Saudi Arabia, Slovakia sign deal to avoid double taxation

Saudi Minister of Economy and Planning Faisal bin Fadhil Al-Ibrahim signed an agreement with Slovak authorities during his visit to the country. SPA
Saudi Minister of Economy and Planning Faisal bin Fadhil Al-Ibrahim signed an agreement with Slovak authorities during his visit to the country. SPA
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Updated 14 November 2023
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Saudi Arabia, Slovakia sign deal to avoid double taxation

Saudi Arabia, Slovakia sign deal to avoid double taxation

RIYADH: Saudi Arabia and Slovakia have signed an agreement to avoid double taxation, as the Kingdom steadily strives to become a prominent business hub for investors globally, the Saudi Press Agency reported.

Saudi Minister of Economy and Planning Faisal bin Fadhil Al-Ibrahim signed an agreement with Slovak authorities during his visit to the country.

The report added that the agreement aims to provide tax benefits and exemptions on government investments, promote fairness and equal opportunities for investors, along with elevating economic cooperation between the Saudi Arabia and Slovakia. 

Earlier this month, Saudi Investment Minister Khalid Al-Falih, during an interview with Bloomberg said that more than 180 companies have established their regional headquarters in the Kingdom, thus surpassing the previously set target of attracting 160 firms to the Kingdom by the end of this year. 

“We had a target by year-end to have 160 regional headquarters for global companies. So far, the year is not up yet, and we have issued 180 licenses. In fact, the rate is picking up to the tune of 10 companies per week that are being licensed in Saudi Arabia, and they are being provided with a good set of incentives,” the minister revealed. 

A few days back, Al-Ibrahim met North Macedonia Economy Minister Kershnik Bekteshi, and discussed ways to boost economic cooperation. 

During the meeting, both leaders discussed potential commerce and investment opportunities, and mutual cooperation in sectors that included agriculture, energy, and infrastructure.


‘Historical transformation’ in Saudi Arabia fueling $141.5bn construction output: Knight Frank

‘Historical transformation’ in Saudi Arabia fueling $141.5bn construction output: Knight Frank
Updated 16 sec ago
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‘Historical transformation’ in Saudi Arabia fueling $141.5bn construction output: Knight Frank

‘Historical transformation’ in Saudi Arabia fueling $141.5bn construction output: Knight Frank

RIYADH: Saudi Arabia’s construction output value is projected to have seen an annual rise of 4.3 percent in the first half of 2024, propelled by growth in Riyadh.

According to a recent analysis by global property consultancy Knight Frank, the $141.5 billion figure takes into account the Kingdom’s activities in the residential, institutional, and infrastructure sectors as well as industrial, energy, utilities, and commercial divisions.

This substantial investment in transforming the sector also serves to strengthen the Kingdom’s position as a global hub for tourism, commerce and trade.

This is further propelled by Saudi Arabia’s giga-projects and goals to deliver over 660,000 residential units, more than 320,000 hotel keys, over 5.3 million sq. m. of retail space, and more than 6.1 million sq. m. of new office space by the end of the decade.

Mohamed Nabil, head of Project and Development Services for the Middle East and North Africa at the body, said: “We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value. 

“Given the scale of the development pipeline, the government is hoping to attract over $3 trillion in investments by 2030, a figure recently confirmed by the Minister of Investment during the inaugural Sino-Gulf Cooperation for Industries and Investments Forum in China last month.”


Oil Updates – crude eases as strong dollar weighs on commodities markets

Oil Updates – crude eases as strong dollar weighs on commodities markets
Updated 24 June 2024
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Oil Updates – crude eases as strong dollar weighs on commodities markets

Oil Updates – crude eases as strong dollar weighs on commodities markets

SINGAPORE: Oil prices inched down on Monday as concerns of higher-for-longer interest rates resurfaced and lifted the dollar, offsetting support for oil markets from geopolitical tensions and OPEC+ supply cuts, according to Reuters.

