RIYADH: Senior bankers clarified on Sunday that money sent home by expatriate workers will not be taxed under the value-added tax (VAT) reform initiative to be launched by the Saudi government on Jan. 1 next year.
It was also announced that companies and businesses have only three days left to register and obtain their dedicated VAT account numbers.
Saudi Arabia’s General Authority for Zakat and Income Tax (GAZT) has urged businesses with annual revenues of more than SR1 million ($266,640) to register for VAT before the deadline of Dec. 20, 2017.
“The deadlines for companies with annual revenues between SR1 million and SR375,000, however, has been extended by a year until Dec. 20, 2018,” according to a GAZT statement.
“All businesses including commercial organizations and banks have been advised to make sure they understand the VAT rules and be ready for their implementation after 15 days from now,” said Syed Ahmed Ziauddin, a senior banker who heads the financial institutions and public sector group at Bank Al-Jazirah in Riyadh.
He said: “Aljazirah Bank is fully ready to start from Jan. 1 ... and we are going to apply VAT on our service charges.”
He said that all commercial banks have geared themselves to comply with the VAT regulations. “The banks have also educated their customers about VAT besides advising them about various services that will come under the purview of VAT,” said Ziauddin, while adding that the remittances will not be taxed under the VAT system.
“Money remittance outflows will be exempted,” said Abdullah Ali Nasser Alfuraiji, chief of the Tahweel Al-Rajhi in Riyadh. Alfuraiji made it clear that “the 5 percent VAT tax would be levied on the remittance service fees, rather than the remittances themselves.
He emphasized that “Tahweel will be charging 5 percent of SR18, which we charge as remittance fee for sending funds to India. Hence, the rise will be nominal with customers required to pay 9 halalas extra for remitting money to India.”
The Tahweel chief added that this will be negligible, but will differ from country to country.
Referring to the implementation of the VAT and the levies imposed on remittances, Ahmed Mohammed Al Enazi, general manager of Enjaz Banking Services, the remittance arm of Bank Albilad, said: “There will not be any impact on remittances.” He also confirmed that “5 percent VAT will be imposed on service charges... say like 5 percent of SR16 in case of India and 5 percent of SR20 in case of Pakistan.”
“The 5 percent on banks’ service fees will be paid by the person sending money as per guidelines of the General Authority of Zakat and Tax (GAZT),” said Ahmed.
Banks and remittance centers in the Kingdom charge varying fees on remittances sent to different Asian and European countries.
The imposition of 5 percent VAT “on service charges, not on remittance amounts” was also confirmed by Anwar Ahmed Wajid Khajja, manager of products and partners at Fawri, the remittance wing of Bank Aljazirah in Riyadh.
Referring to the benefits of VAT especially those collected by banks and remittance centers, Cenon Nonie C. Sagadal Jr., marketing representative of Rizal Commercial Banking Corporation (RCBC) of the Philippines, said: “VAT is a welcome move with a slight increase in remittance fees, which will eventually benefit the remitters and the institutions.
“With the government meeting its financial goals as a result of VAT collection, more employment opportunities will be created not only for Saudis but also for expatriates within the framework of the Saudi Vision 2030.”
No VAT on expat remittances in Saudi Arabia, say bankers
No VAT on expat remittances in Saudi Arabia, say bankers
Saudi Foreign Minister Faisal bin Farhan says aid entry to Gaza cannot be linked to a ceasefire
ANTALYA: Saudi Arabia’s Foreign Minister Faisal bin Farhan said aid entry to Gaza cannot be linked to a ceasefire.
Bin Farhan said the international community must pressure the Israeli government to allow aid deliveries to Gaza.
The Extraordinary Joint Arab and Islamic Summit discussed the developments in the enclave, as well as efforts to achieve an immediate and sustainable ceasefire.
The Saudi minister said any displacement of Palestinians is categorically rejected. He added that the Kingdom appreciated the efforts of Egypt and Qatar in the ceasefire negotiations.
The meeting also emphasized the need for efforts to continue to enable the Palestinian people to exercise their inherent rights.
Reseda alba, an aromatic herb found across Saudi Arabia, plays vital role in fighting desertification
- Known by the common name white mignonette, it thrives in both sandy and clay soils
- The plant blooms in spring, attracting bees and pollinators to enhance ecological balance
ARAR: Reseda alba, a flowering aromatic herb, is found naturally in several regions of Saudi Arabia and is a key part of local vegetation in the Northern Borders.
Known by its common names of white mignonette or white upright mignonette, the plant has small, white, fragrant flowers and is also cultivated as an ornamental. It blooms in spring, attracting bees and other pollinators, enhancing the ecological balance and supporting biodiversity.
Thriving in both sandy and clay soils, the plant is well suited to the desert climate of the Northern Borders region. It also plays a vital role in combating desertification by stabilizing the soil.
