Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4

Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4
An e-invoice, according to regulations, is a tax invoice that is issued electronically by each taxpayer subject to value-added tax in the Kingdom. (Getty Images)
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Updated 03 December 2021

Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4

Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4

RIYADH: Saudi Arabia will start implementing the mandatory application of the first phase of e-invoicing “fatoorah” on Saturday Dec. 4, Argaam reported.

An e-invoice, according to regulations, is a tax invoice that is issued electronically by each taxpayer subject to value-added tax in the Kingdom

The first phase requirements consist of ensuring that there is a technical e-invoicing solution compatible with the relevant requirements. This means no handwritten invoices or invoices written through text editors or number analysis applications on computers.

A fine of SR5,000 ($1,332) will be applied for not issuing and saving the invoices electronically.

The fine for not including the QR Code in the e-invoice and not reporting any malfunction in the issuing of the e-invoice to the authority starts with a warning. The fine for violating the deletion or modification of e-invoice starts from SR10,000.

The second phase of e-invoicing will be implemented in a phased manner, starting from January 1, 2023, to establish integration between e-systems of taxpayers and the authority’s regulations, Argaam said.


Red Sea International to supply 3 complexes to TRSDC as construction accelerates

Red Sea International to supply 3 complexes to TRSDC as construction accelerates
Updated 12 sec ago

Red Sea International to supply 3 complexes to TRSDC as construction accelerates

Red Sea International to supply 3 complexes to TRSDC as construction accelerates

RIYADH: Red Sea International Co. signed a SR60.5 million ($16.12 million) contract with The Red Sea Development Co., known as TRSDC, to design, manufacture, supply, and install three complexes in the Saudi western region, according to a bourse filing.

This comes in line to support the construction activities of luxury hotels on three islands in the Red Sea, Sheybarah and Ummahat Al Shaikh islands.

The contract duration is 194 days, the company said in a statement to Saudi stock exchange, Tadawul.

The contract consists of various types of modular units, which can be used as accommodations or offices. These units will be fully furnished to provide all the requirements for the crew working on the construction site.

Revenues and profits will be realized starting the first quarter of 2022.

There are no related parties in the contract, the statement said.

 


Why airlines fear 5G will upend travel this week?

Why airlines fear 5G will upend travel this week?
Updated 50 min 38 sec ago

Why airlines fear 5G will upend travel this week?

Why airlines fear 5G will upend travel this week?

AT&T and Verizon will postpone new wireless service near some airports planned for this week after the nation’s largest airlines said the service would interfere with aircraft technology and cause massive flight disruptions.
AT&T said Tuesday it would delay turning on new cell towers around runways at some airports — it did not say how many — and work with federal regulators to settle the dispute.
Verizon said it will launch its new 5G network but added, “we have voluntarily decided to limit our 5G network around airports.”
The moves came after the airline industry raised the stakes in a showdown with AT&T and Verizon over plans to launch 5G wireless service this week, warning that thousands of flights could be grounded or delayed if the rollout takes place near major airports.

WHOSE SIDE IS THE GOVERNMENT ON?
Both.
The Federal Communications Commission, which runs the auctions of radio spectrum, determined that C-Band could be used safely in the vicinity of air traffic. The FCC in 2020 set a buffer between the 5G band and the spectrum that planes use to resolve any safety concerns.
But Buttigieg and FAA Administrator Stephen Dickson, whose agency is responsible for aviation safety, saw a potential problem. On Friday, they asked AT&T and Verizon to hold off activating C-Band 5G near an undetermined number of “priority airports” while the FAA conducted further study.

HOW DID AT&T AND VERIZON RESPOND?
They dismissed the concerns. The wireless industry trade group CTIA notes that about 40 countries have deployed the C-Band strand of 5G without reports of harmful interference with aviation equipment.
But AT&T CEO John Stankey and Verizon CEO Hans Vestberg did offer to reduce the power of their 5G networks near airports, as France has done.
“The laws of physics are the same in the United States and France,” Stankey and Vestberg said in a letter Sunday to Buttigieg and Dickson. “If U.S. airlines are permitted to operate flights every day in France, then the same operating conditions should allow them to do so in the United States.”
Although they took steps to soothe the federal officials, the telecoms are still bickering with airlines, which have canceled more than 10,000 U.S. flights since Christmas Eve because of bad weather and labor shortages caused by COVID-19.
“While the airline industry faces many challenges, 5G is not one of them,” Vestberg said in a company memo Tuesday.

