States.  The GCC leade rs agreed at a summit held in 2005 to consider 
bilateral free trade agreements si gned by the GCC countries individually with the United States as a 
single exception from this principle.  The rest of  the Member States treat these agreements in such a 
manner that is consistent with the requirements of  the customs union, in accordance with the clearing 
mechanism.  The Customs Union Authority has been charged with finding a mechanism to deal with 
these agreements in line with the final  status of the Customs Union. 
 
Paragraph 20 (page x) states that the Saudi Arabia n Oil Company is fully State-owned.  Would Saudi 
Arabia please confirm whether the comp any is a State Trading Enterprise? 
 
Answer 
Saudi Aramco is not a State Trading Enterprise.  
 WT/TPR/M/256/Add.1 
Page 90  
 
   
Referring to paragraph 20, footno te 21 (page 11), would Saudi Arab ia please provide further details 
on the types of incentive granted to the private sector under the "Saudization" programme, whether 
the incentives are granted to enterprises engaged in specific economic activities and whether the 
rationalization of recruitment of foreigners pursu ed by this programme is consistent with the 
commitments undertaken by Saudi Arabia under the GATS? 
 
Answer 
Incentive package given to the ent erprises lies in the upp er zones of "Saudization" programme  those 
who employed the required number of Saudi na tional, and the parameters for granted incentive 
depend on economic activiti es, geographical area, size of the enterprises. 
 More details regarding the "Saudization" programme c an be found in the Secretariat report, Page 11, 
paragraph 20, footnote 21.  
"Saudization" programme is consis tent with Saudi Arabia's Mode 4 commitments under the GATS.  
 
II. TRADE AND INVESTMENT REGIME 
(5) I
NVESTMENT FRAMEWORK  
Paragraph 30 (page 20):  As regards the "one-s top shop to provide information and assistance to 
foreign investors, and to foster investment opportu nities in Saudi Arabia", would Saudi Arabia please 
expand on the implementation of this  system and the results achieved? 
 
Answer 
The Saudi Arabian General Investment Authority (SAG IA) was created to further promote foreign 
investment and serve the business community as a one- stop shop, except those activities listed in the 
Negative List or where the power to licence was assigned to an agency other than SAGIA. 
SAGIA, through its One-Stop-Shop, will be the only channel point between the investors and residents 
and the Government ,which include seven ministries and entities participate in OSS: 
Ministry of Commerce and Industrial. Ministry of Justice. Ministry of Labor. 
Ministry of Foreign Affairs. 
General Directorate of Passport.  General of Organization of Social Insurance.  Zakat and Income Tax Municipality.  
The results helped investors to get their license without going to each ministries, also saving time for 
all investors to accelerate the pr ocess of establishing their business. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) M
EASURES DIRECTLY AFFECTING IMPORTS  
Paragraph 5, footnote 8 (page 22) and paragraph 103 (page 49):  As regards the detention and seizure 
of an imported consignment if an explicit IPR violation is witnessed, would Saudi Arabia please 
indicate whether its legislation also provides for sei zure (on grounds of infringement of intellectual 
property rights, relating to parallel imports) of go ods in transit, and, if so, which WTO provisions 
justify such action?  
Answer 
Saudi Arabia explained how it deals with parallel imports in the Working Party Report on the 
Accession of Saudi Arabia, par agraph 251, pages 81-82.  WT/TPR/M/256/Add.1 
 Page 91 
 
 
  Footnote 13 of Article 51 of the TRIPs Agreement is  considered an elective provision which does not 
oblige WTO Members to allow transiting of infringing materials.  Saudi Regulations of Border Procedures for Protection of Intellectual Property Rights of Trademarks and Copyrights did not exclude infringing goods from suspension of release even if such goods are in transit.  In Addition, 
Article 24 of the Unified Customs Law prohibits entr ance, exit or release of prohibited or infringing 
goods.  
(2) M
EASURES DIRECTLY AFFECTING IMPORTS (EXPORTS ) 
Paragraph 73, page 40 
As regards credit granted to exporters, would Sa udi Arabia please provide details concerning the 
repayment conditions and interest rates applicable to  exporters seeking to obtain export credit?  Do 
these conditions differ from those proposed by the National Commercial Bank of Saudi Arabia?  As 
regards the export finance insurance policy, which now covers up to 90 per cent of commercial or 
political default risks, would Saudi Arabia kindl y explain how the evaluation is carried out to 
determine what percentage should be cove red by the policy (numerical calculation)? 
 
