TRADE and investment regime
The Institutional Framework
The Kingdom of Saudi Arabia is a monarchy.
civil public courts, commercial courts, family courts, criminal courts and labour courts); (ii) courts of appeal; and (iii) the Supreme Court.
All legal instruments are published in the Official Gazette (Umm Al-Qura); they enter into effect on the date of publication unless a later date is specified.
In general, conflicts or inconsistencies between international agreements and treaties and other provisions of domestic law are resolved in accordance with the same rules of interpretation applied to domestic legislation, for example, more recent laws take precedence over older laws.
Trade Policy Formulation and Implementation
The Ministry of Commerce and Industry (MCI) is responsible for trade-policy formulation and implementation, and coordinates with other ministries and trade-related bodies, such as the Supreme Economic Council (headed by the King), and the Saudi Negotiating Team in charge of discussing and assessing WTO-related issues.
Policy Objectives
Under its Ninth Development Plan 2010-2014, Saudi Arabia's main policy objectives, inter alia, are to: accelerate its development in order to achieve increased and balanced economic growth throughout the country; create more employment opportunities for all Saudi nationals; improve living standards and quality of life; diversify the economy away from oil, while preserving the environment and its natural resources; strengthen the role of the private sector through various investment (domestic and foreign) projects; increase the participation of small and medium-size enterprises; enhance competitiveness in the global economy; and further promote GCC and Arab integration (Chapter I(4)).
Saudi Arabia has not been involved directly in any disputes under the WTO Dispute Settlement Mechanism, but has participated as a third party in six cases: (i) "United States – Definitive Anti-dumping and Countervailing Duties on Certain products from China"; (ii) "China – Measures Related to the Exportation of Various Raw Materials (complainant the United States)"; (iii) "China – Measures Related to the Exportation of Various Raw Materials (complainant the EU)"; (iv) "China – Measures Related to the Exportation of Various Raw Materials (complainant Mexico)"; (v) "Canada – Certain Measures Affecting the Renewable Energy Sector" and (vi) "China – Countervailing and Anti-Dumping Duties on Grain Oriented Flat-Rolled Electrical Steel from the United States".
4 Agreement on the Application of Sanitary and Phytosanitary Measures (Article 7, Annex B) G/SPS/N/SAU/8, 16 December 2010 Emergency measures (Paragraph 3 of Annex B) G/SPS/ENQ/25, 15 October 2009 Enquiry point Agreement on Safeguard Measures(Article 12.
20, 3 September 2010 Saudi Arabia does not apply any TRIM inconsistent with the Agreement and has no publications State Trading Enterprises(Article XVII:4 (a))and Understanding on the Interpretation of Article XVII:1 
G/STR/N/12/SAU
, 11 March 2009 New and full notification that Saudi Arabia does not maintain any state trading enterprises General Agreement on Trade in Services S/ENQ/78/Rev.
Its specific objectives are to achieve a common market, with equal treatment of GCC citizens (now about 40 million), in each member country, in respect of freedom of movement, work, residence, ownership of real estate, movement of capital, as well as financial and monetary coordination.
Since January 2003, the GCC states have operated the common external tariff (CET) (Chapter III(1)(iii)); and the GCC Common Customs Law of 2003, which is implemented in Saudi Arabia under Royal Decree No.
Although tariffs seem to have been harmonized at the GCC level for the most part, its members are still in the process of reaching agreement on some important issues, including on how to allocate customs revenues from applied tariffs.
Investment Framework
The promotion of private-sector (foreign and domestic) investment is an important part of Saudi Arabia's economic programme, in order to diversify its economy away from oil, foster GDP growth, and create job opportunities for its young labour force.
2
Economic activities in which foreign investment is not permitted, 2011
Manufacturing
Oil exploration, drilling, and production, except mining services listed at 5115 and 883 in International Industrial Classification Codes
Manufacturing of military equipment, devices, and uniforms
Manufacturing of civilian explosives
Services
Catering to military sectors
Security and detective services
Real estate investment in Makkah and Madina
Tourist orientation and guidance services related to Hajj and Umrah
Recruitment and employment services, including local recruitment offices
Real estate brokerage
Printing and publishing, except:
- Pre-printing services internationally classified at CPC 88442
- Printing presses internationally classified at CPC 88442
- Drawing and calligraphy internationally classified at CPC 87501
- Photography internationally classified at CPC 875
- Radio and television broadcasting studios internationally classified at CPC 96114
- Foreign media offices and correspondents internationally classified at CPC 962
- Promotion and advertising internationally classified at CPC 871
- Public relations internationally classified at CPC 86506
- Publication internationally classified at CPC 88442
- Press services internationally classified at CPC 88442
- Production, selling and renting of computer software internationally classified at CPC 88
- Media consultancies and studies internationally classified at CPC 853
- Typing and copying internationally classified at CPC 87504 and 87904
- Motion picture and video tape distribution services internationally classified at CPC 96113
Commission agents internationally classified at CPC 621
Audio-visual and media services
Land transportation services, excluding intercity passenger transport by trains
Services provided by midwives, nurses, physical therapy services, and quasi-doctoral services internationally classified at CPC 93191
Other
Fisheries
Blood banks, poison centres, and quarantines Source: Information provided by the Saudi authorities.
Any foreign investor has the right to transfer out of Saudi Arabia their share derived from selling their equity or profits, as well as any amounts required for the settlement of contractual obligations pertaining to the project.
Private investment companies that have promoted opportunities in Saudi Arabia's industrial cities and other regions, include National Industrialization Company, Saudi Venture Capital Group, Saudi Industrial Development Company, Royal Commission for Jubail and Yanbu, and Arriyadh Development Authority.

All foreign investment has to be approved by SAGIA, except for activities on the Negative List or where the authority to license is assigned to an agency other than SAGIA, such as the Saudi Arabian Monetary Agency (SAMA), the Capital Market Authority (CMA), the Communication and Information Technology Commission (CITC) or the Presidency of Meteorology and Environment (PME).
Where its domestic laws or other acts are in contradiction with international treaties or agreements, Saudi Arabia would bring them into conformity with such treaties or agreements, and would respond quickly if inconsistencies are brought to the attention of Saudi officials.
The Saudi Negotiating Team is composed of representatives from: MCI, Ministry of Finance, Ministry of Economy and Planning, Ministry of Petroleum and Mineral Resources, Ministry of Agriculture, Ministry of Foreign Affairs, and Saudi Arabian Monetary Agency.
Saudi Arabia has set itself three strategic targets: to become the global capital of energy; to act as a transport and logistical hub between East and West; and to transform its knowledge-based industries, i.
The largest, King Abdullah economic city, will include the region's largest seaport, and an industrial zone covering 40 million square meters for industrial and light manufacturing facilities.
org/english/tratop_e/gproc_e/memobs_e.
Oman and the United Arab Emirates are not joining the monetary union.
The other exceptions to the 5% CET relate to tobacco, which is subject to a tariff rate of 100% (or a specific rate of duty, whichever is higher) and imports of pork and alcohol products, which are either prohibited (including domestic production) or subject to high rates of duty.
In September 2010, the GCC decided to put its negotiations on hold until the completion of a feasibility study to better perform in current and future negotiations.
The Saudi authorities indicate that these FTAs with the United States were concluded before GCC countries decided to negotiate all future FTAs as a group.
During its WTO accession, Saudi Arabia noted that it would review and remove additional items from the Negative List each year (beyond its WTO commitments) to further liberalize the economy (WTO document WT/ACC/SAU/61, 1 November 2005).

