www.agbi.com Open in urlscan Pro
108.138.128.96  Public Scan

Form analysis
2 forms found in the DOM

GET https://www.agbi.com

<form action="https://www.agbi.com" role="search" method="get" class="search-bar" data-hs-cf-bound="true">
  <input class="search-bar__input" type="text" name="s" id="search" value="" placeholder="Search">
  <input class="search-bar__icon" type="image" alt="Search" src="https://www.agbi.com/content/themes/agbi/src/images/icons/search.svg">
</form>

POST https://agbi.us14.list-manage.com/subscribe/post

<form action="https://agbi.us14.list-manage.com/subscribe/post" method="POST" class="form form--newsletter js-mailchimp" data-success="Thank you for signing up to our newsletter." data-error="Sorry, there was an error. Please try again."
  data-hs-cf-bound="true">
  <div class="form__full form__title">Sign up to our newsletter</div>
  <label for="mce-FNAME" class="screen-reader-text">First name</label>
  <input type="text" value="" name="FNAME" id="mce-FNAME" placeholder="First name" class="form__half" required="">
  <label for="mce-LNAME" class="screen-reader-text">Last name</label>
  <input type="text" value="" name="LNAME" id="mce-LNAME" placeholder="Last name" class="form__half" required="">
  <label for="EMAIL" class="screen-reader-text">Email address</label>
  <input type="email" value="" name="EMAIL" id="mce-EMAIL" placeholder="Email address" class="form__full" required="">
  <div class="form__checkbox">
    <input type="checkbox" id="mce-TERMS" required="">
    <label for="mce-TERMS">By ticking this box you agree to our <a href="https://www.agbi.com/privacy-terms-conditions/" target="_blank">Terms &amp; Conditions</a>.<br>You can unsubscribe at any time<br></label>
  </div>
  <input type="hidden" name="u" value="6dad398e61eeeae726961d9fd">
  <input type="hidden" name="id" value="9d63dc202b">
  <input type="hidden" name="tags" value="7341264">
  <input type="hidden" name="c" value="formResponse">
  <button type="submit" class="button button--dark form__button form__half">Submit</button>
  <div class="form__half form__response js-form-error"></div>
</form>

Text Content

Skip to content Skip to Search
July 14, 2024
 * About us
 * Partner with AGBI

Login | Register

Skip navigation
 * GCC economic data
 * Mena economic data
 * Sectors
   * Aviation
   * Artificial Intelligence
   * Business of Sport
   * Construction
   * Cybersecurity
   * Economy
   * Energy
   * Entrepreneurs
   * Finance
   * Food & Drink
   * Giga-projects
   * Industry
   * Infrastructure
   * Logistics
   * Manufacturing
   * Markets
   * Oil & Gas
   * Real Estate
   * Retail
   * Sustainability
   * Tech
   * Tourism
   * Trade
   * Transport
 * Middle East
   * All Middle East
   * GCC
   * UAE
   * Saudi Arabia
   * Bahrain
   * Kuwait
   * Oman
   * Qatar
   * Dubai
   * Abu Dhabi
   * Turkey
   * Egypt
   * Jordan
   * Lebanon
 * Opinion
   * All Opinion
   * All Writers
   * Frank Kane
   * Hussain Al Alawi
   * Austyn Allison
   * Simon Chadwick
   * Lucy Chow
   * Andrew Cunningham
   * Chris Doyle
   * John Grant
   * Sami Hamdi
   * Katy Holmes
   * Martin Keulertz
   * Matein Khalid
   * Nish Kotecha
   * Scott Livermore
   * Alex Malouf
   * Robin Mills
   * Dr Nasser Saidi
   * Matthew White
 * Analysis
 * Interviews
 * Topics
   * Blockchain
   * Cop28
   * Cryptocurrency
   * Electric vehicles
   * Food security
   * Hydrogen
   * Interviews
   * Islamic finance
   * M&A
   * Metaverse
   * Neom
   * Opec
   * Red Sea Global
   * Robotics
   * Saudi Vision 2030
   * Space
   * Ukraine-Russia war
   * Water
 * Lifestyle
   * People
   * Work / Life
   * Entertainment
   * Arts
   * Education
 * World
   * Africa
   * Asia
   * Europe
   * North America
   * Latin America
 * About us
 * Feedback
 * Partner with AGBI
 * Authors
 * Executive Team
 * Login
 * Register with AGBI