Answer 
All credits offered by SEP are within market practic es, norms and commercial principles.  The SEP is 
a supplement to the credits that might be granted  to exporters by the privet sector financial 
institutions.  However, details related to th e NCB are provided in the KSA WPR Para. 44. 
Regarding the insurance policies, the percentage of the coverage of these policies is determined based 
on the credit assessment of the exporter and import ers, evaluation of the nature of the export 
transaction (type of exports, amount, credit tenor) an d the evaluation of the political and commercial 
risks of the recipient country as well as its credit ra ting as published by the international credit rating 
agencies (SYP, Moody's, Fitch, EIU,…etc).  
 
(3) M EASURES AFFECTING PRODUCTION AND TRADE  
According to paragraph 85, page 43 
The Competition Law and its Implem enting Regulations apply to all establishments in Saudi Arabia, 
with the exception of wholly State-owned corpor ations.  Would Saudi Arabia please explain the 
reason for this exception (or privilege) and how it is  that such an exception does not conflict with the 
prohibition (in Saudi Arabia's competition legislation) on restricting commerce or limiting 
competition, and, in the light of the foregoing, how th is privilege is consistent with the WTO principle 
of non-discrimination?  
Answer 
The exception is based on Article 2 of the Competiti on Law.  Wholly State-owned enterprises in the 
Kingdom are subject to the commitment embodied in paragraph 52 of the Kingdom's Working Party 
Report to act in accordance with commercial cons iderations.  Please see Par agraph 52 P age 26 of 
the Working Party Report on the Accession of Saudi Arabia.  
 
Paragraph 84, page 43 Would Saudi Arabia please specify what type of activities will be promoted in the Industrial Cities 
and Technology Zones that are in the process of being set up? 
 
Answer 
Saudi Arabia is seeking to attract local and inter national investments in the industrial and logistics 
sectors in all industrial cities that sp read in the regions of the Kingdom. 
The opportunities appropriate to each city are marketed according to the region's economic 
advantage. These investments are designed to achieve the following: WT/TPR/M/256/Add.1 
Page 92  
 
  1 - Recruiting national cadres to ac quire local and specialized skills. 
2 - Making use of raw materials available in the region and enhancing their added value. 3 - Attracting high-tech industries to  localize international experience. 
4 – Attracting projects that integrate with the existing plants in the industrial city. 
 
IV. TRADE POLICIES BY SECTOR 
(2) M
INING AND ENERGY  
Page 59 
Would Saudi Arabia please expand on the cooperation it provides to other countries in the energy field, where cooperation exists.  What are the requirements for benefiting from such cooperation? 
 Answer 
Saudi Arabia is cooperating with energy producing and consuming countries, both individually and 
through International organizations, such as the In ternational Energy Forum, to maintain stability 
and efficiency of the International energy market, reducing excessive market volatility and improving 
market data transparency.  
 FOLLOW-UP QUESTIONS 
 JAPAN 
 
EU's question 11, page 30 (WTO Secretariat report, page 17, para. 20) 
 
According to "the list of agricultural and industria l goods of different customs duties percentage in 
Saudi Arabia from the rest of the GCC countries" submitted by Saudi Arabia in response to the EU 
question, there are about 560 goods in 8-digit HS codes which Saudi Arabia reserves its right to 
impose differential duties from the rest of the GCC countries.  Could Saudi Arabia elaborate on the 
reason for keeping higher tariff rates for these goods?  Is there any prospect that Saudi Arabia might 
eliminate or cut the tariff rates on these goods in the future?  
Answer 
Saudi Arabia has reduced its tariffs  on the imported goods from 12% to 5%, then to 80% of the tariff 
schedule before the formation of the Customs Union in  preparation to enter into the customs union.  A 
decision was made by Supreme Council for the Cooperation Council for the Arab States of the Gulf in its 32
th session which was held in Riyadh in Decembe r 2011, where it entrusted to the Customs Union 
to examine the disparity in tariffs among the GCC countries within the framework of a timetable in 
line with the final status of the customs union and th e obligations of Member States towards the World 
Trade Organization. 
 
UNITED STATES 
 
WT/TPR/G/256  
 U.S. question, pages 10 and 11, paragraphs 50-53 
 
U.S. question 
According to the GCC Common Law , would an antidumping, count ervailing duty or safeguard 
measure apply to imports into all members of th e GCC or may such measures be applied only to 
imports into certain members of the GCC? 
 
Saudi Arabia answer  WT/TPR/M/256/Add.1 
 Page 93 
 
 
  The Implementing Regulation stipulates that, as  a rule, anti-dumping, countervailing duty and 
safeguard measures apply to all imports into the G CC.  However, the application of anti-dumping, 
countervailing and safeguard measures  may be limited to one or several member states of the GCC, 
as per the exceptions provided in the Implementing Regulation.  
U.S. follow-up  
Please clarify what these exceptions are.  Pleas e also clarify how the injury, dumping and 
subsidization determinati ons will be made (whether on GCC-wide basis, or country specific basis)?  
 
