JEDDAH: Saudi Arabia approved Monday a new tax regime for oil and natural gas producers in the Kingdom, which will boost Saudi Aramco’s valuation as it plans to sell shares in its initial public offering (IPO) next year.
Under the new regime, hydrocarbon companies in Saudi Arabia will be taxed depending on their capital, according to a royal decree issued Monday and posted on the website of the Saudi Press Agency (SPA).
Companies with capital of more than SR375 billion ($100 billion) will pay 50 percent income tax. Those with capital between SR300 billion and SR375 billion will pay 65 percent tax.
Companies with capital between SR225 billion and SR300 billion will pay 75 percent, and those with capital below SR225 billion 85 percent.
Saudi Aramco will see its income tax rate fall from 85 percent to 50 percent, CEO Amin Nasser said Monday, adding that the new rates will put the company in line with international benchmarks. The new rate is effective retroactively from Jan. 1.
Saudi Arabia aims to sell as much as 5 percent of the company late next year in an IPO. With the drop in its tax rates, future investors who are interested in buying Saudi Aramco shares will see more cash flow.
This will be positive news for the company’s valuation, which the government estimates to be at least $2 trillion.
“The 50 percent tax rate will be very lucrative to investors who should be gearing up for its privatization,” said John Sfakianakis, director of economic research at the Gulf Research Center Foundation in Riyadh.
“This is one of many steps that will begin a process of investor-friendly initiatives that will help in wetting appetites,” he added.
“The royal decree falls in line with an earlier promise that Saudi Arabia will reduce the overall tax rate paid by its national oil company to make its 2018 IPO — potentially one of the largest in history — more appealing to investors.”
But the fall in tax rates does not mean the government will lose income. “Any reduction in tax revenues arising from this Royal Order is replaced by stable dividend payments and other sources of revenue from hydrocarbon producers to the government,” Energy Minister and Aramco Chairman Khalid Al-Falih said in a statement.
“It is very important to make it clear that the hydrocarbon resources of Saudi Arabia remain sovereign.”
Saudi Aramco welcomed the introduction of the new tax regime as another positive step in diversifying the Kingdom’s economy.
“We thank… King Salman… for the Royal Order,” said Nasser. “The new tax rate will bring Saudi Aramco in line with international benchmarks.”
Nasser said the company will continue to make a critical contribution to the diversification and growth of the Saudi economy in line with Vision 2030.
New tax regime to boost Aramco IPO value
New tax regime to boost Aramco IPO value
Embracing solo dining, one meal at a time
- Saudi Arabia’s younger generation are subtly changing eating trends, moving from a full family table to a single seat
RIYADH: In Saudi Arabia, dining out has long been a social ritual, an experience shared with family and friends over lavish meals, full of conversation and camaraderie.
However, a subtle yet noticeable shift is taking place as more Saudis, especially the younger generation, are choosing to dine alone, seeking moments of solitude amid the hustle and bustle of everyday life.
Once considered a rare sight, solo diners are now becoming more common in cafes, restaurants and eateries across the Kingdom. For some, it is a matter of convenience, while for others it is a form of self-care, a way to recharge and reconnect with themselves.
This emerging trend challenges traditional Saudi dining culture, creating new opportunities for restaurants and altering societal perceptions.
For Zain Al-Mansour, solo dining is more than just an alternative to dining with others, it is an experience that he actively cherishes. “I much prefer it over dining with someone,” he says. “I seek it out and make a day out of it for myself. It’s relaxing, and it charges my energy.”
Solo dining has become Al-Mansour’s way to unwind, offering him a chance to indulge in his favorite foods without the distraction of company.
He acknowledges that not everyone feels comfortable dining alone, particularly in a culture where social gatherings are so deeply ingrained.
“Plenty of people would not go out unless it’s with someone else,” Al-Mansour said. “I think everyone should at least try solo dining once and truly treat themselves. Bring a book if you’re worried about boredom, and don’t think twice about what people might think. What matters is that you’re happy.”
Al-Mansour sees solo dining as a form of empowerment, encouraging others to overcome social anxieties and embrace the experience. “It pushes you to talk, at least to the workers, which helps improve social skills.”
In Saudi culture, dining has traditionally been a collective activity, with meals often serving as the focal point of family and social gatherings.
For Bashayer Al-Bloushi, dining alone offered a refreshing change from this norm. “What inspired me to start dining alone was my desire to explore a new experience that offers me space to reflect and relax away from the hustle of daily life,” she said.
Dining alone allows her to savor the ambiance and immerse herself in the restaurant environment without the usual pressure of conversation.
This experience of dining independently has become a cherished form of personal time for Al-Bloushi, allowing her to enjoy moments of solitude. She sees it as an act of self-care and independence, a rare opportunity to connect with oneself.
