JEDDAH: Prices of cigarettes and energy drinks have doubled with the implementation of an excise tax that became effective midnight Saturday in a measure unprecedented in the Kingdom.
The excise tax, commonly known as a “sin tax,” is imposed on “unhealthy products” that are likely to cause health problems and eventually increase medical expenses paid by individuals or the government, according to the General Authority of Zakat and Tax (GAZT) official website.
“We’ve communicated with the business sector and have set up many workshops to introduce the selective tax both at the GAZT and the Chamber of Commerce,” Mohannad Al-Madi, who handles public relations for the GAZT, told Arab News.
A few days prior to the implementation, some smokers struggled to find boxes of their usual cigarettes. Consumers attempted to stock up on cigarettes at their pre-tax price, while suppliers were trying to keep the products off the shelves until the prices rose.
“I went to several shops yesterday to buy the type of cigarettes I usually smoke. It was nowhere to be found,” Abdulghafour Ahmed, a middle-aged man who started smoking when he was 18, told Arab News.
Soft drinks were being placed on an empty shelf at one of the main supermarkets in Jeddah that Arab News visited Sunday afternoon. “There was nothing here yesterday,” the shelf stacker said, pointing at the shelf. “Yesterday, the price was normal. But today, a soft drink can is SR2.25 ($0.60).”
This price of a 355ml can of a soft drink matched that of another supermarket Arab News visited. The second supermarket had also kept the newly taxed drinks away from customers so they are sold 50 percent higher in price in the case of soft drinks, and double the price for energy drinks.
Consumers will now pay SR12 at one supermarket for a 250ml can of a popular taurine drink, which is priced at SR11.90 at another supermarket. Aside from tags of doubled priced energy drinks, a new sign has been posted on market shelves stating: “Energy drinks harmful to health.” The full warning matches the text on beverage cans.
The warning, written in English and Arabic, reads: “This product does not have any health benefits. Consuming more than two cans a day may negatively affect your health.” The warning mainly targets individuals under 16 years old, pregnant women, who are breastfeeding, people with heart conditions, individuals with high blood pressure or diabetes, people allergic to caffeine and athletes while exercising.
The tax authority urged producers and suppliers of taxable goods to register for the excise tax, the GAZT official website stated.
The statement read: “The GAZT has stated that every person who possesses excise tax goods should file a return for the transitional period starting Sunday (June 11) and pay accordingly within 45 days, to avoid being subject to legal penalties and fines.”
The taxing body expects to lower consumption by people with limited income of the taxed products after the price hike.
Yet Faizan Haider, a Jeddah-based Pakistani national working at a travel agency, said he would rather cut down on his food purchases than quit smoking.
“I will spend less on fast food and other stuff, but cannot quit smoking,” he told Arab News.
Haider, who has been in Saudi Arabia for 24 years, said that he was “disappointed” that the government has raised taxes on tobacco, “which is pointless.”
Regular smoker and energy-drinks lover 25-year-old Salma Walid, said the move would not make her quit.
“It’s an extra strain on the pocket, but it’s a habit that I can’t just quit or cut down on,” she said.
Walid bought her last pack of the cigarettes she smokes for SR12 one day before the tax into effect. Now it is SR24.
Gulf Cooperation Council (GCC) countries are also set to implement a value-added tax (VAT) of 5 percent on certain goods beginning in 2018.
New tax doubles price of cigarettes, energy drinks in Saudi Arabia
New tax doubles price of cigarettes, energy drinks in Saudi Arabia
Saudi Arabia witnessing comprehensive cultural development, says expert
- Clotilde Entrecanales of Acciona hails pace of change in Kingdom
JEDDAH: Museums, exhibitions and art centers play a crucial role in the development of free and educated societies such as the one now burgeoning in Saudi Arabia, an expert has told Arab News.
Clotilde Entrecanales, the Spanish art historian and cultural executive who heads Acciona Living & Culture, a leading creator of technology-driven interactive museums, exhibits and events, said the Kingdom is making efforts to expand the role of culture development to show the world the greatest possible cultural offer.
She added that the Kingdom has quickly infused new energy into the region, and is rapidly establishing itself as a global cultural hub through massive investment in world-class museums, public art and international events, aligning with its 2030 vision.
She said: “With around 70 percent of the population under 30, cultural consumption looks very different than in Europe or the US. These spaces can’t feel like quiet, isolated institutions … they need to be fast, dynamic, brave and deeply connected to the city, blending into everyday urban life rather than sitting apart from it.”
Asked about the role of these sites in the evolving global cultural landscape, particularly in emerging cultural hubs like Saudi Arabia, Entrecanales said: “Our vision is to be a purpose-led partner for cultural and entertainment institutions, helping them be more relevant, connected, inclusive and sustainable.”
She added: “In emerging cultural hubs like Saudi Arabia, that approach feels especially relevant. The cultural transformation underway is moving fast — with major heritage and cultural destinations being developed and opened to the world.”
Speaking about her impression of the Kingdom’s approach to blending heritage with modernity face, Entrecanales said: “Others who attempt to achieve this balance often end up turning heritage into a theme, a layer of storytelling or a cultural program. What feels different about Saudi’s approach is how much pressure there is to treat heritage as the foundation, not just the surface.
“When you’re building at this speed and scale, there’s always a risk that history becomes a backdrop instead of a backbone. The projects that work best are the ones that slow down just enough to let the past set the rhythm for the present.”
Regarding opportunities and challenges, she said: “The opportunity is nothing less than positioning Saudi Arabia as a global cultural center. The challenge, as always, lies in balancing the speed and scale of that ambition with long-term sustainability and a sense of authenticity that remains credible and rooted.”
She added: “You can really feel this in places like the Islamic Arts Biennale, which shows hundreds of historical artefacts of the Islamic world, while re-framing them through contemporary scenography and designs by some of the best design studios in the world; or in AlUla, a world-class heritage site that hosts a major contemporary platform like Desert X, allowing ancient context and present-day artistic practice to coexist in a way that feels genuine.”
Under her guidance, ACCIONA Cultura aspires to create museums and cultural experiences that function as landmarks while fostering sustainable, inclusive and immersive interactions.
She elaborated on how the company is integrating technology, culture, and sustainability to preserve and promote the region’s cultural heritage: “We always start with human connection and storytelling: what’s the story, what should people leave with? Tech comes later.”
Recently, ACCIONA Cultura has been involved in significant projects in Saudi Arabia and is looking forward for more.
She said: “Right now, for example, we’re designing and curating a museum gallery where the entire space is shaped by the practice of a Saudi artist. Another example is the Net Zero exhibition at the King Abdulaziz Center for World Culture (Ithra), where we brought together Saudi and international artists to explore sustainability and our relationship with the planet, including voices like Dina Haddadin, Mohammed Al-Faraj, and Zahrah Al-Ghamdi.”
She added: “One of the projects I’m most proud of isn’t a museum, but our NEXT IN Summit, which we’ve hosted in two editions in our ACCIONA Campus in Madrid, highlighting the Kingdom’s unprecedented cultural momentum as it builds future-facing institutions with a startup mindset.”
About further collaboration with Saudi Arabia, she said: “Let’s just say … something’s definitely simmering in the kitchen.”
Commenting on being recognized among the Blooloop 50 Museum Influencers for 2025, she said: “It means a lot. More than anything, it feels like a nod to the years of teamwork and dedication behind Acciona Cultura, rather than to me personally.”
