IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 06 Jun 2016 | Removal date: open ended
Still in force

Trade finance

 On 6 June 2016 Saudi Arabia adopted an economic and development programme, referred to as "Saudi Arabia's Vision 2030" or National Transformation Program. This programme has many facets, some of which implicate foreign commercial interests.
One of the initiatives associated with this Program relates to encouraging local production and is stated as follows
"Maximizing Local Content. Some program initiatives contribute to localizing more than SAR 270 billion 'USD 72 billion' of content, increasing its added value, reducing dependence on imports, and creating job opportunities. As a result, the nation moves closer to fulfilling the goal of maximizing local content across sectors."
Specific trade- and investment-related targets for the year 2020 set associated with this Program include:

  • 53% target for local value addition in non-oil sectors
  • 50% target for total public and private expenditure in the energy, industrial, and mineral resources sector
  • Target of 17 establishments to foster development of local products in the King Abdulazziz City for Science and Technology
  • 30% target for local content contribution to the nuclear energy sector
  • 35% target for local content contribution to the renewable energy sector
  • 40% target for local content associated with foreign direct investment
  • 330 billion Saudi Riyals of non-oil exports
  • 70 billion Saudi Riyals of foreign direct investment
  • 20000 Saudis working in the information and communication technology sector
  • 10 months target for time to issue visas for new expatriate employees (down from 30 months)

The 2016 implementation plan included funding for

  • 466 million Riyals 'USD 124 million' of financial support to allow exporters to gain access to international markets.
  • the Saudi Arabian General Investment Authority to develop a plan "for localizing construction material and equipment industries"
  • the Saudi Arabian General Investment Authority to develop a plan "for localizing transportation and logistical services sector"

AFFECTED COUNTRIES

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