HOW MANY PLANES DOES THIS AFFECT?
Under the agreement, the FAA will conduct a survey to find out. The FAA will allow planes with accurate, reliable altimeters to operate around high-power 5G. But planes with older altimeters will not be allowed to make landings under low-visibility conditions.

WHAT WILL HAPPEN IN THE NEXT TWO WEEKS?
The two-week postponement will give the FAA and the companies time to implement the agreement.
AT&T and Verizon will be allowed to launch C-Band service this month under already-granted FCC licenses. The airlines have until Friday to give the companies a list of up to 50 airports where they believe the power of C-Band service should be reduced through July 5.
Until July, the telecoms will talk to the FAA and airlines about potential long-term measures regarding 5G service near airports. However, under terms of the agreement with the FAA, AT&T and Verizon will have sole power to decide if any changes in service will be made.
“We felt that it was the right thing to do for the flying public, which includes our customers and all of us, to give the FAA a little time to work out its issues with the aviation community and therefore avoid further inconveniencing passengers with additional flight delays,” Vestberg said in his memo.
Nicholas Calio, president of the airline trade group, was more muted in his comments about the agreement, although he thanked federal officials for reaching the deal with AT&T and Verizon.
“Safety is and always will be the top priority of U.S. airlines. We will continue to work with all stakeholders to help ensure that new 5G service can coexist with aviation safely,” Calio said.
The FAA issued a brief statement about the two-week delay, saying it looks forward "to using the additional time and space to reduce flight disruptions associated with this 5G deployment.”

 


Microsoft buys game maker Activision Blizzard for about $70 billion

Microsoft buys game maker Activision Blizzard for about $70 billion
Updated 19 January 2022

Microsoft buys game maker Activision Blizzard for about $70 billion

Microsoft buys game maker Activision Blizzard for about $70 billion
  • Deal will turn Microsoft, maker of the Xbox gaming system, into one of the world’s largest video game companies
  • Microsoft CEO Satya Nadella vows to address issues of misconduct and unequal pay against Activision

Microsoft is paying nearly $70 billion for Activision Blizzard, the maker of Candy Crush and Call of Duty, to boost its competitiveness in mobile gaming and virtual-reality technology.
The all-cash $68.7 billion deal will turn Microsoft, maker of the Xbox gaming system, into one of the world’s largest video game companies. It will also help it compete with tech rivals such as Meta, formerly Facebook, in creating immersive virtual worlds for both work and play.
If the deal survives scrutiny from US and European regulators in the coming months, it could be one of the biggest tech acquisitions in history. Dell bought data-storage company EMC in 2016 for around $60 billion.
Activision has been buffeted for months by allegations of misconduct and unequal pay. Microsoft CEO Satya Nadella addressed the issue Tuesday in a conference call with investors.
“The culture of our organization is my No. 1 priority,” Nadella said, adding that ”it’s critical for Activision Blizzard to drive forward” on its commitments to improve its workplace culture.
Activision disclosed last year it was being investigated by the Securities and Exchange Commission over complaints of workplace discrimination and in September settled claims brought by US workforce discrimination regulators. California’s civil rights agency sued the Santa Monica-based company in July, citing a “frat boy” culture that had become a “breeding ground for harassment and discrimination against women.”
Wall Street saw the acquisition as a big win for Activision Blizzard Inc. and its shares soared 25 percent in trading Tuesday, making up for losses over the past six months since California’s discrimination lawsuit was filed. Shares of Microsoft slipped about 2 percent.

HIGHLIGHT

Acquisition to push Microsoft past Nintendo as the third-largest video game company by global revenue, behind Playstation-maker Sony and Chinese tech giant Tencent

