Nishad Abdu Rahiman is a business setup consultant at Analytix, bringing practical experience helping international investors and companies in starting trade operations in Saudi Arabia. With expertise in Saudi regulatory compliance and international trade advisory, Nishad has helped businesses in various sectors such as import-export, manufacturing, and retail through the Kingdom’s licensing, customs, and market entry processes.
Are you someone looking to begin import export business in Saudi Arabia? Then this blog is specially for you. A wide array of opportunities is waiting for you in the kingdom due to its growing market, diverse location, and many more.
As someone with more than a decade of experience in the Saudi Arabian business landscape, Analytix is here with this comprehensive blog to make you informed with all the necessary information regarding the import-export business in Saudi Arabia.
Overview of the Saudi Arabian Import Export Market
The Kingdom of Saudi Arabia is positioned with Coastlines on both the Red Sea and the Persian Gulf and is divided into 13 provinces with Riyadh as the capital city.Saudi Arabia is the key global player in oil and gas production and export as it holds 17% of the world’s proven petroleum reserves (Source: GASTAT – General Authority for Statistics, Saudi Arabia).The Kingdom holds business-friendly policies including the allowance of 100% ownership in the trading sector. If you are considering making that move, our guide on business setup in Saudi Arabia guides you through the full process.
The abundant oil sector drives high imports such as rice, sugar, tea, coffee, meat, and chicken. There is a substantial need for imports in Saudi Arabia with its large and growing population.
The growing oil and chemical processing industries also requires significant imports of specialized machinery and equipment, and this highlights the dynamic and robust nature of the Saudi-Arabian import-export market.
Where the Opportunities Are Heading
Currently, for international businesses exploring Saudi Arabia, two sectors appear particularly promising:
The first is the import of food and agri-tech. Since over 80% of its food supply relies on imports and a national focus on food security under Vision 2030, Saudi Arabia is actively looking for reliable suppliers of processed foods, dairy, poultry, and agricultural technology. Companies that can provide stable supply chains or value-added food products are well-positioned to meet the increasing demand.
The second is industrial and clean energy equipment. As the Kingdom accelerates its push toward renewable energy and domestic manufacturing through Vision 2030, the demand for solar components, industrial machinery, and construction equipment is rising steadily. Read more about investment opportunities in Saudi Arabia to understand where the market is heading. For exporters in these fields, Saudi Arabia is one of the most active procurement markets in the region right now.
Leveraging trade agreements:
Saudi Arabia is a member of the Gulf Cooperation Council (GCC) free trade zone, allowing goods exchanged between Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman to enjoy zero customs duties in most categories. Moreover, Saudi Arabia has preferential trade arrangements under the Greater Arab Free Trade Area (GAFTA), including 18 Arab nations.
For international businesses routing goods through a GCC hub before reaching the Saudi market, these agreements can provide a significant cost advantage to consider in your trade strategy.
Major Export Business in Saudi Arabia
Saudi Arabia’s exports are a big deal globally. The key export markets of the kingdom include India, Japan, South Korea, the United States, and Egypt. Now, let us look at the major exports of Saudi Arabia:
Crude Oil
Saudi Arabia is one of the world’s largest producers of crude oil, with an annual output of about 4 billion barrels (Source: Saudi Aramco Annual Report). The economic growth of the kingdom is largely influenced by its vast oil and natural gas reserves estimated to be around 265 billion barrels. In May 2020, KSA exported an approximate 6 million barrels of crude oil per day with over 600,000 barrels exported to the US.
Polymer Ethylene
Saudi Arabia plays the lead in exporting LLDPE (Linear Low-Density Polyethylene) to China, shipping 38,650 tons (Source: Saudi Export-Import Bank – EXIM). From 2018 to 2019, the polymer exports of Saudi Arabia to China increased by about 30 % and in 2021, KSA was one of the top polymer exporters.
