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Saudi Arabia Braces for Launching Energy City ‘SPARK,’ Set to Boost GDP by 6%

Saudi Iktva Forum and Exhibition 2018, Omran Haider
Saudi Iktva Forum and Exhibition 2018, Omran Haider
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Saudi Arabia Braces for Launching Energy City ‘SPARK,’ Set to Boost GDP by 6%

Saudi Iktva Forum and Exhibition 2018, Omran Haider
Saudi Iktva Forum and Exhibition 2018, Omran Haider

Saudi Arabia is preparing to launch the King Salman Energy Park (SPARK), a company managed by Saudi Aramco, with a $1.6 billion worth of investments allocated for funding its infrastructure.

One of the Saudi Iktva Forum and Exhibition 2018 key organizers, Ahmed Al Ghamidi, said SPARK will create some 100,000 job opportunities for Saudi youth and will contribute some $6 billion to gross domestic product (GDP) each year.

Held November 26-27 the Forum offered presentations, workshops and panels on best practices in navigating such areas as regulatory requirements, financing, R&D and talent development.

The city, which will be developed over 50-square km of land allocated for energy-related industries. SPARK will help localize over 300 new industrial and service facilities, and create a global industrial hub for energy-related manufacturing services.

Facilities offered include a dry port, shared services, a commercial and residential area, and highly specialized training centers.

Ghamidi, addressing an audience at the Aramco-soinsored Iktiva Forum, said that SPARK will not only promote localization but also emerge as the beating heart of Gulf Cooperation Council countries. Designed according to world-class standards, the city is strategically located only 40 km away from the oil giant, Aramco headquarters in Damam, and an hour’s drive away from the King Fahd International Airport.

The city is also being erected in proximity to major highways, railways and ports, namely the King Abdul-Aziz Seaport and the GCC Highway & Railway.

“We are working closely with government and non-government organizations to ensure services at the city are provided,” Ghamidi noted saying that SPARK will also host a livable community.

Up to 60 percent of SPARK’s first phase construction contracts, covering a stretch of 13 square kilometers, have been reserved by major international companies, such as the world leading oil and gas technology provider Schlumberger.

Saudi Aramco also plans for two thirds of the city to be an industrial zone to promote local content. The city will also include specialized training centers, a logistics and dry port, shared services and commercial and residential areas.

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Saudi Arabia Implements Int’l Customs System to Facilitate Temporary Import of Goods

Jeddah Islamic Port (Asharq Al-Awsat)
Jeddah Islamic Port (Asharq Al-Awsat)
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Saudi Arabia Implements Int’l Customs System to Facilitate Temporary Import of Goods

Jeddah Islamic Port (Asharq Al-Awsat)
Jeddah Islamic Port (Asharq Al-Awsat)

Saudi Arabia has started implementing an international customs system that facilitates the temporary import of goods for up to one year without the need to pay any fees, taxes, or undergo customs procedures.

In June, the Zakat, Tax, and Customs Authority started accepting the ATA Carnet temporary admission document at all its land, sea, and air customs points. This step is part of the Kingdom's commitment to the Istanbul Convention on Temporary Admission, supporting the business sector and enhancing Saudi Arabia's status as a global destination for events, exhibitions, and activities.

On Thursday, the Federation of Saudi Chambers announced the issuance of the first ATA Carnet since the official adoption of this system, making Saudi Arabia the 80th country worldwide to implement this international customs system. The document was delivered to Swiss company Richemont.

Logistics expert Zaid Al-Jarba told Asharq Al-Awsat that adopting the ATA Carnet system is a pivotal step in enhancing Saudi Arabia’s logistics environment, adding that the move aligns with the Kingdom’s national transportation and logistics strategy, facilitating international trade by streamlining customs procedures.

He stressed that this system strengthens the country’s infrastructure readiness, supports the growth of the logistics services sector, increases Saudi Arabia’s global competitiveness, and boosts its ability to attract and host international events and exhibitions.

Businesses and interested parties can apply for the ATA Carnet through the Federation’s website and collect it from their headquarters in Riyadh.

The Zakat, Tax, and Customs Authority clarified when announcing the start of the ATA Carnet that eligible goods include items intended for display or use in exhibitions, markets, meetings, or similar events, professional equipment, containers, pallets, packing materials, samples, and other goods related to commercial operations. Additionally, goods imported for educational, scientific, or cultural purposes can also be temporarily admitted under the system.

The Federation of Saudi Chambers has been designated as the authorized guarantor in the Kingdom for the ATA Carnet, approved by the Zakat, Tax, and Customs Authority. The Federation is also the issuing body, with the right to delegate others. Beneficiaries can import goods temporarily under the ATA Carnet without needing to provide financial guarantees.