Saudi Arabia signs key tax, customs pacts to boost global trade and investment

The agreements were signed by Minister of Finance Mohammed Al-Jadaan, who also serves as chairman of the Zakat, Tax, and Customs Authority, during the 3rd Zakat, Tax, and Customs Conference held in Riyadh on Wednesday. SPA
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Updated 04 December 2024
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Saudi Arabia signs key tax, customs pacts to boost global trade and investment

JEDDAH: Saudi Arabia has signed a series of tax and customs agreements with multiple countries, further reinforcing the Kingdom’s commitment to global economic integration and enhancing its role in international trade.

The agreements were signed by Minister of Finance Mohammed Al-Jadaan, who also serves as chairman of the Zakat, Tax, and Customs Authority, during the 3rd Zakat, Tax, and Customs Conference held in Riyadh on Wednesday.

The two-day conference, inaugurated by Al-Jadaan, aims to strengthen Saudi Arabia’s international standing and promote deeper cooperation in the fields of tax, zakat, and customs.

The event focuses on digitization, artificial intelligence, and sustainability, addressing key challenges and supporting economic development in line with the goals of Saudi Vision 2030.

Al-Jadaan signed a double taxation avoidance agreement with Croatian Deputy Prime Minister Marko Primorac. This agreement aims to foster trade and investment between Saudi Arabia and Croatia while addressing tax-related challenges.

In addition, Al-Jadaan signed a customs cooperation agreement with Kosovo’s Minister of Finance, Labor, and Transfers, Hekuran Murati. This agreement focuses on enhancing trade facilitation through administrative collaboration and the use of advanced customs technologies.

He also signed a double taxation avoidance agreement with Kuwait’s Minister of Finance Noora Al-Fassam. This pact seeks to boost investment, address tax challenges, and strengthen bilateral economic relations between the two nations.

The conference brings together over 70 workshops, 90 local and international entities, and numerous panel discussions to share knowledge, address challenges, and develop strategies for supporting sustainable economic growth.

In his opening remarks, Al-Jadaan emphasized the conference’s role in fostering international collaboration and contributing to global economic recovery. He also highlighted Saudi Arabia’s progress in advancing Saudi Vision 2030, particularly through digital transformation.

Under ZATCA’s leadership, Saudi Arabia has become a global leader in e-government, achieving a 99.35 percent score on the UN E-Government Development Index.

This accomplishment reflects the Kingdom’s commitment to improving business processes and leveraging technology to streamline operations.

Al-Jadaan commended ZATCA for its continued excellence in achieving its objectives, contributing to Saudi Arabia's broader economic reforms, and advancing the Kingdom’s vision for a diversified and sustainable economy.

The 3rd Zakat, Tax, and Customs Conference underscores Saudi Arabia’s growing influence in global economic affairs and its proactive approach to fostering international partnerships.

By embracing innovation and working collaboratively with global partners, Saudi Arabia is positioning itself as a key player in the future of global trade and economic development.


Saudi Arabia posts 4 years of VC growth despite global slowdown: report 

Updated 04 July 2025
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Saudi Arabia posts 4 years of VC growth despite global slowdown: report 

RIYADH: Saudi Arabia achieved four consecutive years of growth in venture capital relative to its economy, a feat unmatched among its peers, according to a new report.

Between 2020 and 2023, the Kingdom was the only large market in the sample to post uninterrupted annual gains in VC intensity, contrasting with the more episodic deal flow seen across Africa and parts of Southeast Asia, MAGNiTT’s recently published Macro Meets VC report stated. 

While 2024 saw a slight contraction in funding amid global tightening, Saudi Arabia’s multi-year upward trend signals a sustained commitment to innovation-led diversification.

The Kingdom is steadily consolidating its position as a model for policy-driven venture capital development in emerging markets as it seeks to diversify its economy in line with the Vision 2030 blueprint. 

“Saudi Arabia is becoming the model for long-term, policy-driven ecosystem building,” the report notes, highlighting that sovereign limited partners and local funds have been instrumental in buffering the Kingdom from some of the volatility that struck other emerging venture markets. 

Saudi Arabia’s policy momentum 

The MAGNiTT data revealed that Saudi Arabia recorded a five-year average VC-to-GDP ratio of 0.07 percent. 

Although this figure remains modest compared to more mature hubs like Singapore, its consistent upward movement underscores the growing depth of domestic capital formation. 

Beyond the headline ratios, the Kingdom’s strategic positioning has also come into sharper focus. Saudi Arabia, along with the UAE, is classified as a “Growth Market”— a designation that reflects not only a sizeable GDP and population but also the rising economic clout of local consumer and enterprise demand. 

