Saudi Arabia: GACA Introduces Annual Permits for Private Non-Commercial Aircraft

The General Authority of Civil Aviation (GACA) has approved the issuance of annual permits for private non-commercial aircraft operated by foreign companies, subject to conditions.

This new move ensures private aircraft owners can travel to and within the Kingdom without requiring individual permits for each trip.

This step aligns with GACA’s strategic objectives to enhance collaboration with strategic partners and entities while building sustainable and efficient transportation systems in Saudi Arabia.

It supports the implementation of the Kingdom’s Public Aviation Roadmap and contributes to the Vision 2030 goal of fostering a safe, seamless, and high-quality aviation experience in the country.

The initiative underscores GACA’s commitment to adopting robust regulatory frameworks that guarantee security, efficiency, and operational excellence.

It aims to facilitate the operation of centralised private flights in Saudi Arabia, providing maximum convenience to travellers.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Saudi Arabia: Solidifies IP Leadership with Landmark Design Law Treaty

After nearly two decades of negotiations, the Riyadh Design Law Treaty has been adopted, marking a significant milestone for Saudi Arabia’s intellectual property landscape.

This landmark event solidifies the Kingdom’s position as an IP hub, reflecting the rapid reforms in this area since the establishment of the Saudi Authority for Intellectual Property (SAIP) in 2018.

The adoption of the Design Law Treaty is a testament to the prioritisation, support, and enablement of IP protection, management, and enforcement in the Vision 2030 era.

This treaty is anticipated to be a game-changer in the legal landscape governing the protection of designs, as it has been negotiated with a designer-centric view.

One of the key provisions of the treaty is the softened approach to statutory deadlines, which is often one of the main risks IP right holders need to grapple with.

Additionally, the treaty simplifies requirements and registration procedures, further streamlining the process for designers and IP holders.

The successful adoption of the Riyadh Design Law Treaty is a result of the hard work and dedication of the SAIP and the World Intellectual Property Organization (WIPO) teams, who have been instrumental in bringing this achievement to fruition.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Saudi Arabia: To Introduce VAT Refund System for Tourists

Saudi Arabia will introduce a VAT refund system for tourists in 2025, as outlined in the Saudi Budget statement for the upcoming fiscal year.

The Zakat, Tax, and Customs Authority will oversee the implementation of the system, which is designed to streamline tax compliance and enhance the travel experience.

This initiative underscores Saudi Arabia’s dedication to creating a visitor-friendly environment and attracting more tourists to explore the Kingdom.

As part of its tourism goals, Saudi Arabia aims to attract 127 million visitors by the end of 2025, aligning with the National Tourism Strategy.

The strategy promotes both domestic and international tourism, reinforcing the Kingdom’s position as a global destination of choice.

Tourism spending is projected to reach SR346.6 billion in 2025, contributing significantly to the domestic economy, increasing non-oil revenues, and boosting private sector demand.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Saudi Arabia: SAMA Issues Rules for Opening Electronic Wallets

The Saudi Central Bank (SAMA) has issued the final version of “E-Wallet Rules” as part of its supervisory and regulatory role over Electronic Money Institutions (EMIs).

The rules included provisions and obligations related to opening electronic wallets, verification of clients’ identities, and considerations for classifying and managing inactive wallets.

The rules set the relevant regulatory requirements that licensed EMIs must comply with to protect market participants and support EMIs in providing services that increase the sector’s safety and stability.

The SAMA’s decision reflects its continuous efforts to develop the financial sector and empower EMIs.

SAMA had already published the E-Wallet Rules, seeking comments and feedback from the public and experts, to achieve transparency and public participation.

The comments and feedback were studied and taken into consideration in the final version of the rules.

More details of the rules can be had from SAMA’s website at: https://www.sama.gov.sa/en-us/rulesinstructions/pages/regulation.aspx.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Saudi Arabia: Royal Commission Lifts Restrictions on Land Transactions

The Royal Commission for Riyadh City has lifted restrictions on the sale, purchase, subdivision, and fragmentation of large tracts of land in the northern part of Riyadh, specifically around the New Murabba Project.

The commission has said the area where the restrictions have been lifted is bordered by King Fahd Road to the west, Prince Faisal bin Bandar Road to the east, the Special Security Forces Road to the south and the pipeline protection area to the north, encompassing approximately 46 million square metres.

The commission stated that it will begin issuing building permits and approving new plans for these plots according to a new urban code that will be announced within three months of this decision.

In a related development, it was announced that 4.71 million square metres of land located within the New Murabba Project development area have had their restrictions lifted.

The National Programme for Community Development in Regions recently urged property owners to provide necessary documentation to establish land ownership, allowing for the initiation of expropriation procedures for properties within the New Murabba Project’s boundaries.

Additionally, the New Murabba Company will prepare design guidelines for the urban code in these areas, which will be disclosed later through the commission’s official channels upon approval.

The commission has emphasised that these steps, including the lifting of restrictions on several parcels of land, are part of a series of forthcoming initiatives aimed at creating a distinguished urban model in Riyadh.

This model will contribute to shaping the city’s future and restructuring its landscape in alignment with the demands of each developmental phase.

The previous restrictions were imposed to assess optimal development methods and ensure the sustainability of these locations and residential communities, facilitating accessibility and service delivery.

Moreover, the commission has noted that the future vision for Riyadh will be shaped by a range of factors, with high-quality projects being the cornerstone of its developmental plans.

These projects will ensure a strategic advancement, positioning Riyadh as a leader on the global stage.

Additionally, the commission has established a centralised contact centre to address public inquiries regarding the mentioned lands.

The centre can be reached at 8001240800 and operates from Sunday to Thursday, between 8 a.m. and 8 p.m.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Saudi Arabia: Real Estate Transactions Tax

Al Watan, 3 November 2024: A workshop titled “Real Estate Transactions Tax” organised by the Real Estate Committee at the Ahsa Chamber of Commerce, in cooperation with the Zakat, Tax and Customs Authority, has determined that it would take 5 minutes on average to register a property on the electronic Real Estate Transactions Tax platform.

The platform aims to facilitate the process for users, enabling them to register their properties for taxation, pay the applicable tax on non-exempt cases, and complete this essential step before finalising the property transfer or contract documentation.

The platform’s services include tracking application status, viewing invoices, and modifying or canceling applications.

The workshop has emphasised the importance of considering the fair market value, which is the amount due for the property (in exchange for similar and concurrent goods or services provided flexibly between unrelated parties).

The Real Estate Transactions Tax is an indirect tax on all transactions that result in a legal effect, involving the transfer of property ownership or possession for the purpose of ownership or usufruct from one person to another.

The transaction may be contingent on a subsequent action by the parties involved, such as a sale, or based on the unilateral will of the transferor, such as a bequest.

It includes gifts, exchanges, barters, financial leases, Islamic leases ending in ownership transfer, transfer of shares in real estate companies, and long-term usufruct contracts exceeding 50 years.

The tax applies only once in cases where the parties, property, and value remain the same.

The Real Estate Transactions Tax exempts certain transactions, such as those involving inheritance division, transfers without consideration to family members or charitable associations, and forced transfers due to expropriation for public benefit.

Other exempted transactions include documented gifts to spouses or third-degree relatives (under specific conditions), transfers based on a legal will, temporary transfers as security for financing or credit (unless permanently transferred), transactions before the regulations’ effective date related to lease-to-own or financial leases, temporary transfers between a fund and a custodian, and contributions of property as in-kind shares in a company established in the Kingdom.

For the full story, click here.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.