Saudi Arabia Raises Import Tariffs to as High as 15%

Saudi Arabia Implements New Import Tariff Framework for Agricultural Goods

Tempatdonasi.com – The Kingdom of Saudi Arabia has officially implemented a comprehensive revision of its import tariff structure, affecting the majority of agricultural and food-related commodities sourced from international trading partners. This significant policy adjustment represents a strategic move to strengthen the nation’s domestic agricultural sector while simultaneously creating new avenues for global commerce.

According to official documentation, the Saudi Arabian government has revised import duties across 51 distinct commodity categories. These categories encompass a broad spectrum of products including agricultural produce, livestock, fisheries items, and various processed food products. The regulatory changes were formally established under Finance Minister’s Decree No. 1447-88-10, which was dated June 15, 2026, and officially took effect on June 26 of the same year.

Among the 51 commodities subject to revision, only two items maintained their previous tariff classification. Cold-water shrimp and other shrimp products retained their established tariff rate of 6 percent, demonstrating continuity for these particular seafood exports.

“The tariff changes introduced by the Saudi Arabian government need to be viewed as an effort to open new opportunities,” Indonesian Trade Attaché in Riyadh Zulvri Yenni explained in a written statement released on Wednesday, July 15.

One of the most notable aspects of this policy revision is that it imposes tariffs on dozens of products that had previously entered the Saudi market without any import duties. The newly established import duty rates span a range from 6 percent to 15 percent, creating a more structured tariff framework for international exporters.

Under the revised system, several key products are now subject to a 6 percent tariff rate. These include potatoes, whole or half animal carcasses, and various other bone-in meat cuts. Conversely, the highest tariff rate of 15 percent has been applied to specific poultry products such as turkey, duck, and breeding chickens.

Economic Rationale Behind the Tariff Adjustments

Zulvri Yenni provided valuable insight into the strategic thinking behind these tariff adjustments. According to the Indonesian Trade Attaché, the policy modifications serve a dual purpose: protecting and promoting Saudi Arabia’s domestic agricultural sector while remaining fully consistent with the kingdom’s broader economic development agenda. This alignment suggests that the tariff changes are not merely protective measures but are part of a comprehensive economic strategy.

The Kingdom’s approach reflects a balanced methodology that seeks to nurture local agricultural production while maintaining openness to international trade. By implementing graduated tariff rates, Saudi Arabia can provide appropriate protection to domestic producers without completely isolating itself from global supply chains.

Indonesian Exporters Positioned for Growth

Despite the implementation of higher import duties, Zulvri expressed considerable optimism regarding Indonesian exporters’ ability to expand their presence in the Saudi market. He identified several key strategies that Indonesian businesses can employ to maintain competitiveness: improving cost efficiency, ensuring strict compliance with food safety standards, and developing higher value-added products.

Indonesia, according to the Trade Attaché, continues to possess significant opportunities to boost exports of processed food and fisheries products that are not sufficiently supplied by Saudi domestic industries. Products such as shrimp crackers represent particular areas where Indonesian exporters can capitalize on existing demand gaps in the Saudi market.

Beyond direct product exports, Zulvri highlighted that Saudi Arabia’s efforts to strengthen its agricultural and aquaculture sectors could generate increased demand for supporting industries. These supporting sectors include cultivation technology, cold-chain systems, animal feed production, seed development, and related services—all areas in which Indonesian companies possess considerable expertise and competitive advantages.

“Various needs arising from this policy could become opportunities for cooperation between Indonesian and Saudi Arabian businesses,” he concluded, emphasizing the collaborative potential inherent in the new tariff framework.

The tariff adjustments thus present a multifaceted opportunity for Indonesian businesses. While some product categories face higher import costs, the overall policy environment creates conditions for expanded trade relationships, technology transfer, and investment in supporting industries. Indonesian companies that can demonstrate value through superior quality, competitive pricing, and innovative solutions are well-positioned to benefit from these developments.

As Saudi Arabia continues to implement its economic diversification strategy, the agricultural and food sector remains a critical component of the Kingdom’s long-term vision. For Indonesian exporters and businesses, understanding and adapting to these new tariff structures will be essential for maximizing market access and building sustainable commercial relationships in one of the Middle East’s most dynamic economies.