With a GDP approaching $950 billion and a population exceeding 33 million, Saudi Arabia presents a significant scale advantage. 

According to MAGNiTT’s benchmarking, this size creates “natural expansion targets for startups moving beyond initial launch markets,” supporting both regional and international founders seeking to diversify beyond smaller ecosystems. 

MENA’s uneven progress 

Across the broader Middle East and North Africa region, venture capital activity has continued to evolve unevenly. 

The UAE has retained its reputation as a strategic innovation hub and one of the few “MEGA Markets” in the emerging world, boasting a five-year average VC-to-GDP ratio of 0.20 percent. 

This proportion — identical to Indonesia’s ratio — signifies robust venture activity relative to the economy’s size. 

Yet, while the UAE maintained this level, Saudi Arabia has seen more consistent growth in funding, a dynamic the report attributes to policy-led market development. 

In Egypt, VC has gained further traction over the period under review. Egypt achieved a 25 percent rise in total funding compared to the previous five-year average, lifting its VC-GDP ratio by 0.02 percentage points to 0.11 percent. 

Although Egypt’s overall economic constraints remain acute — GDP per capita still lags below $10,000 — the relative progress suggests improving investor confidence, particularly in fintech and e-commerce. 

However, the report cautions that deal flow in Egypt, much like in Nigeria, remains fragile and prone to episodic swings driven by a handful of large transactions. 

The macroeconomic context across MENA has also been influential. Elevated oil price volatility and the impact of the Israel–Iran conflict have created a challenging backdrop for policymakers. 

Brent crude surged more than 13 percent in a single day earlier in 2025, underscoring the region’s exposure to external shocks. 

Nevertheless, both Saudi Arabia and the UAE managed to maintain monetary policy stability in line with the US Federal Reserve’s cautious stance. 

Saudi Arabia kept its benchmark rate at 5.5 percent, supported by inflation trending around 2 percent, while the UAE held steady at 4.4 percent. 

These decisions reflected a delicate balance between containing price pressures and supporting economic diversification efforts. 

Overall, MENA’s five-year aggregate venture funding reached $12.52 billion. Although this total remains well below the levels seen in more mature regions, it represents a meaningful share of emerging markets capital. 

MENA also posted the highest deal count relative to its peers in Southeast Asia and Africa over the period, indicating a broader base of early-stage transactions even as late-stage funding remains more limited. 

The report emphasizes that expanding geographic and sectoral reach within MENA will be critical to boosting efficiency metrics. 

“VC remains heavily concentrated in a few sectors and cities,” the report observes, warning that without broader inclusion, capital intensity will struggle to match potential. 

Southeast Asia’s VC benchmark 

Beyond MENA, Southeast Asia’s ecosystem stands out as the most mature among emerging venture markets, driven primarily by Singapore’s exceptional performance. 

Over the 2020–2024 period, Singapore achieved a 5-year average VC-to-GDP ratio of 1.3 percent, surpassing not only all emerging markets but also developed economies such as the US, which registered 0.79 percent, and the UK, with 0.73 percent. 

Even with a 5.4 percent decline in total funding compared to the prior five years and a 0.19 percentage point drop in VC-GDP ratio, Singapore maintained unmatched capital efficiency. 

The report describes the city-state as “a benchmark for capital efficiency in venture ecosystems,” attributing this strength to strong regulatory frameworks, institutional capital participation, and a deep bench of experienced founders and investors. 

Indonesia, Southeast Asia’s largest economy, recorded total VC funding volumes nearly twice as large as Singapore’s over five years, but its relative VC-GDP ratio remained lower at 0.2 percent. 

This dynamic illustrates one of the report’s core findings: venture capital inflows correlate more strongly with GDP per capita than total GDP. 

In Indonesia’s case, while its GDP surpassed $1.2 trillion, GDP per capita hovered around $4,000, constraining purchasing power and, by extension, startup revenue potential. 

Thailand, meanwhile, reported funding gains due mainly to a single mega deal rather than systematic improvements in ecosystem depth. 

In Africa, Nigeria emerged as an unexpected bright spot in 2024, as a single major transaction lifted its VC-GDP ratio to 0.15 percent — the highest in the region for that year. 

However, this outlier result also revealed the episodic nature of capital deployment in developing markets. 

Kenya registered a relatively high five-year VC-GDP ratio of 0.3 percent, even as absolute funding volumes remained modest. 

The report notes that in low-GDP contexts, this ratio can overstate ecosystem maturity. 

