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Saudi Arabia Establishes Duty-Free Markets in Airports, Ports

Saudi Arabia agrees to establish free markets at land, sea and air ports (Asharq Al-Awsat)
Saudi Arabia agrees to establish free markets at land, sea and air ports (Asharq Al-Awsat)
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Saudi Arabia Establishes Duty-Free Markets in Airports, Ports

Saudi Arabia agrees to establish free markets at land, sea and air ports (Asharq Al-Awsat)
Saudi Arabia agrees to establish free markets at land, sea and air ports (Asharq Al-Awsat)

Saudi Arabia has opened a new trade path by approving the establishment of duty-free markets in airports, seaports, and land ports. This supports the Kingdom’s aspirations for infrastructure development, logistics support and providing a unique business environment in the transport sector.

The Cabinet, chaired by King Salman bin Abdulaziz on Tuesday at Al-Salam Palace, approved the establishment of duty-free markets in airports, seaports, and land ports.

The Cabinet decision permits sale, in these markets, to passengers arriving and departing from the Kingdom.

Establishing duty-free markets aligns with Saudi Arabia’s plans for strategic transformation in providing support services and operational processes.

The Kingdom’s Transport Ministry is focused on upgrading provided services, developing the operational aspect in line with future plans, building strong alliances and providing a distinctive travel experience through integrated work and by investing with the private sector to achieve the highest standards of efficiency and operation.

In other news, Saudi Arabia is scheduled to inaugurate on Wednesday the Port of Jazan Primary and Downstream Industries (JPDI), located in the south of the Kingdom on the Red Sea, which represents one of the most prominent global trade corridors.
The inauguration is set to be sponsored by Governor of Jazan Prince Mohammed bin Nasser bin Abdulaziz.

The Royal Commission in Jubail and Yanbu, represented by the Jubail and Yanbu Industrial Services Company, and Hutchison Ports had announced the signing of an agreement to invest and operate JCPDI Port, which consists of world-class, multipurpose terminals within the Jazan City for Primary and Downstream Industries (JCPDI).

The port is located on the international trade corridor across the Red Sea, near the Bab al-Mandab Strait, the Horn of Africa, and on China’s Belt and Road Initiative.

Establishing the port is an important step in the Kingdom’s journey towards economic development and diversification of sources of income. The port, as a logistical gateway, will serve to be a great supporter of the city’s economic, industrial, and logistical renaissance.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.