Skip to content Skip to Search
Skip navigation

No income tax on individuals, says Saudi finance minister

Finance minister Mohammed Al-Jadaan said that $12bn bond proceeds will cover the deficit and accelerate spending on major projects

Saudi Arabia has no plans to impose an income tax on individuals, the country’s finance minister has confirmed.

“There is no intention at all in Saudi Arabia to impose income tax on individuals. That has been our position very clearly,” Mohammed Al-Jadaan told Bloomberg TV at the World Economic Forum held in Davos.

The minister said that the kingdom is trying to “rationalise some of the burden” on the economy to make it even more business friendly. 

Saudi Arabia earlier this month sold $12 billion of bonds in a three-part issuance that was heavily oversubscribed. The kingdom sold bond tranches of $3.25 billion, $4 billion and $4.75 billion for six, 10 and 30 years, respectively.

Al-Jadaan disclosed that the bond proceeds will cover the deficit and accelerate spending on significant projects. 

“We have to finance the deficit that reaches two percent of GDP. We have logistics projects such as ports, airports, water treatment plants, and renewables. We need the financing for these projects.”

The minister clarified that “efficiency and economic value” were the main factors behind slowing some Vision 2030 projects.

“We want to make sure that every dollar we spend does not leak. This means that you don’t need to import too much for your own development but rather for the development of your economy,” he added.

In December 2023, Saudi Arabia announced offering a 30-year corporate income tax exemption to foreign companies that locate their regional headquarters to the kingdom.

The tax exemption package under the regional headquarters (RHQ) programme includes a zero percent rate for corporate income tax and withholding tax related to approved activities for 30 years.

In 2021, the government set a target of January 1, 2024, for companies to set up in the kingdom, the world’s top oil exporter, to gain access to government contracts worth SAR1 million ($266,000) or more.

Latest articles

Musicians perform at the Sharjah Ramadan Festival. Retailers offered discounts of up to 75% on local and international brands

Sharjah’s Ramadan retail sales peak at nearly $110m

Ramadan retail sales in Sharjah hit a new record high of AED400 million ($109 million) in 2024, reinforcing the positive outlook UAE companies had ahead of this year’s holy month. Sales jumped 25 percent year on year during the Sharjah Ramadan Festival 2024, which concluded last Saturday, the UAE state-run Wam news agency reported, quoting […]

Adnoc sought advice from investment banks on buying a significant stake in BP, a media report said

UAE’s Adnoc explored acquiring BP

Abu Dhabi National Oil Company (Adnoc) explored the possibility of acquiring British oil major BP but abandoned the plan as it did not fit into its strategic growth objectives, a media report said.  The talks did not advance beyond the initial stages, Reuters reported, citing informed sources.  The UAE state oil company also sought advice […]

Nature, Undersea cables account for as much as 90 percent of Europe-Asia telecommunications, Water

Iraq and Kuwait team up for European telecom corridor

Iraq’s Informatics and Telecommunication Public Company, a division of the Ministry of Communications, has signed an agreement with Kuwait’s Zajil Telecom to create a telecommunications corridor from the Gulf region to Europe, transiting through Iraq and Turkey. The new route will pass through Iraqi sea and land ports. Iraq’s minister of communications Hayam Al-Yasiri said […]

An artist's impression of part of the Diriyah Square development

Diriyah Square planned for historic Riyadh district

A public space featuring 400 retail outlets and 100 restaurants and cafes is planned for the historic Riyadh district of Diriyah. Diriyah Square will be announced next week at the World Retail Congress in Paris and aims to attract a combination of international retail brands and local artisans.  Diriyah Gate Development Authority group CEO Jerry […]