Jazan Businesses explore prospects of exporting
In cooperation between Jazan Chamber of Commerce and Industry and the Saudi Export Development Authority, a workshop was conducted on February 17, 2019 entitled "Exporting for the growth of your business" which was attended by representatives of businesses aspiring to export from the region. Participants appreciated the positive impact of the workshop on raising their awareness of export regulations and procedures.
This workshop comes within the framework of cooperation programs and continuing efforts to contribute to the realization of the Saudi Vision 2030 which aims at increasing Saudi non-oil exports and diversifying sources of income for the national economy. The workshop was held at the Chamber Theater and was presented by Mr. Abdulrahman Alotaibi, a specialist in international trade.
Alotaibi started by discussing concepts of international trade. He pointed out benefits of export to enterprises such as increasing sales and business growth opportunities associated with accessing new markets. Exporting also represents a risk management strategy through diversification of markets as well as reducing fixed costs resulting from economies of scale. The continued presence in the international markets increases competitiveness, market share, and enables exporting companies to keep pace with production technology, development of technical specifications and the use of more effective means of promotion. He has also noted some of the success factors such willingness to devote resources, personnel, and capital for the process of export. As well as awareness of cultural differences when dealing with other countries.
According to Alotaibi, there are necessary aspects that contribute to the export readiness to compete in global markets and increase the opportunities for profit and growth. Therefore, it is important that the enterprise’s management is well informed and knowledgeable before making a decision regarding export market. The first step to be taken is to study the market to determine the most suitable market for its products. The main scope of this study is the size and growth of the market, foreign and domestic competition, packaging, sales procedures and customs tariffs.
The workshop also addressed the requirements of national and foreign customs. Alotaibi explained to the attendees the need to identify the customs requirements in Saudi Arabia as well as foreign customs regulations in the target market, where the regulations on import and foreign markets vary from country to country. Failure to know and comply with these regulations may hinder the shipment process or lead to the rejection of shipments by foreign customs. Taking into account also that these requirements may change from time to time.
The workshop reviewed the logistical aspects of export where the operations can be carried out through four means of transport: marine, air, land and rail. It can also be combined with more than one means of transportation if necessary. In general, deciding which mean of transportation to consider the time and cost of the shipment. Exporters can also use experienced logistics providers to implement most shipping procedures. the exporter should be familiar with the export steps and their implementation mechanism, as there are many procedures and requirements for each step of export depending on the product and the destination. With regard to payment methods in international trade, the workshop addressed several famous forms, such as advanced payment, open account, documentary collections, and documentary credits.
Alotaibi dedicated part of the workshop to providing advice to exporters on the best ways to reach customers in foreign markets and the services provided by the Saudi Export Development Authority to Saudi businesses such as participating in international exhibitions around the world Serving diverse sectors. Trade missions are also organized by Saudi exports and considered important source of trade opportunities.
Reference was also made to the import guides, reports and sector studies issued by Saudi Exports with the aim of assisting exporters to identify international markets opportunities and access requirements. He also referred to the financing options available for export transactions such as pre-shipment finance and financing importers of Saudi products.
Commenting on the event, the Secretary General of Jazan Chamber Dr. Majid Al-Jawhary said that the Chamber aims through these programs and workshops, which are implemented in partnership with many governmental and private bodies to support the pioneers and entrepreneurs and improve their skills and development, especially these workshops that serve a wide range of the society by training them and preparing them for their future career in many areas where they can serve the county.
The workshop was concluded by stressing the importance of continuous development and capacity building in the field of export and its reflection on business growth and the national economy.