RIYADH, 8 December 2002 — Saudi Arabia and Syria are set to open a new era in trade relations by implementing a free trade zone agreement between the two countries in January. The move will eliminate customs duties and other tariffs in addition to ensuring free movement of goods between the two countries. A transportation agreement that will be implemented along with the free trade pact will remove all obstacles in the way of cross-border movement of merchandise.
This agreement will be particularly favorable to Saudi businessmen, according to a top official of the Saudi Export Promotion Center.
“The free trade agreement will be a strong boost to Saudi economy as the export of Saudi products to Syria will grow tilting the trade balance in favor of Saudi Arabia,” Ibrahim Fouda, executive director of the SEPC, said.
Fouda added that this agreement would undoubtedly benefit the Syrian economy as well. Trade balance between the two countries was largely in favor of Syria for several years. Syrian exports to the Kingdom rose to SR1.02 billion in 2001 against SR787 million in the year 2000. On the other hand, Saudi non-oil exports to Syria was only SR373 million in 2001 and SR381 million the year before.
The growth rate of Saudi exports to Syria was between five and 17 percent since 1996, but hit the bottom level in 2000. Syrian exports to the Kingdom grew 70 percent in 1999 when it crossed the SR1.3 mark. In 2000 it dropped to 49 percent.
Machinery, electrical appliances, rubber and plastic products, chemicals, construction materials, garments, fiber, glass, telephone cables and foodstuffs are the major Saudi exports to Syria. Kingdom imports sheep, vegetables, textiles and foodstuffs from Syria.