ECONOMIC ENVIRONMENT
Major Features of the Economy
The Kingdom of Saudi Arabia (Saudi Arabia) is the world's largest exporter of oil and one of the biggest producers of oil and natural gas (Chapter IV(2)).
Manufacturing, developed on the basis of Saudi Arabia's comparative advantage in energy-intensive industries (Chapter IV(3)), represent 12.
The Kingdom of Saudi Arabia ranks 55th (out of 177 countries) on the UNDP's Human Development Index.
8 GDP per capita (US$) 16,500 Share of GDP at constant prices (%) Agriculture, forestry and fishing 4.
Saudi Arabia started applying the Gulf Cooperation Council (GCC) common external tariff in 2003 (Chapter III(1)(iv)(a)).
the Supreme Council of the GCC member states adopted macroeconomics and budgetary convergence criteria, such as a cap on budget deficits relative to national GDP, a public debt to GDP ratio, inflation rates, national interest rates, and adequacy of foreign exchange reserves.
Recent Economic Developments
Saudi Arabia's development strategy has resulted in a positive economic performance in the past few years, in terms of GDP growth, moderate inflation, and surpluses in both its overall fiscal position (except for 2009) and external current account.
Furthermore, Saudi Arabia responded with a countercyclical policy to the global economic crisis, mainly through a sizeable fiscal stimulus that limited the impact of the crisis, supported solid growth of the non-oil sector, and contributed to reviving world demand.
b Interest rate on domestic currency deposits (3 months SIBOR yearly average).
This was due to a 54% fall in government revenue in the year and an increase of 15% in government expenditure in an effort to support economic activity during the global crisis.
With oil-related revenues accounting for 91% of total public revenue in 2010, Saudi Arabia is taking steps to achieve a sustainable non-hydrocarbon budget position through, inter alia, efforts to diversify the economy and modernize revenue collection; and measures are envisaged to slow the growth in domestic consumption of oil products,
This impressive performance was led by oil exports, which surged from US$161,568 million in 2005 to a peak of US$281,029 million in 2008; they were US$215,247 million in 2010.
Saudi Arabia's economy is increasingly dependent on international trade: the ratio of merchandise and services trade (exports and imports) to GDP rose from 88.
Saudi Arabia ranked 12th among world merchandise exporters and 21st among importers (considering the countries of the EU together and excluding intra-EU trade).
The share of fuels in total merchandise exports depends largely on the evolution of Arabian oil world prices and Saudi Arabia's quota production within the Organization of Petroleum Exporting Countries (OPEC).
Balance-of-payments data indicate that Saudi Arabia is, increasingly, a net importer of services, with a deficit averaging around US$50,000 million per year during 2005-10,
The deficit of transportation services soared from US$2,969 million in 2005 to US$10,692 million in 2010, while the deficit of travel services jumped from US$4,457 million to US$14,423 million.
3
Balance of payments, 2005-10
(US$ million)
2005 2006 2007 2008 2009 2010 Current account balance 89,990 98,934 93,329 132,322 20,955 66,752 Good and services 104,325 111,863 103,969 146,169 39,988 87,629 Goods 126,019 147,194 150,632 212,027 105,230 153,718 General merchandise 126,633 147,834 151,582 212,708 105,808 154,354 Exports 180,395 210,863 233,069 313,351 192,190 251,009 Oil exports 161,568 188,216 205,315 281,029 163,064 215,247 Non-oil exports 18,827 22,647 27,754 32,321 29,126 35,762 Imports 53,762 63,029 81,487 100,643 86,382 96,655 Non-monetary gold -614 -640 -951 -681 -579 -636 Credit 177 160 105 130 117 140 Debit 791 800 1,055 811 696 776 Services -21,694 -35,332 -46,662 -65,858 -65,242 -66,089 Transportation -2,969 -3,312 -7,338 -13,267 -9,462 -10,692 Credit 1,819 2,297 1,834 2,389 1,940 2,031 Debit 4,788 5,610 9,173 15,656 11,403 12,723 Travel -4,457 -8,199 -14,190 -9,219 -14,424 -14,423 Credit 4,622 4,762 5,968 5,910 5,995 6,712 Debit 9,080 12,961 20,158 15,129 20,419 21,135 Communication services -151 -309 -554 -1,047 -1,652 -1,904 Credit 192 244 246 222 205 293 Debit 343 553 800 1,269 1,857 2,197 Construction services -1,415 -3,154 -6,318 -4,491 -3,288 -3,789 Credit .
Debit 280 312 321 246 66 85 Capital and financial account -55,267 -78,401 -77,719 -102,296 39,800 -42,205 Direct investment 12,447 18,332 24,453 35,958 34,280 17,653 Abroad 350 39 135 -3,498 -2,177 -3,907 In Saudi economy 12,097 18,293 24,319 39,456 36,458 21,560 Portfolio investment 350 -11,933 -5,472 -1,631 -20,139 -17,437 Assets 350 -11,933 -5,472 -3,848 -20,133 -18,940 Liabilities 0 0 0 2,217 -5 1,503 Other investments -4,442 -13,886 -16,861 401 -6,898 -7,393 Assets -4,421 -13,957 -16,838 -2,562 -9,542 -6,523 Liabilities -21 71 -24 2,963 2,644 -870 Reserve assets -63,622 -70,914 -79,839 -137,025 32,556 -35,028 Monetary gold 0 0 0 -231 0 0 Special drawing rights -31 -90 -81 -14 -10,193 282 Reserve position in the Fund 1,593 994 181 -653 -633 36 Others reserve assets -65,183 -71,817 -79,939 -136,127 43,382 -35,346 Currency and deposits -19,147 -3,632 -35,967 -39,143 21,327 -5,913 Securities -46,036 -68,185 -43,971 -96,983 22,055 -29,433 Errors and omissions -34,724 -20,533 -15,610 -30,026 -60,754 -24,547 .
1,070 2,281 3,520 FDI inflows by main countries of origin United States 84 1,594 3,978 5,228 5,830 United Arab Emirates 5,014 -19 2,381 5,595 3,787 Japan 3,750 3,512 1,068 3,246 2,044 Kuwait 25 267 2,370 4,638 4,299 France 2,025 2,053 1,136 3,022 2,558 Netherlands 49 820 904 1,363 1,344 China .
Saudi Arabia has improved its business environment: for example, the minimum capital requirement for starting a business (SAR 500,000) was removed on 16 July 2007, and foreign businessmen may now obtain a multiple-entry visa, valid for 12 months, without requiring a letter of invitation from a Saudi host or approval from the local Chamber of Commerce.
Saudi Arabia was 29th in UNCTAD's Inward FDI Potential Index in 2008 (the same as in 2007), which reflects, in general, inhibited FDI since foreign companies still face investment restrictions in certain activities, including fisheries and oil exploration/drilling/production (Chapter II(5)).
More integration within the GCC is also likely to enhance growth prospects for Saudi Arabia and the other countries in the region through, inter alia, a more efficient allocation of resources, larger intra-GCC trade, strong boosts to FDI resulting from increased business opportunities, and higher productivity as a result of more competition among GCC countries.
Given that the oil sector is not labour-intensive, and increasing public sector employment is not sustainable in the long-run, Saudi Arabia is trying to enhance the employability of nationals by reducing the educational mismatch between Saudis' qualifications and private-sector needs through the "Saudization" programme.
On 23 February 2011, Saudi Arabia unveiled a series of benefits for its population estimated to be worth US$35 billion to, inter alia, pay aid for unemployed young people and tuition fees to study abroad, and support families to get affordable housing.
The other GCC members are: Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates (UAE).
In June 1986, the SAR was officially pegged to the IMF's Special Drawing Rights (SDR).
starting a business (13); dealing with licences (14); registering property (1); getting credit (46); protecting investors (16); paying taxes (6); trading across borders (18); enforcing contracts (140); and closing a business (65).
UNCTAD's Inward FDI Performance Index measures the extent to which host countries receive inward FDI, and ranks countries by the amount of FDI they receive relative to their economic size.
UNCTAD's Inward FDI Potential Index measures the extent to which host countries receive inward FDI, and ranks countries by the amount of FDI they receive relative to their potential.
The "Saudization" programme seeks, inter alia, to provide timely and periodic information on the labour market, encourage the private sector to give job opportunities to qualified and skilled citizens willing to work, and to rationalize the recruitment of the foreign labour force and restrict it only to specializations not sufficiently available among Saudis.
These aim at determining the number and quality of Saudi job seekers, qualifying those who lack specific skills through training programmes on jobs needed in the labour market, in cooperation with the Human Resource Development Fund; and providing them with suitable job opportunities in the private sector (SAMA, 2010).
With around 70% of Saudis under the age of 30, it is estimated that some 250,000 men enter the job market every year.
Due to the increasing economic necessity for women to work, as well as the Government's desire to include them in the workforce, it is estimated that at least 100,000 further jobs a year will be required for women (Arab News, 26 January 2011).
The economic cities, whose construction started in 2007, focus mainly on heavy industries, comprising petrochemical, copper refinery and smelter, and aluminium complexes.

