Saudi Arabia's regional headquarters requirement goes into effect with exceptions
Saudi Arabia's deadline for foreign firms to establish their regional headquarters in the kingdom or lose out on hundreds of billions of dollars in government contracts went into effect on Monday as did several exceptions to the rule. The exceptions include contracts below 1 million riyals ($266,681), contracts executed outside of the kingdom, deals with companies that are the sole providers of their service or commodity, and emergencies that can only be addressed by a foreign company without regional headquarters, the state gazette Um Al-Qurra reported previously.
Companies without regional headquarters can still compete for government tenders, but government agencies will only be able to approve them if they are technically superior and 25% cheaper than the next best offer, or if there are no competing offers.
The Saudi cabinet announced its approval of contracting regulations last week, but did not release details at the time.
It did not specify what how many contracts below 1 million riyals a foreign firm could sign with the same government agency.
Foreign companies had rushed to prepare for the deadline as they complained of unclear tax and jurisdiction regulations. Tax incentives, including a 30-year exemption for corporate income tax, were announced than less than a month ahead of the deadline.
In November, Saudi investment minister Khalid Al-Falih said that 180 companies had agreed to establish their regional headquarters in Riyadh.
As the world begins to move away from oil, Gulf states have been vying for influence and foreign capital. The ultimatum puts Riyadh in competition with its neighbour the United Arab Emirates, the traditional financial hub of the region, and is part of efforts by Crown Prince Mohammed bin Salman to wean the economy off oil and draw foreign business into the kingdom.
Monday 1 January 2024
#Saudi shares make positive start to 2024 | Reuters
Saudi shares make positive start to 2024 | Reuters
Saudi Arabia's stock market rose on Monday, starting 2024 on a positive note, on expectations of interest rate cuts by the U.S. Federal Reserve this year, while the region's other major markets were closed.
Markets expect the Federal Reserve to start cutting interest rates in March, according to the CME FedWatch tool, a shift from assumptions last month.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions because most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI) rose 0.6%, supported by gains in almost all sectors with Alinma Bank (1150.SE) climbing 3.2% and Saudi Arabian Amiantit Co (2160.SE) surging 10%.
The construction materials maker Amiantit reported it settled 572.7 million riyals ($152.73 million) worth financial obligations with a local creditor bank.
In Oman, the stock index (.MSX30) ended 1.5% higher as National Bank of Oman (NBOB.OM) and Sohar International Bank (BKSB.OM) gained 3.6% and 3.1% respectively.
Saudi Arabia's stock market rose on Monday, starting 2024 on a positive note, on expectations of interest rate cuts by the U.S. Federal Reserve this year, while the region's other major markets were closed.
Markets expect the Federal Reserve to start cutting interest rates in March, according to the CME FedWatch tool, a shift from assumptions last month.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions because most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI) rose 0.6%, supported by gains in almost all sectors with Alinma Bank (1150.SE) climbing 3.2% and Saudi Arabian Amiantit Co (2160.SE) surging 10%.
The construction materials maker Amiantit reported it settled 572.7 million riyals ($152.73 million) worth financial obligations with a local creditor bank.
In Oman, the stock index (.MSX30) ended 1.5% higher as National Bank of Oman (NBOB.OM) and Sohar International Bank (BKSB.OM) gained 3.6% and 3.1% respectively.
#Saudi Fund Outpaces Singapore’s GIC With $31.6 Billion Splurge - Bloomberg
Saudi Fund Outpaces Singapore’s GIC With $31.6 Billion Splurge - Bloomberg
Saudi Arabia’s Public Investment Fund emerged as the world’s most active sovereign investor last year, boosting its deal activity even as most global peers including GIC Pte and Temasek Holdings Pte slashed spending.
PIF, as the Saudi fund is known, deployed $31.6 billion in 2023, according to research consultancy Global SWF. That was higher than the $20.7 billion it invested the previous year, an increase that contrasts with a wider trend — globally state-owned investors deployed $124.7 billion, about a fifth less than the prior year.
The declines were led by GIC, which cut the amount of capital deployed by 46% to $19.9 billion and lost its spot as the world’s most active sovereign wealth fund for the first time in six years. Temasek also reduced new investments by 53% to $6.3 billion against a backdrop of volatile markets, which led the two Singapore-based investors to report worsening returns.
Global SWF said much of GIC’s decline related to investments across developed markets. Singapore’s state investors continued to be active in emerging markets like India, with deals including GIC’s $1.4 billion joint venture with Brookfield India REIT and Temasek’s increased stake in Manipal Health Enterprises.
Saudi Arabia’s Public Investment Fund emerged as the world’s most active sovereign investor last year, boosting its deal activity even as most global peers including GIC Pte and Temasek Holdings Pte slashed spending.
PIF, as the Saudi fund is known, deployed $31.6 billion in 2023, according to research consultancy Global SWF. That was higher than the $20.7 billion it invested the previous year, an increase that contrasts with a wider trend — globally state-owned investors deployed $124.7 billion, about a fifth less than the prior year.
The declines were led by GIC, which cut the amount of capital deployed by 46% to $19.9 billion and lost its spot as the world’s most active sovereign wealth fund for the first time in six years. Temasek also reduced new investments by 53% to $6.3 billion against a backdrop of volatile markets, which led the two Singapore-based investors to report worsening returns.
Global SWF said much of GIC’s decline related to investments across developed markets. Singapore’s state investors continued to be active in emerging markets like India, with deals including GIC’s $1.4 billion joint venture with Brookfield India REIT and Temasek’s increased stake in Manipal Health Enterprises.
#Saudi sovereign wealth fund splashes cash in 2023 - report shows | Reuters
Saudi sovereign wealth fund splashes cash in 2023 - report shows | Reuters
Saudi Arabia's Public Investment Fund accounted for about a quarter of the almost $124 billion spent by sovereign wealth funds worldwide last year, a report published on Jan. 1 showed.
PIF's whopping $31.5 billion spend in 2023 compared with $123.8 billion for all sovereign wealth funds, based on a preliminary annual report from industry specialist Global SWF, which tracks the world's sovereign investment funds.
The strong rally last year in global stocks helped to swell the assets managed by the sovereign wealth funds worldwide to a record $11.2 trillion.
Total sovereign-controlled spending on the energy transition - everything from green hydrogen to lithium mining - also hit a record $25.9 billion in 2023, the report said.
Despite this, total spending by the sovereign wealth funds last year was 21% below 2022.
Saudi Arabia's Public Investment Fund accounted for about a quarter of the almost $124 billion spent by sovereign wealth funds worldwide last year, a report published on Jan. 1 showed.
PIF's whopping $31.5 billion spend in 2023 compared with $123.8 billion for all sovereign wealth funds, based on a preliminary annual report from industry specialist Global SWF, which tracks the world's sovereign investment funds.
The strong rally last year in global stocks helped to swell the assets managed by the sovereign wealth funds worldwide to a record $11.2 trillion.
Total sovereign-controlled spending on the energy transition - everything from green hydrogen to lithium mining - also hit a record $25.9 billion in 2023, the report said.
Despite this, total spending by the sovereign wealth funds last year was 21% below 2022.