Last year, Microsoft spent $7.5 billion to acquire ZeniMax Media, the parent company of video game publisher Bethesda Softworks, which is behind popular video games The Elder Scrolls, Doom and Fallout. Microsoft’s properties also include the hit game Minecraft after it bought Swedish game studio Mojang for $2.5 billion in 2014.
The Redmond, Washington, tech giant said the latest acquisitions will help beef up its Xbox Game Pass game subscription service while also accelerating its ambitions for the metaverse, a collection of virtual worlds envisioned as a next generation of the Internet. While Xbox already has its own game-making studio, the prospect of Microsoft controlling so much game content raised questions about whether the company could restrict Activision games from competing consoles, although Nadella promised the deal would help people play games “wherever, whenever and however they want.”
The acquisition would push Microsoft past Nintendo as the third-largest video game company by global revenue, behind Playstation-maker Sony and Chinese tech giant Tencent, according to Wedbush Securities analyst Daniel Ives.
“Microsoft needed to do an aggressive deal given their streaming ambitions and metaverse strategy,” Ives said. ”They’re the only game in town that can do a deal of this size with the other tech stalwarts under massive tech scrutiny.”
Meta, Google, Amazon and Apple have all attracted increasing attention from antitrust regulators in the US and Europe, but the Activision deal is so big that it will also likely put Microsoft into the regulatory spotlight, Ives said. Microsoft is already facing delays in its planned $16 billion acquisition of Massachusetts speech recognition company Nuance because of an investigation by British antitrust regulators.
Microsoft is able to make such a big all-cash purchase of Activision because of its success as a cloud computing provider. But after years of focusing on shoring up its business clients and products such as the Office suite of email and other work tools, Ives said Microsoft’s failed 2020 attempt to acquire social media platform TikTok may have “really whet the appetite for Nadella to do a big consumer acquisition.”
Pushback against the deal was immediate from consumer advocacy groups.
“No way should the Federal Trade Commission and the US Department of Justice permit this merger to proceed,” said a statement from Alex Harman, competition policy advocate for Public Citizen. “If Microsoft wants to bet on the ‘metaverse,’ it should invest in new technology, not swallow up a competitor.”

BACKGROUND

Activision was formed in 1979 by former employees of Atari Inc., a pioneer in arcade games and home video game consoles.

White House press secretary Jen Psaki had no comment on Microsoft’s announcement at her briefing Tuesday, but emphasized the Biden administration’s recent moves to strengthen enforcement against illegal and anticompetitive mergers.
Started in 1979 by former Atari Inc. employees, Activision has created or acquired many of the most popular video games, from Pitfall in the 1980s to Guitar Hero and the World of Warcraft franchise. Bobby Kotick, 59, has been CEO since 1991.
Microsoft said it expects the deal to close in its 2023 fiscal year, which starts in July. It said Kotick will continue to serve as CEO. After the deal closes, the Activision business unit would then report to Phil Spencer, who has led Microsoft’s Xbox division and will now serve as CEO of Microsoft Gaming.
Kotick survived a number of executive shakeups at Activision last year after a series of controversies stemming from allegations of a toxic workplace culture. A shareholder lawsuit in August said the company failed to disclose to investors that it was being investigated in California and that it had workplace culture issues that could result in legal problems.
Activision reached a deal in September with the US Equal Employment Opportunity Commission to settle claims that followed a nearly three-year investigation. The agency said Activision failed to take effective action after employees complained about sexual harassment, discriminated against pregnant employees and retaliated against employees who spoke out, including by firing them.
Microsoft has also been investigating its own practices toward sexual harassment and gender discrimination, opening an inquiry last week sought by investors at its annual shareholders meeting in November. The company committed to publishing a report later this year on how it handles harassment claims, including past allegations involving senior leaders such as co-founder Bill Gates.
 


Crude oil’s latest bull run puts spotlight on geopolitical events

Crude oil’s latest bull run puts spotlight on geopolitical events
Updated 19 January 2022

Crude oil’s latest bull run puts spotlight on geopolitical events

Crude oil’s latest bull run puts spotlight on geopolitical events
  • Having spent the last year fretting over supply, markets and investors appear suddenly more spooked by the ‘what ifs’ of global politics and its impact on still tight supplies

LONDON: Crude oil’s latest bull run, which saw Brent climb to its highest level since 2014 on Tuesday, has put geopolitics front and center of market concerns.

Having spent the last year fretting over supply, markets and investors appear suddenly more spooked by the what ifs of global politics and its impact on still tight supplies.

This week’s drone attack by Iranian-backed Houthi rebels on the UAE, along with fears that Russia’s aggression towards neighboring Ukraine will lead to war, are nudging crude prices higher. The spike comes despite a view in some circles that supply issues are abating when compared to last year. A consensus view from energy analysts suggests current geopolitical events, primarily increased Middle East tensions and Russia’s saber-rattling, have added almost 12 percent to the price of a barrel of crude oil.

Alan Gelder, vice president for refining, chemicals and oil markets with UK energy consultant Wood Mackenzie, said: “Broadly speaking, geopolitics currently accounts for around $10 of the oil price.” Following the UAE attack, Goldman Sachs upwardly revised its price forecast, warning on Tuesday that Brent could reach $90 per barrel in the next two months and hit $100 in the second half of this year. However, Gelder believes triple figure oil prices could prove wide of the mark.