World Trade
Organization WT/TPR/S/256/Rev.
1
14 February 2012
(12-0852) Trade Policy Review Body

TRADE POLICY REVIEW

Report by the Secretariat

THE KINGDOM OF SAUDI ARABIA

Revision

This report, prepared for the first Trade Policy Review of The Kingdom of Saudi Arabia, has been drawn up by the WTO Secretariat on its own responsibility.
The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from The Kingdom of Saudi Arabia on its trade policies and practices.
trade policies and practices by measure 21
(1) Measures Directly Affecting Imports 21
(i) Customs registration, documentation, procedures, and valuation 21
(ii) Rules of origin 23
(iii) Tariffs, other duties, and taxes 23
(iv) Import prohibitions, restrictions and licensing 28
(v) Contingency trade remedies 31
(vi) Standards and other technical requirements 32
(vii) Government procurement 36
(viii) Local-content requirements 37
(ix) Other measures 37
(2) Measures Directly Affecting Exports 38
(i) Registration and documentation 38
(ii) Export duties and taxes 38
(iii) Export prohibitions,
trade policies by sector 53
(1) Agriculture and Related Activities 53
(i) Main features 53
(ii) Agricultural policy 54
(iii) Fisheries 57
(2) Mining and Energy 59
(i) Overview 59
(ii) Mining and quarrying 59
(iii) Petroleum 61
(iv) Natural gas 65
(v) Electricity 67
(vi) Water 68
(3) Manufacturing 69
(i) Overview 69
(4) Services 73
(i) Overview 73
(ii) Financial services 74
(iii) Telecommunications and postal services 80
(iv) Transport 83
(v) Tourism 86

REFERENCES 87
APPENDIX TABLES 89

CHARTS
Page
I.
2 Economic activities in which foreign investment is not permitted, 2011 19
III.
1 Trading across borders indicators in GCC countries, 2011 22
III.
9 Domestic consumption of refined products, crude oil, and natural gas, 2005-09 62
IV.
Since its accession to the WTO in December 2005, the Kingdom of Saudi Arabia has continued a development strategy aimed at, inter alia, diversifying its economy away from crude oil and natural gas (23% of real GDP,
80% of the labour force), given that the oil sector is not labour-intensive and that increasing public-sector employment is not sustainable in the long-run, Saudi Arabia's main economic and social challenge, according to the authorities, is to provide more employment opportunities for its citizens.
Formulation and implementation of Saudi Arabia's trade policy is the responsibility of the Ministry of Commerce and Industry (MCI), in coordination with other ministries, such as the Supreme Economic Council (headed by the King), and the Saudi Negotiating Team in charge of discussing and assessing WTO-related issues.
Saudi Arabia does not impose VAT, excise duties or any other internal tax or charges on domestically produced or imported products.
textiles and apparel, and wood products), thereby providing higher levels of effective protection to those industries than that reflected by the nominal rates; mixed (negative from the first to the second stage, and then positive) in the food, beverages, and tobacco industry (reflecting the high rates on tobacco) and non-metallic mineral products; and negative from the first to the final stage of processing in chemicals and plastics,
In addition to import duty concessions, other general incentives available to all investors, include: no personal income tax; 20% tax on profits while losses may be transferred indefinitely; medium- or long-term loans from the Saudi Industrial Development Fund of up to 50% of the project cost with competitive interest rates; land at competitive rates; supply of electricity,
Saudi Arabia has been an observer to the plurilateral Government Procurement Agreement (GPA) since December 2007; it has yet to begin negotiations for GPA membership.
It addresses
agreements between Saudi and foreign companies or between foreign companies, even when the agreements are concluded outside Saudi Arabia.
In order to increase food security, Saudi Arabia has encouraged private companies to invest in farm projects abroad.
The private sector has played a major role in the development of Saudi agriculture, mostly due to government programmes that offer, inter alia, long-term, interest-free loans; low-cost water, fuel and electricity; and reduced duties on imports of raw materials and machinery.

