Gulf Arab states are putting the finishing touches on draft laws for value-added taxes (VAT) of up to 5 percent that could be imposed starting in 2018, officials said on Thursday.
The planned tax on consumer goods and services, drawn up in coordination with the six-nation Gulf Cooperation Council (GCC), will be ready as soon as two GCC members are ready to implement it. “Each of the six Gulf states will have their own VAT law that will fall under the broad framework of the Gulf Cooperation Council law,” said UAE Finance Ministry Undersecretary Younis al-Khouri. “Any two countries that are ready can begin implementation of VAT from 2018,” he said. Khouri and his fellow Finance Undersecretaries from Saudi Arabia, Oman, and Bahrain, all currently in Abu Dhabi for a GCC financial meeting, confirmed that VAT laws are in the final stages of preparation in their countries. The draft legislation is now awaiting final approval from the cabinet or parliament in each country. Kuwait and Qatar are still drawing up their laws, their officials said. [Reuters, 1/14/2016]
Chairman of Libya’s National Oil Corporation Mustafa Sanallah said Wednesday that he is meeting with major oil companies in an effort to jumpstart the country’s petroleum production potential. Sanallah said he is meeting with France’s Total SA, Italy’s Eni SpA, British Petroleum, and other companies in Istanbul to try to convince them to resume exploration efforts in Libya. Western oil companies have scaled back much of their operations in Libya. BP and Eni declined to comment. A Total official confirmed the talks, but declined to comment further. “The situation will stabilize once a unity government is formed. I am optimistic this will happen,” Sanallah said. Libya is currently pumping about 380,000 barrels of crude per day, however that could rise to 1.2 million barrels per day if a unity government is formed, he added. [WSJ, 1/13/2016]
Egypt will strengthen security measures in tourist resorts Sharm al-Shiekh and Hurghada with an allocation of $32 million, Minister of Tourism Hisham Zaazou announced Thursday. Zaazou said the plan includes the purchase of the latest scanning and detection equipment, as well as increasing the number of security personnel in the resorts. He said additional CCTV systems will be introduced to better monitor security in hotels and resorts. Advisor to the Minister of Tourism Adla Ragab said Egypt’s tourism revenues are expected to decline by 18 percent in 2015. She said the Ministry is planning “to establish a national carrier to increase inbound tourism to Egypt and avoid the monopolization by tour operators.” [DNE, 1/14/2015]
The European Bank for Reconstruction and Development (EBRD) said it invested a record high of EUR 1.9 billion in Turkey in 2015 from EUR 1.4 billion in 2014. Turkish projects represented 20 percent of the EBRD’s total EUR 9.4 billion in investments last year across some three dozen countries, according to a statement by the EBRD. “The EBRD delivered a remarkable performance in Turkey despite the challenging environment, responding to an ever-growing demand for finance, especially outside large metropolitan areas,” EBRD Turkey Country Director Jean-Patrick Marquet said. The EBRD financed 43 projects across a number of sectors, including the construction of the country’s biggest geothermal power plant. The Bank plans to “channel more investments into infrastructure and utilities such as water, waste and public transport, and invest in businesses that will create employment and boost the local economy for the benefit of all.” [Hurriyet, Anadolu Agency, 1/13/2016]
Also of interest
Oman closes $1 billion sovereign loan | Reuters
Edison looks to sell part of Egypt’s Abu Qir field | Reuters
Cap on foreign currency deposits for industries expected to be removed by year-end | DNE
Egypt’s debt burden to see no relief as infusion of debt stimulus to spiral upward | DNE
Egypt’s bourse hits two year low as foreigners continue to dump shares | Ahram Online
Tripoli Audit Bureau recovers LD 6 billion from public agencies | Libya Monitor (subscription)
Tripoli NOC says crude output less than 400,000 bpd | Libya Monitor (subscription)
Turkey’s Yildiz Holding says will step up investments in 2016 | Reuters
Gulf states prepare VAT laws ahead of introduction from 2018
