Saudi Arabia eased on Monday regulations to allow imports of goods from Gulf states under preferential tariffs, as part of steps towards a unified Gulf market, reported the Gulf Daily News.
The cabinet, at a meeting chaired by King Fahd, agreed to drop a requirement that imports must be made by firms owned by Gulf citizens in order to qualify for preferential treatment in the GCC’s tariff regime, said the paper.
Instead, it decided that products imported into the kingdom from GCC members must have at least 40 percent local added value to enjoy preferential tariffs.
The GCC agreed in 1999 to drop regulations requiring goods to be produced by firms with majority ownership by Gulf citizens.
The decision was taken as part of a long-held goal of freeing up regional commerce and creating a trade bloc among the Gulf states.
Meanwhile, Saudi Crown Prince Abdullah bin Abdelaziz urged Saudi businessmen to bring part of the estimated $800 billion invested abroad back into the kingdom to help create jobs for nationals, the paper added.
“The country needs more from businessmen, especially in two fields, investment and employing nationals,” Prince Abdullah wrote in a letter to the Saudi chambers of commerce council.
“The homeland deserves the wealth of its people more than others ... especially as guarantees, facilities and tax exemptions are provided here more than anywhere else,” the prince said in the letter, cited by the paper.
Based on unofficial estimates, Saudi private investments abroad range between $800 and $1,000 billion – Albawaba.com