Mineral Products
KSA has a diverse mineral export market with significant reserves of various minerals, including gas, copper, gold, and bauxite.
Chemical Products
Saudi Arabia is a key player in the global chemical industry with the export market of a variety of chemical products.
Plastics and Rubbers
The Kingdom exports substantial quantities of plastics and rubbers which are essential for various manufacturing processes worldwide.
Metals
Saudi Arabia holds abundant mineral resources making it one of the important export businesses of the kingdom.
Transportation Equipment
The kingdom also exports transportation equipment and has proven to be a country of strong industrial capabilities.
Major Import Business in Saudi Arabia
Saudi Arabia plays an important role in the global import market with a wide range of imported goods, diverse economic needs, and limited domestic production in certain sectors. The kingdom primarily imports from countries including UAE, India, Germany and Switzerland.
Below are the major import businesses of Saudi Arabia:
Rice
Saudi Arabia imports agricultural products to meet domestic consumption needs. This helps to cover the deficit in domestic food production due to unfavorable agricultural conditions. In 2014, Saudi Arabia became the largest importer of rice among GCC countries with an import value of 67 billion (1.4 million tons) (Source: GASTAT – General Authority for Statistics).
India and Pakistan are the primary suppliers of rice (mainly basmati), accounting for 90% of kingdom’s rice imports. The import market offered by KSA presents significant opportunities to exporters.
Seafood
The kingdom is one of the major markets for seafood imports due to rising domestic consumption and food production deficit. Saudi Arabia holds an import percentage of its food, highlighting food security concerns of the nation.
The price rates of seafoods are increasing and this indicates a growing demand along with offering opportunities for nearby exporting countries.
Tea and Coffee
Saudi Arabia is a key participant in the growing global market of tea and coffee consumption.In 2020, the country imported approximately 60,000 tons of tea and 220,000 tons of coffee, primarily from Brazil (Source: Saudi Customs – ZATCA). The kingdom also offers market opportunities to other coffee and tea-producing counties like Vietnam, Indonesia, India and Malaysia.
Machinery and Equipment for Oil & Gas and Energy Sectors
The oil and chemical processing industries of the kingdom require large amounts of specialized machinery and equipment. Saudi Arabia offers prime opportunities to manufacturers and trading companies from China, India, and Europe.
Official Sources:
The data and statistics cited in this blog are sourced from the following Saudi trade authorities and government portals. We encourage you to check these resources for the latest trade figures and regulatory guidelines.
- GASTAT (General Authority for Statistics): stats.gov.sa – National trade and economic data
- ZATCA (Zakat, Tax and Customs Authority): zatca.gov.sa – Customs procedures, duties, and import/export regulations
- SASO (Saudi Standards, Metrology and Quality Organization): saso.gov.sa – Product standards and SABER certification
- Saudi EXIM Bank (Saudi Export-Import Bank): saudiexim.com.sa – Export financing and trade statistics
- MISA (Ministry of Investment Saudi Arabia): misa.gov.sa – Investment regulations and business licensing
How to Enter Saudi Trade Market?
With a growing economy and strategic location, Saudi Arabia’s import-export trade market presents significant opportunities to investors and businesses. For entering the Saudi market successfully, you can choose one of the following options:
Partnerships:
You can collaborate or partner with a local Saudi business to explore their market knowledge and established network. For foreign investors specifically, our guide on registering a company as a foreigner covers what this process looks like in practice.
100% Ownership:
Establish a fully owned entity to have complete control over your business operations in Saudi Arabia. Our overview of Special Economic Zones in Saudi Arabia is worth reading if you want to explore ownership options that come with added incentives.
With a clear understanding of the Saudi trade landscape and various market entry methods, the next step is understanding how to actually get started. The following sections guide you through the entire process – starting with your initial market research and obtaining the right licenses, continuing through customs clearance and establishing your distribution network. Whether you are looking to import goods into the Kingdom or export from it, each step outlined below is designed to take you from preparation to operation in a structured and practical way.