Brent crude futures slipped 3 cents to $85.21 a barrel by 9:32 a.m. Saudi time, after settling down 0.6 percent on Friday. US West Texas Intermediate crude futures were at $80.71 a barrel, down 2 cents.

“The US dollar has opened bid this morning and appears to have broken higher following better US PMI data on Friday night and political concerns ahead of the French election,” said Tony Sycamore, a Sydney-based markets analyst at IG.

A stronger greenback makes dollar-denominated commodities less attractive for holders of other currencies.

The dollar index, which measures the greenback against six major currencies, climbed on Friday and was up slightly on Monday after purchasing managers index data showed US business activity was at a 26-month high in June.

However, both benchmark crude contracts gained about 3 percent last week on signs of stronger oil products demand in the US, world’s largest consumer, and as cuts from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, kept supply in check.

US crude inventories fell while gasoline demand rose for the seventh straight week and jet fuel consumption has returned to 2019 levels, ANZ analysts said in a note.

ING analysts led by Warren Patterson said speculators have also become more constructive toward oil into summer and increased their net-long positions in ICE Brent.

“We remain supportive toward the oil market with a deficit over the third quarter set to tighten the oil balance,” the analysts said in a note.

Geopolitical risks in the Middle East from the Gaza crisis and a ramp-up in Ukrainian drone attacks on Russian refineries are also underpinning oil prices.

In Ecuador, state oil company Petroecuador has declared force majeure over deliveries of Napo heavy crude for exports following the shutdown of a key pipeline and oil wells due to heavy rains, sources said on Friday.

In the US, the number of operating oil rigs fell three to 485 last week, their lowest since January 2022, Baker Hughes said in its report on Friday. 


Saudi Arabia’s trade surplus hits yearly high of $11bn in April amid surge in non-oil exports

 Saudi Arabia’s trade surplus hits yearly high of $11bn in April amid surge in non-oil exports
Updated 24 June 2024
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Saudi Arabia’s trade surplus hits yearly high of $11bn in April amid surge in non-oil exports

 Saudi Arabia’s trade surplus hits yearly high of $11bn in April amid surge in non-oil exports

RIYADH: Saudi Arabia’s trade balance surplus hit a year-high of SR41.4 billion ($11.04 billion) in April, a 36 percent increase from the previous month, fueled by a surge in non-oil exports. 

According to the General Authority for Statistics, the Kingdom’s non-oil shipments rose by 12.4 percent in April compared to the same month last year. 

This comes as the Kingdom intensifies its efforts to boost non-oil exports to reduce its reliance on the energy sector and diversify its economy. The significant growth underscores Saudi Arabia’s commitment to strengthening other sectors and achieving a more balanced economic structure. 

National non-oil exports, excluding re-exports, saw a modest rise of 1.6 percent in April this year compared to April 2023, while re-exported goods experienced a substantial increase of 56.4 percent over the same period. 

In contrast, overall outbound merchandise supply fell by 1.0 percent, primarily due to a 4.2 percent decline in oil exports. As a result, the proportion of oil in total outbound supply decreased from 80.6 percent in April 2023 to 78.0 percent in April this year. 

Imports also saw a slight decline of 1.3 percent, and the merchandise trade balance surplus dropped by 0.5 percent compared to the previous year. 

Month-over-month comparisons show a decrease in the value of merchandise exports by 1.7 percent, non-oil exports by 6.3 percent, and imports by 17.4 percent. However, the Kingdom’s trade balance still saw a substantial increase. 

The ratio of non-oil merchandise exports to imports improved significantly, rising to 37.1 percent in April from 32.6 percent in April 2023. This improvement is attributed to the increase in non-oil exports and the decrease in imports. 

Plastics, rubber, and their products were among the top non-oil exports, making up 26.2 percent of the total and growing by 20.5 percent compared to April 2023. 

Chemical products also constituted a significant portion, accounting for 25.7 percent of non-oil exports, although they saw a 13.8 percent decrease from the previous year. 

On the import side, machinery, electrical equipment, and parts were the leading category, representing 26.6 percent of total imports and increasing by 32.4 percent compared to April 2023. 

