Saudi Arabia joins global customs transit system, eyeing regional trade boost

The Kingdom of Saudi Arabia has become the 74th country to ratify the TIR Convention.

The Saudi government will use the TIR system to help improve and develop its transport sector, as outlined in its 2030 Vision and 2020 National Transformation Program, boosting the country’s position as a logistics hub.

More than 30% of global trade crosses the Red Sea, making Saudi Arabia crucial for goods transit through Gulf Cooperation Council (GCC) countries and the wider Middle East.

Bilateral trade between Arab countries however is currently below 10%, and only 5.8% of Saudi exports go to its GCC neighbors including Kuwait, Oman and the United Arab Emirates. 

“Saudi Arabia’s ratification is an important milestone in improving multimodal transport in the region and boosting trade across the GCC and beyond”, said Umberto de Pretto, IRU Secretary General. He added, “I’m delighted to welcome Saudi Arabia into the global TIR family of nations.”

Saudi Arabia joins major trading nations, including Pakistan, China and India, to ratify TIR over the last three years. TIR transits began operating last week across the China-Russia border, and last month between Pakistan and Iran. 

Many of Saudi Arabia’s neighbours have already joined TIR, including Jordan, Kuwait, Iran, Qatar, Syria and the UAE. Egypt, Iraq, Oman and Sudan have all expressed interest in the system. 

TIR is the only global customs transit system. It secures customs duties and taxes, and makes border crossings faster, more secure and more efficient, reducing transport costs, and boosting trade and development.

Efforts to make TIR operational at Saudi Arabian border crossings are well underway, led by Saudi Customs and IRU.

GCC transport and trade prospects will take centre stage at the 2018 IRU World Congress in Muscat, Oman, this November, including a focus on new intermodal corridors that connect Africa, Asia and Europe via GCC countries using the TIR system.