Saudi Arabia Introduces Customs Exemption for Experimental Production
Saudi Arabia has unveiled a new customs exemption aimed at boosting the industrial sector by eliminating duties on raw materials used in experimental production.
Experimental production refers to creating goods or services on a trial basis to test new ideas and technologies before full-scale implementation. This helps in assessing feasibility, identifying challenges, and refining processes.
The Ministry of Industry and Mineral Resources introduced this initiative via the Senaei platform, targeting industrial facilities with manufacturing licenses that are still under construction.
This initiative supports the Kingdom’s goal of increasing industrialization, with a target of 36,000 plants by 2035. The Senaei platform now offers over 30 electronic services to industrial investors.
The new service aids industrial facilities in research and development, experimental production, workforce training, and quality assessments of materials.
To apply, facilities must log in to the Senaei platform, submit their application, and await the exemption decision.
In April, Saudi Arabia also implemented customs duty exemptions for various manufacturing products, including raw materials, semi-processed goods, packaging materials, machinery, equipment, and spare parts.
In March, the Ministry alleviated financial burdens on businesses with import licenses, enhancing competitiveness and profitability by facilitating the importation of specific products.
This initiative is expected to enable businesses to allocate more funds towards operations and expand production, fostering growth within the industrial sector.
The ministry also confirmed that the exemptions cover fully manufactured products and essential production materials.
Since the launch of Vision 2030 in 2016, Saudi Arabia’s industrial sector has seen cumulative manufacturing assets reach $132 billion, underscoring sustained growth.