DUBAI: Some items sold at airports, and goods due to be exported or re-exported, will be exempt from the new excise tax set to be imposed in the UAE from October, a top official told Zawya.
The excise tax will be imposed at the rate of 100 percent on tobacco and energy drinks and at 50 percent on fizzy drinks (excluding carbonated water), the director-general of the country’s Federal Tax Authority, Khalid Al-Bustani, announced in a press conference last week, which was followed by the release of the tax law earlier this week.
Yet confusion remained over whether goods set for export would be subjected to the excise duty, or those moving between free zones. In an e-mail interview with Zawya, Al-Bustani said the tax “will be imposed on all excise products that get consumed inside the state, even if they were in the free zone”.
He said the tax will also be imposed on excise products that get sold at airports for immediate consumption, but those sold at duty free establishments for consumption abroad would not be taxed.
“The excise tax will not be imposed on the products that get exported or those sold at airports for travelers to take outside the country,” he said.
Al-Bustani also said the tax will not be imposed on excise products that will be re-exported.
Passengers coming to the UAE will also be exempted from paying tax on any tobacco, energy and fizzy drinks they bring into the country, provided that it is for personal use and that the total value of the items is lower than the value subject to customs duty, he added.
Some items to be exempt from new UAE excise tax
Some items to be exempt from new UAE excise tax
Saudi-based Wyld VC unveils $50m AI fund
RIYADH: Wyld VC, a new early-stage venture capital firm founded by Saudi investor Tala Hasan Al-Jabri, has announced the launch of its inaugural $50 million fund — marking the first AI-native VC fund to emerge from the MENA region.
The launch coincided with US President Donald Trump’s high-profile visit to Riyadh from May 13-16, a trip focused on strengthening bilateral ties in key sectors including defense, technology, and artificial intelligence.
“The GCC is leading the charge in catalyzing an AI revolution—through massive infrastructure investments, advanced research and model deployment, and transparent, innovation-forward regulation,” said Al-Jabri, founder and managing partner of Wyld VC. “However, the region’s greatest gap is AI talent. Wyld VC is here to fill that gap.”
The firm is backed by the family office of Lawrence E. Golub, representing the office’s first investment in the region.
“Tala is a highly accomplished, talented investor, with a track record of success investing in innovative, early-stage technology companies,” said Golub. “Her considerable investment acumen, combined with her unparalleled and comprehensive ties and network in the Gulf and the US, offer a unique investment opportunity. I am excited to be supporting Tala and Wyld on this compelling new venture, and I look forward to working with her and her team.”
Wyld VC aims to support what it calls “Wyld minds” — founders advancing the frontiers of AI and shaping the next wave of the human experience. The fund will focus on AI middleware and applications, the layers seen as offering the most transformative potential across industries.
Artificial intelligence has become a strategic priority across the Gulf, where governments and institutions are aggressively investing in research, infrastructure, and regulatory innovation. Against this backdrop, Wyld VC seeks to bridge a critical gap: nurturing the next generation of AI talent in the region.
Al-Jabri is one of MENA’s earliest and most respected tech investors, with a portfolio that includes regional successes like Tabby and international ventures such as the fast-growing U.S. startup Starcloud. She is also a trailblazer for women in Saudi Arabia, becoming the first woman to serve as a partner at a venture capital firm in the Kingdom — a milestone that earned her the title of Woman of the Year 2022 in Finance by Arabian Business.
“Founders in AI need a partner that caters to their unique needs. That’s what Wyld VC is here to provide and we have the best partners to carry forward this mission,” said Al-Jabri.
With deep ties across MENA and the US, Wyld VC enters the market at a time of heightened global interest in AI and regional momentum for tech-led transformation.
Most Gulf shares gain on US-China tariff deal; Egypt snaps losing streak
LONDON: Gulf equities ended higher on Monday as the US and China agreed to temporarily slash harsh reciprocal tariffs while US President Donald Trump’s planned visit to Saudi Arabia and Gulf states on Tuesday also raised investor sentiment.
The US will cut extra tariffs it imposed on Chinese imports in April to 30 percent from 145 percent and Chinese duties on US imports will fall to 10 percent from 125 percent, the two countries said on Monday following talks in Geneva. The new measures are effective for 90 days.