Transportation equipment and parts followed, making up 11.7 percent of imports but decreasing by 24.5 percent from the previous year. 

China remained Saudi Arabia’s largest trading partner, receiving 16.6 percent of total exports in April 2024. Japan and India followed with 9.2 percent and 8.1 percent of total exports, respectively. 

These top three countries, along with South Korea, the UAE, and the US, alongside Poland, Bahrain, Malaysia, and Singapore, collectively accounted for 65.6 percent of the Kingdom’s total exports. 

China also led in imports to Saudi Arabia, constituting 22.4 percent of total imports. The US and India followed, with 8.3 percent and 6.6 percent of total imports, respectively. 

Imports from the top ten countries made up 62.2 percent of the total. 

The main entry points for imports into the Kingdom included King Abdulaziz Sea Port in Dammam with 29.7 percent, Jeddah Islamic Sea Port with 18.4 percent, and King Khalid International Airport in Riyadh with 14.3 percent. 

Other ports included King Abdulaziz International Airport with 7.6 percent and King Fahad International Airport in Dammam with 5.9 percent. 

Together, these five ports handled 76.0 percent of Saudi Arabia’s total merchandise imports. 

These statistics are based on administrative records from the Zakat, Tax and Customs Authority and the Ministry of Energy, with classifications according to the Harmonized System maintained by the World Customs Organization. 


Oman’s capital market draws 135 nationalities; foreign investments up 19%: MSX data

Oman’s capital market draws 135 nationalities; foreign investments up 19%: MSX data
Updated 23 June 2024
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Oman’s capital market draws 135 nationalities; foreign investments up 19%: MSX data

Oman’s capital market draws 135 nationalities; foreign investments up 19%: MSX data

RIYADH: Oman’s capital market has attracted investors from 135 nationalities, up from 67 in 2023, supported by favorable policies including low tax rates and flexible capital transfer options. 

Newly released statistics from the Muscat Stock Exchange reveal a 19 percent increase in foreign investments as of May, including participants from the Gulf Cooperation Council, Arab countries, and beyond. 

Oman’s capital market has implemented policies favoring foreign investments, including unrestricted profit repatriation and exchange operations. This trend aligns with the nation’s economic resurgence and growing institutional confidence in government strategies aimed at reducing public debt, increasing investment in essential services, and launching infrastructure projects to bolster private sector participation. 

The MSX data also indicates that foreign investments are predominantly focused on the industrial and service sectors, accounting for 15.8 percent and 15.7 percent respectively. 

Gulf investors are particularly focused on the services sector, accounting for 15.4 percent, and the financial industry at 8.5 percent. 

Conversely, non-Gulf Arab investments are primarily directed toward the financial sector, comprising 3 percent. 

Local investments heavily favor the financial industry at 87.6 percent, followed by the industrial sector at 75.6 percent and the services sector at 67.7 percent. 

The first half of this year has seen significant growth in trading activity at MSX, underscoring heightened market dynamism.  

Trading volumes surged to 3.1 billion securities, surpassing 517 million Omani rials ($1.3 billion) in value by the end of May, marking a notable 38.4 percent increase from the previous year.

Executed transactions also rose, reflecting increased market participation and liquidity. 

The exchange is expanding its database on listed companies to enhance transparency and advocate for disclosure standards among publicly traded entities, the Oman News Agency reported.  

Additionally, efforts are underway to encourage government and family-owned businesses to transition into privately held entities, enriching market diversity and investment opportunities. 

Foreign investors can invest in shares of MSX-listed companies or investment funds without prior permission, under the oversight of an independent supervisory body ensuring market fairness, investor protection, and transparency.  

Foreign investment in MSX-listed public joint-stock companies is permitted up to 100 percent, with significant interest observed in the industrial and services sectors, highlighting diversified investor preferences. 

Reflecting positive sentiment, the market capitalization of MSX-listed public joint-stock companies reached 9.4 billion rials by May’s end, up 448.5 million rials since the start of the year.  