Answer 
The exceptions concerning the scope of application of the GCC Common Law are set forth in the 
Implementing Regulation of the GCC Common Law.  These exceptions are based on the provisions of 
Articles 4.1(ii) and 4.2 of the Anti-Dumping Agreem ent, Articles 16.2 and 16.3 of the SCM Agreement 
and footnote 1 of the Agreement on Safeguards. 
 As a rule, the assessment of injury and of the effect s of dumping and/or subsidization is to be made on 
a GCC-wide basis.  However, where the scope of an investigation is limited to one or several GCC member states, the injury and the effects of dumping and/or subsidization will be assessed only for the 
GCC member state(s) concerned.  
 
 If there is a discrepancy between the GCC Common Law and Saudi Arabia's national laws, 
which law will prevail?  
Saudi Arabia answer 
There will be no discrepancy between the laws b ecause the amended GCC Common Law will be 
ratified by Saudi National Authorities and will be  published in the Saudi Official Gazette.   
 
Please clarify whether your response means that GCC Common law will become Saudi Arabia's 
national law.  If not, please explain why there will be no discrepancy between the two laws. 
 
Answer 
The amended GCC Common Law, as with the original GCC Common Law, will become Saudi 
Arabian national law upon ratification, and therefore there will be no discrepancy.  WT/TPR/S/256 
 
U.S. question/Saudi Arabia answer/U.S. follow-up, page 21, paragraph 2  
In its responses to questions on paragraph 2 of th e WTO Secretariat's report (page 21), Saudi Arabia 
indicated that certificates of origin are required for all products, including non-preferential imports, 
and that the certificate must be issued by "the  competent authorities in the exporting country in 
accordance with procedures of these countries."  Can Saudi Arabia please explain who are such 
competent authorities? 
 In cases where neither the exporting country's government ministries nor the local Chamber 
of Commerce will issue a certificate of origin , how would a company obtain an appropriate 
certificate of origin? 
 Has Saudi Arabia considered less burdensome measures to accomplish its goal of combating 
fraud and obtaining trade statistics?  
 
Answer 
The competent authorities permitted to  issue certificates of origin are usually the Ministries of Trade 
and Industry, Chambers of Commerce and Industry in  the exporting countries.  If the county’s 
Ministries and Chambers of Commerce and Indust ry do not issue certificates of origin, they are WT/TPR/M/256/Add.1 
Page 94  
 
  accepted if issued by the authority authorized by th e law of the exporting country provided that they 
are ratified by the Chamber of Commerce or Industry in the exporting country. 
With regard to the examination of less burdensome me asures, the measures in question are not clear. 
 U.S. question, page 49, paragraph 102 and page 50, paragraph 106 
The Secretariat lists the numerous conventions and tr eaties to which Saudi Arabia is a party.  We note 
that the Secretariat reports that Saudi Arabia's related rights concern performers, producers of sound 
recordings and broadcasting organizations.   
Question 19 
Does Saudi Arabia plan to accede to the World Intellectual Property Organization's (WIPO's) 
Copyright Treaty (WCT) and/or WIPO's Performances and Phonograms Treaty (WPPT)?  
Saudi Arabia Answer 
IPR treaties, including WCT and WPPT, are bein g reviewed by the IPR Standing Committee to 
evaluate the pros and cons of acceding to them.  At the time of accession to the WTO, all Saudi 
Arabia IPR laws and regulations were brought in lin e with the obligations set out in the TRIPs 
Agreement.  In 2007, the TRIPs Council reviewed all legislation related to IPR in Saudi Arabia to 
ensure full compliance with the prov isions of the TRIPs Agreement. 
 U.S. follow-up  
Please identify each of the IPR treaties that are under consideration by the IPR Standing Committee.   
 
Answer 
The Government of Saudi Arabia established a Technical Cooperation Program with WIPO.  
WIPO Experts are being invited to the Kingdom freque ntly to advise on different IP matters, and/or to 
hold seminars and workshops.  
Different matters are discussed to help further d evelop IPR system in KSA including related WIPO 
treaties during the mission. The IPR Standing Committee and the concerned IP o ffice seek to know the benefits and costs of 
acceding to any of these treaties, and whether the related department and legislation are ready to 
accommodate new treaty, then recommendations will be made.  This is the normal practice and not 
specific. 
For Example:  a Royal Decree wa s issued recently to approve accession of Saudi Arabia to WPT and 
PCT. 
 
