Back to the complete issue
Monday, 18 October 2021

The taxman is coming for ride-hailing apps in Saudi

Uber + Careem just got hit with a massive tax bill in KSA. The ride-hailing companies will be charged a combined USD 100 mn in taxes in Saudi Arabia as the kingdom resolves disputes on how to calculate VAT by gig economy firms over the past few years, Bloomberg reports, citing sources in the know. The additional taxes, which “include hefty penalties for late payment,” may scare off investors at a time when Saudi authorities are looking to attract foreign investment. Earlier this month, a top Dubai investor in courier app Fetchr announced that it was considering filing for liquidation due to a USD 100 mn tax bill in Saudi Arabia, according to the business information service.

Up

EGX30

11155.57

+1.5% (YTD: 2.9%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

11,773.4

+0.6% (YTD: 35.5%)

Up

ADX

7,834.7

+0.3% (YTD: 55.3%)

Up

DFM

2,802.1

+0.5% (YTD: 12.5%)

Up

S&P 500

4,471.4

+0.8% (YTD: 19%)

Up

FTSE 100

7,234.0

+0.4% (YTD: 12%)

Up

Brent crude

USD 84.86

+1%

Down

Natural gas (Nymex)

USD 5.41

-4.9%

Down

Gold

USD 1,768.30

-1.7%

Up

BTC

USD 60,814.31

+0.3% (as of midnight)

THE CLOSING BELL-

The EGX30 rose 1.5% at yesterday’s close on turnover of EGP 1.3 bn (13.1% below the 90-day average). Local investors were net buyers. The index is up 2.9% YTD.

In the green: Ezz Steel (+10.3%), Qalaa Holding (+6.4%) and Raya (+4.0%).

In the red: CIRA (-2.1%), Aspire Capital (-1.8%) and Eastern Company (-1.8%).

Asian markets are starting the trading week in the red, with everything from the Kopsi to the Nikkei, Hang Seng and Shanghai down by less than 1%. Futures suggest a mixed open for major benchmarks in Europe later this morning. The outlook for Wall Street is similarly mixed, suggesting the Dow will open (barely) in the green while the S&P and Nasdaq will open (just barely) in the red.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.