South Africa and Egypt showed more modest growth trajectories, weighed down by persistent inflation, structural constraints, and capital scarcity. 

In aggregate, African economies continued to lag both Southeast Asia and MENA in total venture funding and deal velocity. 

Global challenges ahead 

Globally, the five years covered by the report were marked by intensifying volatility. 

High interest rates, trade tensions, and geopolitical uncertainty weighed on capital flows. 

The US Federal Reserve held its policy rate between 4.25 percent and 4.5 percent through mid-2025, citing “meaningful” inflation risks. 

The European Central Bank moved to lower its deposit rate to 2 percent, reflecting cooling inflation but acknowledging sluggish growth. 

The World Bank cut its global GDP forecast for 2025 to 2.3 percent, the weakest pace since the 2008 crisis, excluding recessions. 

These headwinds contributed to the decline in venture capital across most emerging markets in 2024. 

In response, sovereign capital and strategic investors have become increasingly important backstops. 

The report highlights that domestic capital formation in MENA has partially offset declining global risk appetite. 

However, these funds tend to be slower moving, more sector-concentrated, and less risk-tolerant than international investors. 

“Without renewed foreign inflows or regional exit pathways, deal velocity may remain muted into the second half of 2025,” the report warns. 

This environment is likely to force startups to extend runway and compel general partners to adopt more selective deployment strategies. 

Despite the challenges, the outlook for Saudi Arabia and other growth markets remains constructive over the medium term. 

The Kingdom’s policy clarity, deepening institutional capital pools, and Vision 2030 commitments create a foundation for continued expansion. 

As the report concludes: “High GDP markets like KSA and Indonesia trail in VC efficiency — suggesting capital underutilization.” 

Closing this gap between potential and realized funding will be the defining challenge for emerging ecosystems as they navigate a turbulent global landscape.


Oil Updates — crude falls as Iran affirms commitment to nuclear treaty

Updated 04 July 2025
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Oil Updates — crude falls as Iran affirms commitment to nuclear treaty

NEW DELHI: Oil futures fell on Friday after Iran reaffirmed its commitment to nuclear non-proliferation and amid expectations that major producers are set to agree to raise their output this weekend.

Brent crude futures were down 22 cents, or 0.32 percent, to $68.58 a barrel by 7:45 a.m. Saudi time, while US West Texas Intermediate crude fell 12 cents, or 0.18 percent, to $66.88.

Trade was thinned by the US Independence Day holiday.

US news website Axios reported on Thursday that the US was planning to meet with Iran next week to restart nuclear talk, while Iran Foreign Minister Abbas Araqchi said Tehran remains committed to the nuclear Non-Proliferation Treaty.

“Thursday’s news that the US is preparing to resume nuclear talks with Iran, and Araqchi’s clarification that cooperation with the UN atomic agency has not been halted considerably eases the threat of a fresh outbreak of hostilities,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Araqchi’s comments came a day after Tehran enacted a law suspending cooperation with the UN nuclear watchdog, the International Atomic Energy Agency.

“But the price correction may have to wait till Monday, when the US reopens from a long weekend and takes in Sunday’s OPEC+ decision, which is likely to be another 411,000 barrels per day target hike in August,” Hari said.

OPEC+, the world’s largest group of oil producers, is set to announce an increase of 411,000 bpd in production for August as it looks to regain market share, four delegates from the group told Reuters.

Meanwhile, uncertainty over US tariff policies was renewed as the end of a 90-day pause on higher levy rates approaches.

Washington will start sending letters to countries on Friday specifying what tariff rates they will face on goods sent to the US, a clear shift from earlier pledges to strike scores of individual trade deals.

President Donald Trump told reporters before departing for Iowa on Thursday that the letters would be sent to 10 countries at a time, laying out tariff rates of 20 percent to 30 percent.

Trump’s 90-day pause on higher US tariffs ends on July 9, and several large trading partners have yet to clinch trade deals, including the EU and Japan.

The US imposed sanctions on Thursday against a network that smuggles Iranian oil disguised as Iraqi oil and on a Hezbollah-controlled financial institution, the Treasury Department said.

Trump also said on Thursday that he would meet with representatives of Iran “if necessary.”

Separately, Barclays said it raised its Brent oil price forecast by $6 to $72 per barrel for 2025 and by $10 to $70 a barrel for 2026 on an improved outlook for demand. 


EV maker Lucid’s quarterly deliveries rise but miss estimates

Updated 03 July 2025
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EV maker Lucid’s quarterly deliveries rise but miss estimates

  • Lucid delivered 3,309 vehicles in the quarter ended June 30

LONDON: Electric automaker Lucid on Wednesday reported a 38 percent rise in second-quarter deliveries, which, however, missed Wall Street expectations amid economic uncertainty.

