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FedEx Express Moves to Direct-serve Presence in Saudi Arabia

FedEx announces moving to a direct-serve presence in Saudi Arabia (Asharq Al-Awsat)
FedEx announces moving to a direct-serve presence in Saudi Arabia (Asharq Al-Awsat)
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FedEx Express Moves to Direct-serve Presence in Saudi Arabia

FedEx announces moving to a direct-serve presence in Saudi Arabia (Asharq Al-Awsat)
FedEx announces moving to a direct-serve presence in Saudi Arabia (Asharq Al-Awsat)

The world’s largest express transportation company FedEx Express is moving to a direct-serve presence in Saudi Arabia.

FedEx Express will invest more than 1.5 billion Saudi riyals ($400 million) into the Saudi economy over the next 10 years to meet the country's growing international shipping demands.

The investment will go into talent management, local operations and infrastructure, the company said in a statement.

The company's investment, in line with Saudi's Vision 2030 goals and the ‘National Industrial Development and Logistics Program’, seeks to increase non-oil exports to more than 1 trillion riyals ($266 billion).

FedEx Express has been facilitating trade in Saudi Arabia since 1994, offering international solutions and connectivity through local service providers, most recently through SAB Express.

Its direct presence will further help local businesses trade with ease and expand their reach into the more than 220 countries and territories that it serves, the statement added.

“This strategic expansion in the kingdom will help Saudi-based businesses connect to new markets and customers around the world, supporting Saudi Arabia’s Vision 2030 goals to diversify the national economy,” said Jack Muhs, regional president of FedEx Express Middle East, Indian Subcontinent, and Africa.

“In addition to our commitment to the Saudi economy, we see FedEx Express playing an important role in developing the small- and medium-enterprise environment in Saudi Arabia, which forms the backbone of the economy, and represents 99 percent of Saudi Arabia’s private sector.”

FedEx Express will continue to work closely with SAB Express to provide pickup, delivery, and customs clearance services across the country, the statement read.

“We’re happy to continue supporting FedEx Express in Saudi Arabia with their growth journey and join them in playing a critical role in developing Saudi Arabia’s logistics infrastructure, in line with the country’s coordinated efforts and strategy in diversifying the economy,” Sheikh Salah Al Bluewi, chairman of SAB Express, said.

“The logistics sector is a key contributor towards employment, investment, and overall economic growth in our nation.”

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G7 Agrees to Avoid Higher Taxes for US and UK Companies

23 June 2025, United Kingdom, Nuneaton: Chancellor of the Exchequer Rachel Reeves talking to the media during a visit to Horiba Mira in Nuneaton, to mark the launch of the Government's Industrial Strategy. (Jacob King/PA Wire/dpa)
23 June 2025, United Kingdom, Nuneaton: Chancellor of the Exchequer Rachel Reeves talking to the media during a visit to Horiba Mira in Nuneaton, to mark the launch of the Government's Industrial Strategy. (Jacob King/PA Wire/dpa)
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G7 Agrees to Avoid Higher Taxes for US and UK Companies

23 June 2025, United Kingdom, Nuneaton: Chancellor of the Exchequer Rachel Reeves talking to the media during a visit to Horiba Mira in Nuneaton, to mark the launch of the Government's Industrial Strategy. (Jacob King/PA Wire/dpa)
23 June 2025, United Kingdom, Nuneaton: Chancellor of the Exchequer Rachel Reeves talking to the media during a visit to Horiba Mira in Nuneaton, to mark the launch of the Government's Industrial Strategy. (Jacob King/PA Wire/dpa)

The United States and the Group of Seven nations have agreed to support a proposal that would exempt US companies from some components of an existing global agreement, the G7 said in a statement on Saturday. 

The group has created a "side-by-side" system in response to the US administration agreeing to scrap the Section 899 retaliatory tax proposal from President Donald Trump's tax and spending bill, it said in a statement from Canada, the head of the rolling G7 presidency. 

The G7 said the plan recognizes existing US minimum tax laws and aims to bring more stability to the international tax system. 

The US Treasury Department said that following the removal of Section 899 from the US Senate version of the tax and spending bill, there is a shared understanding that a side-by-side system could preserve important gains made by jurisdictions inside the Inclusive Framework in tackling base erosion and profit shifting. 

"We look forward to discussing and developing this understanding within the Inclusive Framework," the Department said in a post on X on Saturday. 

UK businesses are also spared higher taxes after the removal of Section 899 from President Donald Trump's tax and spending bill. 

Britain said businesses would benefit from greater certainty and stability following the agreement.  

Some British businesses had in recent weeks said they were worried about paying substantial additional tax due to the inclusion of Section 899, which has now been removed.  

"Today's agreement provides much-needed certainty and stability for those businesses after they had raised their concerns," finance minister Rachel Reeves said in a statement, adding that more work was needed to tackle aggressive tax planning and avoidance. 

G7 officials said that they look forward to discussing a solution that is "acceptable and implementable to all". 

In January, through an executive order, Trump declared that the global corporate minimum tax deal was not applicable in the US, effectively pulling out of the landmark 2021 arrangement negotiated by the Biden administration with nearly 140 countries. 

He also vowed to impose a retaliatory tax against countries that impose taxes on US firms under the 2021 global tax agreement. This tax was considered detrimental to many foreign companies operating in the US.