 * Energy
 * Construction
 * Finance
 * Transport
 * Tech
 * Sport
 * Opinion
 * Analysis
 * Economic Data


All sections
 * Economy


OMANI LOWER HOUSE APPROVES INCOME TAX

By Megha Merani
July 3, 2024
 * 
 * 
 * 
 * 

 * First Gulf state to introduce levy
 * Likely to be below 9%
 * GCC neighbours may follow

Oman is on the verge of becoming the first Gulf nation to introduce a personal
income tax, as it seeks to diversify revenue streams beyond oil in line with its
Vision 2040 plan.

The Majlis al-Shura, the lower house of the Omani parliament, approved a draft
law last week, forwarding it to the State Council, the upper house, to approve
the final legislative step.

The decision, announced during the Shura’s 12th regular session, signals a shift
in a region that has long relied on a no-income-tax policy to attract
expatriates and drive economic development.

--------------------------------------------------------------------------------

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

--------------------------------------------------------------------------------

Bahrain’s Sico Investment Bank suggested in a research note that Oman’s move
could lead to similar measures across the Gulf in the medium term, despite
current denials from neighbouring states.

Scott Livermore, chief economist at Oxford Economics Middle East, said that the
long-awaited reform has been repeatedly delayed, but now seems imminent. 

“The bill builds on progress over the past few years to broaden the tax base and
make public finances more sustainable,” he told AGBI.

“The levy isn’t currently on the cards elsewhere in the GCC, but as the
governments look to diversify their revenue base it will be difficult to achieve
that without taxing people more, either through direct or indirect measures.”

Shiraz Khan, partner at law firm Al Tamimi, echoed the sentiment but stressed
the unique economic contexts of each GCC state. 

“While the implementation of personal income tax in Oman would be an
unprecedented development in the GCC, there is currently no indication that
other states would follow suit,” he said. 

“Each GCC state possesses distinct economic circumstances and needs. Oman’s
decision would reflect its particular national economic requirements.”

Oman News
Majlis al-Shura, Oman’s lower house, approved the draft law to introduce income
tax last week

The proposed tax rates in Oman are expected to be modest, probably between 5 to
9 percent, which will go some way to alleviate concerns among expatriates and
foreign investors, Khan said.

Syed Naqi, a senior director at consulting firm Alvarez & Marsal, said that
while taxing personal income may affect Oman’s attractiveness to expatriates, it
is only one factor among many. 

Combined with broader economic reforms, the tax could enhance transparency and
trust, and therefore boost Oman’s regional competitiveness, he said.

Naqi said Oman’s decision could be replicated regionally.

“It also provides a template for other GCC countries, encouraging them to
consider similar tax reforms,” he said.

Both Saudi Arabia and the UAE have said that they do not expect to introduce
such a levy soon, but Naqi said: “With the introduction of corporate tax and VAT
in some of the GCC countries, it is not unreasonable to assume that a form of
personal income tax may be introduced by them at some point in the future.”

 * Emirates economy to grow 6.2% in 2025
 * Oman’s real estate sector continues to slide
 * We need to talk about the American debt spiral

Gulf states have introduced a range of tax measures to fund development and
reduce reliance on oil and gas revenue.

The UAE, a magnet for the world’s ultra-wealthy, introduced a federal corporate
tax on business profits for the first time on June 1 last year, although it kept
the rate low, at 9 percent, to maintain attractiveness to business.

The finance ministry said it was launching corporate tax to align with
international efforts to combat tax avoidance.

Saudi Arabia has a corporate income tax rate of 20 percent and Qatar levies 10
percent.

The UAE, Saudi Arabia, Oman and Bahrain have introduced VAT at a standard rate
of 5 percent. In 2020, the Saudi government raised its rate to 15 percent to
make up for revenue losses during the Covid-19 pandemic. Kuwait and Qatar have
not yet followed.

Alvarez & Marsal’s Naqi said that the introduction of personal income tax should
create a stable and diversified revenue stream for Oman. 

The move is essential if the fiscal deficit is to be reduced and long-term
economic stability is to be bolstered, particularly amid fluctuating oil prices,
he said. 