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APPENDIX TABLES
Table AI.
1
Structure of exports, including re-exports, 2005-10
(US$ million and %)
2005 2006 2007 2008 2009 2010 Total (US$ million) 180,571.
1 Source: WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.
6 6911 Iron or steel structures, tubes and the like, for use in structures 0.
4 7522 Data processing machines, with at least processing, input and output units 0.
9 Source: WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.
2 Source: WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.
0 Source: WTO Secretariat estimates, based on UNSD, Comtrade database SITC Rev.
5618 dated 15/11/1424H (8 January 2004) Technical barriers to trade - Saudi Arabian Standards Organization (SASO) Technical Directive, Parts 1 through 4, issued 18 July 2000, as amended - Saudi Standards, Metrology and quality organization (SASO) Technical Directive part I through 4 issued 18 July 2000 as amended on 19 July 2005 Preshipment inspection - Council of Ministers Decision No.
1897 dated 24/5/1401H (29 March 1981) Trade and environment - General Environment Regulations and Rules for Implementation in the Kingdom of Saudi Arabia Competition policies - Law on Competition Policies, issued pursuant to Royal Decree No.
50 dated 21/4/1415H (27 September 1994) - Council of Ministers Bureau Letter 8/490 dated 28/6/1414H (13 December 1993) Government procurement - Standard Rules for Giving Priority in Government Purchases to National Products and Products of National Origin of Gulf Cooperation Council States - Government Purchases Law,
431 dated 1/5/1426H (8 June 2005) - GCC Patents Law - Law on Patents, Layout Designs of Integrated Circuits, Plant Varieties and Industrial Designs, issued pursuant to Royal Decree No.
(M/9) dated 1/2/1430H/ The Agriculture Development Fund (ADF) replacing the Saudi Arabian Agriculture Bank (SAAB) Industrial policy - Rules for the coordination of Industrial Establishments in the GCC States - Saudi Industrial Development Fund Law, promulgated by Royal Decree No.
M/3 dated 26/2/1394H (20 March 1974) - Law for the Protection and Encouragement of National Industries - Saudi Industrial Development Fund Law Services - Cooperative Insurance Companies Control Law, Royal Decree No.
4 15 Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes 60 5.
1 (cont'd) 32 Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks 76 5.
3 34 Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, dental waxes and dental preparations with a basis 48 5.
5 47 Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper and paperboard 22 5.
9 48 Paper and paperboard; articles of paper pulp, of paper or of paperboard 131 5.
2 53 Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn 23 5.
3 71 Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin 65 3.
1 86 Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds 23 5.
0 a The total of imports is higher than the sum of sub-items, as certain imports, to the value of US$46,534 million are not classified in the Harmonized System.
31 02 30 00 Explosives, fireworks, gunpowder, propellent powders, prepared explosives, detonating fuses, percussion or detonating caps, igniters, electric detonators, safety fuses, sulphate turpentine oils; polymethyl methacrylate; cellulose nitrates; aluminium powders and flakes; magnesium powder and flakes

GATT Article XXI AED 14.
The concerned Minister is whoever is acting for him for the wireless sets imported by the Government sector 63.
Different headings Products containing currency pictures, models or wrappers in shape of currency or otherwise GATT Article XX(d) SAMA Source: Information provided by the Saudi Authorities.
10 Group III – Automotive Passenger automobiles, trucks, buses and multi-purpose vehicles (new) 8701 / 8702 / 8703 / 8704 / 8705 Passenger automobiles, trucks, buses and multi-purpose vehicles (used) 8701 / 8702 / 8703 / 8704 / 8705 Automotive glass (windshield, side and rear glass) 7007.
21 Vehicle spare parts (new), including radiators and hoses, brakes and parts, lights, filters, silencers and exhaust pipes, clutches and parts, child restraints, spark plugs, wiper blades and motors, safety belts, fuel tanks, mirrors, bumpers, door locks and hinges, tyre tubes, and v-belts, gauges, rims and steering rods 40.
1 Domestic-use pesticides and insecticides 3808 Group V – Others Aluminium and aluminium alloy products for architectural application 7604 / 7606 / 7608 / 7609 / 7610 / 7616 Steel and iron alloy pipes 7304 / 7305 / 7306 / 7307 Gold and silver jewellery (including gemstones) 7113.
Description of product Nature of SPS Measure Justification WTO Members and non-Member country(ies) 0101 Live equine animals 0102 Live bovine animals Banned because of Screw Worm Article 5 of SPS Agreement Panama
010410 Live sheep Banned because of Scrapie virus
Article 5 of SPS Agreement Romania
010420 Live goats Banned because of Scrapie virus
Article 5 of SPS Agreement Romania
0102 Live bovine animals Banned because of BSE (Bovine Spongiform Encephalopathy) Article 5 of SPS Agreement Spain, Portugal, Italy, Germany, France, Greece, Austria, Belgium, Switzerland, Holland, Denmark, Finland, Slovenia, Luxembourg, Ireland, Czech Republic, Slovak Republic, Poland, Sweden, Canada (Alberta Province), United Kingdom, USA (Washington State, Alabama, Texas) 0102 Live bovine animals Banned because of FMD (Foot and Mouth Disease) Article 5 of SPS Agreement 0102

010410

010420 Live bovine animals

Live sheep

Live goats Banned because of FMD (Foot and Mouth Disease) Article 5 of SPS Agreement All African countries (except Sudan, Somalia, Djibouti (Eritrea), China, India, Malaysia, Yemen, Iraq, Chinese Taipei, Pakistan, Turkey, Lebanon, Cyprus, United Kingdom, Argentina (Corrientes Province).
The ban on importation from Iran, Sudan, Djibouti, Somalia, Eritrea, and Brazil was removed 0201 Live bovine animals Banned because of Render Pest Article 5 of SPS Agreement All African countries (except Sudan, Somalia, Djibouti, Eritrea, Egypt), Pakistan, Iran, Afghanistan, Mongolia 0201
0202
02060200
02062100
02066200
02062900
15020010
16025010
16025090
16029010
16029021
16029029
16029030
16030010 All types of bovine meat and its products Banned because of BSE (Bovine Spongiform Encephalopathy) Article 5 of SPS Agreement All EU countries (except Netherland, Ireland, Denmark), Switzerland, Japan Table AIII.
Article 5 of SPS Agreement Japan, Korea, Viet Nam, China, Thailand, Hong Kong, China, Laos, Cambodia, Indonesia, Russia, Kazakhstan, Mongolia, Azerbaijan, Bulgaria, Slovenia, Greece , Germany, India, Iran, Nigeria, Iraq, Bosnia and Herzegovina, Burkina Faso, Ivory Coast, Niger, Afghanistan, Cameron, Sudan, Serbia, Montenegro, Djibouti, Bangladesh ,Ukraine and UK, Egypt, Turkey and Myanmar 0105 Live birds Banned because of West Nile Fever Article 5 of SPS Agreement USA (the ban has been lifted on poultry, one-day chicks and hatching eggs) 0101
Live equine animals
Banned because of West Nile Fever Article 5 of SPS Agreement Oman,
Morocco, USA (New York only; only horses) 0105

01063100
01063200
01063910
01063920 Live birds
Banned because of West Nile Fever Article 5 of SPS Agreement
Oman, Morocco 0105