Gulf Arab states are putting the finishing touches on draft laws for value-added taxes (VAT) of up to 5 percent that could be imposed starting in 2018, officials said on Thursday. The planned tax on consumer goods and services, drawn up in coordination with the six-nation Gulf Cooperation Council (GCC), will be ready as soon as two GCC members are ready to implement it. “Each of the six Gulf states will have their own VAT law that will fall under the broad framework of the Gulf Cooperation Council law,” said UAE Finance Ministry Undersecretary Younis al-Khouri. “Any two countries that are ready can begin implementation of VAT from 2018,” he said. Khouri and his fellow Finance Undersecretaries from Saudi Arabia, Oman, and Bahrain, all currently in Abu Dhabi for a GCC financial meeting, confirmed that VAT laws are in the final stages of preparation in their countries. The draft legislation is now awaiting final approval from the cabinet or parliament in each country. Kuwait and Qatar are still drawing up their laws, their officials said. [Reuters, 1/14/2016]
Libya meets with energy companies to bolster recovery of petroleum sector
Chairman of Libya’s National Oil Corporation Mustafa Sanallah said Wednesday that he is meeting with major oil companies in an effort to jumpstart the country’s petroleum production potential. Sanallah said he is meeting with France’s Total SA, Italy’s Eni SpA, British Petroleum, and other companies in Istanbul to try to convince them to resume exploration efforts in Libya. Western oil companies have scaled back much of their operations in Libya. BP and Eni declined to comment. A Total official confirmed the talks, but declined to comment further. “The situation will stabilize once a unity government is formed. I am optimistic this will happen,” Sanallah said. Libya is currently pumping about 380,000 barrels of crude per day, however that could rise to 1.2 million barrels per day if a unity government is formed, he added. [WSJ, 1/13/2016]
Egypt to allocate additional $32 million to boost security measures in tourist resorts
Egypt will strengthen security measures in tourist resorts Sharm al-Shiekh and Hurghada with an allocation of $32 million, Minister of Tourism Hisham Zaazou announced Thursday. Zaazou said the plan includes the purchase of the latest scanning and detection equipment, as well as increasing the number of security personnel in the resorts. He said additional CCTV systems will be introduced to better monitor security in hotels and resorts. Advisor to the Minister of Tourism Adla Ragab said Egypt’s tourism revenues are expected to decline by 18 percent in 2015. She said the Ministry is planning “to establish a national carrier to increase inbound tourism to Egypt and avoid the monopolization by tour operators.” [DNE, 1/14/2015]
EBRD investment in Turkey hits record high in 2015
The European Bank for Reconstruction and Development (EBRD) said it invested a record high of EUR 1.9 billion in Turkey in 2015 from EUR 1.4 billion in 2014. Turkish projects represented 20 percent of the EBRD’s total EUR 9.4 billion in investments last year across some three dozen countries, according to a statement by the EBRD. “The EBRD delivered a remarkable performance in Turkey despite the challenging environment, responding to an ever-growing demand for finance, especially outside large metropolitan areas,” EBRD Turkey Country Director Jean-Patrick Marquet said. The EBRD financed 43 projects across a number of sectors, including the construction of the country’s biggest geothermal power plant. The Bank plans to “channel more investments into infrastructure and utilities such as water, waste and public transport, and invest in businesses that will create employment and boost the local economy for the benefit of all.” [Hurriyet, Anadolu Agency, 1/13/2016]
Also of interest
Oman closes $1 billion sovereign loan | Reuters
Edison looks to sell part of Egypt’s Abu Qir field | Reuters
Cap on foreign currency deposits for industries expected to be removed by year-end | DNE
Egypt’s debt burden to see no relief as infusion of debt stimulus to spiral upward | DNE
Egypt’s bourse hits two year low as foreigners continue to dump shares | Ahram Online
Tripoli Audit Bureau recovers LD 6 billion from public agencies | Libya Monitor (subscription)
Tripoli NOC says crude output less than 400,000 bpd | Libya Monitor (subscription)
Turkey’s Yildiz Holding says will step up investments in 2016 | Reuters