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WGS2024
WGS2024

UAE, Kuwait sign deal to eliminate double taxation 

This landmark deal was signed during the 8th Arab Fiscal Forum, which took place on the eve of the World Governments Summit 2024, signaling a significant step toward economic integration between the two nations.
This landmark deal was signed during the 8th Arab Fiscal Forum, which took place on the eve of the World Governments Summit 2024, signaling a significant step toward economic integration between the two nations.
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Updated 12 February 2024
Arab News
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UAE, Kuwait sign deal to eliminate double taxation 

UAE, Kuwait sign deal to eliminate double taxation 
Updated 12 February 2024
Arab News
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RIYADH: Trading between Kuwait and the UAE is set to get a boost thanks to an agreement aimed at eliminating double taxation on income and curbing tax evasion. 

This landmark deal was signed during the 8th Arab Fiscal Forum, which took place on the eve of the World Governments Summit 2024, signaling a significant step toward economic integration between the two nations, as reported by the Kuwait News Agency. 

Kuwaiti Finance Minister Anwar Al-Mudhaf and his UAE counterpart, Mohamed Hussaini, formalized the agreement, with representatives from the IMF monitoring the talks. 

Al-Mudhaf highlighted the deal’s role in fostering financial integration and the free movement of capital between Kuwait and the UAE in a discussion with the Emirates News Agency, also known as WAM. 

He underscored the agreement’s contribution to broader regional economic unification efforts. 

Al-Mudhaf went on to emphasize the strategic significance of the WGS, an annual forum for deliberating on future prospects and pressing global challenges.  

He remarked that Kuwait’s participation underscores the deep-rooted strategic relations between Kuwait and the UAE. 

Al-Mudhaf further noted that the participation of over 25 heads of state, 140 government delegations, and upward of 85 international and regional bodies in the summit underscores the UAE’s international standing and its critical economic and political influence. 

A report by Deloitte in August 2022 highlighted that Kuwait and the UAE had laid the groundwork for this taxation agreement, marking a pioneering step in their collaboration to enhance tax-related cooperation and unify their economic and investment partnership. 

The deal was first initiated to bolster investment prospects, stimulate trade activities, and support both nations’ development objectives by diversifying income sources and ensuring the comprehensive protection of goods and services. 

Notably, this agreement represented Kuwait’s first such deal with a Gulf Cooperation Council member state, signifying a milestone in regional economic diplomacy. 

Similarly, the income and capital tax deal between Saudi Arabia and the UAE entered into force in April 2019.  

Originally signed in May 2018, the treaty was the first of its kind between the two countries.

Topics: WGS2024

Egypt’s trade deficit narrows by 5.1% in June

Egypt’s trade deficit narrows by 5.1% in June
Updated 10 sec ago
Reem Walid
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Egypt’s trade deficit narrows by 5.1% in June

Egypt’s trade deficit narrows by 5.1% in June
Updated 10 sec ago
Reem Walid

RIYADH: Egypt’s trade deficit decreased by 5.1 percent in June, reaching $2.87 billion, due to falling prices for wheat and other commodities.

Data from the Central Agency for Public Mobilization and Statistics shows that imports fell by 3.3 percent to $6 billion during the month.

The decline in imports was primarily driven by reduced prices for key commodities: wheat prices dropped by 21.5 percent, medicines and pharmaceutical preparations by 11.9 percent, plastics by 4.2 percent, and corn by 28.6 percent. This follows a 10.3 percent decrease in trade deficit recorded in May, which was also attributed to lower import values.

Since 2004, Egypt has consistently run trade deficits, as import growth has outpaced export growth, largely due to increasing imports of petroleum and wheat, according to Trading Economics.

CAPMAS data also revealed some increases in imports in June compared to the same month in 2023, including a 49.8 percent rise in petroleum products, a 33.6 percent increase in raw materials of iron and steel, a 5.8 percent rise in organic and inorganic chemicals, and a 39.6 percent increase in natural gas.

