Taxation dominates G20 gathering in Riyadh

SAMA governor Ahmed Alkholifey at the G20 meeting. (Reuters)
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Updated 22 February 2020

Taxation dominates G20 gathering in Riyadh

  • Officials express optimism on the tackling of tax evasion and the continued strength of the financial sector globally

RIYADH: The two-day G20 Finance Ministers and Central Bank Governors meeting kicked off in Riyadh on Saturday with taxation dominating the agenda.

Saudi Finance Minister Mohammed Al-Jadaan said this year would represent a key test for tax transparency worldwide.

“It gives us the opportunity to assess what we have achieved collectively in the area of tax transparency and discuss possible ways to encourage further progress, and provides a platform to discuss the way forward to address the tax challenges arising from the digitization of the economy,” he said. 

The minister said that G20 states and the OECD had already achieved major successes in tackling tax evasion. “Today, members of the G20/OECD Global Forum on Transparency and Exchange of Information for Tax Purposes work together to implement the internationally agreed standards on tax transparency,” said Al-Jadaan. “These standards balance the need to access information for tax purposes and the need to protect taxpayers’ confidentiality.”

He said that more than 6,100 bilateral exchange agreements had been signed and that tax-authorities worldwide were now collecting tax revenues utilizing the automatic exchange of information mechanism.

“Information on 50 million financial accounts was exchanged by the end of 2019 for a total value of about €5 trillion ($5,4 trillion), and almost €100 billion in additional tax revenues have been identified, thanks to voluntary compliance mechanisms and investigations,” he said.

Dr. Ahmed Alkholifey, Governor of the Saudi Arabian Monetary Authority (SAMA) said that the global economy had faced headwinds caused by geopolitical uncertainties and social unrest in some parts of the world.

But he said the good news was that the financial sector, and notably the banking sector, has continued to strengthen in both advanced and emerging economies.

The governor also said he expected to see an improvement in the Saudi economy this year.

“As an open economy, Saudi Arabia, just as other countries in the region, is under the influence of these global developments. What I can say, in a nutshell, is that GDP growth in Saudi Arabia is projected to see an upturn in 2020.”

Ministers and central bank governors from the G20 countries and guest nations, as well as heads of international and regional organizations are attending the gathering in Saudi Arabia, the first Arab nation to hold the G20 presidency.


Dubai launches economic program for post COVID-19 recovery 

Updated 05 August 2020

Dubai launches economic program for post COVID-19 recovery 

  • “The Great Economic Reset Programme” is part of a “COVID Exit initiative” to help the recovery and reshaping of the economy
  • The economic program will feature analyses of current and future policies

DUBAI: Dubai launched an economic program as part of its efforts to reshape the emirate’s economy for a “sustainable” and “resilient” future post the coronavirus pandemic, the government said. 
The Dubai government partnered with the Mohammed bin Rashid School of Government (MBRSG) to launch “The Great Economic Reset Programme” as part of a “COVID Exit initiative” to help the recovery and reshaping of the economy, state news agency WAM reported on Tuesday. 
The economic program will feature analyses of current and future policies, research and extensive stakeholder consultation to set the direction and tone of future economic policies, regulations and initiatives.
The government plans to use local and international experts for economies and societies to create growth strategies for the Dubai economy.
The MBRSG held a “Virtual Policy Council,” with global experts and thought leaders to discuss the impacts of COVID-19 on the economy and potential policy responses and initiatives. 
Chief economists, senior practitioners and researchers from leading global institutions including the World Bank, joined experts from Dubai Economy and the MBRSG at the first roundtable.
“I believe the triple helix collaboration between public, private and academia stakeholders have always produced the best solutions in the past. In the highly uncertain environment now, extensive collaboration and cooperation between all stakeholders are vital to our future prosperity. The Virtual Policy Council will propose the best approaches Dubai and the UAE can adopt to address the risks and opportunities in the next normal economy,” said Mohammed Shael Al-Saadi, CEO of the Corporate Strategic Affairs sector in Dubai Economy.
“This Virtual Policy Council is a key component of the whole process where global experts and thinkers share their views on the future economy. In this new era, the role of governments in enabling the new economic actors is becoming increasingly central, and Dubai is well-positioned to lead the way with innovative models of growth post COVID19,” said Professor Raed Awamleh, Dean of MBRSG.
The roundtable also discussed the impact of the pandemic on international trade, foreign investment and tourism, as well as the rise of digital globalization.