The broader market value of all MSX-listed securities rose to 24.48 billion riyals, a gain of 676 million riyals year-over-year, bolstered by contributions from closed companies and the bond and sukuk market. 

Market indices reflected this growth, with the main index climbing to 4845 points by May’s close, up 331 points from the previous period.  

Successful IPOs by entities like Abraaj Energy Services and OQ Gas Networks have attracted new investors and boosted market liquidity, with OQ considering IPOs for two more subsidiaries this year, according to Bloomberg. 

This upward trend underscores investor confidence in MSX’s growth potential, supported by Oman Investment Authority’s plans to offer additional companies for public subscription in the coming years.  

The OIA reported a 7.4 percent year-on-year increase in Oman’s sovereign wealth fund assets, reaching 19.24 billion rials in 2023, with a 9.95 percent return on investment, as disclosed in a statement on X. 

This performance underscores the authority’s pivotal role in fostering economic growth and stability in the Middle Eastern country.  

The robust results also reflect the OIA’s strategic investment approach and effective management of its diverse portfolio, in line with its mandate to manage national funds and assets, build financial reserves, and advance targeted economic sectors through government policies. 

At a media briefing in Muscat earlier this month, the authority affirmed its commitment to contributing over 6 billion rials annually to the state’s general budget from 2016 through 2023.  

The statement further outlined the OIA’s plans to geographically diversify its new foreign and local investments across various sectors, while facilitating technology transfer and modern techniques to bolster targeted local industries. 

Looking ahead, MSX aims to strengthen its regulatory framework, expand investor outreach initiatives, and cultivate an environment conducive to sustainable economic growth, the Oman News Agency reported.  

By enhancing its reputation as a gateway for international investment and adhering to global best practices in financial markets, MSX aims to maintain its position as a leading choice for investors interested in opportunities in Oman’s dynamic capital market, it added.


Closing Bell: Saudi main index rose to close at 11,729

Closing Bell: Saudi main index rose to close at 11,729
Updated 23 June 2024
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Closing Bell: Saudi main index rose to close at 11,729

Closing Bell: Saudi main index rose to close at 11,729

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 231.04 points, or 2.01 percent, to close at 11,729.97.

The total trading turnover of the benchmark index was SR5.18 billion ($1.38 billion) as 79 of the stocks advanced, while 151 retreated.

Similarly, the Kingdom’s parallel market Nomu gained 71.63 points, or 0.27 percent, to close at 26,825.62. This comes as 32 of the listed stocks advanced while 36 retreated. 

Meanwhile, the MSCI Tadawul Index also gained 38.14 points, or 2.65 percent, to close at 1,475.68.

The best-performing stock of the day was Rasan Information Technology Co. The company’s share price surged 10.60 percent to SR53.20. 

Other top performers include ACWA Power Co. as well as Fawaz Abdulaziz Alhokair Co.

The worst performer was Batic Investments and Logistics Co., whose share price dropped by 5.81 percent to SR3.08. 

Other worst performers were Etihad Atheeb Telecommunication Co. as well as Saudi Manpower Solutions Co.

On the announcements front, Yanbu Cement Co. has announced the signing of a non-binding memorandum of understanding with Southern Province Cement Co. to evaluate the feasibility of merging the two companies.

According to a Tadawul statement, both firms will commence the process of due diligence, examining operational, technical, and financial as well as legal and actuarial aspects. 

They will also engage in non-binding discussions regarding the details of the terms and conditions for the proposed merger.

The MoU shall terminate upon the signing of the merger agreement by both companies or upon the expiration of 12 months from the date of its signing. It may also be extended with the approval of both firms jointly.

Additionally, either company may terminate the MoU by providing written notice to the other party in this regard.

Moreover, Edarat Communication and Information Technology Co. has announced the receipt of a letter of award from Almoammar Information Systems Co. to provide facility management support services for Sahayeb Data Centers.

A bourse filing revealed that, under the terms of the agreement, Edarat will provide support services, including managing, operating, and maintaining Sahayeb Data Centers located in Riyadh and Dammam, starting in the second quarter of 2024 and continuing until the end of 2025.