Dubai: Saudi Arabia’s Finance Minister has unequivocally said that there are no intentions to impose income tax on individuals in the country.
During an interview at the 2024 World Economic Forum in Davos, Mohammed Al Jadaan stressed the government’s commitment to its current financial mechanisms.
“Saudi Arabia is already leveraging various revenue sources, including a value-added tax (VAT), income tax on companies and foreign investors, and zakat on the local population. There are no plans to alter these established mechanisms. Instead, the government aims to streamline economic processes to foster a more business-friendly environment,” Al Jadaan said.
The minister highlighted Saudi Arabia’s diversification efforts into multiple sectors such as tourism, technology, and logistics. The country is actively working on logistical projects, including railways and airports, to enhance connectivity.
Additionally, Saudi Arabia is expanding water treatment plants to ensure uninterrupted service for citizens and residents, while also embarking on various renewable energy projects requiring substantial financing.
To address the deficit, Saudi Arabia has issued bonds worth $12 billion. These funds will be allocated to finance the deficit, which currently stands at approximately two per cent of the gross domestic product (GDP) for the year. The government also plans to expedite spending on major projects. Al Jadaan expressed optimism about the country’s economic direction, citing positive signs of progress.