RIYADH: Singapore's biggest ground handler at Changi Airport, SATS, is investing about SR108 million to build new air cargo facilities at King Fahd International Airport (KFIA) in Dammam. The move is part of an ambitious plan to expand SATS reach in the Asia Pacific and Middle East, said top Singapore officials while speaking to Arab News in Singapore recently.
Vivian Balakrishnan, Singapore foreign minister, spoke about the growing relations between Singapore and Saudi Arabia on the one hand and Singapore and the Middle East as a bloc on the other. He also touched several regional issues that have hampered all efforts to restore peace and security in the Middle East region.
Spelling out the details of the KFIA cargo project, Koh Poh Koon, minister of state for development, trade and industry, said that the investment in Dammam is SATS' biggest greenfield project in its air cargo business. Granted to its subsidiary SATS Saudi Arabia, the cargo handling concession is valid for 22.5 years and SATS will build a new 20,000 sqm cargo terminal near the airport.
SATS Ltd., commonly abbreviated as SATS is the chief ground-handling and in-flight catering service provider at Singapore Changi Airport. SATS controls about 80 percent of the Changi airport's ground handling and catering business in Singapore.
Referring to another contract in which Changi Airport International (CAI) has been mandated to operate KFIA, Koon said that Singapore companies are active and prominent players in the transport and logistics industry in Saudi Arabia. “In fact, CAI was awarded accolades in their 8 years running the King Fahd International Airport (KFIA),” he added. The collaboration saw KFIA served by 36 airlines to 65 cities as of today.
In 2013, KFIA was ranked among the top 10 busiest airports in the Gulf region by passenger volume. To this end, he noted that “the KFIA extended CAI’s management of the airport until the first quarter of 2017.” This is in addition to the presence of several companies in Singapore including Saudi Aramco. A report emailed to Arab News by Singapore government said that Saudi Aramco has a sizable presence in Singapore, providing regional coverage to the Indian sub-continent and Southeast Asia.
“Established in Singapore since 1989, Aramco has been working with Singapore companies to invest in supply chain expertise and both upstream and downstream technology and services,” added the report. On trade front also, the two countries have reported growth. Singapore’s total trade with the Middle East was $32.3 billion in 2015, dominated by trade with the Gulf Cooperation Council (GCC) countries ($29.3 billion in 2015).
“Our top three trading partners in the Middle East are the United Arab Emirates ($13.1 billion), Saudi Arabia ($8.8 billion) and Qatar ($3.8 billion),” said the report. On the top of this, Singapore-GCC Free Trade Agreement entered into force in 2013. This agreement will further boost trade and investment relations between the GCC and Singapore, a country which has also launched integrated roadmaps to drive industry transformation.
“To achieve maximum synergies in our industry transformation over the next few years, the Singapore government has a multibillion dollar Industry Transformation Program in budget 2016,” the report said. The program will integrate different restructuring efforts, taking a targeted and industry-focused approach to address issues and deepen partnerships between government, firms, industries and trade associations.
Top Singapore firm investing SR108m in Dammam airport
Top Singapore firm investing SR108m in Dammam airport
Oman to be first Gulf country to impose personal income tax
RIYADH: Oman will become the first country in the Gulf to impose a personal income tax, as the oil producer works to diversify its revenue stream.
The sultanate will impose a 5-percent levy on taxable income for individuals earning over 42,000 Omani rials ($109,091) per year starting from 2028, according to a royal decree.
The Gulf country added that the tax would apply to about 1 percent of the population.
The move comes after Oman launched a medium-term fiscal program in 2020 to reduce public debt, diversify revenue sources, and spur economic growth, which has improved state finances.
“The law also includes deductions and exemptions that take into account the social situation in the Sultanate of Oman, such as education, health care, inheritance, zakat, donations, primary housing,” the country’s tax authority said in a statement.
The law was implemented following an “in-depth study to assess the economic and social impact,” and income data collected from various government entities was used to set the exemption threshold.
“The results showed that approximately 99 percent of the population in the Sultanate of Oman is not subject to this tax,” the authority said.
The statement added that the electronic system has been designed to enhance voluntary compliance and is linked with relevant institutions to ensure accurate calculation of individuals’ income and to verify the accuracy of submitted tax returns.
The tax will contribute to achieving social solidarity and will not include wealth, such as land ownership. It will be imposed on the annual income specified by law and includes “all cash amounts and in-kind benefits received by the individual,” the authority said.
The move aims to complete the tax system in line with the economic and social situation in the sultanate, and the tax revenue will go toward supporting the social protection program, “with sustained cooperation,” it added.
