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Building strong logistics ties between UAE and Saudi Arabia for a seamless, efficient trade relationship.

UAE - Saudi Arabia

Payment

Find information about secure payment methods, currencies, and typical payment terms for transactions between the UAE and Saudi Arabia.

Payment Methods

Transactions between the UAE and Saudi Arabia utilize secure, widely accepted payment methods. Bank transfers (SWIFT) are the most common, ensuring safe and traceable fund transfers.

For real-time transactions, online payment gateways and electronic funds transfer (EFT) are preferred. Letters of Credit (LCs) offer additional security, especially for high-value shipments. Businesses may also use open account payments for established trade relationships, and cash-on-delivery (COD) is available for select shipments.

Currency

The primary currencies used in UAE-Saudi Arabia trade are the UAE Dirham (AED) and the Saudi Riyal (SAR). The UAE Dirham and Saudi Riyal are pegged to the US Dollar (USD), maintaining a stable exchange rate.

This stability facilitates predictable transaction planning. Currency exchange is seamless due to the availability of licensed exchange houses and banks, ensuring smooth settlements across borders.

Payment Terms

Typical payment terms for UAE-Saudi Arabia trade include 30–60-day credit periods, depending on the trade agreement and trust level. Prepayments or advance payments may be required for new trading partners or high-value shipments.

Frequently Asked Questions (FAQ)

What major airports support cargo shipments between the UAE and Saudi Arabia?

Major airports include King Khalid International Airport in Riyadh, King Abdulaziz International Airport in Jeddah, and King Fahd International Airport in Dammam. These airports are equipped with advanced cargo handling systems, cold storage, and specialized facilities for perishable and dangerous goods.

What are the key seaports for trade between the UAE and Saudi Arabia, and what capabilities do they offer?

Key seaports include Jeddah Islamic Port, King Abdullah Port, and Dammam Port. These ports feature modern facilities, high cargo handling capacities, and automation for efficient logistics. Jeddah Islamic Port is the largest, King Abdullah Port is highly automated, and Dammam Port connects to global markets with integrated logistics zones.

What documents are required for importing goods into Saudi Arabia from the UAE?

Required documents include a Commercial Invoice, Certificate of Origin, Packing List, Bill of Lading or Airway Bill, Import Permit for restricted goods, Health Certificate for food items, Insurance Certificate, and a Letter of Credit if applicable.

What are the customs duties and taxes for goods traded between the UAE and Saudi Arabia?

In the UAE, customs duties are typically 5% on most goods, with a Value Added Tax (VAT) of 5%. Excise taxes range from 50% to 100% on specific items. In Saudi Arabia, customs duties can vary between 0% to 25%, with a VAT of 15% and excise taxes up to 100% on certain goods.

How can businesses ensure smooth export processes from Saudi Arabia to the UAE?

Businesses must comply with Saudi Arabia's customs regulations, secure an Export License, and provide accurate documentation, including a Commercial Invoice, Packing List, Bill of Lading or Airway Bill, Export License, Certificate of Origin, Safety and Quality Certificates where applicable, Export Declaration, and an Export Permit for restricted goods. Compliance with Saudi quality standards and securing specific permits are also crucial for a smooth export process.