01063100
01063200
01063910
01063920 Live birds
Banned because of Avian Influenza Article 5 of SPS Agreement The whole world
04070011 Hatching eggs and one- day-old chicks Banned because of Avian Influenza Article 5 of SPS Agreement The whole world, the ban for importation from Japan was removed Table AIII.
4 (cont'd) 0105

01063100
01063200
01063910 Live birds
Banned because of ILT Article 5 of SPS Agreement Egypt, Syria, Lebanon 04070011 Hatching eggs 0207
poultry meat and its products
Banned due to Contamination with Nitrofin (Carcinogenic Herbicide) Article 5 of SPS Agreement Germany 0408 Eggs 08011100

Coconuts, fresh or dried, whether or not shelled or peeled Banned because of C.
C Viroid Article 5 of SPS Agreement Solomon Islands, Guam 08011900 Philippines (ban only on unshaven fresh coconut) 0302
0303
0304
0306
0307
01605 Aquaculture fish (fresh, chilled, frozen) and its products Special condition due to Contamination with Chloramphenicol and Nitrofuran Article 5 of SPS Agreement Should be accompanied with certificate attesting to absence of Chloramphenicol and Nitrofuran) 21032000 All fresh and processed food Temporary ban due to potential health hazard from the accident at the Fukushima nuclear power plant Article 5 of SPS Agreement Five prefectures in Japan (Fukushima, Ibaraki, Tochigi, Gunma, Fukushima Dai-ichi), or from any other contaminated areas to be declared by the Japanese Government
All fresh and processed food Special conditions due to potential health hazard from the accident at the Fukushima nuclear power plant Article 5 of SPS Agreement A health certificate from Japanese competent authorities must accompanied each food consignment certifying that the food products imported from Japan is free of radionuclides contamination, or if present shall be within the permissible contamination levels according to international standards Source: Information provided by the Saudi authorities.
9 3212 Made-up textile goods except wearing apparel 95 6.
6 324 Footwear, except vulcanized rubber or plastic footwear 22 9.
0 a The total of imports is higher than the sum of sub-items, as certain imports, to the value of US$46,534 million are not classified in the Harmonized System.
Source: WTO Secretariat estimates, based on data provided by the Saudi authorities; imports from UNSD, Comtrade database.
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1 Trade Policy ReviewPage 94

The Kingdom of Saudi Arabia WT/TPR/S/256/Rev.

Other government agencies involved include two fully state-owned enterprises: the Agricultural Development Fund (ADF), which disburses subsidies, and grants interest-free loans; and the Grain Silos and Flour Mills Organization (GSFMO), which purchases and stores wheat, constructs flour mills, and produces animal feed.
The King Abdullah Agricultural Initiative, announced in January 2009, aims to improve long-term food security by enabling private Saudi businesses to invest in agricultural projects in other country.

Following a 2007 government decision, Saudi Arabia's agriculture sector is being restructured to focus on value-added crops such as fruits and vegetables, and to implement new water-saving and irrigation technologies.
Saudi Arabia is planning additional investments for developing fisheries, flour mills, and associated agri-food industries, as well as infrastructure development, such as the Prince Abdulaziz Bin Mousaed Economic City in the city of Hail.
In Saudi Arabia's notifications for 2007 and 2008, GSFMO engaged in public stockholding for food security purposes by managing and controlling the storage and distribution of grains to the value of SAR 35.

Wheat flour produced by the GSFMO is sold under price controls with the aim of providing all people, including those with low incomes, with a stable, lowest possible cost food source.
The Government does not provide any kind of subsidies, privileges or grants to the fishing sector; assistance is only in the form of interest-free loans for the development of traditional fishing, including loans for engine purchase, and upgrading fishing equipment.
With extensive mineral resources, access to low cost energy resources, expanded development, and a construction boom, Saudi Arabia has seen strong growth in mining (as well as downstream processing and manufacture of metals).
Its industrial minerals operations currently consist of: the Az Zabirah kaolin and industrial grade bauxite deposit and processing plants; the Al Gazalah magnesite deposit and the Al Madinah magnesite processing plant (in commissioning), with a target capacity of 80 ktpa DBM and CCM (dead burn magnesia and caustic calcined magnesia).
Its oil is produced in five grades: Arabian heavy, Arabian medium, Arabian light, Arabian extra light, and Arabian super light.
10
Exports of crude oil and refined productsa (by region), 2007-09
(Million barrels)
2007 2008 2009 % share in 2009 Exports to Crude oil Refined products Crude oil Refined products Crude oil Refined products Crude oil Refined products North America 571.
Under its official procurement policies, its major contracting objectives are: completion of work on schedule, conformance with demanding technical standards, and lowest overall cost to Saudi Aramco.
Saudi Aramco operates three domestic joint-venture refineries: with ExxonMobil in Yanbu' (SAMREF); with Shell in Jubail (SASAREF); and with Sumitomo Chemical at Petro Rabigh (an integrated oil refinery and petrochemical plant, fed by crude oil, ethane, and butane).
Large-scale gas projects such as Hawiyyah, Haradh, and Khurasaniyah have made available additional volumes of natural gas to meet growing demand in industry and public utilities (particularly for power generation and water desalination).
260 dated 23/10/1422H (7 January 2002) is the basis for commercial pricing of NGLs used as feedstock in Saudi Arabia, requiring that pricing of NGLs supplied to domestic users be commercially based.
In a joint venture with Saudi Aramco, Areva is also developing a pilot project on solar thermal energy to evaluate the technology at the King Abdullah University of Science and Technology.
The SWCC is 100% government-owned, and owns 7 desalination plants (4 on the western coast and 3 on the eastern coast) in addition to a group of junior plants (mainly on the western coast).
13
Industrial units by activity, 2009
(Financing in million Riyals)
New factories Total factories (2009) Industrial activity No.
The Ministry will provide supporting services for the industrial sector by promoting investment, technological upgrading, support for small and medium-size enterprises, application of international standards, the upgrading of management and human resources, and building business information networks.

SABIC has joint-venture partnerships with international companies, including ExxonMobil, Shell Oil, Hoechst-Celanese, and Duck Energy; it is a partner in three joint ventures in Bahrain; and has manufacturing plants in Europe, the United States, and Asia.

