“Oil revenue is received by the government through three channels: royalties (levied on oil sales); corporate income taxes (with different tax regimes for upstream and downstream activities and gas); and dividends that are paid by Saudi Aramco to all shareholders (the government currently owns 81.5% of the company). In the first half of 2024, dividends accounted for about one-half of the total revenue paid by Aramco to the government. The Public Investment Fund, which holds a 16% equity stake in Aramco, also benefits from the dividends paid by Aramco.” Tim Callen, visiting fellow at the Arab Gulf States Institute in Washington, Lower Oil Prices Challenge Saudi Fiscal Policy [Arab Gulf States Institute in Washington]
“Mortgages in the kingdom are viewed as relatively safe, because they tend to go to employees of the government or government-backed companies, are linked to automatic salary transfers into the same account, and generally enjoy fixed interest rates, according to Mohamed Damak, a managing director at S&P Global.” Saudi Arabia woos US investors to bolster housing sector [Arabian Gulf Business Insight]
“The International Monetary Fund (IMF) issued a positive report on the Kingdom of Saudi Arabia following the conclusion of the Article IV consultations with Saudi Arabia. The IMF report confirmed that Saudi Arabia’s financial and regulatory reform agenda contributed to accelerating the Saudi economy’s growth, containing inflation, and reducing the unemployment rate to its lowest levels ever. The IMF praised the ongoing economic transformation and efforts to diversify the economy under the Saudi Vision 2030.” IMF: Financial and Regulatory Reform Agenda Contributed to Accelerating Saudi Economy’s Growth [PRNewswire]
“The US remains the world’s most powerful travel and tourism market, contributing a record-breaking $2.36 trillion to the nation’s economy last year, according to the World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Trends Report. Saudi Arabia leads the growth international tourism spending with a 91.3% jump compared to 2019.” US most powerful tourism market; Saudi Arabia tops in growth [Zawya]
“At least until 2030, Saudi will have massive budgetary needs due to the need to demonstrate some significant outcome in key Vision 2030 projects and to prepare for and host big sporting and cultural events. All this amidst expected growth in oil supply from the U.S., Guyana, Brazil, Canada, and even the UAE and possible anemic oil consumption growth in China, the Kingdom’s largest oil customer, means that the Kingdom’s fiscal breakeven price is likely to rise perhaps to around $100.” Li-Chen Sim, Middle East Institute, Saudi Arabia’s fiscal breakeven oil price is rising fast. What will the kingdom do about it? [CNBC]
“I’ve never seen so many happy snooker players, everyone is excited to be here, we want to compete, play well and put on a really good show for the Saudi Arabian fans.” Ronnie O’Sullivan, Ronnie O’Sullivan gives honest feelings on Saudi Arabia Masters in traditional attire [GBN]
“The 150-member Shoura Council has been reconstituted for a period of four years effective from Friday, Rabi Al-Awwal 3, 1446, corresponding to Sept. 6, 2024.” King Salman reconstitutes Shoura Council and Council of Senior Scholars [Saudi Gazette]
“I feel like to enact a dream or for a kid to see a dream, they have to see it in person. Hoping that there is a player or a kid from Saudi who can say, ‘This WTA Finals changed my outlook or made me realize I had a dream in this sport.’ That’s what tennis is all about—bringing our community to new parts of the world.” Coco Gauff praises WTA Finals in Riyadh, hopes to inspire Saudi’s next generation of tennis stars [Saudi Gazette]
“Typically, high-growth companies don’t pay high dividends because it makes more financial sense to reinvest in the business. The more mature an industry and the more mature a company, the higher the dividend it’s likely to pay. Energy, banking and telecoms are mature industries so it’s not unusual for companies in these sectors to pay high or higher-than-average dividends.” Tarek Fadlallah, CEO of Nomura Asset Management Middle East in Dubai, PIF-backed Saudi companies increase dividends [Arabian Gulf Business Insight]
“The opportunity in India is more ripe than a decade ago, with a lot of new age entrepreneurs now also building [companies] in domains other than technology. Today you have large homegrown ecosystems in sectors like consumer goods, where companies can be scaled to very large levels.” Mohammed Abrar Asif, co-chief executive officer, Hades, Saudi Arabia’s Hades Financial readies $750m for India investment [Nikkei Asia]
