Oman, India revise deal to avoid double taxation

The agreement was signed in Muscat on Jan. 27 by Nasser bin Khamis Al-Jashmi, Chairman of Oman’s Tax Authority, and Indian Ambassador to Oman Amit Narang, as reported by Oman News Agency.
The agreement was signed in Muscat on Jan. 27 by Nasser bin Khamis Al-Jashmi, Chairman of Oman’s Tax Authority, and Indian Ambassador to Oman Amit Narang, as reported by Oman News Agency.
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Updated 27 January 2025
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Oman, India revise deal to avoid double taxation

Oman, India revise deal to avoid double taxation

JEDDAH: Oman and India have finalized an updated protocol to prevent double taxation and curb financial evasion related to income taxes, further bolstering their economic ties.

The agreement was signed in Muscat on Jan. 27 by Nasser bin Khamis Al-Jashmi, Chairman of Oman’s Tax Authority, and Indian Ambassador to Oman Amit Narang, as reported by Oman News Agency.

Al-Jashmi highlighted the importance of the new protocol in strengthening economic relations between the two countries, noting that the agreement is the result of ongoing efforts to enhance bilateral cooperation in the tax sector.

In December, Oman also signed a similar agreement with Tanzania to deepen their strategic partnership.

That deal aimed to foster an attractive investment climate, protect investors from double taxation, and increase transparency in financial transactions.

In October, Al-Jashmi represented Oman in signing a similar agreement with Estonia. The agreement adhered to the standard framework set by the Organization for Economic Co-operation and Development.

According to a statement from Estonia's Ministry of Foreign Affairs, the agreement was designed to provide a stable tax environment for both foreign entrepreneurs investing in Estonia and Estonian businesses expanding internationally.

The ministry emphasized that the primary goal of double taxation avoidance agreements was to foster investment between the signatory countries.

Additionally, the ministry highlighted that foreign investors value the assurance that they will not face a higher tax burden than local businesses operating in the target country.

As of October 2024, India exported $410 million worth of goods to Oman and imported $743 million, resulting in a trade deficit of $334 million, according to the Observatory of Economic Complexity.

India’s top exports to Oman included petroleum products valued at $146 million, processed minerals at $24.4 million, and basmati rice at $15 million. Iron and steel exports totaled $13.9 million, while ships, boats, and floating structures contributed $9.93 million.

On the import side, India’s purchases from Oman were led by fertilizers, totaling $118 million. Petroleum products accounted for $92.5 million, and ships, boats, and floating structures reached $77.5 million. Other commodities amounted to $45.2 million, while crude petroleum was valued at $43.5 million.


Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait
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Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

RIYADH: Saudi utility giant ACWA Power has strengthened its portfolio by acquiring a $693 million stake in power generation and water desalination companies in Bahrain and Kuwait.

The company has secured holdings in four companies after buying the shares held by the regional subsidiary of French utility developer Engie.

The deal includes a 45 percent interest in both the Al-Ezzel and Al-Dur projects as well as a 30 percent holding in the Al-Hidd facility, all situated in Bahrain. 

It also sees ACWA Power acquire an 18 percent stake in Az Zour North in Kuwait.

The move falls in line with ACWA Power’s strategy to be at the forefront of the energy transition by delivering reliable and responsible power, desalinated water, and green hydrogen at low cost in Saudi Arabia and the wider Gulf Cooperation Council and attractive high-growth markets based on a de-risked and contracted business model.

“This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as global leader in water desalination. We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” CEO of ACWA Power Marco Arcelli said. 

“Reinforcing our presence in each country will allow us to further develop our people there and localize our operations more, providing safe and reliable supplies to the local communities and industries,” he added.

ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Co., with a 50 percent stake and complete ownership of Al-Ezzel O&M Co.

The deals cover operating capacities of 4.61 gigawatts of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities, as well as the related operations and maintenance companies in the two countries, according to a statement.

Chief Investment and Development Officer of ACWA Power Thomas Brostrom said: “By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector.”

The secured contracted revenue streams from the acquired assets align well with the firm’s broader strategy of tripling its assets under management to $250 billion by 2030.


Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India
Updated 19 February 2025
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Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India

NEW DELHI: Qatar has committed to investing $10 billion in India across various sectors, the two nations said in a joint statement on Tuesday, after Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani visited New Delhi.

Indian Prime Minister Narendra Modi said he had a “very productive meeting” with Qatar’s Emir, who was on a two-day visit to New Delhi.

“Trade featured prominently in our talks. We want to increase and diversify India-Qatar trade linkages,” Modi said in a post on X. It was the first such visit by a Qatari Emir to the South Asian nation in 10 years.