Export values, however, fell by 1.6 percent year on year to $3.13 billion. This decrease was due to lower prices for commodities such as fertilizers (down 42.9 percent), crude oil (down 64.6 percent), iron rods, bars, angles, and wires (down 23.7 percent), and fresh onions (down 25.4 percent). Conversely, exports of petroleum products increased by 56.3 percent, ready-made clothes by 5.5 percent, fresh fruits by 24.3 percent, and pasta and various food preparations by 12.4 percent.

Egypt aims to revitalize its economy by enhancing exports across diverse global markets. This involves close collaboration between government bodies, the business community, and exporters to improve product quality and competitiveness. The country is targeting $100 billion in annual merchandise exports over the next three years to address its trade deficit.

The International Monetary Fund noted in August that Egypt’s economy is showing signs of recovery, with recent government measures to restore macroeconomic stability starting to yield positive outcomes. Although inflation remains high, it is decreasing.

The IMF’s review highlighted Egypt’s economic reforms, including the unification of official and parallel exchange rates in March, as key to maintaining fiscal stability.

Topics: main

Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 

Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 
Updated 7 min 55 sec ago
Nirmal Narayanan 
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Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 

Saudi Arabia’s non-oil exports to Qatar surge 213%: GASTAT 
Updated 7 min 55 sec ago
Nirmal Narayanan 

RIYADH: Saudi Arabia’s non-oil exports to Qatar surged 213 percent in the second quarter of 2024 compared to the previous three months, reaching SR5.79 billion ($1.54 billion), official data showed. 

According to the latest report by the General Authority for Statistics, the surge was driven primarily by shipments of transport equipment and parts, totaling SR4.59 billion.

The Kingdom also exported mechanical appliances and electrical products valued at SR154.4 million to Qatar during the same period, followed by shipments of live animals and related products at SR153.9 million.

This increase underscores Saudi Arabia’s broader economic diversification strategy, which seeks to mitigate the Kingdom’s historical dependence on oil revenues. 

Overall, Saudi non-oil exports grew 4.3 percent in the second quarter from the previous three-month period. The Kingdom also exported prepared food products and beverages worth SR103.8 million to Bahrain, and chemical and allied products valued at SR116.8 million. 

Saudi Arabia’s total outbound shipments to Arab countries reached SR12.15 billion in the second quarter, up 42.94 percent from the previous quarter. 

In terms of imports, Saudi Arabia received SR2.45 billion worth of goods during the same period. 

The UAE remained the top destination for Saudi non-oil exports, receiving SR15.07 billion in the second quarter. Non-oil shipments to China and India were SR7.08 billion and SR5.48 billion, respectively. 

Other notable exports included SR3.13 billion to Singapore, SR2.93 billion to Turkiye, and SR2.40 billion to Belgium. 

Earlier in September another report released by GASTAT noted that non-oil activities in Saudi Arabia witnessed a 4.9 percent year-on-year increase in the second quarter of 2024, driven by expansion of the finance and insurance sectors. 

Compared to the first quarter, non-oil activities rose 2.1 percent. The Kingdom’s seasonally adjusted gross domestic product increased by 1.4 percent quarter on quarter but saw a slight annual decline of 0.3 percent. 

The sharp rise in non-oil exports to Qatar highlights the ongoing success of Saudi Arabia’s economic diversification efforts. 

By boosting trade ties with key regional partners and expanding its non-oil export base, the Kingdom is reinforcing its strategy to build a more resilient and diversified economy, aligning with its Vision 2030 goals. 

Topics: main Saudi-Qatar saudi non-oil Saudi trade

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Mining firm AMAK to focus on gold production and operational expansion in 2025

Mining firm AMAK to focus on gold production and operational expansion in 2025
Updated 45 min 17 sec ago
Nadin Hassan
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Mining firm AMAK to focus on gold production and operational expansion in 2025

Mining firm AMAK to focus on gold production and operational expansion in 2025
Updated 45 min 17 sec ago
Nadin Hassan

RIYADH: Saudi firm Al-Masane Al-Kobra Mining Co. will focus on gold deposit production and operational expansion as part of a growth plan to strengthen its industry position through 2025.

This effort is to ensure ongoing operational excellence and boost production capacity, thereby creating value for all stakeholders and benefiting the local community, the company said on Tadawul.

