Shoura member urges 20% tax on Saudi investments abroad

Updated 02 August 2017

Shoura member urges 20% tax on Saudi investments abroad

RIYADH: A Shoura Council member has called for a 20 percent tax on Saudi investments abroad, as is the case with foreign investments in the Kingdom, local media reported.
The proposed tax will generate billions of riyals in state income and contribute to the national economy by offsetting the exit of Saudi capital investments, Fahd bin Jumaa, deputy chairman of the Financial Committee at the Shoura Council, told Al-Hayat daily.
Based on the latest data released by the Arab Investment and Export Credit Guarantee Corp. (Dhaman), direct Saudi investments in foreign countries amounted to nearly SR155.3 billion ($41.4 billion) between 2003 and 2015, he said.
There were 526 Saudi projects abroad owned by 240 companies in more than 30 foreign and Arab countries, creating more than 96,000 jobs, he said, adding that this was a loss to the Saudi economy.
Tax evasion could be avoided by signing tax-evasion agreements with countries, and the proposal will help achieve the objectives of Vision 2030, he said.
According to UN Conference on Trade and Development estimates, the cost of Saudi foreign direct investment projects is close to SR155.25 billion.
China, Turkey, the UAE, Jordan, South Korea, Egypt, Lebanon, South Africa, Pakistan and the US are reportedly on the list of countries with Saudi investments.
The Saudi Basic Industries Corp. (SABIC) topped the list of Saudi companies investing abroad, implementing 81 projects with investments estimated at SR37.5 billion.


Saudi Arabia delays May crude prices until after OPEC+ meeting

Updated 05 April 2020

Saudi Arabia delays May crude prices until after OPEC+ meeting

  • OPEC and allies are due to meet on Thursday to discuss a possible new global crude supply cut

DUBAI: Saudi Aramco will delay the release of its crude official selling prices (OSP) for May until April 10 to wait for the outcome of a meeting between OPEC and its allies regarding possible output cuts, a senior Saudi source familiar with the matter said on Sunday.
"It is an unprecedented measure that has not been taken by Aramco before. May OSPs will depend on how the OPEC+ meeting concludes. We are doing what we can to make it successful, including taking this extraordinary step to delay the OSPs," the Saudi source said.
Saudi Aramco typically issues its OSPs by the 5th of each month, setting the trend for Iranian, Kuwaiti and Iraqi prices and affecting more than 12 million barrels of oil per day bound for Asia.
OPEC and allies are due to meet on Thursday to discuss a possible new global crude supply cut to end a price war between Saudi Arabia and Russia which has prompted US President Donald Trump to intervene.
The Saudi source said that Riyadh wants to avoid a repeat of the outcome of a March meeting where oil talks collapsed between OPEC and allies "due to Russia's lack of cooperation with the rest of OPEC+ participants".
Coordinated cuts between OPEC members and others led by Russia expired on March 31 having helped support crude prices since they began in January 2017.
The OPEC+ meeting was initially due for Monday, but was postponed to April 9 "to allow for more time to reach out to all producers including OPEC+ and others," the Saudi source said.