According to the statement, Qatar will invest $10 billion in India in infrastructure, technology, manufacturing, food security, logistics, hospitality and other sectors.

The two countries will aim to double their annual trade to $28 billion in the next five years and are exploring the signing of a free trade agreement, the Indian foreign ministry said earlier in the day.

Bilateral trade between the two nations stood at $18.77 billion in the fiscal year that ended in March 2023, mainly comprising liquefied natural gas imports from Qatar.

Qatar accounted for more than 48 percent of India’s LNG imports that year.

The two sides said they would work to enhance bilateral energy cooperation, including mutual investments in energy infrastructure, as well as look at settlement of bilateral trade in their respective currencies. 


Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity
Updated 19 February 2025
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Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

HOUSTON/SINGAPORE: Oil prices edged up on Wednesday amid worries of oil supply disruptions in the US and Russia, and as markets awaited clarity on the Ukraine peace talks.

Brent crude futures were up 14 cents, or 0.2 percent, at $75.98 a barrel at 7:50 a.m. Saudi time, and possibly set for a third day of gains.

US West Texas Intermediate crude futures for March rose 16 cents, or 0.2 percent, to $72.01, up 1.8 percent from the close on Friday after not settling on Monday because of the Presidents’ Day public holiday. The March contract expires on Thursday and the more active April contract gained 14 cents, or 0.2 percent, to $71.97.

“The psychologically important $70 level appears to have held firm, aided by the Ukrainian drone attack on the Russian oil pumping station and fears that cold weather in the US may curtail supply,” said IG market analyst Tony Sycamore.

“On top of that there is some speculation that OPEC+ may decide to delay its planned supply increase in April,” he said, referring to the Organization of the Petroleum Exporting Countries and allies.

Russia said oil flows through the Caspian Pipeline Consortium, a major route for crude exports from Kazakhstan, were reduced by 30 percent to 40 percent on Tuesday after a Ukrainian drone attack on a pumping station. A 30 percent cut would equate to the loss of 380,000 barrels per day of supply to the market, according to Reuters calculations.

Meanwhile, cold weather threatened US oil supply, with the North Dakota Pipeline Authority estimating that production in the country’s No. 3 producing state would be down by as much as 150,000 bpd.

US President Donald Trump’s administration said on Tuesday it had agreed to hold more talks with Russia on ending the war in Ukraine. A deal could ease or help remove sanctions that have disrupted the flows of Russian oil shipments.

Analysts at Goldman Sachs said a potential Ukraine-Russia peace deal and associated easing in sanctions on Russia is unlikely to significantly raise Russia oil flows.

“We believe that Russia crude oil production is constrained by its OPEC+ 9 million barrels per day production target rather than current sanctions, which are affecting the destination but not the volume of oil exports,” they said in a report.

Israel and Hamas will also begin indirect negotiations on a second stage of the Gaza ceasefire deal, officials said on Tuesday.

However, Trump said on Tuesday he intends to impose auto tariffs “in the neighborhood of 25 percent” and similar duties on semiconductors and pharmaceutical imports.

Tariffs could raise prices for consumer products, weaken the economy and reduce demand for fuel. 


Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 
Updated 19 February 2025
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Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 

RIYADH: Saudi Arabia raised SR3.07 billion ($818 million) through its February sukuk issuance as the Kingdom continues to tap debt markets to support economic diversification efforts. 

The latest riyal-denominated offering, managed by the National Debt Management Center, follows a SR3.72 billion issuance in January. The Kingdom raised SR11.59 billion in December and SR3.41 billion in November, according to official data. 

Sukuk, a Shariah-compliant financing instrument, allows investors to hold partial ownership in an issuer’s assets while adhering to Islamic finance principles. Saudi Arabia has been a key player in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan. 

According to the NDMC, the February issuance was split into four tranches. The first, valued at SR585 million, matures in 2029, while the second, at SR1.70 billion, is set to mature in 2032. The third tranche, worth SR404 million, is due in 2036, and the final portion, totaling SR376 million, will expire in 2039. 

Saudi Arabia is expected to play a leading role in driving global debt and sukuk issuance over the next two years, Fitch Ratings said earlier this month. The Kingdom’s financial institutions and corporations are increasingly turning to international debt markets to diversify their funding sources, the agency noted. 

A separate report by Fitch projected Saudi Arabia’s debt capital market to reach $500 billion by the end of 2025, supported by a growing pipeline of infrastructure and development projects. 

The Kingdom is also set to lead bond and sukuk maturities in the Gulf region, with redemptions expected to total $168 billion between 2025 and 2029, according to a December report by Kamco Invest. Government-issued debt will account for the largest share, with maturities projected to reach $110.2 billion during the period. 

