Export in saudi

Tuesday, April 11, 2023 1

INTERNATIONAL MARKETING

SAUDI ARABIA

PROF. DILIP TELANG


GROUP MEMBERS

• SANKET AROTE 04• ABBHIJIT BADGUJAR 06• NARESH GAIKE 23• NITIN SAKLA

80• ARVIND SONAWANE 100• PRATIK VARTAK 115


INTRODUCTION OF THE SAUDI ARABIA

• The Kingdom of Saudi Arabia (Arabic: ) العربية المملكة

commonly known as Saudi Arabia, is the largest السعودية

Arab country of the Middle East

• It has an estimated population of 28 million

• The kingdom is sometimes called "The Land of the Two Holy

Mosques" in reference to Mecca and Medina, the two holiest

places in Islam.

• Capital - Riyadh



• Population - 2010 estimate 27,136,977

• GDP (PPP) - Total $618.744 billion

• Per capita - $23,701.260

• GDP (nominal) - Total $438.009 billion

• Per capita - $16,778.112

• HDI (2007) - ▲ 0.843

• Currency - Saudi Riyal (SR) (SAR)



• Ports and Terminals:

– Ad dammam,

– al jubayl,

– jiddah,

– yanbu' al sinaiyah

• Airports: 217 (2010)

– With Paved Runways: 81

– With Unpaved Runways: 136



MARKET FOR HOME APPLIANCES IN SAUDI ARABIA

• Market size for home appliances

• Market growth

• Future of home appliances in Saudi Arabia



FOREIGN TRADE POLICIES

• The Saudi Chambers of Commerce and Industry located

in the major urban centers of the Kingdom should be

contacted, as a matter of priority, to find a representative,

distributor, partner or agent in Saudi Arabia

• The Saudi Chambers of Commerce and Industry publish

trade directories of their respective business communities


• In addition to its role as a part of the Kingdom's

diplomatic mission to any foreign country, the

Commercial Office of the Royal Embassy of Saudi

Arabia in your country, provides the business community

with information about Saudi business regulations and

procedures, and means of doing business in the Kingdom

FOREIGN TRADE POLICIES


RELATIONSHIP BETWEEN A FOREIGN CONTRACTOR AND HIS SAUDI AGENT

• The relationship between a foreign contractor and his Saudi

Agent was regulated by Royal Decree No. M/2 of 21

Muharram 1398 H. (January 1978).

• This regulation applies to both, the Saudi agent and the foreign

contractor who is contracting with the government of Saudi

Arabia.

• It also applies to all contracts and agreements to which the

foreign contractor and the government of Saudi Arabia are

signatories


SALIENT FEATURES OF THIS REGULATION

• A foreign contractor who does not have a Saudi partner, should have a

Saudi services agent.

• The agent should be a Saudi national residing in the Kingdom of Saudi

Arabia and should be registered in the Commercial Register of the

Ministry of Commerce authorizing him to act as an agent.

• The relations between a Saudi agent and a foreign contractor should be

governed by an Agency Agreement defining the obligations of both

parties.


SALIENT FEATURES OF THIS REGULATION

• A foreign contractor is required to pay the Saudi agent fees in

return for the services he renders to the contractor. Such fees

as determined by an agreement between both parties should

not exceed 5 percent of the cost of the contract executed by the

foreign contractor.

• A foreign contractor performing different types of work may

have more than one Saudi agent so as to match each type of

work.


• There are very good prospects for Foreign companies who

want to export their products to the Saudi Arabian market

• Exporters' contacts with importers in Saudi Arabia should be

direct and regular.

• the Saudi Arabian Standards Organization has regulations

about the precise implementation of Saudi Arabian Standards

pertaining to their exported products to the Kingdom

MARKETING AND SALES STRATEGY


MARKETING AND SALES STRATEGY

• Products to be exported should be properly branded and

labeled both in English and Arabic

• Exporters to Saudi Arabia should display their products

regularly in the major commercial urban centers of the

Kingdom

• Necessary permission is obtained by writing or contacting

directly the Director, Exhibitions Department, Ministry of

Commerce.



