In Episode 45 this week, The 966 hosts welcome back Saudi-based attorney Chris Johnson to discuss Saudi Arabia’s new personal data privacy law, investment law, and other ongoing legal and regulatory reforms taking place in the Kingdom. Before that conversation, the hosts discuss Saudi Arabia’s strong presence at the World Economic Forum in Davos, an uptick in U.S.-Saudi diplomacy this week after a low point in early 2022, and much more in the finishing ‘Yallah!’ segment.
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2:32 – Saudi Arabia’s big week at Davos
Richard’s one big thing this week is Saudi Arabia’s presence at the World Economic Forum in Davos, Switzerland this week and how Saudi Arabia is stepping into the limelight with a strong economic start to 2022. Saudi Arabia has one of the few good stories to tell at the WEF in a world struggling to deal with the fallout from the Russian invasion of Ukraine and worldwide challenges with inflation.
Saudi Arabia, represented by a host of top-level ministers, pitched itself as well-positioned to use its strategic relationships and hydrocarbon resources to stabilize volatile energy markets and advance economic recovery.
7:02 – A warming of U.S.-Saudi ties?
Lucien’s one big thing this week is a flurry of diplomatic activity between the U.S. and Saudi Arabia indicates the relationship is bouncing back from a low point reached in early 2022. Axios reports the U.S. and Saudi Arabia are working together on the transfer of two islands, the Tiran and Sanafir islands, from Egypt to Saudi Arabia in discussions that involve Israel and may lead, ultimately, to normalized relations between Saudi Arabia and Israel. Simultaneously, three GOP congressmen were in Saudi Arabia visiting directly with Crown Prince Mohammed bin Salman, while top Biden officials were also in the Kingdom to work toward a host of issues on which Saudi Arabia and the United States can agree, paving the way for a potential visit by President Biden to Saudi Arabia in June.
20:08 – Chris Johnson, Managing Attorney at the law firm Johnson & Pump, joins The 966 from Riyadh
The 966 hosts welcome back Saudi-based attorney Chris Johnson, Managing Attorney at the law firm Johnson & Pump in association with Al Sharif Law Firm, to discuss Saudi Arabia’s new personal data privacy law, the Kingdom’s new investment law, and the Private Sector Participation program and how it fits in with Vision 2030 goals. Johnson, who also produces a weekly newsletter on Saudi Arabia that the hosts highly recommend, joins The 966 from his offices in Riyadh.
1:14:00 – Yallah! Six top storylines in Saudi Arabia this week to get you up to date headed into the weekend.
•Saudi official rules out changing laws to introduce alcohol
Assistant Minister of Tourism Princess Haifa Bint Mohammed ruled out the option to change laws in Saudi Arabia to introduce alcohol in the Kingdom, according to the Saudi Gazette. Asked, in a panel session about Saudi Arabia at the World Economic Forum, on the possibility of offering alcohol in new destination such as NEOM. “Saudi Arabia has been very transparent on where it stands on everything, we were very clear and we even heard it from our head of state on where we stand on serving alcohol,” Princess Haifa said. “The short answer is that we’re going to continue with our current laws.” The official pointed out that the Kingdom “is doing very well” when it comes to attracting tourists and opening the country for visitors from around the world. She added: “We have been out outperforming globally in tourism with what we currently have to offer today.”Princess Haifa concluded her answer by saying: “There’s a lot to go around without introducing anything new.”
•U.S. negotiating deal among Saudis, Israelis and Egyptians
Axios reports the Biden administration has been quietly mediating among Saudi Arabia, Israel and Egypt on negotiations to finalize the transfer of two strategic islands in the Red Sea from Egyptian to Saudi sovereignty, five U.S. and Israeli sources told Axios. If an arrangement is reached, it would be a significant foreign policy achievement for the Biden administration in the Middle East.
•Taxation, inflated prices cut the prevalence of smokers in Saudi by a third: Report
According to the The Tobacconomics Cigarette Tax Scorecard (2nd edition) report which examined country-by-country data between 2014 and 2020 on the prevalence of smokers and anti-tobacco measures in place, Saudi Arabia was among the highest-rated countries in the world in terms of its rating improvements between during that span. In 2014, Saudi Arabia had ranked 0.75 out of five – but by 2020 now ranks 3.75 out of five, due to measures implemented in recent years.
•Saudi Arabia’s largest theater chain launches Muvi Studios
Saudi Arabia’s leading theater operator Muvi Cinemas launched Muvi Studios on Monday, according to Arab News, and appointed Saudi film industry pioneer Faisal Baltyuor as its CEO. Muvi Studios will focus on developing both Saudi and Egyptian films for the Saudi public, concentrating on films for the big screen. Since its launch in February 2019, Muvi Cinemas has expanded to 22 locations across the Kingdom, operating 205 screens.
•Al-Jadaan: Saudi Arabia will ‘ultimately’ consider cutting VAT
Saudi Arabia will “ultimately” consider cutting the rate of value-added tax (VAT), which was increased to 15 percent from five percent in 2020, Minister of Finance Mohammed Al-Jadaan said on Tuesday, according to a Saudi Gazette report. The VAT rate was tripled then to shore up finances hit by low oil prices, as the COVID-19 pandemic hit global demand. Al-Jadaan expected that the Kingdom would witness 7.4 percent growth in 2022. He also expected that inflation in the country to be around 2.1-2.3 percent by the end of the year. The minister reaffirmed the Kingdom’s determination to continue its reforms vigorously.
•Saudi Arabia to build luxury yacht club
According to superyachtnews.com, John Pagano, CEO of TRSDC, Amaala and the Red Sea Project said, “We anticipate that Amaala will become an international hub for luxury yachting. The yacht club required a world-class design, influenced by the surrounding natural elements and Arabic heritage, and underpinned by our commitment to sustainability.” The first phase of the yacht club includes eight resorts offering approximately 1,200 hotel rooms, scheduled for completion in 2024. Members of this ultra-luxury yacht club and their guests will be able to get from their boats directly to the private sky-lounge via a lift that can be accessed from the water’s edge.