A perennial plant that grows up to 1 meter high, reseda alba is also native to Europe, Asia and North Africa. It can be found in other parts of the world as an introduced species.
Nasser Al-Mujlad, chair of the Aman Environmental Association, said the expanding growth of reseda alba was a key element of the region’s natural botanical heritage.
The plant’s aesthetic appeal added significant value to the region’s tourism and environmental significance, he added.
Al-Mujlad pointed out that many plants previously at risk of extinction have made a comeback, thanks to the establishment of reserves and the implementation of new regulations and laws aimed at protecting the environment and conserving its natural resources.
How Saudi Arabia is protecting users’ privacy and data from harmful AI
- AI technologies often collect sensitive personal data, raising concerns over consent, surveillance, and potential misuse
- Saudi Arabia is leading AI regulation in the region with ethical principles and a personal data protection law
RIYADH: As artificial intelligence seeps deeper into everyday life — from smart assistants and facial recognition to online shopping and AI-generated selfies — so too do the threats to personal data and privacy.
The dazzling capabilities of AI come at a cost many users do not fully grasp: exposure to data collection, surveillance, and potential misuse. And in a world where convenience often trumps caution, experts are urging users and organizations alike to slow down and scrutinize the digital tools they engage with.
“AI systems often depend on vast amounts of data, including sensitive personal information, which raises significant privacy issues,” Osama El-Masry, who leads data protection and privacy practice delivery for the Middle East region at the IT consulting firm Cognizant, told Arab News.
“Many users are unaware of how their data is collected, stored, and utilized, leading to fears of unauthorized access or misuse. For example, technologies like facial recognition can infringe on individual privacy without consent, posing risks of surveillance and tracking.”
This warning comes amid growing concerns about how AI software processes user data — especially in apps and platforms that seem harmless at first glance.
While regulation and ethical oversight are often viewed as a government or corporate responsibility, El-Masry stresses that users must also play an active role.
“This means reading privacy policies and being aware of what personal information is collected and how it may be used or shared,” he said.
“A critical aspect of this responsibility is limiting the sharing of personal data when using AI tools. Users should strive to provide only the minimum necessary information required to achieve their desired outcomes, avoiding unnecessary disclosure of sensitive data.”
In short, treat AI tools like you would any new technology: with a mix of curiosity and caution. The onus is on users to learn how their data is handled and to be wary of oversharing. On the flip side, organizations must prioritize privacy from the very beginning of product design.
“This involves implementing strong data protection measures, ensuring transparency and explainability in data usage, and adhering to AI and privacy regulations/principles,” El-Masry said. “Organizations should also clearly communicate their data practices to users, fostering an environment of trust.
“Ultimately, a collaborative approach, where both parties understand their roles and responsibilities regarding privacy, is essential for protecting personal information in the age of AI.
“By working together, users and organizations can create a more secure digital landscape that respects privacy rights.”
Take the current obsession with AI art filters, for instance. Millions of users upload their photos to apps that transform them into anime characters or classic oil paintings. But what happens to those original images?
“Many users may not realize that while the effect is fun, their original images are still being processed and may be retained by the app,” said El-Masry.
“This underscores the importance of being mindful about which platforms and applications are trusted with personal images and data. By taking these steps, users can harness AI’s potential while safeguarding their personal information against misuse.”
It’s a simple but powerful reminder: Just because something looks like harmless fun, doesn’t mean it’s risk-free. Every interaction with AI — no matter how trivial it seems — carries data implications.
Users are also advised to challenge the information they receive from AI platforms. While many tools promise personalization and convenience, they can just as easily perpetuate bias or inaccuracies.
“Continuous education about AI ethics and privacy implications empowers users to make informed choices about their interactions with these technologies,” said El-Masry. “Users should also advocate for ethical data practices within their communities, promoting accountability among developers and organizations.
“It’s important to recognize that AI applications vary widely, with some being non-privacy-related, such as telecom network enhancements and medical diagnostics, and others being privacy-sensitive, like marketing profiling and predictive analysis.
“Users should be particularly cautious when interacting with AI technologies in privacy-sensitive fields, as these applications often involve the handling of personal data that can impact privacy rights.”
There are ways to navigate the AI landscape safely. One approach is to seek out AI tools that prioritize user privacy through transparent practices and robust protection measures.
“By taking these steps, users can harness AI’s potential while safeguarding their personal information against misuse,” said El-Masry.
The stakes are higher than many realize. As AI becomes more sophisticated and integrated into business, healthcare, finance, education, and government systems, the implications for misuse — whether accidental or malicious — become more severe.
El-Masry lists several privacy threats tied to AI applications, including “unintended biased decisions, unethical AI use cases, data leaks, decisions ambiguity, and the use of AI with vulnerable data subjects.
“This is becoming a global concern and the driver for the issuance of the different ethical AI regulations/principles by many policymakers across different regions and countries to mitigate the above risks associated with the use of AI.
