Saudi Arabia's Crown Prince Mohammed bin Salman received Pakistan's Prime Minister Imran Khan upon his arrival in Jeddah on Friday evening.
Saudi Minister of Commerce and Acting Minister of Information Dr Majed Al Qasabi and other officials were also present.
During his three-day visit to the kingdom, Mr Khan will perform umrah in Makkah and pilgrimage to the Prophet's Mosque in Madinah.
The prime minister will also meet the Secretary General of the Organisation of Islamic Co-operation, Dr Yousef Al Othaimeen, the Secretary General of the World Muslim League, Mohammad bin Abdulkarim Al Issa, and the Imams of the Two Holy Mosques.
Mr Khan is also expected to meet with members of the Pakistani community in Jeddah during his visit.
Prince Mohammed and Mr Khan held a series of talks at the royal court at Al Salam Palace in Jeddah to strengthen bilateral relations and sign an agreement to establish the Saudi-Pakistani Supreme Co-ordination Council.
"We appreciate the kingdom's efforts in organising the Hajj season for the past year, despite the challenges caused by the pandemic and what it does to serve the Two Holy Mosques and their pilgrims," said Mr Khan.
"We welcome the initiative of the Crown Prince, 'Green Saudi Arabia and the Green Middle East' which expresses the leadership role of the kingdom towards common international issues."
Prince Mohammed and Mr Khan discussed ways to strengthen and enhance economic and trade relations between the two countries by exploring areas of investment and opportunities presented by the kingdom's Vision 2030.
“We welcome the Pakistani prime minister’s initiative, ‘Pakistan Clean and Green’, as well as the successful ‘Ten Billion Tsunami Trees’ initiative,” said Prince Mohammed.
Prince Mohammed and Mr Khan discussed the need for co-operation in the Islamic world to confront extremism and violence, reject sectarianism and to achieve international peace and security.
Two agreements and two memorandums of understanding were signed to finance projects in the energy, infrastructure, transportation, water and communications sectors.
The nations also signed agreements to co-operate in the fields of crime and the judiciary.
Another MoU was signed in the area of anti-drug trafficking, including psychotropic substances and chemical precursors.
Saudi Arabia’s King Salman approved construction of the King Salman project at the International Islamic University in Pakistan's capital Islamabad, with a capacity of 12,000 people.
The project includes a cultural centre, library, mosque, museum and a conference hall named after Crown Prince Mohammed bin Salman.
"The prime minister of Pakistan's visit to Saudi Arabia is an important milestone in bilateral relations," Saudi Foreign Minister Prince Faisal bin Farhan tweeted on Saturday.
"The kingdom is keen to further strengthen relations between the brotherly countries as well as enable broader economic cooperation."
A statement released by Pakistan said the talks between Mr Khan and Crown Prince Mohammed "were marked by exceptional cordiality and a commitment to fortify the upward trajectory in the bilateral relationship".
Pakistani army chief Gen Qamar Javed Bajwa met Crown Prince Mohammed after arriving in Saudi Arabia earlier on Friday, Pakistan's military said.
"During the meeting, matters of mutual interest, regional security situation including recent developments in Afghan peace process, bilateral defence, security, collaboration for regional peace and connectivity were discussed," the military said.
Saudi Arabia gave Pakistan a $3 billion loan and a $3.2 billion oil credit facility after Mr Khan's government came to power in 2018.
Saudi Arabia was the first foreign country Mr Khan visited after his election and he has visited the kingdom five times since, most recently in December 2019.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
