RIYADH: Customs duty exemptions for a range of manufactured goods entering Saudi Arabia are now in effect, as the Kingdom seeks to boost its industrial sector.
Raw materials, semi-processed products and packaging materials, as well as machinery, equipment and spare parts, are among the items now exempt from taxes.
In March, the Ministry of Industry and Mineral Resources adopted a decision to ease financial pressure and reduce costs for companies with valid import licenses.
This measure, which came into force on April 1, will facilitate the importation of specific products, which will improve the competitiveness of these companies and strengthen their profitability.
This initiative will further enable companies to allocate more funds to their operations and expand their production capacities, thereby promoting the growth and development of the Kingdom’s industrial sector, as reported by the Saudi Press Agency.
The ministry clarified that the extension of customs exemption also includes fully manufactured products as well as materials and items essential to production processes, the SPA report said.
However, the ministry added that certain items manufactured domestically, either as finished products or imported as necessary materials, supported by valid justifications for exemption from customs duties, could be considered for inclusion on the list of national industrial capacities.
According to the source, expanding the scope of the industrial customs exemption aligns with the Kingdom’s commitment to strengthening the sector and improving manufacturing skills.
Additionally, this initiative echoes the goals set out in the Saudi Vision 2030 and the National Industrial Strategy, reaffirming the ministry’s central 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 saw an increase of 10% year-on-year in 2023, reaching a total of 11,549.
In February, Jarrah Al-Jarrah, spokesperson for the ministry, revealed that these new initiatives were implemented with an investment of SR1.54 trillion ($48.4 billion).
This increase in the number of factories is in line with Saudi Arabia’s overall plan to strengthen industrialization, aiming to reach a target of 36,000 factories by 2035. Additionally, in 2023, the number of new licenses issued will ‘is high at 1,379, with investments totaling over SR81 billion. .
The sustained growth experienced by the Kingdom’s industrial sector is highlighted by cumulative manufacturing assets reaching $132 billion since the launch of the economic diversification strategy, Vision 2030, in 2016.
