BADEN-BADEN: Governments are slacking the pace of needed economic reforms amid waning popular support even as global growth slows, the Organization for Economic Co-operation and Development (OECD) warned Friday.
There had been progress in reducing unemployment, the rich nations’ club conceded in its annual “Going for Growth” report, unveiled at a G-20 gathering of top economies’ finance ministers in the western German spa town of Baden-Baden.
But too many, including women, migrants and young people remain excluded from the benefits of a tentative economic recovery in many advanced and emerging economies, the OECD experts said.
“In many countries what we are seeing is a slow growth track,” OECD Secretary-General Angel Gurria told journalists at the G-20 gathering.
“Poor growth outcomes combined with rising inequality, falling trust, stagnant incomes are contributing to a backlash against globalization... which is bringing a rise in populist and protectionist policies,” he continued. “It is precisely because of this context that ambitious reforms are needed, to escape the low growth trap.”
The growing political potency of inequality prompted the OECD to offer for the first time advice to countries on making growth “inclusive,” alongside its long-standing productivity and employment goals.
Reforms had visibly slowed, both in countries that had made significant progress in recent years — such as Mexico, Ireland and Spain — and others like Colombia, Italy and Sweden, already among the “least active” reformers, the economists found.
While more countries had moved to lift barriers to women working and cut taxes on lower-paid workers, many focused on one area to the exclusion of complementary ones, they said.
Looking ahead, the OECD recommends improving productivity by broadening access to education, training and jobs, freeing up competition, and increasing investment in public infrastructure.
Meanwhile, social safety nets should be used to reduce income inequality, the experts advised.
“Growing inequality becomes an obstacle to growth,” said OECD chief. “It is not just morally wrong, it is ethically wrong, it is politically very explosive, but it is also economically very inefficient.”
Gurria, a former finance minister of Mexico, insisted that gatherings like the G-20 remain relevant even as the new White House administration under Donald Trump challenges a tried-and-tested multilateral global order.
Inequality stokes populism: OECD chief
Inequality stokes populism: OECD chief
Saudi Arabia’s net FDI up 26%: GASTAT
RIYADH: Net foreign direct investment into Saudi Arabia reached SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a rise of 26 percent compared to the previous three months, newly released official data showed.
According to the General Authority for Statistics, this figure was the highest level across the year, surpassing the SR15.5 billion seen in the first three months of 2024, the SR19 billion recorded in the second quarter, and the SR17.5 billion witnessed in the third.
Saudi Arabia is aiming to attract $100 billion in FDI a year by the end of this decade as it seeks to make significant strides in diversifying its economy and reducing its decades-long dependence on crude revenues.
When it came to inflows, GASTAT revealed SR23.8 billion was recieved in the final three months of 2024, marking a 17 percent rise from the third quarter.
The value of FDI outflows stood at SR1.8 billion during the fourth quarter, marking a decrease of 39 percent compared to the previous three months.
Comparison with 2023
The total net value of FDI in the fourth quarter was down 13 percent compared to the same period of 2023, where the figure stood at SR25.5 billion.
Compared to the final quarter of 2023, the value of inflows declined by 11 percent in the last three months of 2024.
GASTAT added that the value of outflows registered a growth rate of 20 percent compared to the same period of 2023.
Saudi Arabia’s FDI ambitions gain momentum
The latest figures come after Saudi Arabia rose to 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index, published in April.
This is up one spot from last year and also means the Kingdom retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy.
Kearney said that the advancement of Saudi Arabia in the ranking reflects the nation’s bold, reform-driven approach to building an internationally competitive, future-ready economy.
In October, the Kingdom also approved an updated investment law to enhance FDI flows, with the Ministry of Investment stating that it would boost transparency and simplify the investment process.
The rule also promises enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, alongside robust safeguards for intellectual property and seamless fund transfers.
