Saudi Arabia’s Investment Minister Khaled al-Falih announced the country’s consideration of establishing its first free economic zone with Iraq.
This proposed zone will be located in the border area of Arar. During his participation in a session at the Northern Border Investment Forum, al-Falih expressed his hope that the Arar border area would become the first tax-free, duty-free, and visa-free economic zone with a neighboring country, aimed at serving investors in both nations.
The Arar land port, situated in the Northern Border region, has been one of the main gateways for trade movement between Saudi Arabia and Iraq over the past two years.
According to the Saudi Press Agency (SPA), land trade volume in the first half of this year reached approximately SAR 913.1 million.
In the first quarter of 2023, trade activity saw significant growth. In March, the trade volume surged to about SAR 381 million, up from SAR 305 million in January.
Saudi exports to Iraq in March totaled around SAR 372.4 million, an increase from about SAR 294 million in January. Conversely, Saudi imports from Iraq decreased from SAR 11.5 million in January to approximately SAR 8.6 million in March.
The main exports from Saudi Arabia to Iraq include electrical appliances and equipment, grain-based preparations, dairy, eggs, animal products for consumption, and metal products.
In contrast, Saudi imports from Iraq consist of goods like aluminum and its products, plant gums and juices, sugar and sugar products, and copper and its manufactures.