He told Arab News: “We don’t believe the oil market will be as tight in 2022 as it was in 2021. We’re expecting US oil production to grow because the investment discipline of recent years will now enable companies to drill and increase investment supply while still achieving high returns for investors.”

He added: “One can never say never, but we think forecasts of $100 oil are slightly overrated. The rig count is increasing in the US, albeit modestly, so supply will increase this year. Geopolitical events are of course hard to predict and are capable of causing further price shocks, though it would take an extreme production outrage at a major supplier for the current fundamentals of supply and demand to be impacted.” That said, it is worth remembering geopolitical events were behind the first big jump in oil prices last year.

In March 2021, just after OPEC and its OPEC+ allies announced they would stick to their production cuts, the Houthi militia launched a failed attack on Saudi Arabia’s Ras Tanura oil-export terminals and refinery. 

FASTFACT

A consensus view from energy analysts suggests current geopolitical events, primarily increased Middle East tensions and Russia’s saber-rattling, have added almost 12 percent to the price of a barrel of crude oil.

There was no damage to Ras Tanura, but the attack sent Brent crude briefly above $70 a barrel.

The six-year war in Yemen, where Saudi Arabia is leading a coalition of countries fighting the Iran-backed Houthis, has seen a number of attacks on the Kingdom’s energy infrastructure and oil tankers in the Red Sea and the Persian Gulf.

Indeed, a report last month by a respected Washington-based think tank, the Center for Strategic and International Studies, said Houthi attacks on Saudi Arabia more than doubled during the first nine months of 2021 compared to the same period a year earlier. The report said Iran’s Islamic Revolutionary Guard Corps and Lebanese militia Hezbollah played a critical role in providing Houthis with weapons, technology and training.

Concerns about potential disruptions to Saudi output on prices should also be coupled with the unlikelihood of any easing of sanctions against Iran — a huge crude producer, but one whose meager exports are now reliant on smuggling.

Fast forward to today, and the bloody unrest in Kazakhstan — an OPEC+ member and second largest oil producer in the former Soviet Union with almost 2 million barrels a day — had already pushed Brent almost 5 percent higher in the early days of this month, to $83. Ironically, the initial protests against the government were sparked by an increase in the price of liquid petroleum gas, which many Kazakhs use to run their cars.

The UAE attack, which has nudged Brent a little closer towards Goldman Sachs’ $90, is the most significant strike by Houthis against the Emirates since its military withdrawal from the Yemen conflict in 2019, though it still supports forces fighting the Houthis.

Meanwhile, the buildup of Russian troops on Ukraine’s border and fears that Vladimir Putin will invade, unleashing a NATO response of economic sanctions, or in a worse case scenario, a wider conflict, are sending prices higher still.

Tensions linked to Gazprom’s Nord Stream 2 pipeline project have already played a large role in rocketing gas prices across Europe. Gas prices have fallen sharply so far this year, but Ukraine is a vital supply route for Russian oil and gas supplies to Europe, which is heavily dependent on Russia for its energy needs.

Giovanni Staunovo, energy strategist with UBS, said: “There is probably also a geopolitical risk premium related to tensions in Eastern Europe and the Middle East, which is however difficult to quantify. Historically, such risk premia only remained in the price if those tensions triggered some supply disruptions. That said, currently there are no disruptions.”

A more pertinent risk for oil prices perhaps lies in the fundamentals of the market, primarily concerns about OPEC’s ability to pump more crude if required by higher demand. Several OPEC members have struggled to raise output to required quota levels, and speaking this week, Saudi Arabia Energy Minister Prince Abdulaziz bin Salman said the Kingdom had no plans to make up for their production shortfalls.

Staunovo said: “Some oil demand concerns related to the omicron variant have not materialized, with oil demand holding up better than some feared back in December. But the oil market is tight, with petroleum inventories, and crude and oil products, standing at a multi-year low, and if oil demand keeps recovering back to 2019 levels, available spare capacity should also fall to low levels, which makes the oil market and prices very sensitive to any supply disruptions.”