Fazeela Gopalani, head of Eurasia and Middle East at the Association of
Chartered Certified Accountants, said that personal tax revenues will likely be
funneled into sectors like infrastructure, education, healthcare and other core
government services.

“Oman will likely allocate tax revenue to economic areas that require additional
funding to ensure balanced and sustainable growth,” she said.


RELATED CONTENT:

 * Economy
 * Finance

 * VIDEO
 * Trade


UK INVESTORS NEED TO ‘CHANGE MINDSET’ ON UAE ECONOMY

The possibility of a free trade agreement between the UK and the GCC – worth as
much as £1.6 billion ($2 billion) a year – should prompt UK investors to
reconsider their preconceptions about the economic approach of the UAE and its
fellow members of the Gulf bloc. Bradley Jones from the UK-UAE Business Council
[…]

July 12, 2024
 * Oil & Gas


EGYPT PAYS $1.3BN ARREARS TO FOREIGN OIL AND GAS COMPANIES

Egypt cleared $1.3 billion of outstanding payments to foreign oil and gas
companies operating in the country in June and has established a plan to
reimburse the remaining dues within the next month, according to the government.
The payment accounted for about 20 to 25 percent of the arrears owed to the
companies, Prime Minister […]

July 12, 2024
 * Economy


IMF POSTPONES $820M EGYPT LOAN MEETING

An executive meeting between Egypt and the International Monetary Fund (IMF) to
discuss the North African country’s next loan instalment has been postponed to
the end of the month. “The IMF executive board meeting on Egypt’s third review
under the extended fund facility has been rescheduled to July 29th,” the IMF’s
Egypt mission chief, Ivanna […]

July 11, 2024


TRENDING


 1. ETIHAD PASSENGER TRAFFIC SOARS 40% WITH NEW ROUTES
    
    July 14, 2024


 2. THAILAND OPENS INVESTMENT OFFICE IN SAUDI ARABIA
    
    July 12, 2024


 3. EGYPT PAYS $1.3BN ARREARS TO FOREIGN OIL AND GAS COMPANIES
    
    July 12, 2024


LATEST ARTICLES

 * Transport


ETIHAD PASSENGER TRAFFIC SOARS 40% WITH NEW ROUTES

Etihad Airways recorded a nearly 40 percent year-on-year jump in passenger
traffic in the first half of 2024 due to an increase in the number of routes it
serviced and aircraft in operation. The airline carried 8.7 million passengers
in the first six months, compared to 6.3 million a year earlier. “As of June
2024, […]

4 hours ago
 * People & Lifestyle


DUBAI LAUNCHES ONE-STOP HUB TO STREAMLINE GOVERNMENT SERVICES

People in Dubai can now obtain an Emirates ID, register a company, open a bank
account and more under one roof following the opening of the Emirates Government
Services Hub (EGSH). Owned by Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum, a
member of the Dubai Royal family, EGSH allows clients to access all essential
[…]

2 days ago
In association with
 * Trade


THAILAND OPENS INVESTMENT OFFICE IN SAUDI ARABIA

Thailand’s Board of Investment (BOI) is opening its first Middle East office in
Saudi Arabia, signaling a deepening of economic ties between the nations after a
longstanding diplomatic spat. The office will focus on attracting Saudi
investment into Thailand’s targeted industries and supporting Thai entrepreneurs
looking to invest in the region, the BOI said in […]

2 days ago
 * Tourism


SAUDIA REPORTS BIG RISE IN INTERNATIONAL PASSENGERS

Saudi Arabia’s national carrier Saudia reported a 24 percent increase in
international passengers to 9.1 million in the first half of 2024. There was
also a 13 percent rise in the number of flights. The Hajj pilgrimage in June
played a large part in the growth.  The number of passengers flying on domestic
routes rose […]

2 days ago
Sign up to our newsletter
First name Last name Email address
By ticking this box you agree to our Terms & Conditions.
You can unsubscribe at any time

Submit

 * Partner with AGBI
 * Contact us

 * United Arab Emirates
 * Saudi Arabia
 * Kuwait
 * Qatar

Follow us on:

Twitter LinkedIn Facebook YouTube
 * Cookie Policy
 * Privacy / Terms & Conditions

© 2024 AGBI, part of Link Media Corporation Ltd.

Download the AGBI app today