JEDDAH: The 5 percent value-added tax (plan) will not be imposed on certain medicines and medical equipment, according to Reuters citing a statement carried by Saudi Press Agency (SPA) on Saturday.
All other private health care services will be taxed at the standard rate, the statement said, citing directives issued by the General Authority of Zakat and Tax (GAZT), the Ministry of Health and the General Authority for Food and Drug Affairs.
Last week, the tax authority had confirmed that interest or lending fees charged with an implicit margin for finance will be exempt from value-added tax (VAT).
GAZT officials, at a workshop held in Jeddah for members of the local media, also quashed rumors about ATM withdrawals and clarified that customers would not be charged for withdrawing or transferring money from their accounts using ATMs.
However, the 5-percent tax will be imposed on banks’ administrative charges such as the issuance of checkbooks, statements of accounts and safety deposit boxes and the customer will have to bear this expense.
In a bid to facilitate businesses, the authority also announced that the first year after VAT launch will be a transitional period. Goods and services supplied under certain long-term contracts will be zero-rated during that period provided the existing contracts meet certain requirements. This will enable suppliers and customers, who had entered into long-term contractual commitments, to re-negotiate the contracts’ details, particularly details that will be affected by VAT implementation.
GAZT clarified that this treatment only applied to contracts that did not anticipate VAT. Contracts that contain tax-related provisions or mechanisms to adjust prices of goods and services and include VAT will not be included.
Saudi Arabia and the UAE are expected to be the first Arabian Gulf countries to introduce the GCC-wide VAT on Jan. 1, 2018, while other member states have committed to implementing their own VAT taxation by next year.
Gulf states have been looking at other ways to reduce dependency on oil revenues, as well as create new income streams to fund government services including public health services, public owned or funded schools, parks and transport infrastructure.
It is estimated that the VAT’s imposition will raise between $7 billion and $21 billion annually — or between 0.5 percent and 1.5 percent of regional GDP. The International Monetary Fund (IMF) has said the returns could reach around 2 percent of region’s output.
The GAZT has urged businesses with annual revenues of more than SR1 million ($266,640) to expedite their VAT registration process and ensure their readiness for its implementation.
Certain medicines, medical equipment exempted from VAT in Saudi Arabia
Certain medicines, medical equipment exempted from VAT in Saudi Arabia
Sri Lanka to build on, maintain relations with Saudi Arabia: envoy
- Sri Lanka, Saudi Arabia celebrate 50 years of diplomatic relations
- Commemoration of anniversary will serve as a catalyst to further consolidate bilateral relations
- Two countries to issue a postage stamp, unveil a logo besides other cultural activities
RIYADH: Sri Lankan Ambassador in Riyadh Omar Lebbe Ameer Ajwad expressed his desire to elevate bilateral relations to new heights as Saudi Arabia and Sri Lanka celebrate 50 years of diplomatic ties.
In an exclusive interview with Arab News, Ajwad said: “Saudi Arabia and Sri Lanka are celebrating the 50th anniversary of the establishment of diplomatic relations.”
He added: “Sri Lanka and Saudi Arabia have a very long background of ties. According to the history books, it started in the seventh century … when Sri Lankan King Aggrabodhi III dispatched a delegation on a fact-finding mission to Saudi Arabia, on the request of the Arab people who were living in Sri Lanka at that time. The king sent an envoy to Madinah to learn about Islam from Prophet Muhammad.”
This ancient trade and people-to-people relationship between Saudi Arabia and Sri Lanka flourished over time. The two established formal diplomatic relations in 1974. The first Saudi ambassador to Sri Lanka was appointed in August 1977. The Sri Lanka mission was established in Jeddah in 1983. The Embassy of Sri Lanka was established in Jeddah with M.R.M Thassim as the first accredited ambassador, and shifted to Riyadh in 1985.
“We are celebrating this historic moment. It’s a milestone in our bilateral relations. We have decided on a logo to be unveiled soon to mark this occasion, both countries have agreed on that. We will soon launch it both in Saudi Arabia as well as Colombo. The logo will demonstrate the close bilateral relations,” said the ambassador.
