Saudi Arabia Improves Tax, Customs Procedures by Merging Two Govt. Agencies

The Saudi Cabinet approves merging the General Authority of Zakat and Tax with the General Authority of Customs to form an umbrella unit named “Zakat, Tax and Customs Authority", Asharq Al-Awsat
The Saudi Cabinet approves merging the General Authority of Zakat and Tax with the General Authority of Customs to form an umbrella unit named “Zakat, Tax and Customs Authority", Asharq Al-Awsat
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Saudi Arabia Improves Tax, Customs Procedures by Merging Two Govt. Agencies

The Saudi Cabinet approves merging the General Authority of Zakat and Tax with the General Authority of Customs to form an umbrella unit named “Zakat, Tax and Customs Authority", Asharq Al-Awsat
The Saudi Cabinet approves merging the General Authority of Zakat and Tax with the General Authority of Customs to form an umbrella unit named “Zakat, Tax and Customs Authority", Asharq Al-Awsat

The latest Saudi efforts to optimize and restructure government agencies to speed the implementation of the national transformation plan “Vision 2030” saw the merger of the General Authority of Zakat and Tax (GAZT) with the General Authority of Customs.

On Tuesday, the Saudi Cabinet, chaired by King Salman bin Abdulaziz, approved merging the two bodies under an umbrella authority named “Zakat, Tax and Customs Authority (ZTCA).”

Moreover, the Cabinet approved the regulation of the new organization.

Efficiency-driven restructuring of government bodies helps resolve obstacles standing in the way of achieving the goals of Vision 2030, experts told Asharq Al-Awsat, adding that the merger has produced a valuable agency in terms of contribution to the Kingdom’s economic growth.

Despite reaffirming that establishing the ZTCA will help in overcoming authority-related challenges, Saudi Shura Council member Fadl al-Buainain pointed out the need to ensure a smooth integration.

“It is important to point out the importance of the merger procedures, and the necessity for their streamlining and non-impact on the procedures of the two relevant bodies associated with them in the business sectors,” said al-Buainain.

“Saudi Arabia’s decision to merge GAZT with the General Authority of Customs will enhance security, business and trade exchange, in addition to other Zakat, tax and customs procedures,” Mohammed Al-Jadaan, Minister of Finance and GAZT chairman, said in a statement.

“The newly merged entity is in line with the latest international practices and will boost operating as well as cost efficiency,” Al- Jadaan affirmed, adding that the government’s efforts to develop the state-owned entities continuously came within Saudi Vision 2030.

According to the minister, the great deal of attention Saudi leadership gives to the nonstop advancement of all state agencies and human capital represents one of the essential pillars for realizing Vision 2030.



4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
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4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 

Financial analysts and market specialists have identified four main factors driving the decline of the Saudi stock market during the first half of 2025. Speaking to Asharq Al-Awsat, they pointed to heightened geopolitical tensions in the region, ongoing trade disputes and tariffs between the United States, China, and Europe, oil price volatility, and persistently high interest rates. Collectively, these pressures have squeezed liquidity and weighed heavily on market performance.

Despite the downturn, analysts expect the market to gradually recover over the second half of the year, supported by potential global interest rate cuts, stabilizing oil prices, easing economic uncertainty, and forecasts of robust growth in Saudi Arabia’s GDP and the non-oil sector, alongside continued government spending on major projects.

The Saudi stock market recorded notable losses in the first six months of 2025, with the benchmark index retreating 7.25%, shedding 872 points to close at 11,163, compared to 12,036 at the end of 2024. Market capitalization plunged by around $266 billion (SAR 1.07 trillion), bringing the total value of listed shares to SAR 9.1 trillion.

Seventeen sectors posted declines during this period, led by utilities, which plummeted nearly 32%. The energy sector fell 13%, and basic materials dropped 8%. In contrast, telecom stocks advanced around 7%, while the banking sector eked out a marginal 0.05% gain.

Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, described the first-half performance as marked by significant swings. “The index rose to 12,500 points, only to lose nearly 2,000 points before recovering to about 11,260,” he said.

He attributed the volatility to several factors: regional geopolitical strains, oil prices dipping to $56 a barrel, and high interest rates, which constrained liquidity. He noted that financing costs for traders now range between 7.5% and 9%, historically elevated levels.

“The Saudi market posted the steepest decline among regional exchanges despite record banking sector profits, which failed to translate into stronger overall index performance,” he observed.

Looking ahead, Al-Khalidi anticipates three interest rate cuts totaling 0.75 percentage points by next year, which would bring rates down to about 3.75%. “That should encourage a recovery in trading activity, improve liquidity, and support an upward trend in the index toward 12,000 points, potentially reaching 13,500 if momentum builds,” he added.

Meanwhile, Mohamed Hamdy Omar, economic analyst and CEO of G-World, described the downturn as largely expected, citing external pressures and prolonged trade tensions between the US, China, and Europe. “Retaliatory tariffs dampened investor confidence globally, and Saudi Arabia was no exception,” he said.

Lower oil revenues also strained state finances, leading to a budget deficit of SAR 58.7 billion in the first quarter, further tightening liquidity. Trading volumes fell over 30% year-on-year.

Omar pointed out that changes to land tax regulations and heightened regional security risks also weighed on sentiment. Nonetheless, he expects gradual improvement in the second half of 2025, driven by anticipated rate cuts, rebounding oil prices, and continued large-scale public investments.

He stressed the need for vigilance: “Saudi Arabia remains among the most stable markets, thanks to proactive regulation and policies designed to attract foreign capital and bolster investor confidence.”