Emirates cancels some US flights over 5G rollout; Qatar Airways evaluating situation; Saudia still silent

Emirates cancels some US flights over 5G rollout; Qatar Airways evaluating situation; Saudia still silent
Updated 7 min 20 sec ago

Emirates cancels some US flights over 5G rollout; Qatar Airways evaluating situation; Saudia still silent

Emirates cancels some US flights over 5G rollout; Qatar Airways evaluating situation; Saudia still silent
  • It said the destinations include Boston, Chicago, Dallas Fort Worth, Houston, Miami, Newark, Orlando, San Francisco, and Seattle
  • The decision comes into force on Wednesday and will continue until further notice, the airline says

RIYADH: Emirates airlines is among top international carriers rushed to rejig or cancel flights to the United States ahead of a 5G wireless rollout on Wednesday that has triggered safety concerns, despite two wireless carriers saying they will delay parts of the deployment.

Qatar Airways, another carrier from the GCC which operates both 777s and A350s to the United States, said it was evaluating the situation.

Saudia Airlines, the Kingdom's national carrier, didn't announce any reaction to the situation yet. An email seeking comments was sent to the Jeddah-based carrier at the time of writing the story.

Emirates flights to New York's JFK, Los Angeles and Washington DC will continue to operate.

Japan's two major airlines, All Nippon Airways and Japan Airlines, said they would curtail Boeing 777 flights.

ANA said it was cancelling or changing the aircraft used on some U.S. flights. JAL said it would not use the 777 on U.S. mainland routes "until safety is confirmed," according to a notice to passengers reported by airline publication Skift.

Korean Air Lines said it had switched away from 777s and 747-8s on six U.S. passenger and cargo flights and expected to also change planes used on another six flights on Wednesday.

Taiwan's China Airlines said on Wednesday it would reschedule some flights, while Hong Kong's Cathay Pacific Airways said it would deploy different aircraft types if needed.

Air India, which serves four U.S. destinations with Boeing 777s, said those flights would be curtailed or face changes in aircraft type starting from Wednesday.

The airlines said they were acting in response to a notice from Boeing that 5G signals may interfere with the radio altimeter on the 777, leading to restrictions.

A spokesman for Boeing had no immediate comment.

The 777 last year was the second-most used widebody plane on flights to and from U.S. airports with around 210,000 flights, behind only the 767, according to data from FlightRadar24.

Industry sources said Boeing had issued technical advisories noting potential interference, but that flight restrictions were in the hands of the FAA, which has for now limited operations at key airports unless airlines qualify for special approvals.

Radio altimeters give precise readings of the height above the ground on approach and help with automated landings, as well as verifying the jet has landed before allowing reverse thrust.

The Federal Aviation Administration (FAA) has warned that potential 5G interference could affect height readings that play a key role in bad-weather landings on some jets and airlines say the Boeing 777 is among models initially in the spotlight.

Despite an announcement by AT&T and Verizon that they would pause the 5G rollout near airports, several airlines still canceled flights or switched aircraft models. Others said more cancellations were likely unless the FAA issued new formal guidance in the wake of the wireless announcements.

"While this is a positive development toward preventing widespread disruptions to flight operations, some flight restrictions may remain," Delta Air Lines said.

The world's largest operator of the Boeing 777, Dubai's Emirates, said it would suspend flights to nine U.S. destinations from Jan. 19, the planned date for the deployment of 5G wireless services.

WORKHORSE JET
The announcement of cancellations came despite the wireless carriers delaying turning on some 5G towers near key airports.
Airline industry sources said the decision had arrived too late to affect complex aircraft and crewing decisions for some Wednesday flights.
British Airways opted to switch aircraft on its daily flight to Los Angeles to an Airbus A380 from the usual Boeing 777 service, two people familiar with the matter told Reuters.
That entails pre-positioning a flight crew in Los Angeles to fly the Airbus superjumbo back to London on the return leg.
Web tracker Flightradar24 said the A350 may also be used. The radio altimeters on the two Airbus jets have been cleared while the planemaker is still assessing its other models.
The 777 mini-jumbo is a workhorse of the long-haul travel market that remains depressed following COVID-19, while its freighter equivalent has reshaped the aviation route map during the pandemic, according to a spokesperson for Flightradar24.
Not all 777 flights are affected. Emirates, which is also a major user of the larger A380, will switch to the larger aircraft for Los Angeles and New York but keep flying the 777 to Washington, which is not affected.
President Joe Biden hailed the agreement with the wireless carriers, saying it would allow more than 90% of wireless tower deployment to occur as scheduled. He said they would work to "reach a permanent, workable solution around these key airports."

(With Reuters)