Saudi Arabia's foreign trade totals US $ 78 billion. It is the world's 25th
exporter / importer. Export markets have expanded tremendously following
bilateral trade agreements with numerous countries in the region. Saudi Arabia
benefits from international and regional trade financing and export guarantee
programs offered by the Islamic Development Bank (IDB), the Arab Monetary
Fund's Trade Financing Program for financing trade and the Arab Investment
Guarantee Corporation's program for ensuring exports and investments. USA,
Japan, China, South Korea, Germany, France, Britain, Italy, Singapore, India,
Holland, UAE and Switzerland are amongst Saudi Arabia's leading foreign trade
partners.
Saudi Arabia's non-oil exports increased by 4.3 percent to reach 7 billion in
2001 from $ 6.6 billion in 2000. The Kingdom's total imports were $ 30.3
billion in 2000, an increase of 8 percent from $ 28 billion in the previous
year. The government has reduced tariffs from 12% to 5% and efforts are on to
accelerate GCC tariff harmonization, which will be effective in 2003.
The new Foreign Investment Law allows foreigners to invest in most sectors of
the economy. Business activities that are closed to foreigners for a variety of
reasons are specified in a negative list. The law has abolished the sponsor
system and enabled foreign investors to own real estate for company activities
and sponsor their foreign employees. The new Real Estate Law allows foreigners
to own real estate except in the two Holy cities of Makkah and Madinah. The
Kingdom is drastically revising its business-related laws to increase
transparency and strengthen the country's global competitiveness. The laws
currently under revision include the Capital Markets Law, the Companies Law,
the Agency Law, the Insurance Law, the Mining Law and the Labor Law. Several
laws are currently under revision with the aim of pushing forward the process
of economic liberalization. In May 2001 the government also issued guidelines
for transparency of economic and fiscal data.
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