SR 2,400 levy ‘irreversible’

Updated 03 March 2013

SR 2,400 levy ‘irreversible’

The SR 2,400 levy imposed on private companies for employing expatriate workers in excess of Saudis is irreversible, as the government has no plan to withdraw the Saudization measure.
“The expat levy file has been closed forever and businesses have to embrace even tougher decisions in the future,” said Saleh Kamel, a prominent Saudi businessman and chairman of Jeddah Chamber of Commerce and Industry.
According to one estimate, the levy would impose an additional financial burden of SR 60 billion annually on Saudis. “The levy would increase the expenditure of businesses by SR 20 billion annually. To meet this expenditure, traders will increase prices of goods and services by three times and the cost will reach SR 60 billion,” one expert said.
Kamel said the JCCI had opposed the levy imposed by the Labor Ministry following legal measures as it believed the levy would increase prices of commodities and services.
“We had appointed Jeddah Law Center to prepare a study on the legal violations involving the levy decision in order to present it to higher authorities but the JCCI has been told not to present the study,” Al-Sharq Arabic daily quoted Kamel as saying.
“This has closed the door of discussions on the issue,” Kamel said, adding that businessmen were unanimous in their opinion to withdraw the levy as it harms small investors and small and medium enterprises that account for 90 percent businesses in the Kingdom.
He highlighted JCCI’s efforts to challenge the ministry’s decision.

Crown prince says Saudi investments in India to reach $100bn

Updated 3 min 30 sec ago

Crown prince says Saudi investments in India to reach $100bn

  • Mohammed bin Salman says value of investments to increase rapidly over next two years
  • Modi praised relations between the two countries after signing cooperation agreements

DUBAI: Crown Prince Mohammed bin Salman said on Wednesday he expected Saudi Arabia’s investments in India will be worth $100 billion in the next two years.

During a press conference with India’s Prime Minister Narendra Modi, the crown prince said the Kingdom had invested $10 billion in technology and small companies in India which had “achieved very remarkable returns.”

Speaking on the second day of hist India visit, and after the signing of five agreements with Modi, the crown prince also said that there were many opportunities for India in Saudi Arabia.

“We expect that the opportunity we are developing in India in many fields will exceed 100 billion dollars over the next two years,” Prince Mohammed said. “We want to work as two governments to ensure these investments and achieve beneficial returns for both countries. 

“We also hope that relations between the Kingdom of Saudi Arabia and India will contribute to providing more opportunities for Indian laborers and manpower to contribute to the future of the Kingdom of Saudi Arabia and building the Kingdom's Vision 2030.”

The crown prince spoke of the depth and history of relations between the two countries, acknowledging the role Indian labor and businesses had played in the Kingdom’s development.

He also said the economic partnerships were grounded in the two nation’s similar challenges - “extremism, terrorism and the security of the Indian Ocean.”

He said Modi’s visit to the Kingdom in 2016 had achieved investments worth $44 billion in refining and petrochemicals.

The two countries planned to expand India’s oil storage capacity to make India an “important regional center in distributing oil and its products.”

The crown prince and Modi earlier oversaw the signing of agreements in the fields of investment, tourism, housing and information and broadcasting.

The crown prince arrived in India after a two-day trip to Pakistan as part of a tour of Asia.

Earlier he attended a ceremonial welcome in New Delhi after landing in the country on Tuesday evening.