As Saudi Arabia is undertaking major building and construction projects, including commercial and residential projects as well as government-funded infrastructure, cement demand and factories' production has been increased as a result of expansion in recent years.
Caustic soda is used as feedstock for refining bauxite into alumina (produced from the electrolysis of brine, along with chlorine, which is later used in the manufacture of ethylene dichloride (EDC)).
Diammonium phosphate-based fertilizer (DAP) production in Saudi Arabia is set to expand with Ma'aden's joint-venture DAP-production facility at Ras Al-Kair, which will begin processing some of Saudi Arabia's 3.
These include the National Commercial Bank, Agricultural Development Fund, Saudi Industrial Development Fund, Real Estate Development Fund, Saudi Real Estate Company, Tawuniya, Saudi Arabian Airlines Company, Saudi Railway Organization, Saudi Telecom Company, and Saudi Post (Chapter III(3)(iii)).
Prudential regulations in Saudi Arabia curb credit growth risks by requiring banks to obtain SAMA's approval for foreign lending and by imposing statutory caps on individual indebtedness.
A foreign insurance company may establish a commercial presence but must be in the form of a locally incorporated cooperative insurance joint-stock company, or as an established direct branch of an international insurance company operating in Saudi Arabia as a cooperative insurance provider.
This has been driven at least in part by the expansion of compulsory insurance in health care and motor vehicles, as well as an expansion in construction and additional development of industrial infrastructure.
16
Licensed insurance and reinsurance companies, 2011
Company Capital (million SAR) Approval date National Company for Cooperative Insurance (NCCI) 500 12/2/2004 The Mediterranean and Gulf Cooperative Insurance and Reinsurance (MedGulf) 800 9/11/2007 Malath Cooperative Insurance and Reinsurance Company 300 9/11/2007 Arabian Shield Cooperative Insurance 200 9/11/2007 Saudi IAIC for Cooperative Insurance (SALAMA) 100 9/11/2007 SA BB Takaful 100 9/11/2007 Saudi Arabian Cooperative Insurance Company 100 9/11/2007 Al Ahli Takaful 100 9/11/2007 Gulf Union Cooperative Insurance Company 220 9/11/2007 Sanad for Cooperative Insurance and Reinsurance (SANAD) 200 3/8/2008 Assurance Saudi Fransi (Allians) 100 3/8/2008 Trade Union Cooperative Insurance Company 250 3/31/2008 Al Sagr Company for Cooperative Insurance 200 3/31/2008 Saudi Indian Company for Cooperative Insurance 100 6/10/2008 Arabia Insurance Cooperative Company 200 6/18/2004 Saudi United Cooperative Insurance Company (Wala'a) 200 7/2/2008 Saudi Re for Cooperative Reinsurance Company (Saudi Re) 1,000 7/21/2008 Bupe Arabia for Cooperative Insurance 400 8/10/2008 United Cooperative Assurance (UCA) 200 12/30/2008 Al-Ahlia for Cooperative Insurance 100 3/9/2009 Allied Cooperative Insurance Group (ACIG) 100 5/10/2009 Al-Rajhi Company for Cooperative Insurance 200 11/17/2009 Ace Arabia Cooperative Insurance Company 100 12/8/2009 AXA Cooperative Insurance Company 200 1/26/2010 Al-Alamiya Cooperative Insurance Company 200 2/13/2010 Gulf general Insurance Company
Buruj Cooperative Insurance company
Wataniya Insurance Company
Amana Cooperative Insurance Company

Solidarity Saudi Takaful Co.
The Saudi Communications and Information Technology Commission (CITC) expects broadband service to grow owing to expanded competition among service providers, increased demand for internet service, and higher awareness of internet uses and applications, such as e-learning, e-government, and e-trade, plus growing networks and new services launched by new licensed companies.
The STC had transformed itself, in a relatively short time, into one of the most technically advanced telecommunication companies in the Middle East region, offering services and products that matched other major international telecommunication companies.
Saudi Arabia has signed bilateral "open skies" agreements with Bahrain, European Union, Japan, Kuwait, Oman, Qatar, Syria, United Arab Emirates, United States (agreed to ad referendum in April 2011), and Yemen.
King Abdulaziz port at Dammam, Yanbu Commercial port, Jubail commercial port, Gizan port, Diba port, King Fahad Industrial port at Yanbu, King Fahad Industrial port at Jubail, and Ras Al-Kair.
Through its subsidiary, NCC (a major chemical transportation company), it has a joint-venture agreement with Odfjell of Norway to establish an operating company in Dubai to operate their combined fleet of coated chemical tankers as a pool.

FAO (1989), The role of the Fish Farming Centre in the development of aquaculture in the Kingdom of Saudi Arabia, document UTFN/SAU/010/SAU.
org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IDB/CM/Publications/IDB_AnnualSymposium/20thSymposium/8-AbdullaAlobaid.
See also WTO documents G/AG/N/SAU/2, G/AG/N/SAU/3, G/AG/N/SAU/4.

The Board of Directors consists of nine members, to be appointed by the ordinary general assembly for three years, one of whom shall be president of the company.
The Jazan refinery is not a joint venture; the Red Sea (Yanuba) refinery project is currently only subject to an MOU, and is not yet a joint venture.
It is required as feedstock for the aluminium smelter Ma'aden is developing at Ras Al Zour, which will utilize technology licensed from the German company Uhde.
The Saudi commercial banks are the National Commercial Bank; the Saudi British Bank; Saudi Investment Bank; Alinma Bank; Banque Sauid Fransi; Riyad Bank; Samba Financial Group; Saudi Hollandi bank, Al Rajhi Bank; Arab National Bank; Bank Albilad; Bank AlJazira (SAMA online information, "Saudi Banks".

(Article 3(3)) sets minimum
paid-up capital requirements (administered by SAMA) for locally incorporated public joint-stock cooperative insurance company (SAR 100,000,000) and for reinsurance or insurance companies engaged in underwriting reinsurance activities (SAR 200,000,000).
It has helped the establishment of: The Saudi Rail Road Company (SAR); The National Company for Unified Procurement of Medicine; Al-elm Information and Data Security Company; the Security Exchange Company (Tadawl) and the Saudi Company for the Exchange of Electronic Data (Tabadl).

All imports into Saudi Arabia, except those of low pecuniary value (up to SAR 3,000) and those intended for own use, must be accompanied by, inter alia, a customs declaration form (for a fee of SAR 20), commercial invoice, a bill of lading (airway bill for air cargo and sea bill for sea cargo), and a certificate of origin.
1
Trading across borders indicators in GCC countries, 2011
Bahrain Kuwait Oman Qatar Saudi Arabia UAE Trading across borders index (rank) 33 113 88 46 18 3 Documents to export (number) 5 8 9 5 5 4 Time to export (days) 11 17 14 21 13 7 Cost to export (US$ per container) 955 1,060 766 735 580 521 Documents to import (number) 6 10 9 7 5 5 Time to import (days) 15 19 17 20 17 7 Cost to import (US$ per container) 995 1,217 890 657 686 542 Source: World Bank online information.
other duties, and taxes
(a) MFN applied tariffs
Goods imported into Saudi Arabia are subject only to customs tariffs since it does not impose VAT, excise duties or any other internal taxes or charges on domestically produced or imported products (section (c) below).
1 reveals the dispersion of the tariff rates, which range from zero to 100% (ad valorem part of the mixed duty on tobacco and tobacco-related products).
textiles and apparel, and wood products), thereby providing higher levels of effective protection than that reflected by the nominal rates; there are mixed rates (negative from the first to the second stage, and then positive) in food, beverages, and tobacco industry (reflecting the high rates on tobacco) and non-metallic mineral products; and tariffs decrease from the first to the final stage of processing, e.
2011
Custom duty HS Code Description From To Duration (months) In seasona Out of season 07099020 Pumpkins 1 June End July 2 15% 0% 07099040 Okra 1 June End August 3 15% 0% 07020000 Tomato 1 May End August 4 15% 0% 07070000 Cucumbers 1 May End August 4 15% 0% 08071910 Watermelons 1 May End August 4 15% 0% 08071100 Muskmelons 1 May End August 4 15% 0% 07061000 Carrots 1 February End May 4 15% 0% 07019000 Potatoes 1 January End May 5 15% 0% 07031011 Dried onions 1 June End October 5 15% 0% a Instead of 25% tariff rate.
Similarly, with the exception of alcohol and pork-related products, which are excluded from Saudi Arabia's preferential arrangements, imports originating from the other members of PAFTA enter Saudi Arabia duty free, provided that the goods meet the respective origin criteria (Chapter II(4)(ii)(b)).
Saudi Arabia notified the WTO that it is implementing the Agreement on Import Licensing Procedures through the Law on Import Licensing Procedures.
03

