#SaudiArabia looks at tax relief for multinationals relocating HQs | Financial Times

Saudi Arabia looks at tax relief for multinationals relocating HQs | Financial Times

Multinationals that relocate their regional headquarters to Saudi Arabia this year with the aim of securing lucrative government contracts would be “likely” to receive tax relief, said the kingdom’s investment minister, as executives fear they could be taxed in more than one jurisdiction. 

Many executives said they were still uncertain about the details of the tax regime two years after they were informed of the relocation deadline. Several said a key concern was that, in the absence of a taxation accord between Riyadh and other Gulf states that could fall under the regional HQ’s oversight, subsidiaries’ profits could be taxed twice. 

“So the moment you designate that entity as your regional head office, all of your regional profits could then be taxable in Saudi Arabia,” said one executive. “That has caused fear and panic across the patch.” 

Investment minister Khalid al-Falih said an announcement would be made soon to clarify the regulations. Saudi Arabia, the world’s top oil exporter and the Middle East’s largest economy, announced its regional headquarters programme in 2021, sending shockwaves through the United Arab Emirates, where most regional corporate head offices are based.

Media report that #UAE considering leaving OPEC not true - sources | Reuters

Media report that UAE considering leaving OPEC not true - sources | Reuters

A media report that the United Arab Emirates is considering leaving OPEC is "far from the truth," two sources with direct knowledge of the matter told Reuters.

Earlier on Friday, the Wall Street Journal reported that the UAE is having an internal debate about leaving the Organization of the Petroleum Exporting Countries.

Oil fell as much as $2 a barrel after the WSJ story, with analysts citing concerns that this might impact the so-called OPEC+ production cut deal that OPEC has in place with Russia and other non-member countries.

"This is definitely not on the table," another source with knowledge of the matter said, when asked about the WSJ report.

#UAE, #Turkey Agree to Double Trade Up to $45 Billion as Ties Warm - Bloomberg

UAE, Turkey Agree to Double Trade Up to $45 Billion as Ties Warm - Bloomberg

The United Arab Emirates and Turkey signed off on a pact that the Gulf state said could more than double bilateral trade volumes to between $40 billion and $45 billion within the next five years.

The comprehensive deal, an outline of which was announced last year, was finalized in Abu Dhabi Friday during a visit by Turkish Trade Minister Mehmet Mus. The agreement includes slashing 82% off tariff fees between the two countries, Thani Al Zeyoudi, the UAE’s minister of state for foreign trade, said in an interview.

The trade announcement builds on a defense-industry cooperation agreement and a series of economic accords signed in 2022 after Turkish President Recep Tayyip Erdogan visited the Gulf nation. That marked a significant development in the healing of relations between two traditional foes, which have clashed over a number of issues including Islamist groups’ involvement following the Arab Spring and the Libyan Civil War in 2011.

The trade accord is focused on sectors including agritech, clean energy, logistics and construction, among others, he said.

#Saudi Wealth Fund Said in Talks to Buy Rocco Forte Hotels Stake - Bloomberg

Saudi Wealth Fund Said in Talks to Buy Rocco Forte Hotels Stake - Bloomberg

Saudi Arabia’s sovereign wealth fund is in talks to buy a stake in Rocco Forte Hotels Ltd. that could value the luxury hotels group at about €1.3 billion ($1.4 billion), people with knowledge of the matter said.

The kingdom’s Public Investment Fund is frontrunner to acquire the holding, the people said, asking not to be identified discussing confidential information. PIF may buy a significant minority in Rocco Forte Hotels, including a stake held by a fund linked to Italy’s state-owned lender Cassa Depositi e Prestiti SpA, they said.

The hotel group’s co-founder and chairman, the British-born businessman Rocco Forte, will retain control in any deal, according to the people. Deliberations are ongoing and there’s no certainty they’ll result in a transaction, they said. Other bidders could also emerge for the stake.

Representatives for PIF, Rocco Forte Hotels and CDP declined to comment.

#AbuDhabi Says There’s More to Come After Year’s Biggest IPO - Bloomberg

Abu Dhabi Says There’s More to Come After Year’s Biggest IPO - Bloomberg

At least eight companies are expected to list in Abu Dhabi this year after the emirate’s main energy company pulled off the world’s biggest listing so far in 2023.

The IPO candidates span industries from technology and media, to asset management and a firm that operates in the regenerative medicine sector, according to Sameh Al Qubaisi, director general of economic affairs at Abu Dhabi’s department of economic development.

“These are sizable companies,” Al Qubaisi, who also leads a 5 billion dirham ($1.36 billion) IPO fund to spur share sales in the emirate, said in an interview. “Some are high-growth companies that have only been there for five or six years, the disruptors.” Some firms plan to list 10% and 20% stakes, he said, declining to name them.

Other potential listings include family conglomerates, as well as local and international private sector companies. Many operate in sectors that haven’t listed in Abu Dhabi before as the government seeks to diversify the local stock exchange, Al Qubaisi said.

#UAE Officials Deny Report They’re Considering Quitting OPEC - Bloomberg

UAE Officials Deny Report They’re Considering Quitting OPEC - Bloomberg

The United Arab Emirates has no plans to leave the OPEC alliance, officials said on condition of anonymity, denying a report that sent oil prices tumbling.

The Wall Street Journal reported earlier that a growing rift with Saudi Arabia meant the UAE was discussing quitting the producer group, a move that would potentially leave it free to lift output.

The UAE has said publicly and privately it is sticking to a deal with fellow members of the OPEC+ alliance that will remain in effect for the rest of this year. Brent crude futures, after initially plunging as much as 2.8% on the WSJ’s report, subsequently pared losses to trade above $85 a barrel.

Abu Dhabi has for some years contemplated what alliances best suit its long-term interests, as it seeks to monetize increases in production capacity. That project brought it into conflict with Saudi Arabia and other OPEC+ nations in 2021, igniting a feud that almost splintered the entire coalition, though a compromise was found.