The most comprehensive strategy for market analysis and customer development in Saudi Arabia, the largest economy in the Middle East!

Saudi Arabia is the only Arab country in the G20, and is one of the fastest-growing major economies in the world, as well as the largest economy in the Middle East region. In 2022, the bilateral trade volume between China and Saudi Arabia reached 116 billion US dollars, a year-on-year increase of 33.1%. Saudi Arabia has become China's first billion dollar trading partner in the Middle East region.

Firstly, due to high per capita income, there is a high demand for product brands and prices.In 2022, the total GDP of Saudi Arabia exceeded trillions of US dollars, and is expected to reach 170 million by 2023. The per capita GDP of Saudi Arabia is as high as 20000 US dollars. They prefer branded products, believing that the brand can help them distinguish and ensure the quality of the product, and the brand also symbolizes their identity and status. Saudi consumers associate brands with status in various fields such as automobiles, clothing, and smartphones. 

Secondly, industries related to young people are more popular. Saudi Arabia is the country with the fastest population growth rate in the world, with a very young population structure. 

Therefore, industries strongly associated with young people have broad prospects. For example, the entertainment industry, gaming industry, e-commerce, and logistics distribution derived from the industrial chain; In addition, some cutting-edge and high-end technology industries are also receiving great attention, such as autonomous driving, AI, new energy vehicles, and so on. 

Thirdly, the electronic market has enormous potential. Saudi Arabia is the 27th largest e-commerce market in the world and the largest in the Middle East. It is expected that Saudi Arabia's e-commerce revenue will reach 11.977 billion US dollars in 2023, and the number of e-commerce users will increase to 24.9 million. By 2027, the market size will reach $20155.8 billion. The Saudi government plans to relax ownership and market access restrictions, actively promote the development of cross-border e-commerce, and implement a series of policies and measures, providing important support and guarantees for the rapid development of cross-border e-commerce. 

Fourthly, the frequency of online shopping is high. Saudi consumers have a high frequency of online shopping, with 80% of them making at least one online purchase per day. The cross-border shopping categories with the highest purchase frequency are ranked in order of purchase frequency as baby products, pet products, sports goods, toys and games, and home gardening. Fifth, there is a lack of logistics system support. At present, e-commerce logistics services in Saudi Arabia are mainly completed by third-party logistics companies. Due to the lack of support from the logistics system, there is significant room for improvement in logistics speed, logistics costs, and other aspects. In terms of logistics delivery, most Saudi buyers hope to receive the goods within a week. 73% of Saudi buyers expressed that if the shipping cost needs to be borne by themselves, they hope that the logistics delivery time does not exceed 6 days.

Hot selling categories in Saudi ArabiaFashion clothing:

Saudi Customs Tariff Policy

Fashion clothing:

 including men's and women's clothing, sportswear, shoes, etc.

Beauty cosmetics: 

involving skincare, makeup, personal care, and other aspects.

Home furnishings: 

including decorations, kitchen supplies, bedding, etc.

Electronic products: including mobile phones, tablets, smartwatches, Bluetooth earphones, game consoles, camera accessories, etc.

Infant and child products: including toys, diapers, bottles, strollers, etc.

Kitchen appliances:

 coffee machine, large caliber juicer, vacuum cleaner, air fryer, etc. Saudi Customs Tariff Policy

(1) The tariff rate in Saudi Arabia ranges from 0% to 50%, with an average tariff rate of 4.58%. Certain goods are exempt from tariffs, such as books, laptops, and other electronic products.

(2) All goods will be valued by customs based on their country of origin at the time of entry. If the final price is higher than the original value, additional tariffs, value-added tax, and consumption tax must be paid; If the final price is lower than the original value, no fees need to be paid.

(3) There is no tax preferential policy in Saudi customs, and all goods exported to Saudi Arabia must be taxed at the highest tax rate. The standard tax rate for levying value-added tax on all imported goods is 15%. If there is a violation, a value-added tax declaration report will be submitted along with a verification certificate.

(4) Saudi customs do not charge storage fees. For goods detained by customs, the maximum detention time is 14 days. Any goods that cannot provide customs clearance documents as required will be returned to the place of origin. Saudi Customs Clearance Requirements

(5) All goods must provide complete customs clearance documents, including invoices, bills of lading, customs declarations, certificates of origin, etc. If these documents cannot be provided, the goods will be refused release.

(6) If the goods belong to special items such as food and medicine, a hygiene certificate is required; If it is ordinary goods, a hygiene certificate and a health certificate are required;

(7) For goods worth over $500, customs will conduct strict inspections and require corresponding customs duties to be paid. Therefore, sellers need to understand which goods are prohibited from being shipped to Saudi Arabia before shipping;

(8) If it is personal belongings, books, audiovisual products, etc., personal identification documents and relevant permit documents must be provided to clear customs.

(9) All goods must have an original bill of lading. Without an original bill of lading, release will be refused. The original bill of lading can be obtained through the website of a bank or shipping company.