Live swine, meat, fat, hair, blood, guts, limbs and all other products of swine

Dogs, other than hunting dogs, guard dogs or guide dogs for the blind, accompanied by a certificate from a competent authority in the country of exportation, duly qualified by the Saudi Arabian Embassy stated therein, that the dog to be admitted is a hunting dog, guard dog or guide dog for the blind, in addition to submitting to the veterinary quarantine
GATT Article XX(a)

GATT Article XX(a) 2 01 06 19 40 3.
Food, plant, and animal imports that are restricted for health reasons must be accompanied by SPS certificates from the exporting country.
Within seven days the PC notifies the complainant whether it accepts or rejects the complaint; within 30 days the Technical Secretariat examines the accuracy and adequacy of the complaint and submits a preliminary report to the PC with its recommendations to initiate an investigation or reject the complaint.
The Directive also requires SASO to consider relevant international standards as a basis for preparing Saudi technical regulations and standards unless these international standards or their parts are ineffective or an inappropriate means for achieving the intended, legitimate objectives.
The "Conformity Certificate (also known as Certificate of Conformity) for the Goods Exported to the Kingdom of Saudi Arabia" replaced the International Conformity Certification Programme (ICCP) and applies to all products, including domestic products, except those subject to SPS regulations (section (b) below).
Saudi Arabia, represented by SASO, is a member of the Arab Centre for Standardization and Metrology in the Arab Organization for Industrial Development and Mining (AIDMO); the International Organization for Standardization (ISO); the International Electrotechnical Commission (IEC); the International Organization for Legal Metrology (OIML); and the Codex Alimentarius Commission (CAC).
Imports, exports, and domestic production of plants and animals are subject to inspection by the Ministry of Agriculture, which also examines and issues SPS certificates for all agricultural products prior to their export.
Saudi draft standards for food are available on the SFDA website, while approved standards and SPS regulations in Saudi Arabia are published in the Official Gazette and are accessible on the MCI website.
(vii) Government procurement
The main legal instruments relating to government procurement are the Government Tenders and Procurement Law; Government Tendering and Procurement Regulations; Implementing Regulations of Government Tenders and Procurement Law; and the GCC Unified Rules of Granting Priority in Government Procurements to National Products and Products of National Origin.