Demand for Lucid’s pricier luxury EVs have been softer as consumers, pressured by high interest rates, shift toward cheaper hybrid and gasoline-powered cars.

Lucid delivered 3,309 vehicles in the quarter ended June 30, compared with estimates of 3,611 vehicles, according to seven analysts polled by Visible Alpha. It had delivered 2,394 vehicles in the same period last year.

Saudi Arabia-backed Lucid produced 3,863 vehicles in the quarter, missing estimates of 4,305 units, but above the 2,110 vehicles made a year ago.

The company stuck to its annual production target in May, allaying investor worries about manufacturing at a time when several automakers pulled their forecasts due to an uncertain outlook.

US President Donald Trump’s tariff policy has led to a rise in vehicle prices as manufacturers struggle with high material costs, forcing them to reorganize supply chains and produce domestically.

Lucid’s interim CEO, Marc Winterhoff, had said in May that the company was expecting a rise of 8 percent to 15 percent in overall costs due to new tariffs.

The company’s fortunes rest heavily on the success of its newly launched Gravity SUV and the upcoming mid-size car, which targets a $50,000 price point, as it looks to expand its vehicle line and take a larger share of the market.

Deliveries at EV maker Tesla dropped 13.5 percent in the second quarter, dragged down by CEO Elon Musk’s right-wing political stances and an aging vehicle line-up that has turned off some buyers. 


Saudi hotel occupancy rises to 63% in Q1 2025

Updated 03 July 2025
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Saudi hotel occupancy rises to 63% in Q1 2025

  • Occupancy rate for serviced apartments and other hospitality facilities fell to 50.7%
  • Average daily room rate in hotels stood at SR477

JEDDAH: Saudi Arabia’s hotel occupancy rate rose to 63 percent in the first quarter of 2025, up from 60.9 percent a year earlier, driven by seasonal events, pilgrimage traffic, and growing leisure tourism.

The occupancy rate for serviced apartments and other hospitality facilities fell to 50.7 percent during the same period, marking a decline of 3.8 percentage points compared to the first quarter of 2024, according to recent data from the General Authority for Statistics.

GASTAT’s tourism establishments statistics also showed that the average daily room rate in hotels stood at SR477 ($127.2), reflecting a year-on-year decrease of 3.4 percent. Meanwhile, the average daily rate in serviced apartments and other hospitality facilities increased by 7.2 percent to SR209 during the same period.

The Kingdom has set ambitious tourism targets under its Vision 2030 agenda, aiming to attract 150 million visitors annually by the end of the decade

Tourism is central to the nation’s broader strategy to diversify its economy beyond oil and is positioned as a vital contributor to the gross domestic product. To drive this transformation, Saudi Arabia plans to invest over $1 trillion in new attractions and infrastructure projects, including the Red Sea initiative and NEOM, a $500 billion megacity.

According to GASTAT, the average length of stay for hotel guests was approximately 4.1 nights during the first quarter of 2025, consistent with the same period in 2024.

“On the other hand, the average length of stay for guests in serviced apartments and other hospitality facilities was approximately 2.1 nights during Q1 of 2025, reflecting a decrease of 4.5 percent compared to the corresponding quarter of 2024, which was 2.2 nights,” the analysis added.

Regarding employment in the tourism sector, GASTAT reported notable growth, with the total number of workers in tourism-related activities reaching 983,253 during the first quarter of 2025, up 4.1 percent from the same period last year.

“The number of Saudi employees reached 243,369, with a participation rate of 24.8 percent. Meanwhile, the number of non-Saudi employees reached 739,884, representing a participation rate of 75.2 percent of the total employees in tourism activities,” the report said.

The study further indicated that, in terms of gender distribution, male employees in tourism activities totaled 853,852, accounting for 86.8 percent of the workforce, while female employees numbered 129,401, representing 13.2 percent during the first quarter of 2025.

Makkah and Madinah posted robust gains, while Riyadh experienced declines in both occupancy and room rates. Jeddah, meanwhile, showed mixed results. Shutterstock

It also revealed that workers in the tourism sector constituted 5.4 percent of total national employment, marking a decline of 0.3 percentage points compared to the first quarter of 2024. Within the private sector, tourism accounted for 8.1 percent of jobs, a decrease of 0.6 percentage points from 8.7 percent in the same quarter of the previous year.