Which Approach Works Best for You?
How to Start import export business in Saudi Arabia?
The Saudi Arabian import market presents exciting opportunities for international businesses. You can start a successful import-export venture in Saudi Arabia by conducting thorough research, following regulations, securing reliable business partners, and building effective marketing strategies.
Steps to begin your import business in Saudi Arabia
Conduct Market Research and Choose Products:
An investor needs to research the market he intends to venture into before he sets out to import goods into his country. Learn from the products that make customers demand more with little competition if one is to make good sales.
- Understand Consumer Trends: Conduct research on Consumer Attitude and trends in Saudi Arabia and the source of information should include Government reports, specialized magazines, journals, and e-commerce websites.
- Identify Market Gaps: It would be helpful to observe existing businesses closely to identify missed opportunities in a certain product line. Thus, it is of paramount importance that the company can look at demographic aspects of the market, cultures, and segments that have not been well explored.
- Demand Analysis: Given that it is a mature market, analyze the level of demand by examining trends in trade statistics of the importing and consumer countries by using online market reports and research findings.
Get to know more about import and compliance laws
Saudi Arabia possesses severe regulations required for imports, as well as strict measures taken on safety issues.
- Customs Requirements: Learn about the Saudi Arabian General Authority of Customs that deals with fees such as duties and taxes and what is forbidden and allowed to import.
- Product Standards: Ensure they meet the Saudi Standards, Metrology and Quality Organization Codes, Regulations and Standards. SASO/SABER is usually required for various products when importing into Saudi Arabia. SABER serves as Saudi Arabia’s online product conformity platform. To clear customs, regulated products must be registered in the SABER system and obtain a Certificate of Conformity (CoC) from an authorized third-party body. This process ensures that the products you import comply with local safety and quality standards before they reach the port.
- Specific Regulations: Products and services must adhere to certain standards for certification, for example, foods must be Halal certified, Cosmetics must be SFDA certified, and electrical appliances should have energy efficiency labels.
Get the Necessary Trade License and Set Up Your Business
Another regulatory requirement is the commercial license, obtained from the Ministry of Commerce to act as an importer. You can learn more about the types available in our dedicated guide on business licenses in Saudi Arabia.
- License Types: In general, to import goods you may need a general trading license or a specific import license, depending on the nature of your business and your import turnover.
- Local Presence: However, it should be noted that while local presence is not necessarily expected, it can be useful in the business sense as it improves operations and approaches partners with credibility.
Find Reliable Suppliers and Negotiate Terms
- Identify Core Vendors and Bargain Theories: Avoid compromising the whole procurement process for instance having to deal with middlemen, it is advisable to look for reliable suppliers and negotiate the terms.
- Supplier Research: Online directories, trade missions, and trade associations can be found on the internet, and they can be used to identify potential suppliers.
- Quality Checks: Holding suppliers accountable to make sure they adhere to the SASO compliance requirements. However, by ordering from Verger Group, one can provide them with all the necessary certifications.
- Negotiation: Manage the purchase price, payment terms and delivery terms (that would capture the supply chain risk). The specification of terms of the agreements to ensure better understanding.
Plan Logistics and Handle Customs Clearance
Efficient Logistics and careful customs procedures are significant when transporting goods in and out of one country to another.
- Delivery Methods: Determine which delivery channel is the most viable in terms of the price and speed; options are maritime, aviation or ground transportation.
A practical note on logistics planning:
Saudi Arabia’s main entry points, Jeddah Islamic Port on the Red Sea and King Abdulaziz Port in Dammam on the Gulf, manage most of the commercial cargo. Choosing the right port of entry according to your destination city within the Kingdom can significantly lower inland freight costs and delivery time. For time-sensitive goods, King Khalid International Airport in Riyadh and King Abdulaziz International Airport in Jeddah provide specialized cargo terminals that are worth considering.
