Competition watchdog marks 20 years of shaping Saudi market dynamics – but there is still more to do

Since its inception 20 years ago, GAC has imposed fines totaling nearly SR1 billion ($270 million) on companies found to be violating its regulations. Shutterstock
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Updated 11 April 2024
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Competition watchdog marks 20 years of shaping Saudi market dynamics – but there is still more to do

JEDDAH: In the complex landscape of market dynamics, the Saudi General Authority for Competition emerges as a pivotal force tasked with shaping the future of equitable and competitive commerce.

Guided by a vision of becoming a leading body, GAC has developed a strategic roadmap to bolster the efficiency of the national economy and advance consumer welfare.

At the heart of GAC’s vision lies a commitment to championing fair competition and fostering an environment conducive to economic prosperity and consumer empowerment. 

As a leading regulatory authority, it aspires to uphold the integrity of market mechanisms while promoting innovation and diversity in goods and services.

Fines amounting millions imposed on violators

An initial competition system was established in Saudi Arabia in 2004, and in October 2017, the Kingdom’s Council of Ministers endorsed the change of the name to the General Authority for Competition and a new organizational structure. 

GAC was also made a financially and administratively independent entity, and in March 2019 another royal decree was issued approving the updated competition system.

Since its inception 20 years ago, GAC has imposed fines totaling nearly SR1 billion ($270 million) on companies found to be violating its regulations.

GAC spokesman Saad Hamad Al-Masaud told Arab News that the authority has sanctioned 252 entities for violating the country’s competition rules since the organization was established.

“The number of decisions issued in this regard amounted to 134, and the total fines collected from 2004 to 2023 amounted to approximately SR828,895,023,” he said.

Commenting on why penalties are imposed on a certain firm more than once, Al-Masaud highlighted that whenever a company is found guilty of committing a violation, GAC wastes no time undertaking the necessary administrative and legal procedures before imposing an additional penalty based on the nature of that violation.

He added that the highest amount ever imposed was around SR19 million against a gypsum firm.




Spokesman of GAC, Saad Hamad Al-Masaud - Supplied

In August 2023, GAC fined a company SR10 million for abusing a dominant market position, a practice that contravenes the principles of fair competition.

In the same month, the authority imposed a fine of SR10 million on a feed company for attempting to manipulate the bran commodity market supply by restricting sales to a select few customers. This action inhibited trade for the item and resulted in price control, as reported on the GAC website.

Four months prior to this event, GAC announced it penalized 14 cement companies with a collective fine of SR140 million for conspiring to raise prices in the Kingdom.

GAC imposed a SR10 million fine on each of the producers for manipulating the cement costs to benefit themselves.

Talat Hafiz, a renowned economist, told Arab News that it is important to guarantee fair market conditions free of unfair and illegal business practices. This would, in turn, support the country’s economic growth and encourage the flow of foreign investments and fair trade.

Hafiz added: “This is why Saudi Arabia has realized the importance of establishing GAC to supervise the enforcement of the Competition Law with the aim to promote and encourage fair competition, prevent illegal monopolistic practices, guarantee abundance and diversification of goods and services of high quality and competitive prices, and encourage innovation.” 

Shedding light on the economic impacts or benefits that have resulted from the enforcement of GAC’s regulations, the economist said that the body has recently conducted a comprehensive investigation of the supply chains in the automotive sector, including retail sales, spare parts, and after-sales services in collaboration with several experts in the field to identify the structures of those markets and the behavior of enterprises operating in the sector and the influence on competition.

“Such move from the GAC will have a positive impact not only on the Saudi economy but also on any trading conducted in the market to ensure its fairness and avoid any illegal acting, which in turn will enhance the trust in both the Kingdom’s economy and the market and also protect consumers’ rights,” Hafiz said.

Commenting on whether there are any specific sectors or industries within Saudi Arabia where competition regulation is particularly crucial, he said there are no distinct divisions or industries where fair competition is not necessary.

He added that ensuring the existence of just dealings among all sectors of the economy and industries is vital to sustaining economic growth and ensuring financial prosperity in a fair business environment.