KEY GOVERNMENT AGENCIES, FINANCIAL INSTITUTIONS

AND PARTNERS AFFECTING FOREIGN INVESTMENT IN THE

KINGDOM OF SAUDI ARABIA


MINISTRY OF INDUSTRY AND ELECTRICITY:

• Foreign Capital Investment Committee

• Foreign Capital Investment Bureau, FCIB

• Engineering and Projects Department

• Industrial Protection and Encouragement

Department

• Industrial Cities Department


INVESTMENT FUNDS

• The Saudi Industrial Development Fund

(SIDF)

• The Public Investment Fund

• The Real Estate Development Fund

• the Saudi Arabian Agricultural Bank


OTHER IMPORTANT AGENCIES

• Saudi Consulting House

• Ministry of Commerce


CUSTOM DUTIES

• According to Royal Decree No. M/13 dated

10/5/1408 H., corresponding to 12/30/1987, and to

the Saudi Council of Ministers order No. 86

dated 10/5/1408 H. (12/19/87) the following

customs duties' rates have been in effect since

13/5/1408 H. (corresponding to January 2, 1988)


CUSTOM DUTIES

• Customs duties of 20% are imposed on some imported

commodities for the purpose of protecting the national infant

industries.

• Customs duty on other items is 5% (Reduced to 5% recently)on

the total cost value CIF (cost+ insurance+ freight).

• A limited number of items are subject to customs duties

calculated on the basis of metric weight or capacity, rather than

ad Valorem. However, the rates for these items are fairly low.


CUSTOM DUTIES

• Members of the Arab League who are signatories to

the Agreement to Facilitate Trade and Exchange and

to Organize Transit between the Arab League States

are granted special concessions.

• Imports from the Arab states with which Saudi Arabia

has bilateral trade agreements are entitled to further

reductions of duty.


IMPORTED ELECTRICAL APPLIANCES, EQUIPMENT, AND ACCESSORIES INTO SAUDI ARABIA

There are two types of certificates:

a) Certificate of Conformity for electrical

appliances and equipment.

b) Certificate of Conformity for electrical

accessories.


CERTIFICATES• The relevant certificate (the standard form is available at any Saudi

consulate) must be issued by the manufacturer on their official letterhead,

notarized by a notary public, certified by a local chamber of commerce,

and then sent to SASO in Riyadh, Saudi Arabia at least two months before

shipment date, to be verified.

• Upon approval, the certificate will be returned to the manufacturing

company which must attach a stamped copy with each shipment to Saudi

Arabia of the commodity mentioned therein.

• These certificates are only required for commodities mentioned in the List

of Imported Electrical Products issued by SASO.



DOCUMENTS

• The head office, bureau, or company must be licensed in the same

work.

– The bureau or company must have at least ten years of experience in its field.

– The head office, bureau or company must submit an endorsed certificate pledging to

support the bureau or company to carry out work in its name in the Kingdom. It must

also agree to assume all responsibilities and commitments as indicated in the relevant

rules and instructions in the Kingdom.

– A certificate from a bank acceptable to the Saudi Arabian Monetary Agency testifying

to the company's capabilities, financial reputation, and commercial dealings must be

submitted.


DOCUMENTS

• A certified statement on work performed by the company outside the

Kingdom of Saudi Arabia in the project area which the company proposes

to undertake in the Kingdom should also be submitted.

• A photocopy of the company's balance sheet and profit and loss statement

for the last two years duly certified by an accredited accountant must be

submitted.

• Certificates showing the company's performance in relation to its

operations inside or outside the Kingdom are also required.


ARRANGEMENT OF SHIPPING DOCUMENTS

Shipping documents must be presented to any of the Saudi Arabian

Consulates in the following manner or they will be rejected:

• Commercial Invoice

• Certificate of Origin

• Insurance Certificate

• Bill of Lading (or airway bill)

• Steamship (or airline company certificate)

• Packing List

• Special documents


HOME APPLIANCES PVT. LTD

OUR NAME & LOGO


OUR AIM

Our aim is to foster a change in the electronic

world, through distributing and marketing new

innovative models, which are better in each &

every aspect & are cost effective in nature.


