Good Practices and Innovations in Public Governance 2003-2011

2010 Category 1: Saudi Arabia
Western Asia
Saudi Arabia
2010 Category 1 — 2nd Place Winner
SaudiEDI e-Trade System
Public Investment Fund and Tabadul Company
Description
Application of information and communication technologies to automate and streamline
trade clearance processes.
Summary
This initiative was aimed at automating trade clearance processes in Saudi Arabia
through the application of information and communication technologies (ICT). A
company from Singapore was hired to assist with this project, resulting in an innovative
public-private partnership. It was successful in several ways. First and
foremost, the creation of the SaudiEDI e-Trade System gave importers and exporters
the ability to obtain trade clearances online, around the clock, resulting in a 250
percent increase in the volume of trade transactions processed between 2001 and
2008. Second, the implementation of SaudiEDI reduced the average time required
for trade clearance from 44 days to only 17. Third, the new system reduced corruption,
which had been pervasive previously when paperwork was processed manually.
The electronic format facilitated better reporting and monitoring of information,
greater transparency, improved planning processes, and better decision-making.
A final benefit was that the reduction of bureaucratic red tape produced significant
cost savings.
The Problem
Before the implementation of SaudiEDI, the trade facilitation process was a time-consuming
manual effort for all the stakeholders in the import and export business community.
Lack of automation caused much redundancy, data integrity errors and delays.
As a result, trade clearance took an unacceptably long time and typically led to:
• Bottlenecks and frustrations at every stage of the import/export process.
• Poor service and interpersonal interaction.
• Corruption, non-conformance to regulations, and compromises to safety, security
and standards.
• Increased cost of goods for the consumer.
• Slow growth in trade and an inability to compete effectively in the global marketplace.
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