The move will support the objectives of Oman Vision 2040, which targets reducing dependence on oil by achieving 15 percent of gross domestic product from non-oil sources by 2030 and 18 percent by 2040.
“It will also contribute to achieving social justice by redistributing the wealth among the segments of society, provide support to the general budget of the country, and be directed in particular to finance part of the costs of the social protection system,” the authority said.
Saudi Arabia’s non-oil industrial production up 5.3% in 2024: GASTAT
RIYADH: Saudi Arabia’s non-oil industrial activities posted robust growth of 5.3 percent in 2024, highlighting the success of the Kingdom’s economic diversification efforts under Vision 2030.
The overall Industrial Production Index however declined by 2.3 percent, driven primarily by a 5.2 percent contraction in oil-related activities, according to the latest report from the General Authority for Statistics.
Saudi Arabia’s growing non-oil industrial output reflects progress in diversifying revenue and jobs beyond oil, a key Vision 2030 goal.
Reforms such as easier licensing, tax incentives, and mega projects are driving growth in manufacturing, logistics, and technology. While oil remains volatile, the expansion is showing early success in the private sector, driven by growth in foreign direct investment.
During the Davos Conference in January, Saudi Minister of Economy and Planning Faisal Al-Ibrahim said that the non-oil economy is expected to grow by 4.8 percent this year.
The latest figures from GASTAT show that manufacturing played a pivotal role in driving growth in 2024, recording a 4.7 percent annual increase. Food production expanded by 6.2 percent, while the manufacture of chemicals and chemical products,, and coke and refined petroleum goods increased by 2.8 percent.
The mining and quarrying sector, which includes oil extraction, saw a decline of 6.8 percent in 2024. This drop offsets gains in other areas, pulling the overall IPI into negative territory for the year.
The report also revealed positive trends in utilities and infrastructure-related sectors. Electricity, gas, steam, and air conditioning supply activities grew by 3.5 percent, while water supply, sewerage, and waste management services increased by 1.6 percent.
Saudi endeavors in non-oil exports
The Kingdom’s non-oil export sector has also seen impressive growth, reinforcing diversification efforts.
According to official data released in April, Saudi Arabia’s non-oil exports reached SR515 billion ($137 billion) in 2024, a 13 percent increase from the previous year and a 113 percent rise since the launch of Vision 2030.
This expansion spanned all export sectors, with merchandise exports rising to SR217 billion, driven by petrochemical and non-petrochemical goods.
The Kingdom now exports to over 180 countries, with 37, including the UAE, France, and Indonesia, registering record imports, solidifying its role as a growing global trade hub.
Oil Updates – crude surges to 5-month high after US hits Iran’s key nuclear sites
- Brent, WTI up more than 3 percent before paring gains
- US attack on Iran increases risk of supply disruption
- Fears Iran could close Strait of Hormuz, key oil supply route
NEW DELHI: Oil prices jumped on Monday to their highest since January as the US’s weekend move to join Israel in attacking Iran’s nuclear facilities stoked supply concerns.
Both contracts rose by more than 3 percent earlier in the session to $81.40 and $78.40, respectively, touching five-month highs before giving up some gains.
By 12:21 p.m. Saudi time, Brent crude futures were up 5 cents or 0.06 percent to $77.06 a barrel, while US West Texas Intermediate crude advanced 0.02 cents or 0.03 percent to $73.86.
The rise in prices came after US President Donald Trump said he had “obliterated” Iran’s main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself.
Iran is OPEC’s third-largest crude producer.
Market participants expect further price gains amid mounting fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows.
“The current geopolitical escalation provides the fundamental catalyst for (Brent) prices to traverse higher and potentially spiral toward $100, with $120 per barrel appearing increasingly plausible,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.
Iran said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called Trump a “gambler” for joining Israel’s military campaign against the Islamic Republic.
“The risks of damage to oil infrastructure ... have multiplied,” said Sparta Commodities senior analyst June Goh.
Although there are alternative pipeline routes out of the region, there will still be crude volume that cannot be fully exported out if the Strait of Hormuz becomes inaccessible. Shippers will increasingly stay out of the region, she added.
Goldman Sachs said in a Sunday report that Brent could briefly peak at $110 per barrel if oil flows through the critical waterway were halved for a month, and remain down by 10 percent for the following 11 months.
The bank still assumed no significant disruption to oil and natural gas supply, adding global incentives to try and prevent a sustained and very large disruption.
Brent has risen 13 percent since the conflict began on June 13, while WTI has gained around 10 percent.
Given the Strait of Hormuz is indispensable for Iran’s own oil exports, which are a vital source of its national revenues, a sustained closure would inflict severe economic damage on Iran itself, making it a double-edged sword, Sachdeva added.
