Exclusive: Emirates Steel Arkan gets exemption from Saudi rules of origin duty

Exclusive: Emirates Steel Arkan gets exemption from Saudi rules of origin duty

Emirates Steel Arkan (ESA), the UAE's largest steel and building materials manufacturer, has received an exemption from Saudi Arabia on the 15 percent rules of origin duty, an industry source aware of the details said.

“A formal letter was issued by the United Arab Emirates Federal Authority for Identity, Citizenship, Customs & Port Security yesterday (20 October 2022) stating that ESA has been granted a duty exemption for the Saudi market for the sale of steel products,” the source told Zawya in an exclusive.

“The statement said that Saudi Customs has decided on the exemption based on its visits to the ESA plant between 27 to 30 July 2022.”

On Thursday, 20 October, Zawya Projects had reported that that the 15 percent duty had impacted GCC steel exports to the Kingdom.

“The duty continues to remain on the rest of the industry,” the source clarified, noting that ESA is the only player exempt at the moment.

"Though we expect others may follow in the long run," he added.

On 26th September, state news agency WAM reported that ESA is partnering with Japan’s ITOCHU Corporation and JFE Steel Corporation to study the feasibility of a ferrous raw material production facility in Abu Dhabi. The material would initially