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How much impact will Saudi Arabia’s tariff policy in 2025 have on Chinese bridge companies entering Saudi Arabia

How much impact will Saudi Arabia’s tariff policy in 2025 have on Chinese bridge companies entering Saudi Arabia

By:
01 / 07 / 2025

Saudi Arabia, as the largest economy in the Middle East, has actively promoted the "2030 Vision" plan in recent years, committed to achieving economic diversification and getting rid of excessive dependence on oil. Infrastructure construction is an important component of the "2030 Vision", and as a necessity for infrastructure construction, the market demand for cable trays will also increase accordingly.

As the world's largest producer and exporter of cable trays, China has a complete industrial chain, mature technology, and highly competitive price advantages. However, Saudi Arabia's upcoming tariff policy in 2025 has brought new challenges and opportunities for Chinese bridge companies to enter the Saudi market.

**1、 The main content of Saudi Arabia's tariff policy in 2025**

According to the information released by the Saudi General Administration of Customs, Saudi Arabia will implement a new tariff policy starting from January 1, 2025, which mainly includes:

** * Increase import tariffs on some goods: * * Focusing on non essential consumer goods and goods that compete with local industries, the specific tax rates have not yet been announced.

*Simplify customs procedures and improve clearance efficiency: Implement convenient measures such as electronic customs declaration and single window to reduce clearance costs for enterprises.

*Strengthen intellectual property protection: Strictly crack down on counterfeit and shoddy goods, and maintain a fair competition market environment.

**2、 The impact of the new tariff policy on Chinese cable tray enterprises**

**1.  Challenge:**

*Rising costs and weakened price advantage: If bridge products are included in the tariff list, it will directly lead to an increase in export costs for Chinese bridge enterprises and weaken their price competitiveness in the Saudi Arabian market.

*Intensifying market competition: Local Saudi companies and bridge companies from other countries may take advantage of the situation to seize market share, further intensifying market competition.

*Increased technical barriers and trade friction risks: The Saudi government may raise technical standards and certification requirements, set higher entry barriers, and even trigger trade frictions.

**2.  Opportunity:**

*Market demand continues to grow: The promotion of Saudi Arabia's "2030 Vision" plan will drive the rapid development of infrastructure construction and bring huge market space to the bridge industry.

*Increased policy support: The Saudi government encourages foreign investment and has introduced a series of preferential policies, providing favorable conditions for Chinese bridge companies to invest and build factories in Saudi Arabia.

*Diversified cooperation modes: In addition to traditional export trade, Chinese bridge companies can also explore joint ventures and technology transfer with local Saudi enterprises to achieve mutual benefit and win-win results.

**3、 Response strategies of Chinese cable tray enterprises**

Faced with the challenges and opportunities brought by Saudi Arabia's 2025 tariff policy, Chinese cable tray companies should take proactive measures and take the following measures:

*Closely monitor policy developments and adjust business strategies in a timely manner: Enterprises should strengthen their connections with government departments and industry associations, obtain the latest policy information in a timely manner, and adjust their export strategies and product structures according to policy changes.

*Improving product quality and technological level, enhancing core competitiveness: Enterprises should increase research and development investment, improve product quality and technological content, create independent brands, and win market recognition with high quality and cost-effectiveness.

*Actively exploring emerging markets and diversifying business risks: Enterprises should not limit their focus to the Saudi Arabian market, but also actively explore other Middle Eastern countries, as well as emerging markets in Africa, Southeast Asia, etc., to reduce dependence on a single market.

*Strengthen cooperation with local enterprises in Saudi Arabia to achieve mutual benefit and win-win results: Enterprises can actively explore joint ventures, technology transfer and other models with local enterprises in Saudi Arabia, utilize the resources and channel advantages of local enterprises, and quickly open up the market.

**4、 Conclusion**

The implementation of Saudi Arabia's tariff policy in 2025 will have a certain impact on Chinese bridge companies entering the Saudi market, but at the same time, it also contains new opportunities. Chinese cable tray enterprises should actively respond to challenges, seize opportunities, and continuously improve their competitiveness in order to stand undefeated in the fierce market competition.


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