The Saudi Export Development Authority (SAUDI EXPORTS) is a government authority concerned with increasing Saudi non-oil exports, opening up to international markets, and employing all its economic potential to improve the export environment’s efficiency by developing programs and providing incentives to exporters.
Establishment of the Saudi Export Development Authority
The establishment of the Saudi Export Development Authority dates back to August 20, 2007, when the Council of Ministers approved the replacement of the Exhibitions and International Markets Directorate and the Export Development Directorate by the Saudi Export Development Authority. Six years later, the authority began conducting its functions in 2013.
Non-oil exports in the Kingdom
Non-oil exports in the Kingdom recorded the highest value in its history in 2021, generating about SAR277 billion, an estimated 36 percent increase compared to the previous year.
The United Arab Emirates was the top export destination at SAR37.7 billion, followed by China at over SAR36 billion, then India at SAR19.1 billion. The petrochemical sector achieved the highest export revenue by in excess of SAR164 billion in 2021, at an estimated 48 percent increase compared to SAR111.1 billion in the same period of 2020.
The Saudi Export Development Authority operates from its headquarters in the capital, Riyadh. In 2005, the Kingdom was able to join the World Trade Organization (WTO), then signed an agreement to facilitate and boost inter-Arab trade in 2008, in addition to concluding bilateral trade agreements with European Free Trade Association (EFTA) member states in 2014.
Regulation of the Saudi Export Development Authority
The authority maintains a legal personality and administrative independence. It has an independent annual budget sanctioned and issued in accordance with regulations governing the sanctioning of the state's general budget. It is organizationally linked to the Minister of Industry and Mineral Resources, who chairs its board of directors.
The board of directors is the competent body for the administration and management of the authority’s affairs. The Minister of Industry and Mineral Resources presides over its board of directors and is the number one responsible official. The authority has a Secretary-General of no less than the fifteenth rank, and he is the executive responsible for its management.
Saudi Export Development Authority mandates
The Saudi Export Development Authority has several functions, including: preparing studies on export opportunities and potential foreign markets; participating in drafting State policies in the field of non-oil exports’ development; developing policies and legislation to ensure the achievement of the objectives and plans of export development programs; and preparing plans and programs to promote and develop products and services.
The authority works with its strategic partners from the public and private sectors to develop exports to become globally competitive. It also works to achieve six strategic objectives to improve the export environment’s efficiency, chiefly: facilitating the linking of exporters with potential vendors and partners; increasing the visibility of Saudi products to target segments; raising the export readiness of enterprises; and facilitating the creation of opportunities and export markets suitable for enterprises.
Saudi Export Development Authority financing
The Saudi Export Development Authority provides two types of financing to its beneficiaries through the Saudi Export-Import Bank (Saudi EXIM Bank), which was established on February 18, 2020. Its objective is to provide export finance and guarantee services, ensure exports maintain competitive advantages, and provide credit facilities for exports. It also runs the Saudi Exports Incentives Program, which offers nine incentives that are compatible with World Trade Organization requirements:
- Marketing and advertising by compensating 75 percent of fees, up to a maximum of SAR200,000.
- Facilitating visits of potential vendors by compensating 90 percent of fees, up to a maximum of SAR50,000.
- Listing on ecommerce platforms by compensating 70 percent of fees, up to a maximum of SAR55,000.
- Registration of products by compensating 50 percent of fees, up to a maximum of SAR55,000.
- Providing product certificates by compensating 50 percent of fees, up to a maximum of SAR250,000.
- Individual participation in international exhibitions by compensating 65 percent of fees, up to a maximum of SAR150,000.
- Reimbursement of Export Strategy and Supply Chain Advisory Services’ fees by compensating 55 percent of fees, up to a maximum of SAR255,000.
- Legal support by compensating 85 percent of fees, up to a maximum of SAR100,000.
- Specialized training by compensating 55 percent of fees, up to a maximum of SAR50,000.
Launch of institutional transformation strategy
On January 19, 2022, the Saudi Export Development Authority launched the Saudi Export Development Authority's institutional transformation strategy, which targets transitioning to a new phase to keep abreast with the objectives of Kingdom Vision 2030, by integration with a number of relevant government entities in diversifying the domestic economy through the promotion of the non-oil exports in the Kingdom.
The authority's new strategy aims to raise the value of non-oil exports from 16 percent to at least 50 percent of non-oil gross domestic product (GDP) by 2030, in line with the Kingdom Vision 2030. It also aims to achieve concrete partnerships with the private sector, specifically exporters, by improving the export environment, developing exporters' capabilities, enhancing their market competitiveness, and increasing their readiness to face global challenges.
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