SAUDI ARABIA. The Zakat, Tax, and Customs Authority (ZATCA) has poured cold water on mounting speculation that liquor might be added to the permissible categories sold in the Kingdom’s burgeoning duty free retail sector, according to a well-sourced report in Saudi Gazette today.
The title quoting ZATCA as saying on Friday that only goods and products that are permitted to be traded in the Kingdom will be allowed in duty free. Alcohol is banned in Saudi Arabia but there have been several suggestions in the national media that the situation could change within both the duty free channel and some of the new upscale resorts being developed as part of the Kingdom’s rapidly growing tourism sector.
In an article last October headed ‘Saudi Arabia considers duty free alcohol sale at airports’, the highly influential Arab Business claimed that plans were under consideration to see “limited” sales of alcohol, initially for international transit passengers, in specific airports.
However, the Saudi Gazette rebuts that view. “The duty free shops will grant additional sales channels to local companies by selling their products to the duty free operators, which supports and contributes to the promotion of national products,” ZATCA said.
The Saudi Gazette said ZATCA has set the customs rules, requirements and procedures for establishing duty free stores at air, sea and land ports, in accordance with the unified customs law for the GCC countries.
The authority said these measures will contribute to supporting duty free retail supply chains and improving logistical services by providing a wide array of goods.
The travel retail channel already received one major boost last September when the Cabinet approved the creation of duty free shops in airport arrivals zones, land borders, and seaports.
Duty free stores currently trade at King Abdulaziz International Airport in Jeddah, King Khalid International Airport in Riyadh, King Fahad International Airport in Dammam and Prince Muhammad bin Abdulaziz Airport in Madinah. Several more airports will be added in coming months, The Moodie Davitt Report can confirm. ✈
