KSA Aims to Establish Free Economic Zone with Iraq
Saudi Arabia is accelerating steps to establish its first free economic zone with Iraq. This zone will be located at the Arar border area, as announced by Saudi Investment Minister Khalid al-Falih.
Enhancing Border Connectivity
The Saudi Economic Cities Authority is evaluating the linking of border regions and free zones to neighboring countries.
Minister Al-Falih expressed hope for thefree economic zone with Iraq to become the first tax-free economic zone.
Investment Opportunities Unveiled
During the Northern Borders Investment Forum in Arar, Minister al-Falih highlighted around 100 new investment opportunities. These are valued at 20 billion Riyals, in addition to existing opportunities worth 80 billion Riyals.
Boosting Trade through Arar
The Arar land port has become a key commercial gateway between Saudi Arabia and Iraq. In the first half of this year, the land trade volume reached approximately 913.1 million Riyals.
Growing Trade Trends
In 2021, the trade volume between the two nations was about 3.5 billion Riyals. The Northern Border Chamber of Commerce and Industry reported a growth in trade from 294 million Riyals in January to 381 million Riyals in March.
Key Export and Import Goods
Saudi Arabia exports aluminum, electrical equipment, grain-based products, dairy, and animal products to Iraq. Imports from Iraq include aluminum, plant gums, sugar products, and copper.
Untapped Mineral Wealth
The Northern Border region of Saudi Arabia holds 25% of the Kingdom’s mining wealth, valued at 1.2 trillion Riyals. This area also contains about 7% of the world’s phosphate reserves, with investments estimated at 85 billion Riyals.
A Gateway for International Trade
The Northern region serves as an international corridor for trade and transport through three main axes: via Iraq to East Asia, through Jordan and Syria to Turkey and Europe, and towards the Arabian Gulf countries.
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