In a significant announcement at the Davos World Economic Forum 2024, Finance Minister Mohammed Al-Jadaan confirmed that Saudi Arabia will not impose personal income tax on individuals, reinforcing the government's commitment to existing financial systems.

The Kingdom continues to leverage multiple revenue streams, including value-added tax (VAT), income taxes on businesses and international investors, and zakat on the local population. Al-Jadaan emphasized the government's dedication to maintaining these established processes while actively working to enhance the business environment by streamlining procedures.

Saudi Arabia is proactively diversifying its economy into various sectors, including logistics, technology, and tourism. Ambitious projects such as railway and airport expansions aim to improve connectivity within the Kingdom and globally.

Renewable energy initiatives are a key focus, requiring substantial funding, alongside efforts to enhance water treatment facilities for uninterrupted services to residents. To address the deficit, Saudi Arabia recently issued $12 billion in bonds, intending to reduce the current 2% GDP deficit for the year.

The government is expediting funding for major projects, reflecting optimism about the country's economic trajectory. As Saudi Arabia navigates economic challenges, the absence of personal income tax underscores its commitment to fostering a business-friendly environment and sustainable growth.