Saudi Arabia announces new import and export incentives
The Saudi Zakat, Tax, and Customs Authority (ZATCA) announced the creation of the “Saudi Authorized Economic Operator Program,” which includes 15 new incentives for importers and exporters. The program was developed in coordination with 14 government agencies.
The main aim of the program is to strengthen Saudi Arabia's logistics sector, streamline trade processes, simplify procedures for importers and exporters, and boost their competitiveness. It is designed to enhance supply chain efficiency, expedite and simplify procedures, and ensure smooth, flexible business operations, while also improving access to global markets.
To achieve these goals, ZATCA and its partners will provide various administrative, procedural, and financial advantages for importers and exporters across three categories. The fourth category of incentives focuses on providers of logistics services and solutions, including customs brokers, shipping agents, and others.
Administrative benefits include the appointment of liaison officers and account managers to streamline investment processes and resolve challenges more effectively. Additionally, companies participating in the program will have access to industrial land with long-term leases of up to 30 years and eligibility for the "Custom Factory on Demand" service.
Moreover, investors will have access to expedited processing and pre-developed industrial lands and factories. Companies will also be eligible for preferential incentives provided by the Saudi Export Development Authority. Among other benefits, there is priority in all tax and customs procedures, as well as a 30-day delay in the payment of customs charges after the consignment's release date.
As for financial benefits, the Saudi Industrial Development Fund (SIDF) can finance up to 75 percent of project costs. SIDF offers extended financing with repayment terms of up to 20 years and grace periods of up to 36 months. Eligible companies can also benefit from advisory services and training programs offered by SIDF’s industrial academy.
Earlier the Saudi Cabinet approved an allocation of SR10 billion ($2.66 billion) to activate the Standard Incentives Program for the industrial sector. The creation of the Saudi Authorized Economic Operator program is one of the stages of implementation of the Standard Incentives Program. The Saudi Authorized Economic Operator program aligns with global trade frameworks adopted by over 80 countries, providing businesses that meet secure trade standards with streamlined operations in the international customs environment.
