RIYADH: Customs duties on certain manufacturing products will be waived from April 1 as the Saudi government seeks to stimulate the industrial sector.
The decision, made by the Ministry of Industry and Mineral Resources, will help businesses with valid import licenses reduce their financial burden and costs associated with importing specific products and improve their competitiveness and profitability.
It will also allow them to invest more in their operations, expand their production capacities, and ultimately contribute to the growth and development of the industrial sector in Saudi Arabia, according to the Saudi Press Agency.
The ministry confirmed that the expansion of the industrial customs exemption includes raw materials, semi-processed goods, and fully manufactured products, as well as packaging materials, machinery, equipment, and spare parts — all essential for production processes without any restrictions, the SPA report said.
However, certain items produced locally by industrial facilities as outputs for their factories or imported as inputs with sufficient justifications to be excluded from customs exemption can be exempted and added to the list of industrial capabilities for local products.
Accordingly, the Ministry of Industry invited facility owners to submit their customs exemption requests by accessing the platform, selecting the service, and attaching the necessary data and justifications starting from March 14. The body noted that the required information includes average selling prices, product name, and image, as well as major suppliers, customers, and other relevant details.
In its report, SPA pointed out that expanding the scope of industrial customs exemption aligns with the Kingdom’s commitment to supporting the industrial sector and enhancing manufacturing capabilities.
The news agency added that this move is also in line with the goals of Saudi Vision 2030 and the National Industrial Strategy, reaffirming the ministry’s role in stimulating, empowering, and accelerating growth in the Kingdom.
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.
Speaking on behalf of the ministry, Jarrah bin Mohammed Al-Jarrah revealed in February that the new establishments were set up with an investment of SR1.54 trillion ($48.4 billion).
The rise in the number of factories aligns with Saudi Arabia’s plan of boosting industrialization and achieving a target of 36,000 plants by 2035.
Moreover, the number of new licenses issued in 2023 reached 1,379, with investments amounting to more than SR81 billion.
The Kingdom’s industrial sector is experiencing sustained growth, with manufacturing assets reaching $132 billion since the launch of the economic diversification strategy Vision 2030 in 2016.