Saudi Arabia’s benchmark stock index rose 1.3 percent, the sharpest rise in a month with almost all sectors in the green.
Saudi Aramco gained 2.2 percent after the world’s top oil exporter reported a net profit of SR97.54 billion ($26.01 billion) in the first quarter on Sunday, beating a company-provided median estimate from 16 analysts of $25.36 billion.
Among other gainers, National Industrialization Co. rose 1.1 percent after the petrochemical company posted a quarterly net profit compared to a net loss a year earlier.
Meanwhile, Saudi Arabia and the US are set to discuss a number of blockbuster economic deals during Trump’s visit on Tuesday, with the US poised to offer Saudi Arabia an arms package worth well over $100 billion, sources have told Reuters.
The Qatari benchmark index continued its three-session winning streak and rose 0.7 percent, with most stocks posting gains.
Qatar National Bank, the region’s largest lender, gained 2 percent and Qatar Electricity and Water climbed 4 percent, its biggest rise in more than a year.
Qatar’s main electricity and desalinated water supplier, QEWC said on Monday that Qatar General Electricity and Water Corporation ‘Kahramaa’ has signed a strategic agreement with QEWC, QatarEnergy, and Sumitomo Corporation to build the Ras Abu Fontas Independent Water and Power Facility at a cost of 13.5 billion Qatari riyals ($3.71 billion).
Dubai’s benchmark stock index was up 0.4 percent, helped by a 7.3 percent rise in Parkin and a 2.8 percent gain in Talabat Holding.
The online food ordering company Talabat reported a first-quarter net profit of $103.3 million. The Abu Dhabi benchmark index edged up 0.1 percent with Aldar Properties gaining 1 percent and Fertiglobe rising 2.2 percent.
The fertilizer producer has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia Pty Ltd.
Outside the Gulf, Egypt’s blue-chip index advanced 0.5 percent after three consecutive sessions of losses. Commercial International Bank rose 1.1 percent and Abu Dhabi Islamic Bank Egypt climbed 3.6 percent.
The lender reported a 43 percent rise in first quarter net profit.
Aviation industry faces supply chain shifts amid global tariff talks, flyadeal CEO says
RIYADH: Global tariff discussions are already beginning to reshape supply chains in the aviation industry, even before formal policies are enacted, a senior executive has said.
Speaking at the Future Hospitality Summit 2025 in Riyadh, Steven Greenway, CEO of Saudi Arabia’s low-cost airline flyadeal, explained that as aircraft components are sourced globally, geopolitical shifts are likely to impact logistics, manufacturing, and planning across the sector.
His comments came just hours after the US and China agreed to temporarily reduce tariffs, with the White House’s levies on most imports from the Asian country dropping from 145 percent to 30 percent, and Beijing’s duties on US goods falling from 125 percent to 10 percent. The move aims to ease trade tensions and allow three more months for negotiations.
Reflecting on the shift in the global economic order, Greenway said: “What I’m predominantly focused on though is not so much tariffs at the moment, it is more the supply chain.”
He added: “Interestingly, tariffs are impacting the supply chain ... even before the monetary effect of tariffs is coming, it’s connecting the supply chain because the supply chain is now moving around to try to accommodate and avoid tariffs.”
The CEO said: “There will be an impact. We’re already seeing discussions around an impact. The magnitude, the scale, I really don’t know.”
Greenway stated that some components of his airline’s engines are made in the US, while the airframes are built in Europe.
While broader trade dynamics present uncertainties, flyadeal is seeing clear internal gains from its latest technology adoption. The airline cut call volume by 80 percent overnight after launching an artificial intelligence-powered chatbot just one month ago, Greenway said.
“We’re quite late to the chatbot arena ... but we took our time in terms of the technology, the learning, the database that underpins that and so forth,” he explained. “That delay perhaps. or cautiousness, has paid off because we’ve actually deployed something that takes in the learnings of many other airlines.”
The chatbot currently supports interactions and bookings, and will soon be expanded with transactional capabilities. Greenway emphasized that AI is being used as a support system, not a decision-maker.
“What we’re doing is we’re using AI not as the decision tool, but a decision support tool; so, keeping the human in the mix,” he added.
