JEDDAH, 2 April — Finance and National Economy Minister Dr. Ibrahim Al-Assaf stated yesterday that the deficit in this year’s national budget would shrink considerably if oil prices soar or remain the same.
Speaking to reporters after meeting with Chinese Deputy Premier Wu Yi, he said that the consultative Shoura Council was still studying the issue of income tax on foreigners. The new law will not include tax on Saudis, he added.
Al-Assaf said that the lifting of customs tariffs in GCC and Arab countries would further enhance investment opportunities in the Kingdom. He said China had offered to support Riyadh to get membership in the World Trade Organization.
Answering a question, Al-Assaf said considerable amount of Saudi funds invested abroad had been repatriated after the Sept. 11 incidents.
“Businessmen look for better returns and efforts are under way to attract private investment, especially in big projects,” he added.
He denied a Wall Street Journal report that the Kingdom was monitoring the bank accounts of 150 Saudi businessmen.
“Saudi Arabian Monetary Agency has already issued a denial of this. The secrecy of accounts is protected in the Kingdom by law,” he added.
“We have frozen accounts of four individuals as per a Security Council resolution. If proved that they have no links with any suspected organizations, the freeze would be lifted,” he explained.
The minister also revealed a plan to sell government shares in holding companies but did not say when it will happen. “We are weighing measures so that it will not affect the stock market,” he added.