Trump says he has ‘potential deals’ with India, South Korea, Japan
WASHINGTON: President Donald Trump said on Wednesday that he has “potential” trade deals with India, South Korea and Japan as he seeks to convert his tariff policy into trade agreements.
At a town hall on the NewsNation television network, Trump was asked when he would be announcing agreements with those three countries.
“We have potential deals” with them, he said.
Trump said he was in no rush to conclude the deals because the US is reaping the benefits of the tariffs he has imposed.
“I’m in less of a hurry than you are. We are sitting on the catbird seat. They want us. We don’t need them,” he said.
Eric Trump confirms commencement of pre-construction works on Jeddah Tower
RIYADH: The much-anticipated Trump Tower Jeddah has entered the pre-construction phase, confirmed Eric Trump, son of the US president, marking a major step forward for one of Saudi Arabia’s most high-profile luxury developments.
Set to rise 47 floors along the Red Sea coast, the building is being developed by London-listed Dar Global in partnership with the Trump Organization.
The project will include high-end residences and is intended to enhance the luxury housing landscape in the Kingdom’s western port city. According to Trump, the development will involve an investment of “many, many, many hundreds of millions of dollars.”
“The building (Trump Tower) in Jeddah is absolutely amazing. It’s one of the most beautiful buildings anywhere in the world, and we just started,” Trump, who is also the executive vice president of the Trump Organization, said in a video interview with Al-Eqtisadiah.
He added: “We’ve got all the plans and we just started the pre-construction works. This is going to be by far the nicest building in Jeddah and really a building that we’re incredibly proud of as a family.”
The Jeddah tower is the second major project between Dar Global and the Trump Organization, following the Trump International Oman at the $4 billion AIDA development.
Speaking during the launch of Trump Tower Jeddah in December, Dar Global CEO Ziad El-Chaar said: “Jeddah is undergoing a remarkable evolution, moving from traditional housing to dynamic high-rises, mixed-use developments that reflect modern living preferences.”
Trump Tower Jeddah marks the latest regional expansion for the real estate brand, coming on the heels of the recently launched Trump International Hotel and Tower Dubai — the first branded residential tower on the city’s iconic Sheikh Zayed Road.
The Dubai property is part of Dar Global’s growing premium portfolio and underscores the Trump Organization’s deepening ties in the Gulf.
Speaking about the Dubai project during his regional tour, Trump said: “The opportunities are endless. You can build the greatest buildings anywhere in the world, and that’s what we’re going to do.”
He added: “Trump International Hotel and Tower Dubai (is) the best building anywhere you buy, the best hotel. We’re going to redefine the standard, and I love doing it here.”
Closing Bell: Saudi main index closes in red at 11,671
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 74.62 points, or 0.64 percent, to close at 11,671.58.
The total trading turnover of the benchmark index was SR6.94 billion ($1.85 billion), as 47 stocks advanced, while 201 retreated.
The MSCI Tadawul Index decreased by 4.89 points, or 0.33 percent, to close at 1,488.88.
The Kingdom’s parallel market Nomu dipped, losing 54.20 points, or 0.19 percent, to close at 28,277.17. This came as 24 stocks rose, while 49 fell.
The best-performing stock on the main index was Jamjoom Pharmaceuticals Factory Co., with its share price surging by 9.91 percent to SR173.
In the first quarter of 2025, the company’s net profit rose 204.26 percent quarter-on-quarter to SR157.03 million, according to a filing on the stock exchange. The group attributed the increase to higher sales and more efficient absorption of operating expenses, resulting in strong operating leverage.
MBC Group Co. recorded the day’s steepest decline, with its share price slipping 4.42 percent to SR41.10.
Advanced Petrochemical Co. announced its interim financial results for the first three months of the year, reporting a net profit of SR72 million — a 224.1 percent increase from the same quarter last year.
Americana Restaurants International PLC also announced its financial results for the same period, with its net profit reaching SR122.4 million in what is an annual increase of 16.5 percent.