A central component of the strategy is the development of the Khutainah project. This undertaking is set to play a pivotal role in advancing gold deposit production and will involve expanding operations at nearby sites, including Sukari 1, Sukari 2, and Al Aqiq.

By focusing on these key areas, the mining company, also known as AMAK, aims to significantly enhance its production capabilities and reinforce its position in the industry.

Saudi Arabia is strategically positioning itself to become a major player in the mining sector, with its mineral wealth estimated to be worth SR9.4 trillion ($2.4 trillion).

The emphasis on economic diversification – known as Vision 2023 – has elevated the industry as a central component of national development plans. 

Mining is pivotal in the Kingdom’s efforts to steer away from oil dependency, focusing on tapping into substantial reserves of phosphate, gold, copper, and bauxite.

Additional primary aspects of the strategy include improving operational efficiency and infrastructure, initiating underground mining at the Guyan Gold Mine, and starting iron oxide production at the Nuham site within three months of the license issuance, which is currently in its final stages.

AMAK will establish a new drilling and exploration company to support its future growth and build new facilities to increase the storage capacity for dry tailings using safe, sustainable, and environmentally friendly methods.

The firm will also strengthen its portfolio by acquiring additional exploration permits for promising base and precious metal sites and expand activities to include the exploration and mining of industrial minerals.

As part of its sustainability efforts, AMAK has begun linking its facilities to the national electricity grid to cut carbon emissions and boost operational efficiency.

Located in the Najran region of Saudi Arabia, the private mining firm received a gold exploration permit from the Ministry of Industry and Mineral Resources to carry out activities in an area spread over 78.07 sq. km.

AMAK also received two additional licenses to carry out exploration of zinc and copper in an area spanning over 138.64 sq. km in Najran. These permits will be valid until April 25, 2028. 

The company said it is all set to carry out the relevant studies within the regulatory period to ensure the availability of the raw materials. 

Since its inception in 2008, AMAK has highlighted adopting a long-term advanced business strategy based on the research and sustainable growth of its technical and operational infrastructure to support its various activities. 

Topics: Mining Amak Al-Masane Al-Kobra Mining Co

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UAE GDP grows 3.4% in Q1, driven by non-oil sector

UAE GDP grows 3.4% in Q1, driven by non-oil sector
Updated 48 min 54 sec ago
Nour El-Shaeri
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UAE GDP grows 3.4% in Q1, driven by non-oil sector

UAE GDP grows 3.4% in Q1, driven by non-oil sector
Updated 48 min 54 sec ago
Nour El-Shaeri

RIYADH: The UAE’s gross domestic product reached 430 billion dirhams ($117 billion) in the first quarter of 2024, marking a 3.4 percent year-on-year growth.

Economy Minister Abdulla Al-Marri highlighted that the preliminary estimates from the Federal Competitiveness and Statistics Center emphasize the vitality of the UAE economy and its ability to sustain growth, as reported by Emirates News Agency, also known as WAM.

The non-oil sector played a significant role in this expansion, with a 4 percent increase contributing substantially to the overall economic performance.

Al-Marri attributed this success to the UAE’s adoption of an innovative economic model, guided by the nation’s leadership. “The UAE has embraced an innovative economic model that aligns with its future vision, supported by effective national strategies, global openness, and a focus on flexibility and innovation,” Al-Marri stated, according to WAM.

These results align with the UAE’s long-term vision, We the UAE 2031, which aims to elevate the national GDP to 3 trillion dirhams within the next decade. This commitment to sustainable growth is reflected in the performance of key sectors such as finance, transportation, construction, and tourism.

Hanan Ahli, managing director of the Federal Competitiveness and Statistics Center, noted the substantial contributions of these sectors. “The financial and economic data from Q1 2024 demonstrate the resilience of the UAE’s vital economic sectors,” Ahli said. She added that the UAE’s strong global economic competitiveness is supported by a stable financial system, robust economic fundamentals, and effective policy frameworks.

