Export to Saudi Arabia: where to start?
The Kingdom of Saudi Arabia is the largest economy in the Arab world. It accounts for 25% of the Arab world’s Gross Domestic Product (GDP). Saudi Arabia has an oil based economy with strong government controls over major economic activities.
Strengths of the Saudi market include:
- No taxation on personal income
- Proximity to other Gulf markets
- Key member of the Gulf Cooperation Council (GCC)
- Largest economy and population in the Gulf region
Challenges include:
- Identifying suitable sponsors for initial entry into the market
- Finding an appropriate Saudi partner for joint ventures
- Lead time to establish legal entities and obtain licenses from appropriate ministries
You must apply through the relevant government ministries for licenses to do business in Saudi Arabia.
How to find the right supplier and how to ensure that you get what you want, without any problems? Follow these guidelines for success.
Buying something and sourcing is something different
Buying something is mostly easy, if you know the supplier already. Sourcing is the process of finding the right supplier, who can either be a manufacturer, importer or distributor. And sourcing is all about getting the right pricing and delivery conditions.
Have a good procurement strategy in place
Procurement is the overall process of sourcing and buying (or purchasing). You should have a process in place, to optimise the balance between the effort in finding the right sources and negotiating a lower price, and the pricing itself. Typically for larger purchases, it makes sense to do a broad search and, especially where it comes to searches abroad, to hire somebody to do the sourcing for you.
Select the right manufacturers and double check
Before you start ordering complex products or large quantities, make sure that you check your source. If you don’t go there yourself, then send somebody trusted, preferably who understands the local language and knows the local situation.
Check the export and import procedures
Import duties can limit the financial advantage of sourcing abroad. And customs formalities can further increase shipping times. Therefore check in advance whether the country that you are planning to source from and the applicable duties.
Alliance experts can help you find the right supplies abroad
Alliance experts is a global network of business development specialists. We are active in all important economies around the globe and meet many manufacturers and trading companies. With our international team we can relatively easy look for suppliers abroad who can provide you with a unique product features or a lower cost price.