Highlighting its calculation methodology, GASTAT said the tourism establishments statistics for Q1 2025 are compiled from multiple sources to provide comprehensive insights into tourism activities in Saudi Arabia. These sources include administrative records, statistical surveys, and secondary data.

The Kingdom’s tourism sector continued to demonstrate strong performance in the first quarter of 2025, reflecting the country’s accelerating efforts under its Vision 2030 agenda to diversify the economy and reduce reliance on oil revenues.

As the nation expands its hospitality infrastructure and boosts its global appeal, recent data reveals promising trends in visitor spending, hotel occupancy, and employment within the tourism industry.

In the first three months of 2025, international tourists spent SR49.37 billion in the Kingdom, a 10 percent increase compared to the same period last year, according to figures released by the Saudi Central Bank, also known as SAMA.

This rise contributed to boosting the travel account surplus to SR26.78 billion, marking an 11.7 percent year-on-year increase and underscoring tourism’s growing contribution to the non-oil economy.

Saudi Arabia’s hotel sector recorded a solid performance in the first quarter of 2025, supported by a steady rise in both domestic and international tourism, according to the latest report by global real estate consultancy JLL.

The report showed that the Kingdom welcomed approximately 21.6 million international tourists in the first nine months of 2024, while domestic travel surged to 63.9 million, with leisure being the primary motivator for trips. 

It added that religious pilgrimage continued to drive international arrivals, reinforcing the country’s unique position as a spiritual destination.

The JLL study said that while the nationwide hotel market saw growth in key performance metrics, such as a 10.8 percent increase in average daily rates and a 1.3 percentage point rise in occupancy, performance diverged across cities. 

JLL noted that Makkah and Madinah posted robust gains, while Riyadh experienced declines in both occupancy and room rates. Jeddah, meanwhile, showed mixed results. 


Closing Bell: TASI closes the week in green at 11,244, climbing 1.03%

Updated 03 July 2025
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Closing Bell: TASI closes the week in green at 11,244, climbing 1.03%

  • MSCI Tadawul Index increased 1.37 percent to close at 1,443.46
  • Parallel market Nomu lost 0.32 percent to end at 27,287.50 points

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 11,244.45 points, marking an increase of 114.81 points or 1.03 percent.

The total trading turnover of the benchmark index was SR5.625 billion ($1.5 billion), as 139 of the listed stocks advanced, while 110 retreated. 

The MSCI Tadawul Index also increased by 19.52 points, or 1.37 percent, to close at 1,443.46. 

The Kingdom’s parallel market Nomu reported a decrease, losing 88.34 points, or 0.32 percent, to close at 27,287.50 points. This comes as 37 of the listed stocks advanced while 38 retreated. 

The index’s top performer, Fawaz Abdulaziz Alhokair Co., saw a 9.85 percent increase in its share price to close at SR29.  

Other top performers included Saudi Ceramic Co., which saw a 6.26 percent increase to reach SR31.90, while Halwani Bros. Co.’s share price rose by 5.55 percent to SR44.86. 

Middle East Healthcare Co. also recorded a positive trajectory, with share prices rising 5.09 percent to reach SR57.80.

Al-Rajhi Co. for Cooperative Insurance was TASI’s worst performer, with the company’s share price falling by 2.91 percent to SR123.30. 

Saudi Industrial Export Co. followed with a 2.51 percent drop to SR2.33. Ades Holding Co. also saw a notable decline of 2.32 percent to settle at SR13.06. 

Americana Restaurants International PLC and Naseej International Trading Co. were among the top five poorest performers, with shares dropping by 2.08 percent to settle at SR2.35 and 1.96 percent to sit at SR100, respectively. 

On the announcement front, Riyad Bank announced its intention to issue tier 2 trust certificates denominated in US dollars under its updated international trust certificate issuance program, the bank said on Thursday.

According to the bank’s statement on Tadawul, the issuance — approved by its board on August 9 — is expected to be carried out through a special purpose vehicle and offered to eligible investors both in Saudi Arabia and internationally.

The offering is part of the bank’s broader capital-raising initiative aimed at general banking purposes, and its size and terms will be determined based on prevailing market conditions at the time of issuance.

The Saudi lender has appointed Standard Chartered Bank, HSBC Bank, Merrill Lynch International, and J.P. Morgan Securities, as well as SMBC Group, Mizuho International, DBS Bank Ltd, and Riyad Capital as joint lead managers for the proposed offer.

The proposed issuance of trust certificates will proceed following approvals from relevant regulatory bodies and will comply with all applicable laws and regulations.

Riyad Bank’s share price traded 2.54 percent higher on Thursday to close at SR28.36.