The Saudi Arabian Industrial Sector Witnessed Significant Growth in 2023
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The industrial landscape of Saudi Arabia saw a notable growth during 2023, with the Ministry of Industry and Mineral Resources reporting a 10% increase in the number of operating factories, and by the end of the year, the total stood at 11,549.
Additionally, the ministry issued 1,379 new industrial licences, attracting investments totaling SR81 billion ($21.6 billion), and saw the commencement of operations in 1,058 new factories, which received investments of SR45 billion ($12 billion).
The Ministry spokesperson, Jarrah Al Jarrah, highlighted that these new licences spanned across 25 different industrial sectors, contributing to the overall investment in the 11,549 factories, which was estimated at SR1.541 trillion ($411 billion). The leading sectors in terms of manufacturing were food products, non-metallic mineral products, metal products manufacturing, and the production of rubber and plastic products.
When it came to the distribution of industrial licences, national establishments took the lead with 1,043 licences, followed by foreign investment establishments with 194, and joint investment ventures with 142 licences. Small establishments dominated in terms of licence numbers, receiving 1,203 licences, with medium-sized enterprises obtaining 158, micro-enterprises 15, and large companies 3 licences.
The distribution of licences across regions saw the Riyadh Region at the forefront with 479 licences, the Eastern Region with 340, the Makkah Region with 269, the Qassim Region with 87, and the Madinah Region with 79 licences.
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Compliance with these deadlines is crucial to avoid administrative penalties.
2 min
The UAE’s Federal Tax Authority (FTA) is urging Corporate Taxpayers to adhere to submission deadlines to avoid fines. Specifically, Resident Juridical Persons with licenses issued in May (regardless of the year) must submit their Corporate Tax registration applications by July 31, 2024, in line with Federal Tax Authority Decision No. 3 of 2024.
This decision aligns with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments, effective from March 1, 2024. The FTA stresses the importance of meeting these registration deadlines, which have been communicated through various media channels and direct outreach to registered company owners in the UAE.
Utilizing the EmaraTax Platform
Compliance with these deadlines is crucial to avoid administrative penalties. The deadlines apply to both juridical and natural persons, including Resident and Non-Resident Persons in the UAE. Detailed information on these deadlines and other relevant issuances can be found on the FTA’s official website.
According to the FTA’s Public Clarification, Resident Juridical Persons established or recognized before March 1, 2024, must submit their tax registration applications based on the month their license was issued. Those with expired licenses as of March 1, 2024, should submit their applications based on the original issuance month. For those holding multiple licenses, the earliest issuance date applies.
Administrative penalties for corporate tax violations have been in effect since August 1, 2023. To facilitate the registration process, taxpayers must use the “EmaraTax” digital platform, available 24/7, or seek assistance from accredited tax agents and government service centers.
The FTA has also emphasized the importance of providing accurate information and submitting updated supporting documents correctly with the electronic registration application, noting that registering for Corporate Tax for a juridical person requires uploading various documents, including the commercial license, the Emirates ID card, the passport of the authorized signatory, and proof of authorization for the authorized signatory.
A comprehensive video explaining the registration process through the “EmaraTax” platform is available on the FTA’s website. This platform, designed according to international best practices, aims to streamline the registration journey, submission of periodic returns, and payment of due taxes for all UAE taxpayers.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
