Saudi Arabia to Privatize Customs Zones

Saudi Arabia to Privatize Customs Zones

Saudi Arabia launched a Request for Qualification (RFQ) for its public-private partnership (PPP) Customs Zone project.

The privatization program in Saudi Arabia aims to enhance the role of the private sector in providing services, improving quality, and reducing costs.

It also boosts diversification and economic development and increases competitiveness to meet regional and international challenges.

Zakat, Tax, and Customs Authority (ZATCA), in cooperation with the National Center for Privatization and PPP (NCP), announced the new collaboration in line with Vision 2030.

The project seeks to upgrade the Secured Zone facilities and develop a modern template for infrastructure design and operations at six land ports.

It also facilitates commercial growth, enhances the competitiveness of land ports, and promotes the role of the private sector in implementing strategic projects.

ZATCA said the project facilitates the movement of goods and services across borders, promotes commercial growth, and generates social and economic benefits.

It improves service quality, reduces demurrage, attracts private sector capital and expertise, and improves the travel experience, transportation, and work environment.

The land ports included in the project are al-Durrah, Al-Haditha, Halat Ammar, al-Khafji, al-Bat'ha, and al-Wadiah to be implemented under a Design, Build, Finance, Maintain, and Transfer (DBFMT) model for a term of 20 years, excluding construction period.

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