Al-Bloushi also believes that Saudi restaurants could do more to support this trend. “They could designate cozy, quiet spaces for individual diners and offer meals suitable for one person,” she said. By creating a welcoming and informal atmosphere, restaurants could encourage more people to dine solo without feeling out of place.
For Mira Fahad, solo dining started as a necessity due to her flexible remote job schedule. “As a morning person, I always wanted to go out during the day but couldn’t find anyone available in the mornings,” she said. Over time, solo dining became a cherished ritual. “It’s one of those ‘I need to do it at least once a month’ things, whether in the mornings or nights.”
She finds the experience peaceful and liberating. “You can choose the time and place to your liking, people-watch, read a book, plan your week, or just savor your meal in peace.” However, she admits that solo dining can lose its charm if overdone, emphasizing the importance of balance.
For some solo diners, cultural perceptions remain a challenge. Linah Al-Ahmadi has been dining alone since 2016 and considers it a normal part of her lifestyle. “I didn’t start this habit recently; I’ve been solo dining since I was a teenager,” she said. While she embraces the experience, she is aware of the societal views that make solo dining an unusual choice in Saudi Arabia. “We are a collective society, and we tend to do things within a circle. As a society, we have this notion that it’s abnormal to do things alone.”
Al-Ahmadi describes dining alone in a culture that values group activities as being “the stranger in the middle of the diner.” Despite this, she remains committed to her choice, valuing the independence and freedom it provides. For her, solo dining is not about isolation but rather about enjoying personal time without depending on others to accompany her.
The growing interest in solo dining presents an opportunity for Saudi restaurants to adapt and cater to individual diners. Al-Ahmadi points out that making reservations for one can be difficult, as many restaurants and apps only accept bookings for groups.
Additionally, solo diners are often directed to bar seating or shared tables, which may not suit everyone’s preference for privacy.
“I struggle a lot with reservations,” Al-Ahmadi said. “Sometimes, I go out alone with the intention of not socializing, but being at a bar feels too intimate.” She advocates for solo diners to be given the choice of regular tables, creating a more inclusive environment for those who want to enjoy a meal without the company of others.
Mira Fahad offers additional suggestions, including creating solo dining tables in corners or quieter spots and offering digital menus for easy ordering. “Maybe provide small, single-portion meals and digital entertainment options for solo diners,” she said, adding that these touches could make the solo dining experience even more enjoyable.
As more Saudis explore the joys of solo dining, the trend reflects a broader shift in societal norms and individual lifestyles. Young people are carving out spaces for self-reflection and independence, challenging traditional perceptions about social activities. The popularity of solo dining represents a growing acceptance of self-care and personal freedom in Saudi Arabia, where dining alone is no longer seen as a solitary act but rather as a celebration of individuality.
Solo dining is more than just a meal, it is an experience that allows you to connect with yourself in a way that is both empowering and refreshing.
International expert highlights the importance of safety measures to prevent fires in cities
- International experts and other officials from more than 24 countries participated in the conference held in Riyadh from Nov. 3-7
RIYADH: A fire safety and occupational health expert said that neglecting safety precautions and preventive measures is one of the leading causes of fires.
Jiff Dulin, a strategic adviser at the International Association of Fire Chiefs, shared his insights at the 4th International Fire Operations Conference, held in Riyadh from Nov. 3-7.
International experts and other officials from more than 24 countries participated in the conference, which focused on the latest developments in firefighting and crisis management.
The conference was organized by the General Directorate of Civil Defense in collaboration with Saudi Aramco and the International Association of Fire Chiefs.
Dulin urged city planners to consider safety rules and standards that help reduce the occurrence and impact of fires, as well as to enhance preparedness for crisis management through training and advance planning.
He also called for the continuation of specialized conferences and exhibitions focused on firefighting equipment and studies, emphasizing their role in exchanging experiences and enhancing the capabilities of firefighting and civil protection agencies.
Col. Mohammed Al-Hammadi, spokesperson for the Saudi Civil Defense, has stated that the directorate pays more attention to proactive preparedness and high-level readiness to handle incidents and combat fires; this is achieved through pre-established plans and scenarios based on a risk matrix.
IFOC was an exceptional opportunity for networking and exchanging expertise among specialists and experts in the firefighting field, boosting public safety standards and fostering a secure environment for all, Al-Hammadi said.
Such events address the growing challenges and serve as a key driver for advancement and innovation in the civil protection sector, he added.
Technical sessions during the conference covered safety standards and approved codes in firefighting, as well as displaying technologies in electric vehicles and fuel cell applications.
One panel discussion focused on the readiness of the local workforce to respond to crises and disasters, while another focused on leadership and control in emergency situations.