Talat Hafiz, renowned economist. Supplied

Agreeing with Hafiz, Abdulwahab Al-Gahtani, professor of strategic and human resources management at the Business School of King Fahd University of Petroleum and Minerals, said that GAC aims to implement competition-stimulating policies to improve market performance, support consumers and businesses, attract investments, and promote sustainable development.

Speaking to Arab News, Al-Gahtani emphasized the authority’s mission to promote business growth, safeguard consumers, and regulate market competition to prevent monopolistic practices.

“The regulatory policies of GAC are making significant contributions to the economic development of Saudi Arabia, despite being established only in 2004. It is progressing in the right direction to ensure improved economic performance and sustainability, aligning with the country’s goals for Vision 2030,” he said.

Reflecting on the impact of GAC’s competition regulations on market efficiency and consumer welfare, he emphasized that businesses operating in the country are experiencing significant benefits from the fair environment, which is crucial for the sustained growth established by these regulatory measures.

The professor attributed the success to the substantial support the authority receives from the government, adding that GAC will play a major role in helping the country attain its 2030 goals of diversifying its economy away from oil.

“Strategically, both related and unrelated diversification are important for economic development. This is why a wide range of projects in major industrial areas in the Kingdom are taking place in both the public and private sectors,” he said.

He added: “Mega projects such as NEOM, the Red Sea, Soudah, Diriyah, and Qiddiya are great examples of economic development Saudi Arabia has been witnessing since 2015.”

However, he noted that GAC needs more involvement in economic development to guide businesses to further comply with the competition regulations.

He underscored that the competition protection authority “can cooperate with the Capital Market Authority to ensure that all businesses are transparent and are performing in compliance with the rules to protect the economy from many possible unethical practices which can harm it.”

He added: “Fair competition and healthy corporate governance need to meet four major criteria: First, fairness to protect, respect and treat all shareholders in an equitable manner. 

“Second, transparency in the disclosure of financial reports as well as clarity of structure, procedures, policies, and related matters. 

“Third, accountability of both CEOs and board of directors to shareholders/owners’ investments. 

“Fourth, the independence of board members, advisors, and CEOs from the influence of others.” 

He went on to say that businesses must consider these four pillars of governance to protect shareholders’ or owners’ investments from abuse, corruption, self-dealing, and additional types of self-interest at the expense of businesses.


EU lifts economic sanctions on Syria

Updated 23 sec ago
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EU lifts economic sanctions on Syria

BRUSSELS: The European Union lifted economic sanctions on Syria on Wednesday in an effort to support the country’s transition and recovery after the toppling of former president Bashar Assad.
The move follows a political agreement reached last week by EU foreign ministers to lift the sanctions.
The EU will keep sanctions related to Assad’s government and restrictions based on security grounds, while also introducing new sanctions against individuals and entities connected to a wave of violence in March, the Council said.
“The Council will continue monitoring developments on the ground and stands ready to introduce further restrictive measures against human rights violators and those fueling instability in Syria,” it added. 


Saudi investment ecosystem drives growth in Asir region, says top executive

Updated 46 min 49 sec ago
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Saudi investment ecosystem drives growth in Asir region, says top executive

ABHA: Saudi Arabia’s integrated investment ecosystem is enhancing the attractiveness of the Kingdom’s business environment across all regions, with Asir standing out as a promising destination, according to a senior executive.

During a panel session at the second Asir Investment Forum in Abha, Khalid Al-Khattaf, CEO of the Saudi Investment Promotion Authority, highlighted the region’s unique natural, economic, and cultural assets that position it for significant potential, the Saudi Press Agency reported.

The session highlighted the region’s tourism transformation and the roles of government entities and the private sector in driving projects and fostering an investment-friendly environment.

Al-Khattaf noted that Saudi Arabia boasts one of the world’s most competitive environments, thanks in part to the efforts of the National Committee for Identifying and Developing Opportunities, which has introduced over 1,900 investment prospects valued at more than SR1 trillion ($266.6 billion) across 22 vital sectors.

