Saudi Arabia Boosts Efficiency of Customs Clearances

Zakat, Tax and Customs Authority (ZATCA) officials at the event launching initiative for 2-hour Saudi customs clearances (Asharq Al-Awsat)
Zakat, Tax and Customs Authority (ZATCA) officials at the event launching initiative for 2-hour Saudi customs clearances (Asharq Al-Awsat)
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Saudi Arabia Boosts Efficiency of Customs Clearances

Zakat, Tax and Customs Authority (ZATCA) officials at the event launching initiative for 2-hour Saudi customs clearances (Asharq Al-Awsat)
Zakat, Tax and Customs Authority (ZATCA) officials at the event launching initiative for 2-hour Saudi customs clearances (Asharq Al-Awsat)

Saudi Arabia has reduced its customs clearance period from 12 days to 2 hours in a move aimed at increasing the efficiency of customs processes in all the Kingdom’s land, sea and air ports.

The Kingdom, according to a new initiative by the Zakat, Tax and Customs Authority (ZATCA) will target a two-hour customs clearance time at all land, sea and air ports.

The governor of ZATCA, Suhail Abanmi, said that the scheme comes “after the completion of a phase of continuous cooperation and coordination between the customs clearance system.”

“To reach this target is a key possibility for the Kingdom to become a global logistics platform,” added Abanmi.

Speaking at ZATCA’s celebration of World Customs Day, which was marked in Riyadh on Sunday, Abanmi stressed that the newly announced initiative aims to improve customs operations, performance and productivity indicators, strengthen the logistics sector and support the Kingdom’s position in the growth of the world economy.

Abanmi stressed the authority’s commitment to deepen cooperation with local and international bodies, both public and private, in a way that serves the initiative and contributes to enhancing the efficiency of customs services.

He said that the exchange of knowledge between the authority and its customs counterparts was “a top priority.”

“The authority, through its academy, continuously strives to consolidate the importance of building knowledge and skills and developing the potential of its employees through specialized programs in all areas of customs work,” said Abanmi.

“Human capital is the foundation of creativity, innovation and excellence. It is possible to achieve the authority’s strategy, which aims to build an effective working system,” he stressed.

Nashmi Al-Harbi, a logistics expert, said that a higher level of success can be achieved by saving time.

Harbi stressed that Saudi Arabia is proactive in seeking to facilitate and accelerate procedures to achieve the national strategy for transport and logistics services.



Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.