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Saudi Sets Requirements for Establishment of Duty-Free Markets in Customs Ports

Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)
Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)
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Saudi Sets Requirements for Establishment of Duty-Free Markets in Customs Ports

Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)
Saudi Arabia defines customs rules, conditions and procedures for establishing duty-free markets (Asharq Al-Awsat)

The Zakat, Tax and Customs Authority (ZATCA) set the customs measures and requirements for the establishment of duty-free markets, when necessary, at air, sea and land ports, pursuant to the GCC Unified Customs Law.

In a statement, ZATCA said these requirements are linked to the operation and licensing of duty-free markets.

These rules and requirements followed the Cabinet’s decision, which will contribute to supporting supply chains and improving the logistics services provided for duty-free markets. It will do so by providing a wide range of goods and products for shopping while traveling.

Moreover, duty-free markets will allow additional selling channels for local companies. This will support and contribute to the promotion of national products by displaying them in the sales halls.

According to ZATCA, duty-free markets are currently found in the departure terminals of several airports, such as King Abdulaziz International Airport, King Fahd International Airport, and Prince Mohammad bin Abdulaziz International Airport in Madinah.

The authority added that it seeks to expand the presence of duty-free markets as needed in the air, sea, and land ports. It said it would do so in coordination with the legal authorities in customs ports.

Duty-free markets are defined as retail outlets that allow travelers to purchase goods and products that are permitted to be traded in the Kingdom, which are subject to exemption from customs duties or taxes, in accordance with the provisions of the relevant regulations, as stipulated in Article 78 of the Unified Customs Law and Paragraph 1 of Article 12 of the Duty-free Markets Rules System.

On the other hand, ZATCA added that tax exemptions differ from one country to another, based on the location of the duty-free market (arrival or departure terminals).

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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki

The International Monetary Fund said on Thursday that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year.

IMF spokesperson Julie Kozack told a regular news briefing that the Fund is closely monitoring the situation in southern Lebanon with "grave concern" and offered condolences for the loss of life.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

According to Reuters, she said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly, especially in Gaza, where the civilian population "faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

The IMF estimates that Gaza's GDP declined 86% in the first half of 2024, Kozack said, while the West Bank's first-half GDP likely declined 25%, with prospects of a further deterioration.

Israel's GDP contracted by about 20% in the fourth quarter of 2023 after the conflict began, and the country has seen only a partial recovery in the first half of 2024, she added.
The IMF will update its economic projections for all countries and the global economy later in October when the global lender and World Bank hold their fall meetings in Washington.
"In Lebanon, the recent intensification of the conflict is exacerbating the country's already fragile macroeconomic and social situation," Kozack said, referring to Israel's airstrikes on Hezbollah in Lebanon.
"The conflict has inflicted a heavy human toll on the country, and it has damaged physical infrastructure."
The main channels for the conflict to impact the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks by Yemen's Houthis on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.
"I just emphasize once again that we're closely monitoring the situation, and this is a situation of great concern and very high uncertainty," she added.
Lebanon in 2022 reached a staff-level agreement with the IMF on a potential loan program, but there has been insufficient progress on required reforms, Kozack said.
"We are prepared to engage with Lebanon on a possible financing program when the situation is appropriate to do so, but it would necessitate that the actions can be taken and decisive policy measures can be taken," Kozack added. "We are currently supporting Lebanon through capacity development assistance and other areas where possible."