Free Money From Saudi Arabia
Saudi Arabia is one of the largest oil exporters in the world and has long used its wealth to lavish benefits on its people. Its rulers have largely described their generous spending as part of a family-like social contract. But the new spending comes amid a period of uncertainty for the kingdom. King Salman, who ascended to the throne after the death of King Abdullah, has said he is providing the bonuses as a “goodwill gesture” to the country’s people.
Investing in Saudi Arabia
If you are looking for a place to invest your money, consider Saudi Arabia. The country has a strong infrastructure sector that is open for foreign investment. For example, the government recently launched a $800 billion plan to double the size of Riyadh in the next decade. The aim is to make the capital city a global economic, social, and tourist hub. To achieve this goal, the government is seeking private financing for infrastructure projects. The country’s financial and tourism sectors are also contributing to the infrastructure project.
The Kingdom has an excellent financial system, which allows private capital to flow freely. In addition, there are no restrictions on remittances. As long as funds are converted at legal market clearing rates, they are free to leave the country. Furthermore, Saudi Arabia does not impose waiting periods or taxes on investment returns.
Saudi Arabia has also introduced reforms to attract foreign SMEs to its economy. It has reduced the time for approval of licenses and reduced the number of customs documents needed to establish a business. In addition, the country has increased the duration of an investor’s license from two to five years.
The MISA website lists a variety of financial programs to attract foreign investors. These include tax incentives, customs duty drawback, and exemptions for certain materials. The country does not impose personal income taxes, but it has a corporate tax rate of 20 percent, the lowest among G20 countries.
Saudi Arabia’s Public Investment Fund has also made considerable investments overseas. It is the country’s sovereign wealth fund and major international investor. The funds have backed a number of projects in the oil and financial sectors. For example, Saudi Aramco purchased a 100% stake in Motiva refinery in Port Arthur, Texas, and recently signed a $10 billion joint venture with ExxonMobil. This joint venture is set to start operations in Corpus Christi in 2021.
Remittances to Saudi Arabia
The rise in oil prices has contributed to an increase in remittances to the Middle East, including Saudi Arabia. Saudis are also sending more money home, which is good news for the expat community in the country. This is good news for the economy of the GCC countries.
Saudi Arabia accounts for a large share of outbound remittances to other countries, second only to the UAE. In 2020, UAE remittances were down 3.9% to USD 43 billion, while Saudi Arabia’s outbound remittances were up 11% to USD 35 billion. However, these numbers are not indicative of long-term trends. In fact, a single illness outbreak in an important recipient nation can cause a large drop in remittances to a country.
Before remitting to Saudi Arabia, make sure you obtain final invoices and FDDs from HGOs. If you are considering remittance to Saudi Arabia, make sure you work with a reputable Authorized Dealer. They will ensure that all invoices are submitted and that you are able to remit the funds once the due diligence process is complete.
RemitFinder partners with several money transfer companies, making it easy for you to get the best USD to Saudi Arabia exchange rate. Having more options can help you get a better yield, but there are also fees to consider. The exchange rate can fluctuate based on the amount being sent. As a result, the amount of money sent will affect the return to the money transfer operator.
Sending money to Saudi Arabia from the USA is not a simple task, and you should take note of all fees and charges involved. Remember to compare multiple forex operators before transferring money. And remember, if you can pay with cash, that will speed up the process.
Cost of living in Saudi Arabia
In general, the cost of living in Saudi Arabia is more expensive than in other parts of the world. The cost of gas, electricity, and water is a lot higher than in other places. In summer, utility bills can jump up to SAR 365 per month. But these bills should still be much lower than in your home country. Internet and phone bills are also much higher in Saudi Arabia. There are also fewer choices for these services. Similar services cost triple or more in other countries.
In cities, the cost of renting an apartment is a bit higher than in rural areas. A 200-square-meter flat outside of a compound is usually rented for SAR 2000 per month. In the suburbs and rural areas, three-bedroom apartments can be rented for SAR 2,500-3,000 per month. Previously, non-nationals could not purchase property in Saudi Arabia, but recent changes have opened the door for foreigners to purchase property for business purposes.
Compared to other countries, Saudi Arabia has a very low crime rate. In fact, the country is among the safest places to live in the world. Although the country is peaceful, it does get very hot in the summer. If you’re planning to spend time in Saudi Arabia, it’s best to visit in the spring or winter when the temperature is cooler.
However, the cost of living in Saudi Arabia is still significantly cheaper than in most western countries. For a single person, it’s possible to find a room to rent at SR 1,000 a month (including rent) while a family apartment will cost about SR 28,000 a year.
Legal framework in Saudi Arabia
The Saudi Arabian government has established a legal framework to address corruption. The law prohibits money laundering and stipulates the punishment for violators. Under the law, the Kingdom can confiscate funds, proceeds or means obtained from a crime. Its basic law on governance also provides provisions to prevent money laundering, including audits of state assets and administrative malfeasance. In addition, the Government Tenders and Procurement Law specifies public procurement procedures and outlines guidelines for awarding public contracts.
The judicial system is sharia-based and overseen by the Ministry of Justice. Most ministries have committees that rule on matters under their jurisdiction. In addition, many judicial and regulatory decisions in Saudi Arabia are appealable. For example, a Saudi Board of Grievances handles commercial disputes between the government and private contractors. It also reviews foreign arbitral awards and court decisions. However, the process can be lengthy and unpredictable.
Foreign workers account for 75 percent of the labor force in Saudi Arabia. The country is one of the biggest remitting nations in the world, with remittances reaching $41 billion in 2021. Besides remittances to the Kingdom, the legal framework for free money from Saudi Arabia allows investors to convert their funds into freely usable currencies at a legal market clearing rate. Furthermore, there are no restrictions on the conversion of foreign funds, and there are no waiting periods to enjoy investment returns.
The Saudi Arabian Monetary Authority (SAMA) oversees the commercial banking sector. It is a member of the Bank for International Settlements in Basel. Saudi Arabia also adheres to the international standards of transparency and accountability. Its financial system is stable and well-capitalized.
Climate change
Saudi Arabia is one of the world’s largest oil exporters, yet has traditionally eschewed green policies. Its oil exports have fuelled global economic growth for decades, and its oil industry accounts for 13.3 per cent of world oil exports in 2019. It has also provided its citizens with generous benefits. Its oil exports provide free money to its citizens, and it’s not required for citizens to pay taxes.
Oil production has long been the backbone of Saudi Arabia’s economy, accounting for a large percentage of the GDP. However, the country is now attempting to diversify its economy and transition to a low-carbon economy. It has also committed to achieve net zero operational emissions by the year 2050 through its national oil company, Saudi Aramco. The country is also trying to reduce its dependence on oil by shifting to renewable energy sources.
The Saudi government’s new position on climate change represents a significant shift from its position a few years ago. In the past, Saudi Arabia has sought to delay decisions at U.N. climate conferences and has lobbied for language to be changed to suit its interests.
Saudi Arabia has also pledged to reduce its carbon emissions by almost half by 2060, which is a significant commitment. Even though the country is one of the largest oil producers in the world, it has resisted calls to cut its investment in new oil and gas production. In the coming years, the kingdom plans to reduce its carbon emissions by more than 270 million tons annually, and invest more than $186 billion towards this goal.