The Saudi Zakat, Tax and Customs Authority (ZATCA) recently announced that during the last two years (2022-2023), Saudi Arabia has imported a total of over 160,000 vehicles. In 2023 alone, 93,199 vehicles were imported, a significant increase from 66,870 in 2022, representing a growth rate of nearly 40 per cent. This makes Saudi Arabia one of the world's top 20 car markets, accounting for more than 50 per cent of total car sales in the Gulf Cooperation Council (GCC) countries.ZATCA spokesman Hamoud Al-Harbi said that the countries exporting the most cars to Saudi Arabia are Japan, India, South Korea, the United States and Thailand. The surge in vehicle imports has led to a 7.67 per cent increase in letters of credit issued by Saudi banks to the private sector in the first 11 months of 2023 compared to the same period last year. Letters of credit settled and bills received by the industry reached SAR 155.19 billion ($41.38 billion), according to data released by the Central Bank of Saudi Arabia.
At the same time, ensuring road safety remains a top priority, and stringent requirements have been set for the quality of vehicles imported into Saudi Arabia. According to the Saudi Standards, Metrology and Quality Organization (SASO), its Vehicle Inspection Department meticulously inspected 60,473 vehicles in 2023 to ensure compliance with the highest technical and safety standards. In addition, SASO issued 18,150 certificates for the energy efficiency of tyre products.
Wael Al-Dhiyab, the official spokesperson for SASO, not only emphasised the rigorous measures the Vehicle Inspection Unit implemented in 2023, but he also highlighted SASO's relentless efforts to improve energy efficiency, raise product safety standards and promote economic development initiatives. Currently, in line with Saudi Arabia's strategy to transition to cleaner energy, SASO is issuing a significant 465 per cent increase in certificates of conformity for electric vehicles in 2023 compared to 2022. In addition, SASO issued 1,505 fuel efficiency labels for new light-duty vehicles, marking another step in promoting sustainable vehicle solutions.
In recent years, the rapid growth of Saudi Arabia's automotive market and its stringent requirements for quality and environmental standards have demonstrated the country's strong demand in the global automotive industry. For automakers in China and other countries, the Saudi Arabian automotive market offers a wide range of opportunities to go overseas. By meeting Saudi Arabia's stringent import standards and capitalizing on the growing demand for electric vehicles, they can further expand their market share in the Middle East and help promote the green development of the global automotive industry in line with its transformation strategy towards clean energy and sustainable development.