Saudi deadline on regional HQs has foreign firms scrambling -sources | Reuters
Foreign companies are scrambling to meet a Saudi deadline to locate their regional headquarters in the kingdom by January amid a lack of clarity over regulation, tax and potential incentives to encourage the move, executives told Reuters.
Firms risk losing hundreds of billions of dollars in government contracts in Saudi Arabia if their regional headquarters are based elsewhere.
The ultimatum, part of efforts by Crown Prince Mohammed bin Salman to wean the economy off oil by creating new industries that also generate jobs for Saudis, has put the kingdom in competition with regional business hub, the United Arab Emirates.
Senior executives involved in the discussions said some companies have complained the government still needs to clarify key regulations on the programme, including taxation and whether they could have a second regional headquarters in Middle Eastern countries outside of the Gulf.
"Businesses do not like uncertainty and ambiguity, and there is plenty of that at the moment," said a Western executive, seeking anonymity because the preparations are private.
Friday, 27 October 2023
#UAE shares mixed amid Mideast concerns, U.S. inflation data on tap | Reuters
UAE shares mixed amid Mideast concerns, U.S. inflation data on tap | Reuters
UAE equity indexes were mixed in a volatile market on Friday, as investors remained cautious amid tehescalating conflict in the region and ahead of key U.S. inflation data, while oil prices ticked higher.
Economists expect a report on Friday to show U.S. core personal consumption expenditure, the Federal Reserve's favoured inflation measure, declined to 3.7% in September from 3.9% a month earlier.
Abu Dhabi's index (.FTFADGI) eased 0.1%, dragged down by a 2.5% decline in the country's largest lender, First Abu Dhabi Bank (FAB.AD). The index posted a 0.8% weekly decline.
Among other stocks, Abu Dhabi Islamic Bank (ADIB.AD) and developer Aldar Properties (ALDAR.AD) fell 1.4% and 0.4%, respectively.
Abu Dhabi's stock market rebounded slightly today after a difficult week. However, the market remained below its lows for the year and could continue to be impacted by the geopolitical tensions in the region, added Negm.
In Dubai, the main share index (.DFMGI), however, edged up 0.1%, led by a 2.8% rise in Emirates NBD Bank (ENBD.DU), Dubai's biggest lender by assets. The index was up 0.9% on a weekly basis.
The lender on Thursday reported a 38% year-on-year jump in its third-quarter net profit.
Dubai market could remain exposed to the changing situation in the region, and the strength of the local economy could help maintain the market's attractiveness and draw investors when tensions abate, said Ahmed Negm, Head of Market Research MENA at XS.com.
UAE equity indexes were mixed in a volatile market on Friday, as investors remained cautious amid tehescalating conflict in the region and ahead of key U.S. inflation data, while oil prices ticked higher.
Economists expect a report on Friday to show U.S. core personal consumption expenditure, the Federal Reserve's favoured inflation measure, declined to 3.7% in September from 3.9% a month earlier.
Abu Dhabi's index (.FTFADGI) eased 0.1%, dragged down by a 2.5% decline in the country's largest lender, First Abu Dhabi Bank (FAB.AD). The index posted a 0.8% weekly decline.
Among other stocks, Abu Dhabi Islamic Bank (ADIB.AD) and developer Aldar Properties (ALDAR.AD) fell 1.4% and 0.4%, respectively.
Abu Dhabi's stock market rebounded slightly today after a difficult week. However, the market remained below its lows for the year and could continue to be impacted by the geopolitical tensions in the region, added Negm.
In Dubai, the main share index (.DFMGI), however, edged up 0.1%, led by a 2.8% rise in Emirates NBD Bank (ENBD.DU), Dubai's biggest lender by assets. The index was up 0.9% on a weekly basis.
The lender on Thursday reported a 38% year-on-year jump in its third-quarter net profit.
Dubai market could remain exposed to the changing situation in the region, and the strength of the local economy could help maintain the market's attractiveness and draw investors when tensions abate, said Ahmed Negm, Head of Market Research MENA at XS.com.
#SaudiArabia Seeks Trade Deals, Mulls BRICS Offer to Lift Exports - Bloomberg
Saudi Arabia Seeks Trade Deals, Mulls BRICS Offer to Lift Exports - Bloomberg
Saudi Arabia is looking to sign more free trade agreements and still considering joining the BRICS club of emerging nations, as it looks to boost non-oil exports, according to the kingdom’s minister of economy and planning.
Authorities are exploring exploring trade deals with an “ambitious” list of countries, Faisal Al Ibrahim said in an interview, declining to name them. The government also wants to renegotiate some existing pacts to “unlock some challenges,” he said.
“Exports are growing, but not as much as we want them in terms of non-oil exports,” Al Ibrahim said. “We want them to grow faster.”
Saudi Arabia is lining up more free trade deals as it pursues a plan to diversify the $1.1 trillion economy to reduce its dependence on oil. It’s plowing billions of dollars into an attempt to become a global supply chain hub and creating new industries like electric vehicles and pharmaceuticals to meet local demand and for export to the Middle East and Africa.
The trade talks, which would be negotiated through the Gulf Cooperation Council bloc of six Middle East countries, aim to give the kingdom “access to export markets more easily, but also give us access to a secure supply of the imports needed for the manufacturing and the value-adding process that will happen in Saudi Arabia,” Al Ibrahim said.
Saudi Arabia is looking to sign more free trade agreements and still considering joining the BRICS club of emerging nations, as it looks to boost non-oil exports, according to the kingdom’s minister of economy and planning.
Authorities are exploring exploring trade deals with an “ambitious” list of countries, Faisal Al Ibrahim said in an interview, declining to name them. The government also wants to renegotiate some existing pacts to “unlock some challenges,” he said.
“Exports are growing, but not as much as we want them in terms of non-oil exports,” Al Ibrahim said. “We want them to grow faster.”
Saudi Arabia is lining up more free trade deals as it pursues a plan to diversify the $1.1 trillion economy to reduce its dependence on oil. It’s plowing billions of dollars into an attempt to become a global supply chain hub and creating new industries like electric vehicles and pharmaceuticals to meet local demand and for export to the Middle East and Africa.
The trade talks, which would be negotiated through the Gulf Cooperation Council bloc of six Middle East countries, aim to give the kingdom “access to export markets more easily, but also give us access to a secure supply of the imports needed for the manufacturing and the value-adding process that will happen in Saudi Arabia,” Al Ibrahim said.