Some of the key objectives of the government procurement framework are to: ensure that bids are not influenced by personal interest, in order to protect public funds; obtain maximum economic efficiency and competition for government projects at fair competitive process; promote honesty, competition, and the fair treatment of all bids; guarantee transparency; advance the public interest by ensuring tenders are not tailored to fit the capacities of certain suppliers; and attract expertise to the project that may be beyond the capabilities of the relevant government authority.
The Minister of Finance is not required to review leases or investment contracts with an annual return of less than SAR 50,000 (Article 142 of the Regulations); and after notifying the Ministry of Finance, government authorities may dispose of unwanted movables not required by other government authorities by public auction (where the value exceeds SAR 300,000) or by public auction or other approved manner in the interests of the public treasury (where the value is less than SAR 300,000) (Articles 55 and 56).
Licences may be automatic or nonautomatic, and the time required to obtain them depends upon the nature of the exported product.
(iv) Export subsidies, finance, insurance, and assistance
Saudi Arabia has notified the WTO that it does not have any subsidy programmes that are inconsistent with the provisions of the Agreement on Subsidies and Countervailing Measures,
To this end, three main entities are aiming to expand Saudi non-oil exports: (i) the Saudi Export Programme (SEP) of the Saudi Fund for Development (SFD); (ii) the Saudi Export Development Centre (SEDC); and (iii) the Saudi Exports Development Authority (SEDA).
Some of the main functions of the SEDA, established in 2007 are: preparing plans and programmes to develop exports and increase their competitive capacity; developing the policies and legislation necessary to achieve the objectives of these programmes and plans; improving the export environment; providing incentives to exporters, and protecting investments; cooperating with trade representatives abroad and chambers of industry and commerce to identify best exporting practices, create new opportunities for exporters, and improve the export environment; and providing administrative, technical, and consultative assistance and incentives for marketing exports and attracting foreign investors.
In addition to import duty concessions (section (1)(iii)(d) above), other general incentives for all investors include: no personal income tax; 20% tax on profits while losses may be transferred indefinitely; medium- or long-term loans from the Saudi Industrial Development Fund (SIDF) of up to 50% of the project cost with competitive commercial interest rates for new industrial enterprises and for replacement/modernization and extension of activities of existing enterprises; land at competitive rates; supply of electricity, fuel, water, and natural gas at competitive industrial prices (Chapter IV(2)(iii),(iv),(v), and (vi)); the Human Resources Development Fund to support activities related to qualifying, training, and recruitment of Saudi workforce; access to regional and international financial programmes (i.
Goods subject to price regulation Item HS Code Current regulated price Wheat flour 1101 0010 SAR 22 per 45 kga Fuel oil 2710 1140 6-12 halalas/litre Gasoline 2710 1121 90 halalas/litre Diesel 2710 1130-3 37 halalas/litre Kerosene 2710 1129 43.
000 kilowatt per hour/monthly basis 5 halalas per kilowatt 2,001-4,000 kilowatt per hour/monthly basis 10 halalas per kilowatt 4,001-5,000 kilowatt per hour/monthly basis 13 halalas per kilowatt 5,001-6,000 kilowatt per hour/monthly basis 18 halalas per kilowatt 6,001-7,000 kilowatt per hour/monthly basis 23 halalas per kilowatt 7,001-8,000 kilowatt per hour/ monthly basis 28 halalas per kilowatt 8,001-9,000 kilowatt per hour/monthly basis 32 halalas per kilowatt 9,001-10,000 kilowatt per hour/monthly basis 36 halalas per kilowatt 10,001 and more kilowatt per hour/monthly basis 36 halalas per kilowatt (b) Electricity consumption for commercial and industrial purposes: 1-4,000 kilowatt per hour on monthly basis 12 halalas per kilowatt 4,001-8,000 kilowatt per hour on monthly basis 20 halalas per kilowatt 8,001 and more kilowatt per hour on monthly basis 26 halalas per kilowatt Water Consumption and sewer services for household and commercial purposes:
1-50 kilowatt per hour on a 3-monthly basis 10 halalas per cubic metre
51-100 kilowatt per hour on a 3-monthly basis 15 halalas per cubic metre 101-200 kilowatt per hour on a 3-monthly basis SAR 2 per cubic metre
a 1 SAR = 100 halalas.
6 No/no Saudi Arabian Mining Company Mining 50 Yes/privatized in 2008 Saudi Arabian Airlines Air transport 100 Yes/no Saline Water Conversion Corporation Desalination 100 Yes/no Saudi Railways Organization Rail transport 100 Yes/no Tawuniya Insurance 50 Yes/no Grain Silos and Flour Mills Organization Agriculture 100 Yes/no Agricultural Development Fund Specialized financial institution 100 Yes/no Saudi Industrial Development Fund Specialized financial institution 100 No Public Investment Fund Specialized financial institution 100 No Real Estate Development Fund Specialized financial institution 100 No Ministry of Finance Lending Programme Specialized financial institution 100 No Saudi Arabian Fertilizer Company Agriculture 43 Yes/no Saudi Post Postal services 100 Yes/no National Water Company Water 100 Yes/privatized in 2009 Saline Water Conversion Corporation Water 100 Yes/no
Source: Information provided by the Saudi authorities.
The Council of Ministers has approved the privatization of: telecommunications; water and sewage; desalination; air transport services, including airport services; roads, including management, operation, maintenance, and construction; seaport services; postal services; grain silos and flour mills; services for industrial cities; government shares in corporations, including Saudi Electricity Company (SEC), Saudi Arabia Basic Industries Corporation (SABIC), Saudi Arabia Mining Company (Ma'aden), Saudi Telecom Company (STC), and government shares in domestic oil refineries; government shares in joint-investment companies with Arab and Islamic countries; government-owned hotels; sports clubs; municipal services, including slaughterhouses and waste management; educational services, including school construction and transportation, and recruitment of Saudis into the private sector; social services; and agricultural services, such as quarantine and operation of veterinary laboratories/clinics.
Saudi Arabia has joined the following IPR conventions and treaties (date of membership/entry into force for Saudi Arabia in parentheses): Convention Establishing the World Intellectual Property Organization (WIPO) (22 May 1982); Berne Convention for the Protection of Literary and Artistic Works (11 March 2004); Paris Convention for the Protection of Industrial Property (11 March 2004); Universal Copyright Convention (13 April 1994); Arab Regional Copyright and Related Rights Agreement (22 December 1985); and GCC amended Patent Law (29 August 2001).
The Saudi copyright legislation provides, inter alia, protection for news reports, excluding only news facts; a reproduction right as required by Berne Article 9 (which includes digital reproduction); protection for pre-existing foreign works if they have not yet fallen into the public domain in the country of origin through the expiry of term of protection; a point of attachment for foreign sound recordings; a definition of "works" that includes sound recordings; and parallel commercial export and import protection, as exportation and importation of copies not authorized for distribution in Saudi Arabia is deemed to be infringement.
industrial designs, and plant varieties
Under the Law on Patents, Layout-Designs of Integrated Circuits, Plant Varieties and Industrial Designs, protection of integrated circuits and industrial designs is granted for ten years from the date of filing the application with the Industrial Property Directorate.
At the request of the rightsholder, the Committee for Examining Patents on Inventions Lawsuits grants an injunction to prevent the infringement, in addition to the necessary damages, and may impose a fine not exceeding SAR 100,000 (which may be doubled in case of repetition).
Copyright violators are subject to: imprisonment for up to six months (which may be doubled for repeat offences), a maximum fine of SAR 250,000 (which may be doubled for repeat offences), closing the establishment, and confiscation of all copies of the work.
The requirement for notarization, authentication or consularization of trade documents, including certificates of origin and invoices, fees charged by Consular Offices of Saudi Arabia and by the Business Council, and the associated fees applied to all exports to Saudi Arabia, were terminated under Council of Ministers Decision No.
During its WTO accession negotiations, Saudi Arabia committed to apply any internal taxes or charges in compliance with Articles I and III of the GATT 1994 in case any such taxes were introduced (WTO document WT/ACC/SAU/61, 1 November 2005).
Algerian Institute of Standardization; Standards Australia; Austrian Standards Institute; Brazilian Association of Technical Standards; China's General Administration of Quality Supervision, Inspection and Quarantine; Chinese Taipei's Bureau of Standards, Metrology and Inspection; Egyptian Organization for Standardization and Quality; IEC National Committee of France; French Industry Association for Electrical Equipment, Automation, and Related Services; German International Co-operation; Bureau of Indian Standards; National Standardization Agency of Indonesia; Institute of Standards and Industrial Research of Iran; Italian Standards Organization; Jordan Standards and Metrology Organization; Korean Agency for Technology and Standards; Korea Research Institute of Standards and Science; Swiss Association for Standardization; Tunisia's National Institute for Standardization and Industrial Property; Turkish Standards Institution; Emirates Authority for Standardization and Metrology; American National Standards Institute; American Society for Testing and Materials; National Fire Protection Association; American Society of Refrigerating, and Engineers; Underwriters Laboratories Inc.
Any proposed exemption to this requirement is reviewed by the Ministry of Finance, which will consider the circumstances surrounding the project and the public interest: the final decision rests with the President of the Council of Ministers.
Saudi Arabia stated that, if free zones or special economic zones were established, these would be administered in compliance with WTO provisions, and that goods produced in these zones under tax and tariff provisions that exempt imports and imported inputs from tariff and certain taxes and charges would be subject to normal customs formalities when entering the rest of Saudi Arabia, including the application of tariffs and any taxes and charges (WTO document WT/ACC/SAU/61, 1 November 2005).

In addition to the financial penalties that may be imposed by the Penalties Committee, the Competition Council may order any party that has violated the Competition Law to: (a) remedy the violation of the law within a set period of time; and/or (b) dispose of some of its assets, shares, or property rights; and/or (c) pay a daily fine of not less than SAR 1,000 and not more than SAR 10,000 until the violation is remedied.
This method is generally used for cases that require high levels of specialized experience in management, operations, and marketing, or when the Government has a large investment in the project's assets and prefers to keep the investment rather than sell it.
The United States concluded that in
2009 Saudi Arabia made further progress on improving its overall IPR enforcement climate, including with respect to: deterrent level penalties for violations of Saudi copyright law; action to reduce the use of unauthorized copies of software within the Saudi Government; and adequate protection for patented pharmaceutical products (
USTR Press Release, 24 February 2010).
The copyright legislation gives authors and their successors in title the right to authorize or prohibit the commercial rental to the public of originals or copies of their copyright works within the limits allowed under Article 11 of the TRIPS Agreement.