Saudi Arabia is considering establishing the first free economic zone with Iraq

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Saudi Arabia is considering establishing the first free economic zone with Iraq

The Saudi Minister of Investment, Khalid Al-Falih, announced that Saudi Arabia is considering establishing the first free economic zone with Iraq in the border region of Arar.

During his participation in one of the sessions of the Northern Border Investment Forum on Sunday, he expressed his hope for the Arar border region with Iraq to become the first tax-free and fee-free economic zone with no entry visas required for investors in both countries.

The Arar land port, located in the northern border region, has become one of the key gateways for trade between Saudi Arabia and Iraq in the past two years. According to the Saudi News Agency (SPA), the volume of land trade exchanged during the first half of this year reached approximately 913.1 million riyals.

During the first quarter of 2023, trade movement between Saudi Arabia and Iraq increased significantly. In March, trade volume reached about 381 million riyals, up from 305 million riyals in January. Saudi exports to Iraq amounted to around 372.4 million riyals in March, compared to 294 million riyals in January. Meanwhile, the Kingdom’s imports from Iraq decreased from 11.5 million riyals in January to approximately 8.6 million riyals in March.

Saudi Arabia exports electrical appliances, equipment, parts, and preparations based on grains or flour, milk, eggs, edible animal products, and mineral products to Iraq. On the other hand, Saudi Arabia imports aluminum and its derivatives, gum and vegetable juices, sugar and its sugar products, and copper and its products from Iraq.