This week, the UAE Ministry of Economy announced new measures requiring prior approval for price hikes on essential goods like bread, eggs, and rice, aiming to safeguard consumers starting January 2025. Saudi Arabia’s Kingdom Holding doubled down on its investment in Elon Musk’s xAI with a $400 million contribution, reflecting growing regional interest in cutting-edge AI technologies.
In other developments, the UAE Ministry of Finance introduced tax regulation updates to simplify compliance and bolster its position as a global business hub. Dubai authorities cracked down on two international money laundering networks worth Dh641 million, demonstrating the emirate’s robust enforcement capabilities. Meanwhile, Kuwait approved a 15% tax on multinational corporations, aligning with global tax standards and signalling a shift in the region’s fiscal landscape.
These were the top stories this week as selected by Finance Middle East editors.
Price hikes on essentials like bread, eggs and rice now require approval: UAE Ministry of Economy
The UAE Ministry of Economy has announced the implementation of three ministerial decrees to regulate the pricing of essential consumer goods, starting January 2, 2025. The policy aims to enhance transparency, improve oversight and protect consumers in the country’s markets.
The decrees prioritise nine essential goods—cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread and wheat—whose prices cannot be raised without prior approval from the Ministry. Other goods will continue to follow supply and demand mechanisms.
Saudi Arabia’s Kingdom Holding invests $400 million in Elon Musk’s xAI
Kingdom Holding Company (KHC), the Saudi conglomerate with interests spanning hotel management, real estate, and equity investments, has announced an additional $400 million (SAR 1.5 billion) investment in xAI Corporation. The artificial intelligence company, founded by Elon Musk and a team of global engineers, focuses on advancing AI to accelerate human scientific discovery.
The investment made during xAI’s Series C funding round mirrors KHC’s prior $400 million participation in xAI’s Series B funding round. Both rounds were funded through KHC’s internal resources, as disclosed in a filing to Saudi Arabia’s Tadawul stock exchange.
UAE Ministry of Finance updates tax regulations to simplify compliance
The Ministry of Finance (MoF) has issued amendments to Ministerial Decisions through updated Ministerial Decision No. (301) of 2024 on Tax Groups and Ministerial Decision No. (302) of 2024 on Participation Exemption and Foreign Permanent Establishment Exemption under Federal Decree-Law No. 47 of 2022 on Corporate Taxation. These changes, effective for tax periods beginning on or after January 1, 2025, aim to enhance compliance processes and reinforce the UAE’s position as a leading global business hub.
The amendments provide administrative relief and clearer guidelines for businesses forming Tax Groups. They simplify compliance requirements for foreign juridical persons considered Resident Persons in the UAE and for UAE-based juridical persons managed outside the UAE, easing the process to demonstrate non-tax residency in another jurisdiction.
Dubai cracks down on two major money laundering networks worth Dh641 million
Dubai authorities, in collaboration with federal and international agencies, have successfully dismantled two major international money laundering operations totalling Dh641 million.
In the first case, Dubai Public Prosecution referred 26 individuals and two companies to the Criminal Court of First Instance. The accused include an Emirati national, 21 British nationals, two Americans, a Czech national, and two companies owned by the Emirati national. They face charges of possessing illicit funds amounting to Dh461 million, as well as forgery and the use of forged official documents.
In a separate operation, the Dubai Economic Security Centre and Public Funds Prosecution disrupted a cryptocurrency-based money laundering scheme worth Dh180 million. The case involves 30 individuals and three companies, with the primary orchestrators identified as two Indian nationals and one British national.
Kuwait approves 15% tax on multinational companies starting January 2025
Kuwait’s Cabinet has endorsed a draft law to impose a 15% tax on multinational companies operating across multiple countries. The decision, made during the weekly Cabinet meeting chaired by HH Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah at Bayan Palace, aligns with global tax standards aimed at curbing tax evasion and ensuring tax revenues remain within the country.
The tax will apply to multinational entities with significant business activities in Kuwait and will come into effect on January 1, 2025, according to Deputy Prime Minister and Minister of State for Cabinet Affairs Shereeda Al-Mousherji. The Kuwait News Agency (KUNA) reported that the law is intended to combat the diversion of tax revenues to other jurisdictions while supporting global efforts to standardise corporate taxation.
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