Khalid Al-Falih, Saudi Arabia's Minister of Investment, announced on Tuesday that a new Zakat Collection Law and Comprehensive Investment Law are in the works.
As Al-Falih spoke at the second edition of the Municipal Investment Forum (FURAS) at the Riyadh International Convention and Exhibition Center, he said there is a discussion with officials from the General Authority of Zakat & Tax (GAZT) aimed at simplifying and simplifying the Zakat Collection Law and making it transparent for investors.
“Work is being done on the regulations alongside the issuance of the Zakat Collection Law.”
"We are also examining corporate income tax issues, and there may be initiatives in this regard that will not be preempted," Al-Falih said.
As Saudi Arabia has competitive taxation values compared to other countries, practices and legislation related to taxes and Zakat will be reviewed. A major objective of the law is for financial compensation, fees, taxes, and Zakat to be as clear and low as possible.
The investor will be able to invest capital, effort, and ideas and receive a rewarding return. For the ministry, the investor's profitability is the most valuable aspect to be recycled in the economy.
To protect and clarify the rights of local, foreign, and Gulf investors, Al-Falih said a comprehensive Investment Law was being developed to replace the existing foreign investment law.
Following the approval of the Cabinet, the new law will be issued by the second quarter to the third quarter of 2023 after being presented to the Shoura Council in the first quarter.
According to the minister, the new law will eliminate the need for the Kingdom to sign investor protection agreements with other countries.
Al-Falih also noted that the Law of Real Estate Ownership and Investment by Non-Saudis is in its final phase, allowing companies, individuals, residents, and non-residents to own real estate in Saudi Arabia.
"The law is undergoing final review, but will not take effect until it has been adopted by the Cabinet. It will be studied in cooperation with the Real Estate General Authority, and a comprehensive review of real estate affairs will take place in order to replace the current law with a unified one," he said, hoping that it would take two to three years to complete.
Al-Falih cited the National Investment Strategy as the source of the SR12.4 trillion investment opportunities in the Kingdom. "Most of these investments are in the cities of the Kingdom," he noted.
There are SR1.1 trillion worth of investment opportunities in the Saudi tourism sector, according to the minister.
Investment opportunities in the Saudi public utility sector accounted for about SR1.1 trillion, while those in the transport sector accounted for SR1.7 trillion,” he said.
