GUIDE — BONDED STORAGE

Bonded Zones and Bonded Warehouses in Saudi Arabia

Storing and handling goods under suspension of duty, VAT and excise: what the 2023 rules changed, the licence types, what a non-resident can do without a commercial registration, how the zones differ from the special economic zones, and the 2026 amendments.

Rules issued

Administrative Resolution 28918, 9 Dec 2023

In force from

8 March 2024

Amended

Governor Decision 13-99-1448, June 2026

Suspends

Customs duty, VAT and excise tax

Storage period

Unlimited, except temporary bonded zones

Supervised by

ZATCA; managed by the licensed operator

What a bonded zone does

A bonded zone is a special customs area in which importers, exporters and logistics companies can store goods and carry out logistics activities under suspension of customs duties, VAT and excise tax, until the goods either enter the local market or are re-exported.

The commercial point is liquidity. Goods can sit in the Kingdom, be handled, be sold, and be shipped onward without duty and tax being funded on inventory that has not yet been sold. For a regional distribution model that is often the difference between holding stock in Saudi Arabia and holding it somewhere else.

Storage is not time-limited under the general rules — goods may be held for an unlimited period under suspension, with time limits applying to temporary bonded zones.

SOURCES · ZATCA, Bonded Zones Rules; PwC Middle East, New Bonded Zones Rules in Saudi Arabia.

The rules, and where they came from

ZATCA published the Bonded Zones Rules on 9 December 2023 under Administrative Resolution No. 28918, effective ninety days later on 8 March 2024. They set out the statutory provisions for licensing bonded zones and for practising activities within them, the conditions and requirements for a licence, the obligations of operators, and ZATCA’s control and supervisory powers. They sit under the GCC Common Customs Law, and anything in them that conflicts with that law is void.

The framework was amended in 2026. The Governor of ZATCA approved amendments to both the Controls Regulating Customs Procedures and the Rules of Bonded Zones by Decision No. 13-99-1448 dated 03/01/1448H, corresponding to 18 June 2026; the decision was published in Umm Al-Qura on 26 June 2026 and entered into force on publication. The amendments cover customs supervision and inventory reconciliation controls, declaration and clearance workflows, and compliance oversight between ZATCA, operators, brokers and traders.

Operators licensed before the rules took effect were not required to stop: the rules provide that they continue to operate the zones and warehouses they were approved for.

SOURCES · ZATCA, Bonded Zones Rules (Administrative Resolution No. 28918, 9 December 2023); PwC Middle East, Amendments to Customs Procedures Controls and Bonded Zone Rules (Governor Decision No. 13-99-1448, published 26 June 2026).

Licences and what they permit

The rules establish different types of bonded zone licence according to the nature of the operations permitted — a generic bonded zone licence, and specific licences permitting operations beyond that baseline. The licence is what defines what may lawfully happen to goods inside the zone; a warehouse licensed for storage is not licensed for processing simply because the space allows it.

Physical requirements

The zone or warehouse must be fenced on all sides, with main entrances under the control of the competent customs department.
It must contain service facilities, offices and space equipped for completing customs procedures.
The applicant must hold a property title deed or a lease for the site.

Two provisions worth noting

Non-resident businesses can carry out operations within bonded zones without requiring a commercial register — which materially lowers the barrier for a foreign principal running a regional distribution position.
Goods may be sold and purchased between customers inside a bonded zone.
Goods originating in a country economically boycotted by the Saudi government are excluded.

SOURCES · ZATCA, Bonded Zones Rules; ZATCA, Terms and Conditions for Establishing and Operating Bonded Zones and Bonded Warehouses; PwC Middle East.

Movement fees

Under ZATCA’s 2024 fee rules, processing a request for goods to enter or leave a deposit area carries a fee of SAR 60 for each entry request and SAR 30 for each exit request.

SOURCES · ZATCA, Fee Rules on Customs Services (effective 6 October 2024); Deloitte Middle East, KSA customs and global trade advisory news.

Bonded zones are not the special economic zones

These are different instruments and they are frequently conflated. A bonded zone is a customs regime, licensed by ZATCA, that suspends duty and tax on goods. A special economic zone is an investment regime with its own regulator and its own tax and ownership incentives for companies established inside it.

Bonded zone: Licensed and supervised by ZATCA under the Bonded Zones Rules. Suspends customs duty, VAT and excise on goods. About the cargo.
Special economic zones: Regulated by the Economic Cities and Special Zones Authority — King Abdullah Economic City, Jazan, Ras Al-Khair and the Cloud Computing SEZ. Corporate tax, ownership and customs incentives for licensed businesses.
Special Integrated Logistics Zone: Established by Royal Order A/17 dated 10 October 2018 and regulated by the General Authority of Civil Aviation rather than ECZA. Located at the Riyadh airport, with a bonded corridor to airport facilities, suspension of customs duties on goods imported or moved within the zone, and long-term corporate tax relief for qualifying activities.

The practical question for a logistics decision is which regime the goods will be under, and which regime the operating company will be under. They can be different, and they have different regulators.

SOURCES · ZATCA; Economic Cities and Special Zones Authority; General Authority of Civil Aviation (SILZ); U.S. International Trade Administration market intelligence on the Riyadh Special Integrated Logistics Zone.

Official sources

ZATCA — about bonded zones ↗: ZATCA’s own description of what bonded zones do and how they are supervised.
ZATCA — Bonded Zones Rules ↗: The rules issued under Administrative Resolution No. 28918, in force since 8 March 2024.
Economic Cities and Special Zones Authority ↗: The regulator for Saudi Arabia’s special economic zones — a different instrument from a bonded zone.

RiyadhCargo.com is an independent news monitoring service. It is not a customs broker, freight forwarder, carrier or law firm, and nothing on this page is customs, tax or legal advice for a particular shipment. Procedures and rates change; the authorities named on this page are the only binding source. Check the current position with ZATCA or a licensed Saudi customs broker before you ship.

Frequently asked questions

What is a bonded zone in Saudi Arabia?

A special customs area, licensed and supervised by ZATCA, in which importers, exporters and logistics companies store goods and carry out logistics operations under suspension of customs duties, VAT and excise tax, until the goods enter the local market or are re-exported.

How long can goods stay in a Saudi bonded zone?

Under the general rules, goods can be stored for an unlimited period while the duty, VAT and excise remain suspended. Time limits apply to temporary bonded zones.

Can a foreign company use a Saudi bonded zone without a commercial registration?

The Bonded Zones Rules enable non-resident businesses to carry out operations within bonded zones without requiring a commercial register. The zone operator itself must be licensed by ZATCA.

Is a bonded zone the same as a special economic zone?

No. A bonded zone is a customs regime for goods, licensed by ZATCA. A special economic zone is an investment regime for companies, regulated by ECZA — or, in the case of the Special Integrated Logistics Zone at Riyadh, by the General Authority of Civil Aviation.

What does it cost to move goods in and out of a bonded zone?

ZATCA’s fee rules set SAR 60 for each request to bring goods into a deposit area and SAR 30 for each exit request, alongside the operator’s own commercial storage and handling charges.