U.S. question, page 50, paragraph 106  
The Secretariat indicates that the Copyright Law prot ects works "as far as their distribution is allowed 
in Saudi Arabia."    
Question 22 
Please explain this statement and whether copyrigh t protection for copyrightable works in Saudi 
Arabia is subject or conditioned upon any type of content review. 
 
Saudi Arabia answer 
Content Review is carried out to ensure that wo rks do not conflict with Public Morals.  Prohibited 
works do not enjoy any benefits in Saudi market anyhow.  
U.S. follow-up 
If a work fails Saudi Arabia's content review mech anism, is it stripped of or otherwise denied 
copyright protection in Saudi Arabia?  If Saudi Ar abia denies copyright protection to such works, 
please explain that practice in light of Article 5(1) of the Berne Convention, as incorporated by Article 
9.1 of the TRIPS Agreement and Article 41.1 of th e TRIPS Agreement.  Please see the Panel Report  WT/TPR/M/256/Add.1 
 Page 95 
 
 
  Decision from Case #WT/DS362, a summary of which may be found at: 
http://www.wto.org/english/tratop_e/dispu_e/cases_ e/1pagesum_e/ds362sum_e.pdf.  A summary of 
the full Panel Report in this case may be found at:  http://www.wto.org/english/tratop_e/ 
dispu_e/cases_e/ds362_e.htm.  U.S. question, page 50, paragraph 107 
The Secretariat indicates that Saudi Arabia's C opyright Law provides protection for news reports.  
Article 4(2) of the Copyright Law states that "what is published in newspapers, magazines and 
periodicals" are excluded from protection.  Article 2( 7) of the Implementing Regulations of Copyright 
Law, however, lists news reports as a protected work. 
 
Answer 
In all cases all literary and artis tic works are protected under Saudi Copyrights Law in accordance 
with the Kingdom's commitments under TRIPs Agreeme nt. Article 32 of the Copyright Law provides 
protection to such works regardless of their conten t.  The right holder who suffers harm due to the 
violation of his right may claim redress accord ing to Article 28.1 of the Copyrights Law. 
In cases where the content of the work is considered to be contrary to public moral and/or order, 
authorization of publication of such works is denied  but at the same time the work remains protected. 
In such cases, and whether the right  holder is a national or a foreigner,  the violator of the copyright 
is punished according to Article 28 of the Cop yrights Law and all pirated materials and equipment 
used in carrying out such  act are confiscated. 
 
Question 23 (part 2) 
The Secretariat indicates that the Copyright Law provides a reproduction right.  Is this covered in 
Article 9: Financial Rights under "the author, or whoeve r he delegates, shall have the right to exercise 
all or any of the following...all forms of material ex ploitation of the work in general"?  If not, please 
indicate which provision of the Copyright Law, and/or the Implementing Regulations, provides for a 
right of reproduction.  
Saudi Arabia answer 
Yes, Article 9 of the Saudi Copyrights Law warrant s reproduction rights in accordance with Article 9 
of the Berne Convention of 1886. 
 
U.S. follow-up 
Please identify the specific language from Article 9 of the Saudi Copyrights Law that provides a right 
of reproduction.  Answer 
Article 9.4 of the Saudi Copyrights Law provides for reproduction right.  The Text of Article 9.4 
provides that: "All forms of material exploitation of the work in general, including permissible commercial rental". 
 
EUROPEAN UNION 
 
Follow-up to questions 2, 3, 5, 9 
The EU notes that Saudi Arabia has not provided res ponses to EU questions 2, 3, 5 and 9, stating that 
these questions are outside "the WTO scope".  Howe ver, the EU would like to clarify that trade-
related labour/social issues form part of the TPR exercise, which addresses a wide range of issues 
such as macroeconomic policy and other policies that have an impact on trade policy, including thus a 
country's contribution to sustainable development and labour policies that are conducive to fostering 
trade and development.  The EU would also like to  emphasise that trade-related labour/social issues 
are either partially or under separate heading (in so me Members' policy statements) covered also in WT/TPR/M/256/Add.1 
Page 96  
 
  TPR reports, including in both reports for the Saudi Arabia TPR (e.g. as part of the objectives of the 
Saudi Arabia's Ninth Development Plan).   Sustainable development is an ove rarching policy objective of the international community. Social 
development, economic growth and environmen tal protection are inter-related and mutually 
reinforcing components of sustainable developmen t. It is incumbent upon WTO Members to ensure 
both that international trade contributes to – and certainly does not undermine – sustainable 
development and that goods and services which may be traded internationally are produced in a 
manner that does not violate the fundamental principles and rights at work as set out by the ILO.  The EU's questions 2, 3, 5, 9 and 46 seek to obtain confir mation from Saudi Arabia that this is the case as 
far as both the production of goods and services, as well as its investment policy is concerned.  
 The EU considers that these matters do fall within the ambit of the WTO TPR.  Therefore, the EU 
invites Saudi Arabia to respond fully to questions 2, 3, 5, 9. 
 
