Latest News – Economy

Saudi Arabia allows expats to run Saudi companies Ministry of Commerce of Saudi Arabia has allowed expats to run Saudi-owned companies. The Ministry of Justice has revoked the second paragraph of the ministerial decision issued in the Hijri year 1426, which states that it is not permissible for a foreigner to manage a Saudi company. The Ministry of Commerce has reached the conclusion after studying the issue that there is no objection in appointing non-Saudis as managers/CEOs of Saudi-owned companies…

Saudi Custom imposes 15% duty on Vegetables According to the Saudi Customs, a 15% customs duty has been imposed on the vegetables that would be imported to Saudi Arabia. This is in-line with the ruling by the Council of Ministers to change the regulations by the Customs so that the local industries and agricultural products be encouraged and be protected against foreign competition. What does it cover? Imported olive, cucumber, carrot, tomato, chili pepper, zucchini, okra, parsley, eggplant, coriander, and…

Saudi Arabia might reduce VAT when the crisis ends The Commerce Minister has given a hint that Saudi Arabia might reduce the VAT from 15% when the crisis period ends. This was disclosed in a press conference conducted for the sake of Government commute on the directions of the Crown Prince, Mohammed Bin Salman. Dr. Majid Al Qasabi, who is the Minister of Commerce and the Minister of Information in charge, led the conference. The government officials have made it…

Oman to introduce Income tax from 2022 According to the ministry of Finance Mid Term’s report, Oman has laid down a plan for proposing an income tax starting from 2022 which shall target the people with higher earnings. Why Income tax? The decline in the oil prices and the pandemics both have caused economic damages to the country which is very much evident from the bloated budget deficit. This new tax would allow overcoming the economic crisis the country is…

No plans to introduce income tax – Saudi Finance Minister The Saudi Finance Minister Muhammad Al Jaddan recently announced that the Kingdom is not planning to introduce income tax in the country. The application of income tax requires several preparations. The government has increased the rate for Value Added Tax from 5% to 15% starting from July 2020. Taking into account this burden on people, it is unlikely to introduce income tax this year or in the coming years. Muhammad…

Is SAMA freezing expat bank accounts with high transactions? People are saying on social media that Saudi Arabian Monetary Authority (SAMA) has asked banks operating in Saudi Arabia to freeze expatriate accounts of the following two categories; Expats whose bank transactions exceed their wages registered with GOSI. Expats whose bank transactions do not correlate with their Iqama profession. طلب مؤسسة النقد من البنوك العاملة في السعودية تجميد حسابات العمالة الوافدة التي تتجاوز معاملاتها المالية قيمة الأجور السائدة للمهن التي يشغلونها بالدولة…

Saudi Government will pay VAT for 3 services The Saudi government has increased the rate of VAT from 5% to 15% to support its budget and the economy which is heavily affected by the coronavirus pandemic. Saudi Government will pay VAT for 3 services In this regard, the government has announced that it will pay VAT for the following 3 services for its citizens.  School fees or any other private education. Buying the first house provided that its cost does…

Saudi Aramco terminates hundreds of employees Saudi Aramco, the biggest oil exporter and the most profitable company in the world has started terminating hundreds of employees pursuing their cost-cutting measures. Cost-Cutting Measures This week the Saudi Aramco issued termination notices to several hundred employees in different divisions of the company. Most of the terminated employees are expatriates.  There are around 80,000 employees in the Saudi Aramco company. The cost-cutting measures have been taken in the company due to the reduction…

1.2 million expats expected to leave KSA in 2020 According to the projection released by Jadwa Investment Company, as many as 1.2 million expatriates are expected to leave the Saudi Labor Market by the end of 2020. Despite the exit of a huge population of expats from Saudi Arabia, the unemployment rate among Saudis will remain unchanged at 12% by the end of 2020.  Most Affected Sectors The report published by Jadwa Investment Company states that the most affected sectors…