There were special sessions on the sidelines of the conference, addressing environmental protection issues and urban fires. Participants reviewed innovative solutions for tackling emerging challenges in this field, discussed the role of artificial intelligence in enhancing firefighting capabilities, and explored industrial fires and prevention strategies.
In a dedicated session, participants discussed occupational medicine and health, the importance of promoting fire safety culture, and reviewed issues related to crowd management and conducting investigations and studies concerning major incidents.
The conference was accompanied by an exhibition showing the latest innovations and advanced technologies in firefighting and crisis management. Leading global companies participated in the exhibition to display their products and technical solutions.
US and UK embassies host women’s health majlis in Riyadh
- Topics discussed include breast cancer awareness and the health challenges women face at every stage of their lives, from adolescence to menopause
- Event is latest monthly gathering organized by the US embassy to celebrate the experiences and accomplishments of women and encourage them to share expertise
RIYADH: The British and US embassies hosted a women’s majlis at the residence of the UK ambassador in Riyadh featuring a panel discussion and advice from doctors and other medical specialists.
“When we gather together as professionals in the industry, we share best practices,” Alison Dilworth, the deputy chief of mission at the US embassy, told Arab News.
“To be able to have that connection with other countries is invaluable, and the expertise on this panel was incredible. To see what is happening in Saudi Arabia in the field of women’s health was just extraordinary.”
The event was the latest in a series of monthly gatherings organized by the US embassy in partnership with other embassies in Saudi Arabia to celebrate the experiences and accomplishments of women, and encourage them to share their expertise in a private and relaxed setting. Previous gatherings explored topics such as literature, poetry, science and art.
The latest majlis focused on the mental and physical health of women and included a panel discussion featuring expert speakers Dr. Wafa Alkhayal, a breast and endocrine surgeon; Dr. Norah Alissa, a clinical psychologist; and Kathleen Stroia, senior vice president of performance health with the Women’s Tennis Association. It was chaired by Alice Burt, the UK’s deputy ambassador to the Kingdom.
“It is always so inspiring to get women together who are absolutely on top of their game,” Burt said. This is particularly important when considering women’s health, she continued, because “it helps us to identify the solutions and not just dwell on the problems.”
She added: “We are all very firm friends and I think it is in conversation with friends that you tend to come up with the best outcomes and have the most honest conversations, too.
“I was really struck by the openness and the honesty, and through that, in the spirit of friendship, how you can discuss the tough issues but get to the good outcomes, too.”
Specific topics that were discussed include breast cancer awareness and the importance of mammograms, and the health challenges women face at every stage of their lives, from adolescence to menopause.
Alissa, the clinical psychologist, offered some insights into the important need for people to make time for tranquility in their daily lives, and to perform a wellness checks through techniques such as meditation and breathing exercises.
“Find your moment of stillness in your busy day, even if it is just five minutes, any moment of stillness that can make you feel grounded in your busy day,” she told Arab News.
“We are overly stimulated by everything and we have to be on it all the time. Having that moment of stillness keeps you in check with your body and with your emotions and mind; you know that you are doing okay, and if you are not doing okay, what do I need to do to make myself get okay?”
The panel members also discussed the importance of looking after one’s health through good nutrition and detoxing, as well as building physical health and endurance through activities such as cardio exercises, tennis and pilates.
They highlighted the need to “invest in your future self by taking care of your needs,” and create a support network that helps to make you feel connected. It is also important that people know professional help is available and when to seek it.
“Therapy is not intervention-based it’s prevention-based as well,” Alissa said. “Therapy is for anyone at any time; it isn’t just when crises hit.”
Global AI competition aims to revolutionize Arabic language technology
- 3-day event in Riyadh ends on Saturday
RIYADH: The finals of the Allam Challenge are taking place in Riyadh, bringing together tech talent from 17 nations in an initiative to advance Arabic language technology, the Saudi Press Agency has reported.
The three-day event, which finishes on Saturday, is being hosted at Digital City’s Crowne Plaza and is a collaboration between the Saudi Data and Artificial Intelligence Authority and the Saudi Federation for Cybersecurity, Programming and Drones, with technical support from IBM and the National Technology Development Program.
The challenge aims to develop AI models capable of composing and analyzing Arabic poetry; performing complex grammatical analysis; and creating engaging Arabic language learning tools for children, with a prize pool of SR1 million ($260,000).
Participants will be showcasing their capabilities in developing innovative solutions through the enhancement of large language models. They will benefit from training opportunities and workshops led by more than 50 mentors and 40 judges, and comprising AI experts and Arabic language specialists.
These experts will support participating teams and evaluate their projects according to criteria, ensuring the sustainability of solutions and their potential transformation into real-world AI projects serving the Arabic language across various sectors, the SPA added.