Questions 2 and 3 
 I. ECONOMIC ENVIRONMENT 
The EU is pleased to note that Saudi Arabia has ratif ied five of the core IL O Conventions and one of 
the priority Conventions.  It also welcomes Sa udi Arabia's vote for the ILO Convention Concerning 
Decent Work for Domestic Workers at the 100
th Session of the International Labour Conference. 
Could Saudi Arabia please indicate its intentions in  relation to the ratification of the following core 
and priority ILO Conventions which it has not yet ra tified: Convention 87 on Freedom of Association, 
Convention 98 on Collective Bargaining, Convent ion 138 on Minimum Age, Convention 122 on 
Employment Policy, Convention 129 on Labour Inspection (Agriculture) and Convention 144 on 
Tripartite Consultation? 
Could Saudi Arabia explain how it ensures that th e eight fundamental ILO Conventions are respected 
in the informal sector? 
 
Question 5 
 (3) T
RADE PERFORMANCE AND INVESTMENT  
(ii) Foreign direct investment  
Could Saudi Arabia confirm that economic activity  undertaken in relation to a new or existing 
investment respects Saudi Arabia's national labou r law and the fundamental rights at work as 
embodied by the ILO's 2008 Declaration on Social Ju stice for a Fair Globalisation?  How does Saudi 
Arabia ensure that these are in fact respected? 
 
Question 9 
 (1) T
HE INSTITUTIONAL FRAMEWORK  
(4) T RADE AGREEMENTS  
 Could Saudi Arabia elaborate on the extent to which, and how, social and labour issues are addressed 
within each of the preferential agreements referred to in the Secretariat and the Government reports? 
 
Answer  
Saudi Arabia holds its previous position that questi ons (2,3,5,9) are outside of the WTO scope and 
have to be discussed in the relevant  international bodies.  Howeve r, the Kingdom respects ILO's 2008  WT/TPR/M/256/Add.1 
 Page 97 
 
 
  Declaration on Social Justice for a Fair Globalisa tion, through fixing articles in Saudi Labour law 
prohibit child work, forced labour, non-discrimination and trade union rights, also a department was 
established to handle foreign labour affairs, as well as a  judiciary commission for foreign labour 
complaints.  
Follow-up to question 29  
(WTO Secretariat's Report, page 33, para. 42) 
 Saudi Arabia informs that all technical regulations and standards are listed in the GSO on the basis of 
a decision from the GSO Technical Committee, of wh ich Saudi Arabia is a member.  Could Saudi 
Arabia provide a copy of the decision of the GSO Technical Committee relating to the regulations and 
standards under revision? 
EU's initial question 29 
Could Saudi Arabia indicate, in the SPS field, the list of standards and regul ations being harmonizing 
in Saudi Arabia and at the level of the GCC, and the respective work programme?  Reply by Saudi Arabia 
All technical regulations and standards are listed in  the GSO on the basis of a decision from the GSO 
Technical Committee, of which Saudi Arabia is a member.  Answer 
Saudi Arabia participates as a working member of the GSO which is a regional organization responsible, among other duties, for setting GCC standar ds through specialized technical committees. 
GSO Technical Committee No. 5 "the GCC Technical Committee for Standards of food and agricultural products" carries out its respective work programme by pre paring, updating and 
adopting the relevant technical regulations in accordance with the following steps:  
1. GSO Technical Committee No. 5 meets to draw up the annual project 
proposals. 
2. The proposed projects are distributed  among the GCC state members for 
drafting. 
3. After drafting, the projects assigned to each GCC member state are circulated 
to other members for review and commen ts.  The recommendations, if there 
are any, of the other members are subm itted to the concerned GCC Member 
for consideration during the finalization stage. 
4. The respective member circulates the final draft once again among the other 
members after considering their submissions. 
5. The Technical Committee meets again for approving the final draft. 
6. Each GCC member state notifies its respective technical standard projects to 
the WTO SPS and TBT Secretariats. 
7. After notification, the GSO Technical Committee No. 5  meets to approve 
these drafts for adoption as GCC Techni cal regulations by the GSO board of 
directors. 
All the above stages are carried out according to a specific schedule as indicated by the GSO/Work 
Program for Standard Setting Part 1/ Regulations and Work Procedures.  
 Follow-up to question 30 
(WTO Secretariat's report, page 34, para. 47)  
According to the reply, the competent authorities in the exporting country shall be responsible for 
ensuring that the animal products comply with th e technical regulations and standards of Saudi 
Arabia.  Could Saudi Arabia provide a scientific justification upon which these technical regulations 
and standards are based? WT/TPR/M/256/Add.1 
Page 98  
 
