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Saudis feeling the zakatMENA

Saudis feeling the zakat

Saudi Arabia’s biggest companies have agreed to come together to contribute to the nation’s economy. The squad (which includes heavyweights Saudi Aramco, Almarai, Saudi Telecom, and Saudi Basic Industries) has pledged to reduce dividends to channel the money into the economy instead. It won’t be a small investment either — this effort is expected to total SAR 5t ($1.33t) of domestic capital spending over the next decade.

Why the good deed, you may wonder? The way that these giants benefit from this deal is by receiving incentives, such as subsidies, as a “thank you” from the government.

According to the Crown Prince, the goal is to promote job creation (particularly for younger generations) and contribute to overall GDP growth.

why it matters
Saudi Arabia is ramping up efforts to be less reliant on oil exports, and this initiative is part of a SAR 27t plan that boosts economic growth in KSA over the next 10 years.