Al Rajhi Bank on Tuesday said its second quarter net income rose 3.4 per cent. Bloomberg
Al Rajhi Bank on Tuesday said its second quarter net income rose 3.4 per cent. Bloomberg

12 Saudi banks to pay 17.9bn riyals to settle Zakat payments

Twelve listed Saudi banks reached a 17.86 billion riyal (Dh17.5bn) settlement with the kingdom’s tax authority over the payment of religious tax called Zakat.

Al Rajhi Bank, Saudi Arabia’s second-largest bank by assets, will pay the highest amount of 5.4bn riyals, followed by Riyad Bank with 2.96bn riyals and Samba Financial Group with 2.3bn riyals, the lenders said in separate statements to the Saudi stock exchange, where their shares are listed.

Alinma bank said it did not pay any settlement and it would record “a credit balance", with the General Authority of Zakat and Tax.

All banks said the settlements, reflected in their shareholder’s equity, cover a number of previous years that will include the fiscal year of 2018 and the lenders will publish further details on the effect in their financial statements for this year.

"Any weakness due to this resolution is likely to be short-lived, and focus should shift to the key themes for Saudi banks in 2019: index inclusion, rates and mortgage growth," said Egyptian investment bank EFG Hermes on Sunday.


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The government also recently reached a settlement with the three mobile phone operators in the country, signing a deal to resolve old disputes and define a new investment framework and mechanism for the calculation of service and license royalties.

The deal signed with Ministry of Finance, the Ministry of Telecommunications and Information Technology and the Communications and Information Technology Commission will see annual royalty for commercial service dropping retroactively to 10 per cent from 15 per cent of net revenues, starting January 1, 2018.

Zain KSA, which is a part of Kuwait’s Zain Group, expects to save 220 million riyals in royalty fees for the first nine months of the year and expects the reduction in annual royalty fees to benefit the company's financial results going forward.

STC, the government-backed operator, also expects the agreement to boost its fourth-quarter earnings taking into account the provisions allocated for the royalties. Part of those provisions will be used to cover the differences resulting from the modified mechanism and the remaining part, which is about 500m riyals, will be reversed on the books.

Starting from 2019, Etihad Etisalat (Mobily), a unit of UAE’s operator Etisalat, will have to bear additional cost estimated between 450 to 600m riyals per year over the next few years.


Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5


Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)

TV: BeIN Sports

Turning waste into fuel

Average amount of biofuel produced at DIC factory every month: Approximately 106,000 litres

Amount of biofuel produced from 1 litre of used cooking oil: 920ml (92%)

Time required for one full cycle of production from used cooking oil to biofuel: One day

Energy requirements for one cycle of production from 1,000 litres of used cooking oil:
▪ Electricity - 1.1904 units
▪ Water- 31 litres
▪ Diesel – 26.275 litres


July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington

July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon

1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024

1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs

2000: Amazon Marketplace opens, allowing people to sell items on the website

2002: Amazon forms what would become Amazon Web Services, opening the platform to all developers. The cloud unit would follow in 2006

2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black

2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year

2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video

2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started

2009: Amazon introduces Amazon Basics, its in-house label for a variety of products

2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013

2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS

2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa

2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition

2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone


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Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends

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