The UAE and Saudi Arabia joint-meeting on Customs concluded its activities on this month. The meeting, held as an outcome of the recent high profile UAE-Saudi Arabia joint retreat, discussed a myriad of topics related to selective tax, facilitating movement between the two countries’ entry and exit points, boosting trade, combating smuggling and developing Customs systems.

The meeting, attended by senior officials from both nations, also touched on ways to address obstacles facing trade between the UAE and Saudi Arabia.

Ali Al Kaabi, Head of the Federal Customs Authority (FCA), said that the officials reviewed the possibility of synchronising the implementation of the selective tax agreement and combating smuggling. He pointed out that a unified procedures guide has been approved for implementing selective tax at entry and exit points, and that a joint plan was approved to curb smuggling.

Al Kaabi added that both nations agreed on unifying customs clearance procedures in joint entry and exit points, and specifying mechanisms for customs clearance procedures at the first entry point. The meeting also agreed on activating the electronic link between UAE and Saudi Arabia for the exchange of customs-related information between the FCA and Saudi Arabia.

Despite global dips, the container shipping trade saw the strongest – but still contracting – growth in the Indian subcontinent and Middle East regions at 5.1%. However, the global climate with respect to container trade dictates that, notwithstanding strong growth in the region, container liners must adopt new strategies for enhancing their performance in a new normal, characterized by slowing container demand, according to a recently released report titled "Sailing in Strong Winds: The New Normal in Global Trade and Container Shipping", by The Boston Consulting Group (BCG). The growth rates witnessed in the region was led by Saudi Arabia and the UAE who contributed 28% and 22% respectively in a total year-on-year increase in imports, mainly driven by chemical products.

Statistics show that from 2011 to the third quarter of 2016, non-oil trade between the UAE and Saudi Arabia is valued at $414.3 billion. Saudi Arabia is a key re-export market for the UAE, with re-exports valued at $235.4 billion during the aforementioned period.

 

Sources: Gulfnews - Al Eeqtisadiah - Saudi Customs