  Answer 
Saudi Arabia bases its food and agricultural t echnical standards on the relevant available 
international and scientific references, taking into  account the religious and environmental 
circumstances in the region.  Such references are indi cated in the notification forms submitted to the 
WTO SPS and TBT Secretariats.  For the most part,  the aforementioned technical standards include 
references such as: 
1. Codex Alimentarius. 
2. EU Regulations. 
3. Technical regulations and standards of the USA. 
4. ISO 
 
EU's initial question 30 
Could Saudi Arabia indicate the reasons to ask that  control of undesirable substances in foods (which 
results in deviation from the veteri nary standard procedure for the e xport of animal products) are to be 
guaranteed by the competent authority of the e xporting country and not by the food business operator 
or exporter? 
 
Reply by Saudi Arabia 
The competent authorities in the exporting country shall be responsible for ensuring that the animal 
products comply with the technical regul ations and standards of Saudi Arabia. 
Follow-up to question 32  
(WTO Secretariat's report, page 35, para. 50)  
The EU would like to ask further information as rega rds adhering to the international standards laid 
down by the World Organization for Animal Health  (OIE), regarding the import of animals and 
animal products (e.g. Chapter 11.5 on Bovine Spongiform Encephalopathy:  
a) Chapter 11.5.1 of the OIE states that: 
When authorizing import or transit of the following commodities  and any products made from these 
commodities  and containing no other tissues from cattle, Veterinary Authorities  should not require any 
BSE related conditions, regardless of the BSE risk status of the cattle population of the exporting 
country , zone or compartment : 
a. milk and milk products ; 
b. semen and  in vivo  derived cattle embryos collected  and handled in accordance with 
the recommendations of the International Embryo Transfer Society; 
c. hides and skins; 
d. gelatine and collagen prepared ex clusively from hides and skins; 
e. tallow with maximum level of insoluble impurities of 0.15 percent in weight and 
derivatives made from this tallow; 
f. dicalcium phosphate (with no trace of protein or fat); 
g. deboned skeletal muscle meat (excluding mechanically separated meat) from cattle 
which were not subjected to a stunning process prior to slaughter , with a device 
injecting compressed air or gas into the cr anial cavity or to a pithing process, and 
which passed ante- and post-mortem inspecti ons and which has been prepared in a 
manner to avoid contamination with tissues listed in Article 11.5.14.; 
h. blood and blood by-products, from cattle which were not subjected to a stunning 
process, prior to slaughter , with a device injecting comp ressed air or gas into the 
cranial cavity, or to a pithing process. 
Could Saudi Arabia please indicate the full title, date  and page of the mentioned report of the EFSA 
where the reference made by Saudi Arabia can be  found (as mentioned in the reply to question  WT/TPR/M/256/Add.1 
 Page 99 
 
 
  provided by Saudi Arabia, i.e. "(…) Saudi Arabia has reviewed the scientific report of the European 
Food Safety Authority (EFSA), which indicates that although the slaughter age, according to OIE, has been raised above 48 months, there are still BSE cases expected to be reported")? 
Answer 
The title of the report is:  
Scientific Opinion on a second update on the risk for human and animal health related to the revision 
of the BSE monitoring regim e in some Member States. 
EFSA Panel on Biological Hazards (BIOHAZ) European Food Safety Authority (EFSA), Parma, Italy.  Date:  This Scientific Opinion, published on 15 February 2011, replaces the earlier version published 
on 13December 2010 (EFSA Journal 2010;  8(12):1946). 
 Page:  4- Abstract (P# 9 & 10) which Stated that: 
iii. Under a third situation where testing for healthy slaughtered animals would stop on 
1 January 2011, 2012 or 2013 less than three,  two and one Classical BSE cases 
would be missed for each of the respective years.  After this date and with the 
hypothesis that BSE continue to decline,  less than one Classical BSE case would be 
missed for each calendar year. 
It is pointed out that these figures are estimated  with the model employed in this opinion and 
previously related documents.  The likelihood of de tecting new cases in specific age groups is very 
low, but there remains a small probability of detec ting one or more cases in some of these age groups. 
b) The EU understands that Saudi Arabia: 
−  Bases its reasoning in the EFSA report fo r banning the import of deboned skeletal 
muscle meat" from the EU, i.e. not entirely on the recommendations of Chapter 11.5 on 
BSE of the OIE Code; 
−  Imports all the commodities listed in Artic le 11.5.1 of the OIE Code, except "deboned 
skeletal muscle meat" (point 1 (g) of article 11.5.1); 
−  Should be fully consistent with the OI E recommendations, and either follow them 
entirely or provide a complete risk assessmen t (based on the principles of the applicable 
international standards) to deviate to the OIE recommendations. 
 
