Saudi Arabia waives customs duties to boost industrial sector
25/03/24
Saudi`s Ministry of Industry and Mineral Resources has announced that customs duties on selected manufacturing products will be waived from April 1.
The decision aims to help businesses with valid import licenses reduce costs therefore improving competitiveness and profitability. Furthermore, it will also allow them to invest more in their operations and expand their production capacities. On a grander scale, the Ministrys new policy will stimulate the country`s industrial sector thereby ultimately contributing to the growth and development of the Kingdoms diversification plans.
The Ministry confirmed the exemption includes raw materials, semi-processed goods and fully manufactured products. In addition, it also extends to packaging materials, machinery, equipment and spare parts.
The new policy aligns with the goals of Saudi Vision 2030 and the National Industrial Strategy by supporting the industrial sector and enhancing manufacturing capabilities. Moreover, it also continues the Ministry’s role in supporting, stimulating and accelerating growth in the Kingdom.
Currently, Saudi`s industrial sector is experiencing sustained growth, with manufacturing assets reaching SAR 495 billion (USD 132 billion) since the launch of Vision 2030 in 2016. According to the Ministry of Industry and Mineral Resources, the number of industrial units in the Kingdom recorded a 10 percent surge year-on-year in 2023 to reach 11,549. Moreover, the number of new licenses issued in 2023 reached 1,379, with investments amounting to more than SAR 81 billion (USD 21.6 billion) The Ministries target is to reach 36,000 operational plants by the year 2035.
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