Saudi Arabia's Export Development Framework: An In-depth Look at the Law
The Kingdom of Saudi Arabia, in its strategic push to diversify its economy under the Saudi Vision 2030, established the Saudi Export Development Authority (SEDA). This move aims to bolster non-oil exports and enhance the competitiveness of Saudi products in the global market. The legal framework for SEDA is principally defined by the Regulation of the Saudi Export Development Authority, established by the Council of Ministers Resolution No. 259, dated 7/8/1428 AH (corresponding to August 20, 2007).
Establishment and Legal Status
The Saudi Export Development Authority was created as an independent governmental body with a distinct legal personality and financial and administrative autonomy. Headquartered in Riyadh, the Authority has the mandate to establish branches within the Kingdom and offices abroad as needed. It is organizationally linked to the Minister of Commerce and Industry.
Upon its establishment, SEDA replaced the Department of International Exhibitions and Markets and the Export Development Department, which were previously under the Ministry of Commerce and Industry. The resolution dictated the utilization of existing human resources from these departments to the maximum extent possible.
Core Objectives and Mandates
SEDA's primary objective is the development and promotion of non-oil exports. Its key responsibilities, as outlined in its regulations, include:
Policy Formulation: Participating in the development of national policies concerning the growth of non-oil exports and continuously working on improving relevant policies and legislation.
Export Environment Enhancement: Improving the overall export ecosystem by creating programs, offering incentives to exporters, and protecting investments.
Market Intelligence: Conducting studies on export opportunities and potential foreign markets to guide Saudi exporters.
Promotion and Marketing: Formulating and implementing plans and programs to promote Saudi products and services internationally. This includes organizing and participating in local and international trade exhibitions and conferences.
Support and Assistance: Providing administrative, technical, and advisory support to exporters to aid them in marketing their products and reaching foreign buyers.
Capacity Building: Qualifying Saudi personnel and fostering an "export culture" through training in international marketing and export, in collaboration with local and international institutions.
International Cooperation: Engaging with counterpart organizations and commercial representatives abroad to identify optimal export channels and new opportunities.
Governance and Organizational Structure
The governance of SEDA is managed by a Board of Directors and executed by a Secretary-General.
Board of Directors:
The Board of Directors is the supreme authority overseeing the Authority's affairs. It is chaired by the Minister of Commerce and Industry and comprises representatives from various key ministries and governmental bodies, including:
Ministry of Commerce and Industry
Ministry of Economy and Planning
Ministry of Agriculture
Ministry of Foreign Affairs
Ministry of Finance
General Investment Authority (now Ministry of Investment)
Saudi Fund for Development
Council of Saudi Chambers of Commerce and Industry
The Secretary-General of the Authority
Four exporters from different regions of the Kingdom, appointed by a resolution of the Council of Ministers.
The representatives from government agencies must hold a rank not lower than a Ministry Undersecretary or its equivalent.
The Board is entrusted with a wide range of powers and duties, including:
Approving programs to implement the general policy for non-oil export development.
Proposing necessary policies and legislation to foster Saudi non-oil exports.
Adopting the conditions and controls for providing administrative, technical, and advisory assistance and other incentives to exporters.
Approving the Authority's organizational structure and its administrative and financial regulations, in coordination with the Ministry of Finance and the Ministry of Civil Service.
Approving the Authority's draft budget, final accounts, and annual report.
Appointing auditors for the Authority's accounts.
The Secretary-General:
The Authority is led by a Secretary-General, who must hold a civil service rank of no less than the fifteenth grade. The Secretary-General acts as the chief executive officer responsible for the day-to-day management of SEDA. Their responsibilities are defined by the Authority's regulations and the decisions of the Board of Directors. The Secretary-General is tasked with supervising the Authority's staff, implementing the Board's decisions, preparing the draft budget and annual reports, and representing the Authority before judicial and other governmental bodies.
Financial Resources
The financial resources of the Saudi Export Development Authority are derived from:
Financial appropriations allocated from the state's budget.
Financial compensation received for the services it provides.
Donations, grants, and aid that it accepts.
The Authority has an independent annual budget that is prepared and issued in accordance with the procedures for the state's general budget.
Employee Regulations
The employees of the Saudi Export Development Authority are subject to the provisions of Royal Order No. (5464/MB) dated 20/4/1426 AH. This Royal Order addresses the discrepancy in financial treatment and in-kind benefits between civil service employees on the general salary scale and their counterparts in public institutions, authorities, and funds that have their own specific job regulations and salary scales. This indicates a move to standardize or provide a framework for the remuneration and benefits of employees in such independent government authorities to ensure fairness and competitiveness.
Relevant Laws
In addition to its founding regulation, the work of the Saudi Export Development Authority is interconnected with a host of other national laws and regulations, including but not limited to:
Commercial Law: Governing the general framework of trade and business in the Kingdom.
Companies Law: Regulating the formation and operation of companies that are the primary exporters.
Customs Law: Dictating the procedures and tariffs for exporting goods.
Regulations of the Ministry of Commerce and Industry, Ministry of Finance, and Ministry of Civil Service: These ministries' regulations are relevant to the Authority's financial, administrative, and personnel affairs.
International Trade Agreements: The Authority's work is also guided by the international trade agreements and treaties to which Saudi Arabia is a party.