TAG: The Middle East
While recently introduced, a new value-added tax (VAT) – previously a relatively contentious issue – has raised hopes in terms of public revenue generation and transparency.
Among the GCC countries, Bahrain was in many senses the first to fully embrace the need to diversify its revenue streams away from hydrocarbons. The arrival of banks from Lebanon in the late 1970s gave it a head start in developing financial services and, in particular, offshore investment fund activity. This has stood the economy in good stead, but competition in sectors targeted for diversification, such as financial services, logistics, industry and tourism, has risen dramatically.
For those of us who have kept a keen eye on Saudi Arabia, the past 12 months have been about fleshing out
Vision 2030. Although elements of the strategy are still works in progress, the results of Oxford Business Group’s Business Barometer: Saudi Arabia CEO Survey show that 72% of CEOs think collaboration between the private and public sectors is either improving or definitely improving, a sign that the long state-dominated economy is poised for transformation. Respondents are also confident in the prospects of sectors targeted in the plans, with tourism standing out as most likely to drive growth in the short to medium term.