Could Saudi Arabia please explain its reasoning, in cluding a specific scientific justification, for 
applying the OIE recommendations for all the above listed commodities (Chapter 11.5.1 of the OIE 
Code) except for "deboned skeletal muscle meat"? 
Answer 
Saudi Arabia allows the importation of deboned ske letal muscle meat if it comes from animal aged 
30 months or less according to OIE Terrestrial An imal health Code published 2008.  Saudi Arabia 
and more than 30 other countries voted during the 77th annual meeting of OIE on March 2009 
against omitting item # 11.5.1(g) of the OIE Code of 2008 which stated "it is allowed to import 
deboned beef meat from cattle  aged 30 months or less." 
 EU's initial question 32 
Could Saudi Arabia indicate whether Saudi Arabia follows, without any exception, the international 
standards laid down by the World Organization for Animal Health (OIE), regarding the import of 
animals and animal products (e.g. Chapter 11.5 on Bovine Spongiform Encephalopathy) or, if not, 
what are the criteria (e.g. scientific justification) that Saudi Arabia may use for not adhering to them? 
 
Reply by Saudi Arabia 
Saudi Arabia is compliant with the OIE regulations and standards.  However, Saudi Arabia has reviewed the scientific report of the European Food Safety Authority (EFSA), which indicates that WT/TPR/M/256/Add.1 
Page 100  
 
  although the slaughter age, according to OIE, has been raised above 48 months, there are still BSE 
cases expected to be reported.  In addition, SFDA m andate is to protect the safety of Saudi citizens, 
taking the necessary precautionary actions, even if there are assurances in the EU BSE control 
system. 
Follow-up to question 38  
(WTO Secretariat's report, page 35, para. 50) 
 
Could Saudi Arabia please confirm that it accepts: 
a. Evaluating SPS official inspection and certification systems in exporting countries − 
rather than individual commodities or exporting establishments − according to this 
standards, and that this evaluating includ es all the requirements of this standard 
(without any exception)? 
b. Granting to exporting EU member States a "p re-listing" system for products of animal 
origin − entirely based by the requirements of this standard − similar to the one 
granted by the European Union to Saudi Arabia?   
 
Answer  
The SFDA has produced a guideline on the registrati on of facilities involved in processing, cutting, 
manufacturing and packing;  chilled and frozen me at, and their products as certified exporters into 
Saudi Arabia (viewed at: http://www.sfda.gov.sa/En/Food/Topics/S ystem+and+procedures+of+food+control/). 
This guideline applies to the inspection of all pl ants exporting meat and meat products into KSA, 
including GCC meat establishments. 
 
EU's initial question 38 
Could Saudi Arabia indicate whether it entirely follows, in the context of the import of food, the 
"guidelines for the design, operation, assessmen t and accreditation of food import and export 
inspection and certification systems" of the Codex Alimentarius (CAC/GL 26- 1997) or, if not, what 
parts of these guidelines are not followed and why and, in this case, what other procedures/requirements are followed? 
 
Reply by Saudi Arabia 
Saudi Arabia complies with the Codex Alimentarius (CAC/GL 26-1997). 
Follow-up to question 44  
(WTO Secretariat's report, page 35, para. 53) 
 Could Saudi Arabia please: 
a. Confirm that it accepts evaluating and a pproving Halal inspection and certification 
systems in exporting countries − rather than individual commodities or exporting 
establishments − according to the Codex Alimentari us principles of the standards 
CAC/GL 24-19971 and CAC/GL 26-1997? 
b. Confirm that the evaluation and approval of Halal inspection and certifying bodies 
include all the requirements of the standard CAC/GL 26-1997 on the evaluation of 
inspection and certifying bodies (without any exception)?  
c. If the answer is no to the above questi ons, could Saudi Arabia please justify? 
d. Provide a list of the Halal certifying bodies in the European Union which are 
approved by Saudi Arabia? 
 
Answer 
As per Royal decree No. 5887 dated 6 June 2005,  all matters related to Halal inspection and 
certification system fall under the jurisdiction of the Muslim World League.  WT/TPR/M/256/Add.1 
 Page 101 
 
 
  EU's initial question 44 
Could Saudi Arabia provide detailed informati on about the procedures, timing and requirements 
applicable to the evaluation/audit by Saudi Arabia of Halal competent authorities in exporting countries?  Reply by Saudi Arabia 
Saudi Arabia implements the following standard s: 1. GSO 1931/2009 HALAL FOOD Part (1):  
General Requirement.  2. GSO 2055/2010 HALAL FOOD - Part (2):  Guidel ines for HALAL Food 
Certification Bodies and their Ac creditation Requirement.  3. GSO 993/1998 Animal slaughtering 
requirements according to Islamic law.  
 