- Customs Clearance: Work with an experienced customs broker to ensure you have the right documents and facilitate authorization. Customs clearance in Saudi Arabia is handled through the FASAH portal, a single digital window operated by ZATCA where importers can submit customs declarations, pay applicable duties, and monitor shipment status. Duties are calculated according to the HS code assigned to your product, so getting the right classification from the start can help you avoid unexpected expenses or delays in clearance.
Watch out for common customs delays: The main reasons for customs hold-ups in Saudi Arabia are mismatched HS code classifications, incomplete Arabic documentation, and missing or expired SABER certificates. To avoid expensive port storage fees and shipment delays, it is crucial to have your customs broker check all documentation before the 48-hour FASAH pre-declaration window closes. - Insurance: Use insurance services for safeguarding the properties shipped, in case the shipment is lost or damaged.
Build a Distribution Network and Market your Products:
Once the business starts to function, a distribution network should be set up and the marketing plan should be outlined.
- Distribution channels: When targeting your market, you should think about wholesalers, retailers or e-businesses.
- Marketing: Develop an online and social media campaign that specializes in reaching out consumers with local influencer collaboration.
Steps to begin your export business in Saudi Arabia
The export process involves several interconnected steps. To export successfully to Saudi Arabia, you need to understand each step thoroughly:
Negotiate and Sign a Contract
- Customer Engagement: The efforts to capture a particular market and convert it to a customer begin from the moment you have a prospect. Engage and enter into a trade agreement.
- Negotiation Tips: The Saudis are good bargainers, and therefore, they shouldn’t be pressured into making a deal. As noted above, the use of path dependency implies the internationalization process is slow and bureaucratic.
- Contract Signing: If the buyer agrees with the proposed terms, ask them to sign the contract, and then give them a proforma invoice along with a request for at least 20% advance payment.
Apply for an Export License
- License Necessity: This provides legal backing to your export business since an export license legally validates your transactions. In Saudi Arabia, most standard goods do not need a specific export license, your general commercial registration is enough. However, certain categories like controlled chemicals, military equipment, or culturally significant items do need prior approval from the relevant authority. It is advisable to check the export status of your product category with ZATCA or your freight forwarder before moving forward.
- Document Translation: All documents should again be provided in Arabic if there is any need that demands so.
- Special Permits: Endangered species like animals or relics like antiques may require special permits to be transported across a border.
Book and Get an Empty Container
- Reservation: It is important to take up space with a shipping line or forwarding company.
- Choosing a Company: To have a good experience and avoid last-minute disappointments, it is advised that one selects a reliable company and books as early as possible.
- Cost Comparison: Compare offers from multiple providers to get the best deal.
- Container Needs: Full containers may not always be necessary.
Prepare and Check Export Goods
- Delivery Planning: Pursue delivery after receiving initial payment.
- Quality Assurance: Guarantee the product reflects the quantities and the quality required in the contract.
- Verification: Check export permits, the regulations of the intended destination port, and any additional expenses.
- Documentation: Secondary check the packing list, the net weight, and perhaps fill out the appropriate documents, such as the MSDS.
- Special Products: In case you are exporting goods that fall under OOG you need to make sure that you have the appropriate export license.
Package and Mark Shipment
- Secure Packing: Make sure that all articles purchased are packed safely and marked with an authentication document stating the source of the products.
- Shipping Addresses: Always fill in the shipping addresses in the correct manner and the packing list should also be well detailed.
- Payment Confirmation: Therefore, do not make your shipment if you are not paid entirely.
- Invoice Details: It is important to ensure that commercial invoices for the goods shipped are described properly.
- Bill of Lading: Provide three signed copies, including vessel name, shipping date, and manufacturer/exporter addresses.
Buy Shipment Insurance
- Insurance Importance: The role of insurance in transport in the international transport business is important in managing the risks involved.
- Certificate Details: The insured amount, goods description, name of ship, port are some important information that must be recorded in the insurance certificate for proper identification of the insured consignment.
