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.