Flyadeal’s digital transformation aligns with Saudi Arabia’s Vision 2030 plan to grow its aviation sector and boost tourism to 150 million annual visitors. The carrier plans to triple in size, expanding to more than 100 destinations with a fleet of over 100 aircraft and a workforce exceeding 4,000.
Also at the summit, Julien Renaud-Perret, executive director of hospitality at New Murabba Development Co., offered details on Riyadh’s upcoming mega project, the Mukaab. The immersive, cube-shaped landmark is set to host up to 27,000 visitors simultaneously when it opens.
“Our goal ... is to be able to transport people through technology through screens and holograms into a different world,” Renaud-Perret said. “It could be the ocean, could be Jurassic Park, could be the desert, could be the space.”
He added that the Mukaab is envisioned to be “an iconic landmark of the city” on par with the Eiffel Tower or Empire State Building.
The Future Hospitality Summit, running from May 11 to 13, brings together over 1,000 global tourism leaders, investors, and hotel operators.
Backed by strategic partners including NEOM, Red Sea Global, and the Tourism Development Fund, the event highlights Saudi Arabia’s rapid transformation into a leading global destination.
IHG to introduce 15,000 additional keys in Saudi Arabia by 2030: top official
RIYADH: UK multinational hospitality giant IHG Hotels and Resorts is planning to add an additional 15,000 rooms in Saudi Arabia, as it eyes opening another 50 hotels in the Kingdom by 2030, according to an official.
Speaking to Arab News on the sidelines of the Future Hospitality Summit in Riyadh on May 12, Maher Abou Nasr, vice president of operations for IHG in Saudi Arabia, said that the company will add seven new hotel brands in the Kingdom, in addition to the existing six already operating in the country.
Strengthening the hospitality sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030, as the Kingdom is steadily diversifying its economy by reducing its decades-long reliance on crude revenues.
Ahead of the summit, FHS data revealed that Saudi Arabia is set to add 362,000 new hotel rooms by 2030 as part of its $110 billion hospitality expansion plans.
“We have 45 hotels in the market now, and it includes Makkah, Madinah, Riyadh and all the tourism cities in the Kingdom. And that is close to 24,000 keys currently operating in the market. But our pipeline has 50 hotels. So, more hotels are coming to the market, with 15,000 keys that we are going to be introducing soon,” said Abou Nasr.
He added: “We have six brands that are operating currently in the Kingdom, but we have seven brands in the pipeline. So we’re going to have 13 brands, in close to five years, that are going to be operating in the Kingdom.”
Abou Nasr further said that IHG is gearing up to meet the rising demand in Saudi Arabia’s hospitality sector, with the Kingdom gearing up to host major international events including Expo 2030 and the FIFA World Cup in 2034.
Abou Nasr said that 49 percent of the company’s workforce are Saudi nationals, and the new hotel brands will help workers from the Kingdom explore more opportunities in the hospitality sector.
“Those Saudi youth who are going to be working in the Expo and the World Cup are people who are graduating today from high school. They are making their decisions on their career paths today, this year, last year, and in the coming year. So, in this period, we need to reach this pool of talent and attract them to the hospitality industry,” said Abou Nasr.
“Today we have 49 percent Saudization. Close to 2,000 Saudi nationals work in our hotels, but we want to reach 6,000 by 2030 to be working for us,” he added.
Abou Nasr added that IHG is getting sufficient support from the Kingdom’s Ministry of Tourism to attract Saudi talents to the company’s workforce.
Meeting diversification of demand
According to Abou Nasr, IHG is trying to cater to the needs of demand in different segments, such as midscale and upper midscale, in addition to the traditional luxury offerings provided by the hospitality group.
“With all the changes that are happening in the Kingdom, we see a big diversification of demand. Not everybody wants to stay in luxury hotels all the time. Having said that, luxury remains our biggest part of the portfolio that’s coming — 60 percent of our pipeline hotels are in the luxury and lifestyle segments,” said Abou Nasr.
He added: “However, we still see demand now that is coming into different segments, like the midscale and upper midscale. So, Holiday Inn Express is coming to the market, and we’re introducing Garner as well, sometime in the near future, to the Kingdom.”
On the first day of the FHS, IHG and Ashaad Co. signed an agreement to develop three new hotels in Saudi Arabia: Intercontinental and Voco in Alkhobar and Hotel Indigo in Jeddah.