Across the Gulf Cooperation Council, the debt capital market surpassed the $1 trillion mark in outstanding issuances by the end of November, Fitch said in a separate report. 

Meanwhile, global sukuk issuance is forecast to range between $190 billion and $200 billion in 2025, driven by activity in key markets such as Saudi Arabia and Indonesia, according to S&P Global. The credit rating agency reported that global sukuk sales totaled $193.4 billion in 2024, slightly down from $197.8 billion in 2023.


Experts highlight importance of data in capital markets at Saudi forum

Experts highlight importance of data in capital markets at Saudi forum
Updated 18 February 2025
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Experts highlight importance of data in capital markets at Saudi forum

Experts highlight importance of data in capital markets at Saudi forum
  • Industry specialists said that real-time data availability is equally crucial for other participants

RIYADH: Accessing and interpreting data effectively is crucial for investors’ success in capital markets, as it enables them to make informed and timely decisions, according to experts. 

During a panel discussion at the Capital Markets Forum in Riyadh on Feb. 18, industry specialists said that real-time data availability is equally crucial for other participants, such as brokers, asset managers, and external institutions.

“What I believe is that data is the new alpha. So, those who master it will not only participate or win in the market, but they will define the market,” said Mehdi Miri, CEO of DirectFN. 

He added: “For investors, data is really about making smart and fast decisions. What investors need to see today is real-time AI-powered data that will help them look into insights and foresight so that they can see market opportunities before the market moves.” 

Miri further said that brokers and banks are using advanced analytics to build their trading and hedging strategies, ultimately improving their execution process. 

Yazeed Al-Domaiji, CEO of Wamid, a subsidiary of Saudi Tadawul Group, highlighted the importance of accessing data while maintaining rules and regulations. 

“Capital markets are driven by data. Data is there from more than 100 years ago. Everybody in capital markets is looking for data, using data to make decisions. As a capital market institution, it is necessary to find the balance of how we can innovate while maintaining the regulations,” said Al-Domaiji. 

He added that Wamid is aiming to play a major role in enabling the capital market industry in the Kingdom as it has announced a recent partnership with Google, with Saudi Arabia having strategic plans to adopt data and artificial intelligence in the sector.

Al-Domaiji said that Wamid is encouraging innovation in the capital market by focusing on two pillars, including data solutions and infrastructure technology. 

“In data solutions, we announced our partnership to launch our project for the data terminal. What we are planning to do is to offer a set of data that suits the demand of the market. We are focussing on satisfying the issuers, the capital market institutions, and the investors through a series of data with easier accessibility and good quality,” said Al-Domaiji. 

He added: “On the infrastructure side, we are helping the capital market to increase the access of institutional investors, especially for the HFTs (high-frequency trading). So, today, in Saudi Arabia, HFT trading is around 25 percent of the daily average trading.” 

Miri further said that data has become a strategic asset over time, and it is not just a global trend but a local and regional reality. 

“Data is a strategic asset. When we talk about monetization, data is a business in itself. This is a Spotify moment for data, where we are bringing and converging raw data into an on-demand revenue-generating machine,” added Miri. 

He said the capital market currently demands data that are not just numbers but enriched pieces of information, which should give foresight on what to do next. 

Miri also underscored the vitality of personalizing the data and integrating them into one single platform for better efficiency and quick decision-making. 

Regarding the future outlook of the importance of data in capital markets, Miri said: “Further down the road, if you have the data and if you have the liquidity, this could be the new asset class. A few decades ago, no one was thinking about carbon trading. In the future, we will be talking about data trading. Obviously, we have to balance it with data protection and regulation.” 

Underscoring the importance of datasets, Al-Domaiji added that data will become the “new currency for the capital market” in the future. 

Doug Peterson, special adviser and member of the board of directors at S&P Global, stressed the importance of data privacy and said: “The first question you have to ask from a governance standpoint is how I am going to protect my data. Do you want your data to be the one that is used in a model that is being built? Once it is there, that model is going to be using your data forever, and you are going to get paid for it.” 

He added: “I am really encouraged by what is happening in the Saudi market. We are very pleased at S&P Global to start building the local presence, because we think this is one of the most important markets in the future.” 

Katharine Furber, global head of emerging markets trading product at Bloomberg LP, said that fixed income space is seeing huge potential in the usage of data. 

“In the fixed income space, of course, it is the sell side indication, which indicates the desire to buy or sell a bond. But also trading data, and by trading data, I do not just mean what did they trade at what price. They want to build a rich story around the trade to learn as much as possible, which includes how many counterparties they asked on the trade; whether or not those counterparties responded to the trade request,” said Furber.