- Exporter Responsibility: Thus, the exporter is required by law to submit such a certificate to the importer.
Complete Customs Procedures (for Importer)
Importer’s Role: The importer organizes the customs formalities however he wants full papers from the exporter.
Before we look into the documents, it is helpful to understand a few key trade terms that you will come across during customs clearance in Saudi Arabia:
HS Codes (Harmonized System Codes) are internationally standardized numerical codes used to classify all traded products. When your goods arrive at a port in Saudi Arabia, customs officials use the HS code to evaluate the applicable duty rate and check if any import restrictions apply. It’s crucial for importers to have the right HS code for your product; an incorrect classification can result in delays or unexpected charges.
Customs Declarations are formal documents submitted to the Saudi Customs Authority (ZATCA) that detail the imported goods, their value, origin, and HS classification. In Saudi Arabia, this process is carried out digitally through the FASAH portal, and typically, it is required to be submitted in advance (often up to 48 hours before arrival, depending on shipment type) before the goods arrive at the port of entry.
SABER Certification is the online platform in Saudi Arabia for registering products and ensuring they comply with SASO standards before they enter the country. For certain regulated categories like electronics, building materials, and consumer goods, getting SABER certification from an accredited conformity assessment body is an essential step before customs clearance is completed.
Required documents are:
- Customs declaration
- Commercial invoice
- Bill of lading
- International freight bill
- Certificate of origin
- Other credentials related to specialized inspection (if necessary)
- Other annex documents such as quality, analysis, or health certificates
- Additional Copies: The necessary documents for the trip include the sales contract, packing list and other documents; more copies should be obtained.
Documents Required to Import into Saudi Arabia
Before commencing importation into Saudi Arabia, importers must submit the following documents:
- A commercial invoice
- A bill of lading or B/L is the most important shipping document that proves and accounts for the receipt of the goods shipped by the shipper or the seller.
- A certificate of origin is another important document that means a competent authority attests to the origin of goods and when this authority is an embassy or a consulate, it is called an embassy certificate or Consular Certificate.
Additionally, depending on the nature of the imported goods, importers may need to provide further documentation such as
- A certificate issued by IECEE for goods, which ought to be accredited with this certification.
- The registration of the products of any organization to the respective governmental bodies if required in any given market.
As mentioned, each product category has certain criteria that may be applicable. Further, importers must perform the FASAH clearing procedures where they are supposed to submit the relevant documents and complete the customs declaration form before the imported goods enter the port of entry by at least 48 hours (about 2 days). This process allows you to follow the shipment in customs or even before the shipment arrives allowing notification of shipment arrival.
A Note on Regulatory Changes:
The information in this blog is to offer a basic understanding of import-export trade in Saudi Arabia. However, trade regulations in the Kingdom can differ greatly based on your product category, country of origin, and the specific international trade agreements at the time of your shipment. Customs duty rates, product certification requirements, and licensing conditions can also change regularly due to updates from ZATCA, SASO, and the Ministry of Commerce. We suggest checking the latest requirements directly with the relevant Saudi authority or consulting a qualified trade advisor before making any business or investment decisions.
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- FAQs
Frequently Asked Questions
If your question is not addressed here, please feel free to reach out to us. We value your inquiry.
What are 3 major imports of Saudi Arabia?
The three major imports of Saudi Arabia include oil and petroleum products, chemicals and food products. These are crucial for the country’s infrastructure development, food security, and industrial needs.
Is Saudi Arabia good for import export business?
Yes, Saudi Arabia is a promising market for import-export business due to its strategic location, strong economy, and investment in infrastructure. The country’s Vision 2030 initiative aims to diversify the economy, creating new opportunities for trade and investment.
What products does Saudi Arabia import and export?
Saudi Arabia imports machinery, food products, and chemicals. On the export side, the country is known for its vast oil and petroleum products, as well as plastics and chemicals.