Follow-up to question 46 
Saudi Arabia has requested further clarificati on as to the meaning of EU question 46:  " What 
measures – if any – does Saudi Arabia take to ensure that goods destined for export are produced in 
full respect of these fundamental rights at work? ": 
 
The EU wishes to ascertain whether (and if so, how) Saudi Arabia ensures that goods which are 
exported – particularly to the EU – have not been produced in violation of the fundamental rights at 
work as embodied by the ILO's 2008 Declaration on Social Justice for a Fair Globalisation (notably the relevant ILO Conventions on child labour, fo rced labour, non-discrimination and trade union 
rights, the principles of which should be respected whether or not a country has ratified the 
Convention(s) in question)?  
Given that the goods in question are traded internati onally, the EU considers that this question falls 
within the purview of the Trade Policy Review process . 
 
Answer 
Saudi Arabia respects ILO's 2008 Declaration on Socia l Justice for a Fair Globalisation, through 
fixing articles in Saudi Labour law prohibit chil d work, forced labour, non-discrimination and trade 
union rights, also a department was established to handle foreign labour affairs, as well as a  
judiciary commission for foreign labour complaints.  Follow-up to question 58  
(Secretariat's report, page 55, para. 7)  In its reply to question 58 , Saudi Arabia refers to "off-taking ag reements".  Could Saudi Arabia be 
more specific on the "off-taking agreements"?  Will the products be brought under a specific 
preferential duty regime? 
 
Answer 
The products brought to the Saudi market by th e Saudi investors will be treated under the existing 
duty regime.  EU's initial question 58 
The King Abdullah Agricultural Initiative enables private Saudi Arabian businesses to invest in 
agricultural projects in other countries.  What types of measures (subsidies, loans, technical 
assistance) are provided to private businesses that d ecide to invest abroad? Are there any conditions 
that apply? 
 
Reply by Saudi Arabia 
The Government promised to provide financial fa cilities to encourage Saudi private investors to 
invest abroad, as well as off-taking agreements to allow them to bring their pro ducts to Saudi Arabia.  
Many kinds of support are ava ilable to all Saudi investors. 
 WT/TPR/M/256/Add.1 
Page 102  
 
  Additional questions 
 
Report by the WTO Secretariat  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(3) M EASURES AFFECTING PRODUCTION AND TRADE  
(iv) Intellectual property rights  
WTO Secretariat's report, page 48, para. 100 
 
1. Could Saudi Arabia explain if procedures ac cording to articles 51-60 of TRIPS Agreement 
are in place to enable right holders who have valid grounds for suspecting an IPR 
infringement to lodge an application fo r action with competent authorities?  
 
Answer 
Yes, the right holder has the right to proceed to th e competent authority to take an action according to 
articles 5 and 6 of the Regulations of Border Pr ocedures for Protection of Intellectual Property 
Rights of Trademarks and Copyrights.  
2. Can competent authorities also carry out ex-officio actions according to article 58 of TRIPS 
Agreement? 
 
The Ministry of Culture and Information is authorized  to suspend the release of goods suspected of 
infringing intellectual property rights ex officio  according to Article 27 of the Implementing 
Regulation of the Copyrights Law.  The Customs Department is also authorized to susp end the release of goods suspected of infringing 
intellectual property rights ex officio according to  Article 2(b) of the Regulations of Border 
Procedures for Protection of Intellectual Pr operty Rights of Trademarks and Copyrights. 
 Report by the Government  
IV. FUTURE DIRECTION OF SAUDI ARABIA'S TRADE POLICY (1) SAUDI ARABIA AND THE G20 
Report by the Government, page 21, para 128 
 
3. In addition to providing development assistan ce as mentioned in paragraph 128, does Saudi 
Arabia have any plans to put in place a Duty-Free-Quota-Free scheme for goods from Least 
Developed Countries?  
Answer 
With respect to exemption from the quotas, there is no quota system in Saudi Arabia to be applied on 
imports or exports so as to grant exemp tion to the imports of the least developed . 
 As for whether Saudi Arabia has a plan to exempt th e imports from least developed countries from the 
tariff duties, any amendment on the tariffs or gr anting preferential treatment must be under the 
umbrella of the Cooperation Council for the Arab States of the Gulf and the upon a collective 
approval of all the GCC countries as they fo rm a customs union and apply a common tariffs . 
 
__________