In the first quarter of 2024, financial and insurance activities emerged as the leading non-oil sector, growing by 7.9 percent, fueled by a 6 percent rise in local credit extended to the private sector. The transportation and storage sector also showed impressive growth, with a 7.3 percent increase, supported by a 14.7 percent rise in passenger traffic through UAE airports, which saw 36.5 million travelers. Additionally, Dubai’s international ports handled 3.7 percent more containers, while Abu Dhabi’s ports experienced a 36 percent increase in cargo volume.

Construction and building activities grew by 6.2 percent, largely due to increased public capital expenditures, totaling 4.8 billion dirhams in the first quarter, compared to the previous year. The restaurant and hotel sector expanded by 4.6 percent, bolstered by an 11 percent rise in international tourists visiting Dubai, which welcomed 5.18 million visitors. Abu Dhabi also experienced strong tourism performance, with increases in hotel occupancy rates and revenue per available room.

In terms of non-oil GDP contributions, trade activities led with a 16.1 percent share, followed by manufacturing at 14.6 percent, and financial and insurance activities at 13.4 percent. Construction and real estate activities contributed 11.8 percent and 7.1 percent, respectively.

Topics: main

New shipping service to boost trade between Saudi Arabia and India

New shipping service to boost trade between Saudi Arabia and India
Updated 24 min 33 sec ago
MOHAMMED AL-KINANI
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New shipping service to boost trade between Saudi Arabia and India

New shipping service to boost trade between Saudi Arabia and India
Updated 24 min 33 sec ago
MOHAMMED AL-KINANI

JEDDAH: A new shipping route connecting Jeddah to India’s major commercial hubs has been launched by a subsidiary of Saudi Arabia’s Public Investment Fund.  

Folk Maritime Services Co., which specializes in regular liner and feeder services, will connect Jeddah Islamic Port on the Red Sea with the Asian country’s maritime hubs of Mundra and Nhava Sheva.

Starting in September, this ten-day service, operated by two ships, will enhance trade links by facilitating the movement of goods and products, including petrochemical materials, between the Kingdom and India, according to the Saudi Press Agency.

As the country advances its National Strategy for Transport and Logistics Services, seeking to establish itself as a leading global logistics hub in line with Vision 2030, Folk Maritime’s initiative represents a significant step toward achieving these goals.

Saudi Arabia ranks as India’s fourth-biggest trading partner, while the Asian country is the Kingdom’s second-largest.

The Arab state is also a key pillar for India’s energy security and an important economic collaborator for investments and technology transfer.

Data from the General Authority for Statistics reveals that exports to India from Saudi Arabia in 2023 totaled SR113.35 billion ($30.20 billion), while imports from India were SR43.57 billion.

The Kingdom was the third-largest crude exporter to India, supplying 39.5 million tons, or 16.7 percent of the country’s total oil imports.

A report from GASTAT released in July underlined that Saudi Arabia’s shipments to India were worth SR8.03 billion in May, with non-oil exports valued at SR2.23 billion, led by chemical and allied products at SR1.27 billion.

Folk Maritime has signed a vessel exchange agreement with Asyad Line, Oman’s leading container service connecting the Arabian Peninsula with the Indian subcontinent. This agreement will deploy two container ships on the new route.

Poul Hestbaek, CEO of Folk Maritime, highlighted that this new service will bolster trade between Saudi Arabia and India. He added that it will also improve regional connectivity by offering diverse services in both regular liner and feeder vessel sectors.

This initiative aligns with Saudi Vision 2030, which aims to establish the Kingdom as a global logistics hub by enhancing maritime connectivity and fostering growth in the shipping industry.

Earlier this month, Folk Maritime announced the acquisition of its first owned vessel, the M/V Folk Jeddah. Built in 2023 at China’s Yangfan Shipyard, this modern maritime vessel will soon commence operations at Jeddah Islamic Port. The company stated that the addition of this Saudi-flagged container ship represents a significant enhancement of the Kingdom’s maritime capabilities.

Folk Maritime plans to leverage Saudi Arabia’s strategic geographic location—situated at the crossroads of global maritime trade—to access international markets and boost benefits for the regional shipping sector. With an eye on expanding its service network, the maritime operator aims to enhance reliability and resilience in the global supply chain, ensuring a consistent flow of international trade.

Topics: Tourism & Transport Folk Maritime Folk Maritime Services Co shipping

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