Saudi Arabia has implemented custom duty exemptions for various manufacturing products to boost its industrial sector.
Effective April 1, raw materials, semi-processed goods, packaging materials, machinery, equipment, and spare parts are among the items now exempt from levies. This decision, enacted by the Ministry of Industry and Mineral Resources in March, aims to ease financial burdens and reduce costs for businesses with valid import licenses.
The exemption will streamline the import process for specific products, enhancing competitiveness and profitability for firms. It will also allow businesses to allocate more funds to operations and expand production capabilities, fostering growth in the Kingdom’s industrial sector, as reported by the Saudi Press Agency.
The ministry clarified that the exemption also applies to fully manufactured products and materials essential for production processes. However, domestically manufactured items, either as final products or necessary materials, may be considered for exemption from customs duties if supported by valid justifications.
This expansion of industrial customs exemptions aligns with Saudi Arabia’s commitment to bolstering the sector and improving manufacturing capabilities, in line with the objectives of Saudi Vision 2030 and the National Industrial Strategy. The ministry plays a key role in stimulating, empowering, and accelerating growth within the Kingdom.
According to the Ministry of Industry and Mineral Resources, the number of industrial units in the Kingdom grew by 10 percent in 2023, reaching a total of 11,549. These initiatives, with an investment of SR1.54 trillion ($48.4 billion), aim to increase the number of factories to 36,000 by 2035. In 2023, 1,379 new licenses were issued, with investments exceeding SR81 billion.
The industrial sector’s growth is highlighted by cumulative manufacturing assets reaching $132 billion since the initiation of Vision 2030 in 2016.
Source: Arab News