“We will issue a postal stamp to mark the occasion. Both countries are now working on that to release a stamp to demonstrate the depth of relations,” Ajwad told Arab News.
“We also took some initiatives to mark the golden jubilee occasion such as the green initiative with the tree planting campaign in Riyadh in collaboration with the Saudi Ministry of Foreign Affairs and the Riyadh municipality — we have already planted trees in four parks with our community. It is aligned with the Saudi Green Initiative that aims to plant 10 billion trees,” he said.
“(We) also initiated planting campaign in the Sri Lankan Schools in Riyadh and Jeddah to mark the 50th anniversary,” he added.
“We initiated an Ambassadors Cup cricket tournament among our community to mark this occasion. We already had it in Jeddah, and now we have a final on Dec. 27 in Riyadh,” he said.
“We have also launched events to boost cultural cooperation between the two countries.”
Ajwad noted that Saudi Arabia under the visionary leadership of King Salman and Crown Prince Mohammed bin Salman has embarked on an ambitious Vision 2030 program.
“We witness Saudi Arabia’s fastest developments in all spheres,” he said, adding that Sri Lanka was one of the first countries which pledged support for Saudi Arabia hosting Expo 2030. He also said Sri Lanka is proud of the Kingdom winning the bid to host the FIFA World Cup in 2034.
“I believe the commemoration of the 50th anniversary of the diplomatic relations will serve as a catalyst to further consolidate our bilateral relations in all areas of mutual interest in the years ahead,” said Ajwad.
Following the commemorative year, “we are planning to initiate the first political consultation meeting between the foreign ministries of both countries, finalizing the roadmap for economic cooperation between the Ministry of Economy and Planning of Saudi Arabia and the relevant ministry in Sri Lanka, and activating the MoU on foreign investment signed this year between Sri Lanka and the Ministry of Investment of Saudi Arabia,” he added.
On diplomatic ties with Saudi Arabia, the ambassador said: “We are very closely working on all aspects.”
He added that the Saudi-Sri Lanka Joint Committee was established under the General Cooperation Agreement signed between the two countries in 2003.
The committee held its first session in 2023 in Riyadh. The Saudi delegation was led by Dr. Abdullah Nasser Abu Thnain, deputy minister of human resources and social development, while the Sri Lankan delegation was headed by Tharaka Balasuriya, former minister of state for foreign affairs.
“We have identified around 63 items for economic cooperation under the Joint Committee. We have also set up an economic roadmap under the framework of the Joint Committee,” said the ambassador.
“It’s a very promising roadmap. So we will build on the relations that we have already maintained, to elevate it to the new heights,” said Ajwad.
Saudi Arabia’s assistance to Sri Lanka is broad and diverse. The Kingdom has provided assistance to the tune of $455 million to implement over 15 development projects in education, irrigation, agriculture and road networks, including the establishment of Medical Faculty at the University of Sabaragamuwa, the development of the Wayamba University township and the Kurinchakerni Bridge project.
The Saudi aid agency KSrelief has also implemented 18 projects including shelter, food security, and humanitarian operations at a cost of more than $15 million.
Formation of a Parliamentary Friendship Committee between the two countries has further strengthened bilateral ties, said the envoy.
“We are also focused on the private sector interactions between the two countries,” he added.
Tourism is a very promising area for Sri Lanka. “We saw an increased number of Saudi tourists visiting Sri Lanka. Saudis are placed third in number of tourists visitng Sri Lanka,” said Ajwad, adding: “We are working closely on promoting tourism. It’s a promising area. We can work in the hospitality sector as well. There is a big interest.”
Saudi crown prince checks on health of Morocco’s king during phone call
- The king had successful surgery earlier in December
RIYADH: Crown Prince Mohammed bin Salman made a phone call on Friday to King Mohammed VI of Morocco to check on the king's health and wish him continued good health and wellbeing, the Saudi Press Agency reported.
King Mohammed thanked the crown prince for the call and kind wishes, SPA added.
The king had successful surgery earlier in December on his left shoulder after suffering a fall while working out, state media said.