While much of the world is still struggling to keep pace with innovation, Saudi Arabia has moved to regulate and promote the ethical use of data and AI.
“The Kingdom introduced the Personal Data Protection Law, which establishes clear guidelines for data collection, processing, and sharing, ensuring that individuals’ privacy rights are protected,” said El-Masry.
“This framework aligns with international standards, signaling a commitment to responsible data management.”
The country’s National Strategy for Data and Artificial Intelligence is another critical piece of its governance efforts. It aims to build a culture of innovation without compromising ethical boundaries.
“Notably, SDAIA has issued a set of ethical AI principles that emphasize fairness, accountability, transparency, and privacy,” said El-Masry. “These principles guide the development and deployment of AI technologies, ensuring they are used responsibly and ethically.”
Despite Saudi Arabia’s leadership, data privacy in the broader Middle East remains patchy. Many countries still lack comprehensive legal frameworks to protect users’ rights.
El-Masry believes that’s an area ripe for action. “Governments should establish comprehensive AI and data privacy laws and regulations that align with international standards, providing clear guidelines for data processing.”
DID YOU KNOW?
• Saudi Arabia has introduced the Personal Data Protection Law to safeguard user privacy and regulate data use responsibly.
• The Kingdom’s National Strategy for Data and AI promotes innovation while ensuring ethical, transparent, and accountable AI practices.
• SDAIA’s ethical AI principles emphasize fairness, privacy, and governance, guiding responsible development and deployment of AI technologies.
He also advocates for coordinated public-private collaboration to raise the bar for compliance and innovation across the region.
“Organizations must prioritize compliance and even go beyond compliance and acknowledge the value of investing in implementing data responsibility practices and technologies that ensure robust privacy compliance and AI governance in conducting business, which has a direct impact on their revenues and sustainability. There are clear examples of private organizations who adopted this approach and (have) proven to be competitive and successful.
“Organizations should communicate their data practices clearly to build public trust. Additionally, mandating that organizations document AI use cases involving personal data and ensuring periodic reviews of AI algorithms can help maintain compliance with privacy regulations.
“Governments can support this by providing resources, consultation, and training to enhance organizations’ privacy and AI governance capabilities.”
While legislation and corporate responsibility are critical, El-Masry says individuals must also be empowered to take charge of their own digital lives. He calls for greater awareness and education around data privacy.
“By adopting a proactive and unified approach, both organizations and governments can create a safer digital environment that prioritizes privacy for all,” he said.
As AI becomes increasingly entangled in the infrastructure of modern life, protecting privacy is no longer a niche concern — it’s a collective responsibility. From the laws that govern AI to the choices we make about which apps to trust, the future of digital safety depends on everyone playing their part.
As El-Masry puts it: “By working together, users and organizations can create a more secure digital landscape that respects privacy rights.”
Saudi and French experts explore opportunities for cooperation in sustainable agriculture
Saudi Arabia’s National Research and Development Center for Sustainable Agriculture, also known as Estidamah, welcomed a delegation from the French National Federation of Seed Potato Growers for an official visit during which they discussed opportunities for enhanced cooperation and exchanges of expertise.
The visitors learned about the center’s activities, including its research and technical programs and prominent projects that support the development of sustainable agricultural solutions in the Kingdom.
The center said the visit reflected its commitment to building strategic partnerships with leading international organizations, and the sharing of experience that can contribute to the development of the agricultural sector and improved food security.
The French federation, which specializes in support and development of potato seed production, oversees a number of research and technical institutions.
AlUla Skies Festival 2025 returns next week
- The festival features a variety of additional activities, including illuminated hot air balloon shows, tethered-flight and free-flight balloon rides over AlUla’s iconic landmarks, and musical concerts blending culture, exploration and entertainment
RIYADH: AlUla Moments has announced the return of the “AlUla Skies Festival 2025” from April 18 to 27, featuring a variety of new experiences.
The festival highlights the area’s clear, light-pollution-free skies and AlUla’s deep, ancient connection to astronomy, as it is home to Gharameel and AlUla’s Beacon, the first designated Dark Sky locations in the Middle East, recognized by the International Dark-Sky Association, solidifying AlUla’s status as a global hub for astro-tourism.
The festival offers visitors a rare opportunity to stargaze in a pristine natural environment, showcasing IDA-certified locations such as Gharameel and AlUla’s Beacon.
These spots are among the first official Dark Sky Sites in the region, reinforcing AlUla’s role as a leading destination for stargazing tourism.
Visitors can head to the Gharameel Reserve to view the Milky Way in one of the clearest skies in the region. The experience also includes night walks, camping sessions and grilled dinners around campfires.
The festival features a variety of additional activities, including illuminated hot air balloon shows, tethered-flight and free-flight balloon rides over AlUla’s iconic landmarks, and musical concerts blending culture, exploration and entertainment.
For more information about the AlUla Skies Festival, visitors can check the official website: https://www.experiencealula.com/en.