Similarly, the company’s total comprehensive income saw a surge of 44.5 percent to SR128.13 million. Its share price traded 3.04 percent higher on the main market to reach SR2.32.
Modern Mills for Food Products Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR65.6 million, a 29.2 percent surge compared to the previous quarter.
The company attributed the increase to higher gross margin, operational efficiencies and lower finance cost.
Modern Mills for Food Products Co.’s share price traded 0.26 percent higher on the main market to reach SR39.
Banque Saudi Fransi has launched the offering of US dollar-denominated additional Tier 1 capital notes as part of its international issuance program, the bank said in a bourse filing.
The offering, conducted under its Additional Tier 1 Capital Note Programme, targets eligible investors in Saudi Arabia and internationally, the statement added.
The subscription period is scheduled to begin on April 30 and end on May 1, with a minimum subscription set at $200,000 and increments of $1,000 thereafter.
The value, pricing, and yield of the perpetual instruments — which are callable after six years — will be determined based on prevailing market conditions.
Saudi Arabia raises undeveloped land tax to 10%, expands scope to vacant properties
JEDDAH: Saudi Arabia has raised the annual fee on undeveloped land from 2.5 percent to up to 10 percent of property value, as part of Cabinet-approved reforms to address market imbalances.
The amendments to the White Land Tax Law expand its scope for the first time to include levies on long-vacant buildings and revised land-size thresholds for taxation.
The changes, ratified by the Cabinet on April 29, mark the most significant overhaul of the law since its inception in 2016.
They come as part of a broader effort to accelerate development, counter speculation, and address supply-demand imbalances in the Kingdom’s real estate sector, which has seen mounting pressure in key cities such as Riyadh.
The reforms support broader efforts to curb speculation, boost land utilization, and enhance access to affordable housing in line with Vision 2030.
In a post on his official X account, Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail said: “The amendments included stimulating the use of vacant properties, and amending the targeted areas and the amount of the fee on undeveloped and developed vacant lands within the urban area, by up to 10 percent.”
The revised framework sets a minimum land area of 5,000 sq. meters for the application of the fee, covering both individual plots and contiguous holdings in designated urban areas.
It also broadens the tax base to include vacant buildings — defined as ready-to-use buildings prepared for occupancy within the urban area that have not been used for a long period without acceptable justification, and whose lack of use or exploitation affects the availability of sufficient supply in the real estate market.
These vacant properties will now face an annual levy of up to 5 percent of their estimated rental value, as specified in forthcoming regulations.
The updated law introduces clearer criteria, phased implementation, and enhanced enforcement mechanisms, including grievance channels and unified property databases.
The Kingdom originally launched the White Land Tax Law to discourage land hoarding and promote more equitable development.
According to the Saudi Press Agency, Al-Hogail stated that the revised system is expected to enhance the efficient use of idle land and buildings, align supply with demand, and promote the productive use of real estate assets. It also seeks to encourage the development of undeveloped land and increase the overall availability of real estate, particularly residential properties.
Speaking to Al-Ekhbariya, Saif Al-Suwailem, spokesperson for the Ministry of Housing, said that the executive regulations for vacant property fees will outline the implementation mechanism.
The official added: “The amendments to the White Land Tax will enhance land use efficiency and stimulate the development of residential projects,” Al-Ekhbariya reported.
Moreover, he emphasized that amending the fees will have a clear and effective impact on enhancing supply and achieving real estate balance, noting that the system was completed in half the time.
The changes come as Saudi authorities intensify efforts to stabilize the housing market in cities like Riyadh, where surging land values and rental rates have strained affordability.
A study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs recently prompted a series of measures, including lifting development restrictions in large swaths of northern Riyadh.
The government will issue executive regulations for the amended White Land Tax Law within 90 days of its publication in the official gazette. Regulations governing vacant property taxation are expected within one year, according to SPA.