These opportunities align with Vision 2030 and the National Investment Strategy, which aims to double investment volume and attract SR12.4 trillion by 2030. Sector-specific strategies also offer long-term visibility and regulatory stability for investors.

“We have presented more than 1,900 opportunities through the ‘Invest in Saudi Arabia’ platform, including sectors such as tourism, hospitality, agriculture, real estate and others,” Al-Khattaf said.

Furthermore, the Kingdom’s strategic geographic location, at the crossroads of three continents and within reach of over half the world’s population in seven hours, positions it as a global hub for business, tourism, and services.

Al-Khattaf emphasized Asir’s unique offerings, including 80 percent of the Kingdom’s forests, its highest mountain peak, more than 4,000 historical villages, and globally recognized heritage sites such as Rijal Almaa.

He highlighted that the region is well-positioned to become a premier tourism and investment destination, particularly as Saudi Arabia channels over $800 billion into tourism projects to help meet its goal of attracting 150 million visitors by 2030.

He also pointed to key investment enablers, such as exemptions from foreign investment fees, accommodation levies, government land charges, and value-added tax.

Al-Khattaf outlined the pivotal role of the Saudi Investment Marketing Authority in promoting investment prospects throughout the Kingdom, particularly in high-potential regions such as Asir. This includes digital platforms, international events, and direct investor engagements.

A dedicated Asir page is featured on the new version of the platform in seven languages, highlighting key indicators, opportunities, and reports, including a special “Invest in Asir” report developed by the Ministry of Investment to inform investors of the region’s advantages.

The authority, in collaboration with its partners in the investment system, continues to improve the legal and regulatory environment, SPA reported.

A new law now allows for 100 percent foreign ownership and guarantees equal rights for both local and international investors.

“We have developed a program to listen to investors and understand their challenges, in addition to focusing on improving the investor experience through comprehensive service centers, relationship managers, the ‘Investor Journey’ guide, and dedicated reports such as ‘Invest in Asir,’ in addition to investor listening programs to ensure that challenges are addressed directly,” Al-Khattaf  said.

He also noted the authority’s close coordination with the Asir Development Authority to align with the region’s strategy and future goals. This collaboration has led to the identification of over 46 high-quality opportunities in the tourism sector.

 As of the end of 2023, direct investments in Asir had exceeded SR7.68 billion, placing it sixth among the Kingdom’s regions in terms of foreign investment stock.

The number of active foreign investment licenses in Asir reached 467 by early 2025, reflecting growing investor interest and confidence in the region’s potential and investment environment.


Saudi Aramco prices three-part bond sale at $5bn

Updated 28 May 2025
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Saudi Aramco prices three-part bond sale at $5bn

RIYADH: Saudi Aramco has priced its dollar-denominated 3-part bonds at $5 billion and set spread for them, fixed income news service IFR reported on Tuesday.
Aramco priced its five-year debt sale at $1.5 billion with spread set at 80 basis points over US Treasuries, tighter than 115 bps over the same benchmark released earlier in the day.
Meanwhile, the 10-year portion spread was set at 95 bps with a price of $1.25 billion and its 30-year portion spread was set at 155 bps with a price of $2.25 billion, IFR said. The spread was over the same benchmark tightened from 130 and 185 bps.
The proceeds from each issue of bonds will be used by Saudi Aramco for general corporate purposes, the company said in a bourse filing.
Before the pricing was announced, the debt deal was expected to be benchmark-sized, which is usually considered to be at least $500 million.
Earlier this month, Aramco reported a 4.6 percent drop in first-quarter profits, citing lower sales and higher operating costs as economic uncertainty hit crude markets.
Reuters reported last week that the oil giant is exploring potential asset sales to release funds as it pursues international expansion and weathers the impact of lower crude prices.
The company last turned to global debt markets in July when it raised $6 billion from a three-tranche bond sale.
Saudi Arabia, which is seeking funds to invest in new industries and wean its economy away from oil under its Vision 2030 plan, has long relied on Saudi Aramco to support economic growth.
Other Gulf issuers have tapped debt markets in recent months, braving a market turmoil caused by US President Donald Trump’s tariff policies.
They include Saudi Arabia’s $925 billion sovereign wealth fund and Abu Dhabi’s renewable energy firm Masdar, which last week raised $1 billion with a green bond. (Reporting by Hadeel Al Sayegh and Federico Maccioni in Dubai, Mohammad Edrees in Bangalore; Additional reporting by Pushkala Aripaka; Editing by Kirsten Donovan, Barbara Lewis, David Evans and Mark Porter)