Japan looks forward to strengthening relations with ‘major power’ Saudi Arabia as 70th anniversary nears
DUBAI: Japan Foreign Minister Takeshi Iwaya told a press conference on Friday that Saudi Arabia is a “major power” in the Middle East and plays a significant role in peace and stability in the region.
“Saudi Arabia is an important country for Japan, especially when it comes to energy and security. The country is an important partner,” he said.
Responding to a question about next year’s 70th anniversary celebrations between the two countries, Iwaya explained that Japan, on a broader and deeper scope, wants to “promote cooperation and understanding” with Saudi Arabia.
Iwaya said that Japan was soliciting public proposals for commemorative events between the two countries. “Between the governments, we are moving forward with certain plans,” he added.
In October, a commemorative logo was released, which features a combination of a palm tree, a symbol of Saudi Arabia, and cherry blossoms, a flower synonymous with Japan.
The foreign minister also spoke about Japanese boxing champion Naoya Inoue’s sponsorship contract with Riyadh Season.
“(The contract) is something that we should be very happy about, we are proud of this super champion. So, we hope that he will be very active and successful in Saudi Arabia as well. We welcome this,” he told the press conference.
Inoue announced the sponsorship deal in November, which is reported to be worth about $20 million. The boxing champion will have the Riyadh Season logo displayed on the branding for his fights.
During the press conference, Iwaya also announced newly designed Japanese passports in 2025 as well as Prime Minister Ishiba Shigeru’s potential meeting with US president-elect Donald Trump.
Diriyah Season 24/25 launches celebration of history, culture and arts
- Diriyah Season 24/25 will kick off with the Enduring Resilience Exhibition
RIYADH: The Diriyah Company has announced the launch of Diriyah Season 24/25, which begins on Friday, Dec. 20 with a display of Diriyah’s heritage, hospitality, and immersive cultural experiences through various programs.
Jerry Inzerillo, CEO of the Diriyah Company, said: “We anticipate welcoming three million visitors to At-Turaif district, the birthplace of the Kingdom, by Founding Day on Feb. 22, 2025.
“We are breaking records in visitor numbers and forming numerous partnerships for ground and tour operations, with new flights already arriving from countries like China. The international presence in Bujairi is evident every night, making it one of the world’s premier gathering spots.”
Under the theme “Entertain Your Cultural Curiosity,” Diriyah Season 24/25 will kick off with the Enduring Resilience Exhibition, honoring the legacy of Imam Turki bin Abdullah, who founded the Second Saudi State 200 years ago. The much-anticipated Layali Diriyah returns with innovative experiences, while Minzal invites visitors to appreciate the natural beauty and heritage of Diriyah in a winter wonderland.
Guests can engage with the “850” interactive experience, immersing themselves in the narratives of significant historical figures. The Diriyah Storytelling Festival will celebrate literature and promote cultural exchange. Additionally, the Tyn Festival will bring together architects, academics and enthusiasts to celebrate the region’s tradition of mud architecture.
In the historic At-Turaif district and Bujairi Terrace, visitors will embark on a journey filled with cultural and artistic expression. The Souq program combines performing arts with a heritage backdrop enriched by modern elements. Lastly, the Samri Art Activities will offer interactive performances of Samri folk music and dance at various locations in Diriyah throughout the season.
UN Internet Governance Forum concludes in Riyadh
- Event witnessed launch of Riyadh Declaration to help strengthen international partnerships in AI
- Forum featured experts from 170 countries
RIYADH: The UN Internet Governance Forum concluded its 19th edition on Thursday at the King Abdulaziz International Conference Center in Riyadh.
The forum’s organizers said that the global event had focused on internet governance policies and emerging digital challenges. It had achieved the highest attendance in the history of the forum, surpassing 11,000 participants.
The forum also witnessed the launch of the Riyadh Declaration, a document which aims at strengthening international partnerships in artificial intelligence and digital technologies to serve humanity.
The event featured experts and specialists in internet technology and policy from 170 countries, with more than 1,000 international speakers contributing to over 300 sessions and workshops, the Saudi Press Agency reported.
It revolved around four main topics: innovation and risk in the digital space; development and sustainability; promoting human rights and inclusiveness; and improving the digital governance of the internet, the SPA added.
