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Recent and ongoing reforms of Saudi Arabia’s capital markets have seen the Kingdom gradually liberalise its investment framework and overhaul the operations of the Saudi Stock Exchange (Tadawul) – the largest exchange in the GCC by market capitalisation. Looking to initial public offerings, the state’s privatisation programme – a central component of Saudi Vision 2030 – is likely to generate further activity over the medium term. Targeted sectors include the environment, water and agriculture, transport, energy, housing, education and health. However, the timetable of the privatisation programme, as well as the movement of the Tadawul’s main index, is likely to be adversely impacted by the Covid-19 outbreak that is expected to upend global markets far into 2020. This chapter contains interviews with Khalid Al Hussan, CEO, Saudi Stock Exchange (Tadawul); and Rajiv Shukla, CEO, HSBC Saudi Arabia.

The Kingdom’s banking sector started 2020 on a promising note, with 13 local banks serving a population of over 30m people. However, low oil prices and the disruptive effects of the Covid-19 pandemic are likely to undermine asset growth over the course of the year, though the Kingdom’s banks have previously demonstrated the ability to remain profitable despite difficulties. Looking to the longer term, banks are likely to venture beyond the competitive corporate and retail segments and develop their offering in underserved areas of the market, such as lending to smaller enterprises and microfinance. This chapter contains interviews with Ahmed Alkholifey, Governor, Saudi Arabian Monetary Authority; and Tareq Al Sadhan, CEO, Riyad Bank.

The revenue raised from outgoing shipments of oil fund the government’s social and infrastructural programmes, and are therefore central to the Kingdom’s economy. The onset of the Covid-19 pandemic in the first quarter of 2020 has slowed economic activity and reduced investor sentiment around the world, thus its effect on the Kingdom’s trading activity and inward investment is yet to be seen. However, the process of legislative and regulatory reform that has altered the nation’s trading and investment landscape in recent years is expected to continue to long-term benefit. The government’s goal, according to Vision 2030, is to rank within the top-20 countries on the World Bank’s ease of doing business index – a feat that will require additional revision and innovation in the decade to come.

Four years after the launch of Saudi Arabia’s comprehensive development strategy, Vision 2030, the Kingdom’s non-oil economy is starting to see the benefits of sustained reform. Any decrease in revenue caused by lower oil prices is a significant challenge and presents a downside risk for the economy. Actions taken by the government to mitigate the effects of both the depressed oil price scenario and Covid-19 in the first half of 2020 are substantial. These will support non-oil growth and ensure a social safety net for citizens in the short term, while in the longer term the Kingdom’s increasingly diverse economy is expected to benefit from the implementation of Vision 2030 objectives. This chapter contains interviews with Fahd Al Rasheed, President, Royal Commission for Riyadh City (RCRC); Anas Alfaris, President, King Abdulaziz City for Science and Technology (KACST); and Saad bin Othman Al Kasabi, Governor, Saudi Standards, Metrology and Quality Organisation (SASO).

On December 13, 2018 Qatar repealed the decade-long Income Tax Law (Law No. 21 of 2009) and issued the new Income Tax Law (Law No. 24 of 2018). Executive regulations (ERs) implementing Law No. 24 of 2018 were published on December 11, 2019. Highlights have been prepared based on the ERs accompanying Law No. 24 of 2018. The new ERs contain substantive changes covering the determination of taxable income, withholding tax application, exemption of Qatar/GCC natural persons, subsidiaries of listed entities and transfer pricing. The effective date of these new ERs was the day after their issuance in the Official Gazette: December 12, 2019. This chapter contains a viewpoint from Sultan Hassan Al Dosari, Chairman; and Alamgir Khan, Deputy Chairman, Grant Thornton Qatar.