New currency in the works, says Syrian economy minister

Updated 28 May 2025
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New currency in the works, says Syrian economy minister

  • Syria is striving to become an open economy and attract foreign investment

DUBAI: Syrian Economy Minister Mohammad Nidal Al-Shaar has said his country is working on developing a new currency but will not make any hasty decisions.

Speaking at the Arab Media Summit on Wednesday, Al-Shaar said the new Syrian government was “dealing with this calmly and patiently” and pointed to the economy’s flaws under Bashar Assad’s regime.

“The regime had different channels to pay salaries, one was through royalties that were imposed on traders and the other was through captagon production. When the regime fell, these stopped so there is a shortage in liquidity currently,” he explained.

Liquidity was the main challenge faced by Syria’s economy, he added, as the previous regime had retrieved most of the country’s liquid assets from overseas before it fell.

“We are working on retrieving our funds from abroad in cash; unfortunately the regime was able to retrieve most of it but something is better than nothing,” he said.

Earlier this year, the UAE invested $800 million to develop the Syrian port of Tartous after the US lifted sanctions.

Al-Shaar said Syria was striving to become an open economy and attract foreign investment but was being selective to avoid creating economic chaos.

“Brotherly countries of the Middle East are all looking forward to protecting Syria from chaos, the Syrian people are tired of (it) and cannot bear any more,” he added.


Housing support opens to Saudis aged 20 in major policy shift

Updated 28 May 2025
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Housing support opens to Saudis aged 20 in major policy shift

JEDDAH: In a significant move to broaden access to homeownership, Saudi Arabia has reduced the minimum age for housing support eligibility from 25 to 20.

The policy shift is designed to accelerate homeownership among younger citizens and aligns with the Kingdom’s broader economic and social development goals.

Commenting on the Cabinet's decision in a post on social media platform X, Minister of Municipal, Rural Affairs and Housing Majid bin Abdullah Al-Hogail expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman for endorsing the changes.

“This step will contribute to enabling more families to benefit from diverse housing and financing options, in line with the goals of the Housing Program and Saudi Vision 2030 to raise the homeownership rate to 70 percent,” the minister said.

The reform marks a continued commitment by Saudi Arabia to expand the reach and impact of the Saudi Housing Program, or Sakani, a key initiative driving social welfare and economic growth. The program was recently lauded by the International Monetary Fund in its September Article IV Consultation report, which cited notable accomplishments including a rise in the homeownership rate to approximately 64 percent, a 90 percent satisfaction rate among beneficiaries, and a wide variety of housing options.

According to the Saudi Press Agency, Al-Hogail stated: “The move reflects the leadership’s continued commitment to strengthening the Kingdom’s housing sector and enabling more citizens to own their first homes with ease and flexibility.”

He added that the updated regulations would offer a wider array of options tailored to the needs of different Saudi households.

One of the landmark reforms includes removing the financial dependency requirement previously applied to wives and divorced mothers, ensuring equal access to housing support regardless of gender.

The eligibility period for divorced women has been also revised, with details to be clarified in forthcoming implementing regulations. Previously, divorced mothers were subject to a two-year waiting period before qualifying for support.

Another notable change reduces the mandatory holding period for housing support assets—from 10 years to five—allowing beneficiaries to transfer or sell their supported assets more quickly. This is intended to provide greater flexibility and reflect the changing economic and social landscape of Saudi families.

The amendments also include enhanced accountability measures. Stricter penalties have been introduced for submitting false information, and authorities will now be able to reclaim any type of housing subsidy—including financial aid, residential units, or land—if an applicant is found to have provided misleading data.

Citizens will be able to apply under the new criteria once regulatory procedures are finalized and officially announced.