Citing a presentation made by real estate consultancy JLL at the summit, Abou Nasr said that Saudi Arabia had committed to adding 185,000 keys as part of its offering for FIFA World Cup 2034, and not all of these keys will be in luxury segments.
Abou Nasr highlighted the growth of the hospitality industry in Saudi Arabia, and said that hotels in Riyadh and Jeddah have started to make profits within one or two months of starting operations.
“In the past, that used to be a few months before we break even and then start ramping up toward more profits. Today, we are seeing a lot of hotels making profits from the first or second months,” said Abou Nasr.
He added: “There’s a lot of demand that is happening in those cities. It depends on the location, the brand and the size of the hotel. But hotel investments are proving to be very profitable in this market.”
Maintaining competitiveness
During the interview, Abou Nasr said that IHG is committed to maintaining competitiveness in the market, as the company plans to add 50 new hotels in addition to the 45 already operating in the Kingdom.
“We are actively working toward renovating many of those hotels that need renovation and bringing them up to speed to cater for the new travelers that are coming to Saudi Arabia,” he said.
Abou Nasr added that IHG, during the recently concluded Arabian Travel Market, signed a memorandum of understanding with the Ministry of Tourism to collaborate around enhancing the guest experience when travelers come to Saudi Arabia.
Abou Nasr further said that IHG is committed to maintaining sustainability as the world is trying to materialize the climate goals.
“We’re working on introducing three energy conservation measures into our hotels that will take care of water conservation within our properties and energy conservation as well. In the future, there are a lot more initiatives to come. This is all guided by our journey to tomorrow, which are our sustainability initiatives at a corporate level,” he added.
Combating challenges
Abou Nasr said cooperation with the government has helped IHG to change challenges into opportunities.
He added that completing the projects within the stipulated timeframes and renovating existing facilities are some of the challenges which are being faced by IHG.
“We firmly believe that Saudi hospitality is delivered by Saudis. And we’re able now to go and talk to those Saudis at that young age to attract them to the industry with help from the government,” said Abou Nasr.
Saudi crown prince launches HUMAIN to position Kingdom as global AI hub
JEDDAH: Saudi Arabia’s Crown Prince has launched HUMAIN, a new artificial intelligence company aimed at developing Arabic large language models and establishing the Kingdom as a global hub for AI innovation and leadership.
Backed by the Public Investment Fund, HUMAIN will operate across the entire AI value chain as an integrated technology firm, the Saudi Press Agency reported.
HUMAIN’s creation aligns with the broader goals of Vision 2030, the Kingdom’s economic transformation plan, and underscores its ambition to lead in high-tech sectors. The company will support local innovation, develop intellectual property, and attract top global AI talent and investment.
“Chaired by HRH the Crown Prince, HUMAIN will provide a comprehensive range of AI services, products and tools, including next-generation data centers, AI infrastructure and cloud capabilities, and advanced AI models and solutions,” stated the SPA report.
“The company will also offer one of the world’s most powerful multimodal Arabic large language models,” it added.
The firm is also set to drive adoption of AI technologies in key sectors such as energy, healthcare, manufacturing, and financial services. It will consolidate data center initiatives, oversee hardware procurement, and scale deployment of AI solutions regionally and globally.
AI is expected to contribute SR58.8 trillion ($15.6 trillion) to the global economy by 2030, the Saudi Data and Artificial Intelligence Authority has projected. The sector is also forecast to generate 98 million jobs by 2025.
PIF and its portfolio companies are actively working to build a thriving AI ecosystem, leveraging Saudi Arabia’s strategic location, economic growth potential, and rising demand for advanced AI research and innovation.
The Saudi Co. for Artificial Intelligence, a PIF-owned entity established in 2021, serves as the fund’s AI and emerging tech arm, supporting national goals through solutions in smart cities, energy, healthcare, and finance.
PIF’s strategy contributes to the Kingdom’s ambition of becoming a competitive global player in the digital economy, supporting economic diversification goals as outlined in Vision 2030, the SPA report said.
In recognition of these efforts, Saudi Arabia ranked first globally in the 2024 Global AI Index for government AI strategy, affirming its leadership in this transformative sector.