Meanwhile, Japan on Monday called for de-escalation of the conflict in Iran, while a South Korean vice industry minister voiced concern over the potential impact of the strikes on the country’s trade.
Russian President Vladimir Putin will meet Iranian Foreign Minister Abbas Araqchi in Moscow on Monday, Russian Interfax agency said, citing Kremlin aide Yuri Ushakov.
Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts
RIYADH: Saudi Arabia and Kuwait have signed a memorandum of understanding to bolster cooperation in the fight against money laundering and the financing of terrorism, reinforcing regional efforts to strengthen financial security.
The agreement, inked between Saudi Arabia’s General Department of Financial Investigations and Kuwait’s Financial Intelligence Unit, was finalized on the sidelines of the second meeting of the Gulf Cooperation Council Committee of Financial Intelligence Units, held in Kuwait, the Kuwait News Agency reported.
The MoU aims to enhance intelligence sharing and operational coordination between the two nations. It is expected to significantly improve the effectiveness of the region’s financial crime prevention frameworks, aligning with international standards and bolstering joint mechanisms among GCC financial intelligence units.
The signing follows a virtual workshop hosted in March by the National Center for Non-Profit Sector Development, which focused on preventing money laundering and terrorist financing within non-profit organizations, including charitable groups and foundations.
The agreement also reflects broader economic ties between the two Gulf neighbors. In February, Kuwait’s exports to Saudi Arabia reached SR137 million ($36.5 million), up 19.6 percent from the previous year, according to data from the Observatory of Economic Complexity.
Officials from both countries highlighted the MoU’s role in advancing national capabilities, fostering regional integration, and aligning with best practices in financial intelligence and compliance.
The renewed cooperation comes as Saudi Arabia continues to encourage Kuwaiti investment in its mining and industrial sectors.
In April, Minister of Industry and Mineral Resources Bandar Alkhorayef met with a delegation of Kuwaiti businessmen during an official visit to Kuwait, emphasizing untapped opportunities in the Kingdom’s mining industry.
Alkhorayef underscored the sector’s importance to Saudi Vision 2030, which aims to position the Kingdom as a global industrial and mining hub. He cited estimates valuing Saudi mineral resources at over SR9.3 trillion.
Combatting money laundering remains a national priority for Saudi Arabia, which has implemented a comprehensive legal and regulatory framework to protect the integrity of its financial system and prevent illicit funding activities, including terrorism financing.
Closing Bell: Saudi main index edges down 0.34% to close at 10,574
RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Sunday, falling 36.44 points, or 0.34 percent, to close at 10,574.27.
Total trading turnover reached SR3.72 billion ($991 million), with 134 stocks posting gains and 102 declining.
The Kingdom’s parallel market, Nomu, also recorded a slight dip, losing 27.14 points, or 0.10 percent, to settle at 26,148.69, as 34 stocks advanced and 39 retreated. Meanwhile, the MSCI Tadawul 30 Index dropped 5.34 points, or 0.39 percent, to finish at 1,361.80.
Alistithmar AREIC Diversified REIT Fund was the best-performing stock of the session, with its share price rising 10 percent to SR8.25. Al Sagr Cooperative Insurance Co. followed with a 9.96 percent increase to SR12.36, while Knowledge Economic City climbed 5.36 percent to close at SR12.98.
On the losing side, Retal Urban Development Co. saw the steepest decline, falling 5.10 percent to SR13.02. Flynas Co. dropped 4.13 percent to SR74.20, and Saudi Chemical Co. declined 3.85 percent to SR6.24.
Shares of Hawiya Identity Auctions began trading on Nomu at SR13 per share. According to a Tadawul statement, the offering comprised 2.4 million shares, with Derayah Financial Co. acting as lead manager.
Gas Arabian Services Co. announced the signing of a joint venture agreement with Italy’s BONOMI Co. to establish a valve manufacturing company in the Kingdom.
The new company will have a capital of SR5 million, with BONOMI holding a 60 percent stake and Gas Arabian Services owning 40 percent.
The Saudi firm will fund its SR2 million share from internal resources. The deal is expected to have a long-term positive financial impact, though it remains subject to regulatory approvals and the fulfillment of conditions outlined in the agreement. Gas Arabian Services shares closed at SR15, up 0.40 percent.
The price range for the offering of the Sports Clubs Co. ranged between SR7 and SR7.5 per share, according to a statement by Saudi Fransi Capital, the financial advisor and bookrunner for the institutional subscription.
The offering includes 34.32 million ordinary shares, representing 30 percent of the company’s capital.
