Export Agencies in the Saudi Kingdom
There are a number of agencies responsible for exports from the Kingdom of Saudi Arabia. The first one is the Ministry of Trade and Industry. It is in charge of developing programs and policies of international trade. All information relevant to exports is provided by the department of commerce to enable all manufacturing companies have information regarding exporting their products.
Second, the Ministry of Finance and National Economy is an important entity that enables exporters to know the type of products that can be exported and those that are banned from exportation. Third, there are commercial based private banks. These banks are responsible for the collection and processing of loans on behalf of exporters. The fourth agency is the Saudi Industrial Export. It is responsible for export activities of the Kingdom’s Industrial products. Fifth, there is the National Committee for Trade and Finance. This Committee is responsible for the management of the functions of IDB in offering financial support to long-term business including bilateral business.
How Export Agencies Encourage Saudi Firms to Export to the Rest of the World
First, the Chamber of Commerce of Saudi Arabia provides information to the local investors with respect to export opportunities abroad. The information is available in brochures, journals and pamphlets. Second, the agency also monitors how businesses are concentrated across the world and works hard to facilitate the participation of the Saudi based private firms into Trade Fairs that may be available at the global level. This gives them an opportunity to find foreign markets for their commodities. Through this Agency, business people willing to export their products can access relevant business documents and request for visas.
Second, the National Committee for Trade and Finance encourages exports by carrying out evaluations for funding applications from both importers and exporters. This ensures that these applications are compatible with the procedures and rules of the entire program. Third, the private banks liaise with the importer’s bank to enable the importer collect payment with regard to the exports. They also facilitate both documentation and collection of loans to the exporters who may be in need.
Fourth, the Ministry of Trade and Industry encourages export trade by providing exporters with required business documents. Through the department responsible for supplies, investors can obtain the Certificate of Origin that is normally required by importing nations. Fifth, the Arab Institution for Investment Guarantee is another agency that is responsible for enhancing the flow of Arab investments in Arab countries. It is aimed at providing programs to exporters such as insurance against business and non-commercial risks, investment promotion, investment awareness and human resource development.
Moreover, the Saudi Industrial Export agency encourages exports from Saudi firms by developing new foreign markets for plants in the productive and industrial sectors. It ensures that the products from the Saudi based industries are exported to the nations found in Far East, Arab, America, Asia and Europe.
Programs offered by these Agencies to Promote Exports in the Kingdom
The government of Saudi Arabia through the export promoting agencies exempt storage fees on all exports for a period of ten days. Secondly, port fee is cut by fifty percent on all exports (Kingdom of Saudi Arabia, 2005). Third, the agencies provide funding programs to exporters and evaluate their applications for the funds. Fourth, they offer business documentation that is necessary in the exportation of products from the Saudi Kingdom.
Fifth, they monitor businesses at a global level and provide exporters with marketing opportunities through business fares. Sixth, they avail relevant business information to exporters in helping them find out market opportunities for their commodities in foreign countries. Seventh, exporters can request for visas through the agencies. Eighth, the agencies provide insurance services and investment development.
Therefore, through these programs, it is possible for Nakheel Manufacturing Ltd in Dammam to market its products in foreign economies.
Reference
Kingdom of Saudi Arabia (2005). Ministry of Foreign Affairs: Trading/Investment: Economy and Resources. Web.