The Middle East is navigating a rapidly evolving trade landscape as regional economies accelerate efforts to reduce oil dependence through diversification. Reforms in customs procedures and processes have emerged as central measures to boost trade growth and enhance economic resilience.
As the region's trade leader, Saudi Arabia recorded $286 billion in total trade volume during 2023, solidifying its dominant position. In comparison, Iraq's exports reached $132 billion, while Jordan and Kuwait posted $39 billion and $12 billion respectively. Saudi Arabia's imports grew 12% year-on-year to $213 billion, driven by population growth and rising domestic demand. Iraq, Jordan, and Kuwait reported imports of $113 billion, $26 billion, and $4 billion respectively.
Accelerating Non-Oil Trade Growth
Middle Eastern nations are aggressively expanding non-oil exports amid shifting global economic conditions, particularly as Gulf Cooperation Council (GCC) countries implement oil production cuts. Saudi Arabia and Kuwait face significant impacts from these policies, while Iraq maintains stable production levels though suffers from declining oil prices.
Jordan has prioritized trade expansion within the Greater Arab Free Trade Area (GAFTA), with member states absorbing 18.9% of Jordanian exports in 2023. Saudi Arabia aims to achieve 557 billion riyals ($148.6 billion) in industrial exports by 2030. Iraq is enhancing regional cooperation, including developing a land corridor through Jordan to connect with Egypt.
Customs Modernization: Streamlining Trade Flows
Regional customs reforms are creating new efficiencies across supply chains:
Kuwait has implemented simplified procedures through its Customs General Administration, adopting the WTO Trade Facilitation Agreement to enhance transparency. The country exempts GCC-made goods with 40% local value-added from import duties and operates the Kuwait Conformity Assurance Scheme (KuCAS) with technical assessment protocols to maintain quality standards.
Jordan 's Customs Department launched an electronic Transit Monitoring and Facilitation System (TMFS) while reducing maximum tariff rates to 15%, contributing to a 30% increase in free zone trade volume during 2023.
Iraq is modernizing cargo security through its Air Cargo Security Program and collaborating with UNCTAD to implement ASYCUDA, an automated customs system incorporating AI, machine learning, and blockchain technologies at Baghdad International Airport.
Saudi Arabia 's Zakat, Tax and Customs Authority (ZATCA) introduced instant clearance policies and the Fasah digital platform, eliminating national export fees to support business competitiveness.
The Critical Role of Logistics Partners
As Middle Eastern trade transformation intensifies, businesses require expert logistics providers capable of navigating evolving customs regulations. Effective partners must maintain current knowledge of procedural changes while managing the complete supply chain journey—from origin to destination—ensuring compliance, documentation accuracy, and minimal trade disruption across Jordan, Iraq, Kuwait, and Saudi Arabia.