OUR APPROACH

We follow strict business ethics while serving our customers. We make our products available at the

leading market prices which are not heavy on anyone’s pockets. As a potential importer and

exporter, we believe in transparent deals between us and our clients.


QUALITY

"Quality" has always been the defining factor of our

immense success.To achieve premium quality, we

conduct various quality assurance tests at our level as

well. Therefore, ensuring the distribution of highly

durable & qualitative electronic products that are sure

to provide hassle free functioning for a longer duration

of time.


PRODUCTS


PRODUCT FEATURES• All of our products are technologically sound so as to make life easier and

comfortable.

• Less power consumption is the attribute of each of the products which focuses on

conservation of power resources

• An environment-friendly approach lets us supply only those products which are

not hazardous to the surroundings by means of producing waste. So, resort to us for

a healthy cooking in the smartest way.

• Our products have sent a wave across the market because of their sound

technological base


PACKAGING


OUR PACKAGING

• Primary packaging

• Secondary – packaging instructions

• Tertiary packaging

• Instructions

• Reasons for such packaging


PRIMARY PACKAGING

BUBBLE WRAP


SECONDARY PACKAGING

CORRUGATED ROLLS & BOX


TERTIARY PACKAGING

CRATES, SHRINK – WRAP & PALLET


PACKAGING

• Woodwool, Glasswool, shredded paper or plastic foam

packing

• Wooden pallets/ fibre cartons

• Fumigation of containers

• Silica gel packets for moisture less packaging


LABELLING

• Proper labelling are critical to a product's

acceptability and marketability in a foreign country

• Country of origin must be indicated on the label

• Multilingual labels are permitted especially in Arabic


HANDLING INSTRUCTIONS

Do not use hand hook

This Way UpKeep away from water

Centre of Gravity Clamp as Indicated Do not clamp as indicated

Fragile

http://en.wikipedia.org/wiki/File:NoHandHooks.svg

http://en.wikipedia.org/wiki/File:Thiswayup.svg

http://en.wikipedia.org/wiki/File:Keepdry.svg

http://en.wikipedia.org/wiki/File:ClampAsIndicated.svg

http://en.wikipedia.org/wiki/File:DoNotClampAsIndicated.svg

http://en.wikipedia.org/wiki/File:CentreOfGravity.svg

http://en.wikipedia.org/wiki/File:Fragile.svg


•Full-range Supplier for Shrink wrapping and Stretch hood

Packaging and Conveying

•Hood shrink wrapping, pass-through shrink wrapping and stretch

hood packaging for safeguarding appliances during transportation

•Optimum Packaging for Excellent Load Stability

•High-value appliances of different product dimensions with under

packing of expanded polystyrene or wood elements demand a high

degree of safeguarding for transport and this to be done as cost-

effectively as possible.


• For these reasons the film that is selected and the load stability

that results from there are of decisive importance.

• Then product and packaging form individual stable units

which can be stacked and transported one on top of the other.

• In contrast to conventional packaging methods, high quality,

transparent surfaces generates an optimum display effect.

• Barcodes under the film can be scanned without any problems.

The fact that the product is visible all the time has been proved

to reduce transport damage to a detectable degree


DISTRIBUTION


BENEFITS OF OUR PACKAGING

• Transport Worthy

• Product Worthy

• Shelf Appealing

• Easy To Carry

• Easy To Handle

• Eco Friendly


DISTRIBUTION• Foreign individuals or firms contemplating doing business in

or wishing to export their products to Saudi Arabia are

required to look for a

• Saudi Arabian partner,

• an import agent or

• local representative in close proximity to the Saudi Arabian

market


DISTRIBUTION

• Distributor

• Agent

• Salaried Representative

• Finding a Partner

• Establishing an Office

• Franchising

• Direct Marketing

• Joint Ventures/Licensing


DISTRIBUTION

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PROMOTION- SPECIFIC

• CONSERVATIVE ADVERTISING

• PROMOTION DURING RELIGIOUS

FESTIVALS

• MECCA – THE HOLY HAJ PILGRIMAGE

• USE OF ARABIC LANGUAGE


PROMOTION- GENERAL

• MARKETING

• ADVERTISING

• LOCAL PROMOTION


Thank You

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Export in saudi