Foreigners may be allowed to invest in taxed jobs

Minister of Commerce Majid Al-Qassabi. (SPA)
Updated 20 March 2017
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Foreigners may be allowed to invest in taxed jobs

RIYADH: Saudi Arabia may allow foreigners to invest in self-employed professions in return for paying taxes at an estimated annual rate of 20 percent in a bid to curb commercial cover-up, Al-Eqtisadiah daily reported.
Saudi authorities are reportedly studying procedures of imposing taxes of two types. One would be in the form of financial statements provided by a foreigner in terms of revenues, expenses and profits, the daily said. The second form of tax will be imposed on estimated profits for certain professions in which profits cannot be easily verified such as the contracting sector, which will run to 15 percent, while the rate of tax on consulting professions may go to 25 percent, the daily said.
The new procedures will treat foreigners as investors in self-employed professions without the need to have sponsors after having obtained the required licenses in areas such as workshops, groceries and contracting.
The new drive comes in conformity with statements made by Minister of Commerce Majid Al-Qassabi on the sidelines of the opening of the parallel market (Nomu) last month where he said commercial cover-up is an unhealthy phenomenon and harmful to the nation’s economy.
He said his ministry has developed a study on the causes and solutions for commercial cover-up, including allowing foreigners to invest within certain regulations, and payment of tax without need to conceal their activities.
Last month, the commerce minister called for the elimination of commercial cover-up to improve the national economy and create new jobs for Saudis.
Addressing a workshop, the minister emphasized that anti-commercial concealment is an important and vital issue to improve the economy and to create new jobs. Consequently, he said, it was one of the most important initiatives of the ministry in the National Transformation Program (NTP) 2020.


Italy pledges electronic warfare support to Saudi Arabia

Updated 20 April 2018
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Italy pledges electronic warfare support to Saudi Arabia

  • Saudi-Italian collaboration to develop electronic defense solutions pushed in workshop organized by the Italian Embassy, KACST and Elettronica SpA
  • Italy's Elettronica specializes in the designing and manufacturing electronic warfare equipment

RIYADH: Italy has pledged to support the Kingdom with electronic warfare and defense electronics, offering a range of state-of-the-art solutions to counter threats. 

The call for Saudi-Italian collaboration was made on Thursday at a workshop organized jointly by the Italian Embassy, the King Abdul Aziz City for Science and Technology (KACST) and Italian-based Elettronica SpA, a world leader in electronic warfare.

Italian Ambassador to the Kingdom Luca Ferrari welcomed the workshop initiative, and said: “We are working to develop a strategic partnership between our two countries, building on decades of excellent political and economic collaboration.

“Such initiatives increase mutual understanding and knowledge between Italian and Saudi counterparts and foster further opportunities for collaboration.” 

Ferrari added that the workshop is a proof of Italian industries’ and institutes’ willingness to strengthen the relationship between the two countries through working with local high-tech university centers and industries in Saudi Arabia.

He added: “The move on the part of the Italian government and our companies comes within the framework of Saudi Vision 2030, which calls for foreign partnerships to diversify the economy, cut reliance on oil and build a robust Saudi defense sector.”

The workshop, entitled “The Digital Revolution: Impacts on defense electronics, security and life,” looked at electronic warfare, cyber intelligence, the future of autonomous vehicles and implications of the digital revolution for the defense industry. 

Enzo Benigni, Elettronica’s chairman and chief executive officer, said: “Italian institutes and companies are keen to embrace the Saudi Vision 2030, and to support the growth of the defense industry and overall defense sector of the Kingdom. 

“We work in Saudi Arabia to create high-value cooperation with the Saudi armed forces and local partners with an aim to build a world-class defense sector of the Kingdom.”

Benigni said Elettronica specializes in the designing and manufacturing electronic warfare, from single stand-alone equipment to complete integrated systems, for naval, airborne and ground applications as well as for space and homeland security.