Saudi Arabia plans to resume tourism visas in early 2021


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Saudi Arabia is set to re-open its tourism industry with plans to resume visas by early 2021 following months of suspension due to the Covid-19 pandemic, the country’s tourism minister said.

"For tourist visa, until now we are talking about early next year. If things get better or if any positive developments happen with regards to the vaccine, we might accelerate and have it earlier," Ahmed Al Khateeb told Reuters in a virtual interview.

The Kingdom closed its borders to foreign visitors from at least 25 countries in late February, followed by a complete ban on travel in and out of the country in March as the number of daily coronavirus cases increased.

The move has hit the tourism sector hard, with a 35 to 45 per cent decline expected by the end of this year, Mr Al Khateeb said.

However, the lifting of lockdown over the summer has allowed the country’s domestic tourism industry to recover, cushioning the blow. "This pandemic is a systematic risk that has hit everyone; however, we have seen a very strong summer after the January-May lockup period," Mr Al Khateeb said.

"We have noticed a growth of 30 per cent year on year in domestic tourism which is beyond our expectations."

Tourism is a key pillar of Saudi Crown Prince Mohammed bin Salman's ambitious reform strategy to reduce the economy's dependence on oil.

The kingdom, which opened its doors to foreign tourists in September 2019 by launching a new visa regime for 49 countries, wants the sector to contribute 10 per cent of gross domestic product by 2030.

  • Abundant marine life in the Red Sea. Photos: Saudi Tourism Authority
    Abundant marine life in the Red Sea. Photos: Saudi Tourism Authority
  • A lone tent in Ad Dahna desert, which extends about 1,000 kilometres through Saudi Arabia
    A lone tent in Ad Dahna desert, which extends about 1,000 kilometres through Saudi Arabia
  • Balloons flying over the Unesco World Heritage Site of AlUla
    Balloons flying over the Unesco World Heritage Site of AlUla
  • The cliff formations known as 'The Edge of the World', located 100km from Riyadh
    The cliff formations known as 'The Edge of the World', located 100km from Riyadh
  • The road to Tabuk, home to spectacular rock formations
    The road to Tabuk, home to spectacular rock formations
  • Madain Saleh, the first archaeological site in Saudi Arabia to join Unesco's World Heritage List
    Madain Saleh, the first archaeological site in Saudi Arabia to join Unesco's World Heritage List
  • Stunning cabins located in the wilderness of Saudi Arabia
    Stunning cabins located in the wilderness of Saudi Arabia
  • The region of Jazan is known for its lush greenery, which resembles the rice terraces of Bali
    The region of Jazan is known for its lush greenery, which resembles the rice terraces of Bali
  • The old city of Jeddah with its signature architecture
    The old city of Jeddah with its signature architecture
  • Jeddah is known for its coastline and charm
    Jeddah is known for its coastline and charm
  • Jabal al-Lawz, or Louz Mountain, is located in north-west Saudi Arabia, near the Jordanian border, which often gets coated in snow
    Jabal al-Lawz, or Louz Mountain, is located in north-west Saudi Arabia, near the Jordanian border, which often gets coated in snow
  • The historical village of Zee Al-Ain is located in the Al Bahah province
    The historical village of Zee Al-Ain is located in the Al Bahah province

The Saudi Summer campaign, which promoted 10 tourist destinations – from beaches and forests to mountain peaks and historic areas – for citizens and residents to visit in lieu of holidaying abroad, helped boost average occupancy ratio at hotels to 80 per cent.

The Kingdom has reported 332,790 Covid-19 cases and 4655 deaths so far. Infection rates have seen a steady decline over the past few weeks.

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The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

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Brazil
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  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
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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.

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk