RIYADH: The Zakat collected from companies in Saudi Arabia is transferred to the Social Security Agency, Deputy Minister of Finance For Budget & Organizational Affairs, Yasser Al Quhidan, said in a radio interview.
“However, these Zakat fees sometimes cannot fulfill the requirements of the Social Security Agency, and are annually complemented from the state balances,” Al Quhidan noted.
Other proceeds from oversight and the anti-corruption authority (Nazaha), traffic violations, and fees of government services are recorded as ‘other revenues’, he added.
Project spending was cut to 10 percent of the state budget, as 50 percent of budget goes for employee compensations, while the remaining portion is directed to the social security agency, and also to fulfill operating expenses of other business sectors and debt service.
Additionally, the reduction of Saudi project spending was driven by lower off-balance sheet financing, and that lower funding is needed as several projects have been already completed, like the housing program. Saudi funds undertaking the financing of several projects also came as a reason.
Saudi Arabia allocated higher capital expenditure in 2020 within Vision 2030 for housing programs, the National Transformation Program (NTP) as well as the industrial projects; developmental programs with an indirect impact on citizens in terms of increasing job opportunities.
Al Quhidan indicated that the first item of the balance sheet covers income tax, profit tax and taxes on capital gains, including foreign companies and non-resident firms.
Financing expenses are to cover the budget deficit either from reserves or debt, while reliefs cover all beneficiaries and not only nationals.
“The economic diversification is of an outstanding significance; the expenditure initiatives will support the economic growth in the short term,” he noted.
Saudi Arabia’s revenues for the 2021 state budget are estimated at SR849 billion ($226.4 billion), with forecast expenditures of SR990 billion and a deficit of SR141 billion, Argaam reported.
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Zakat collected from firms in Saudi Arabia goes to Social Security Agency: Official
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Zakat collected from firms in Saudi Arabia goes to Social Security Agency: Official
- Saudi Arabia allocated higher capital expenditure in 2020 within Vision 2030 for housing programs, the NTP and industrial projects
- Al Quhidan indicated that the first item of the balance sheet covers income tax, profit tax and taxes on capital gains, including foreign companies and non-resident firms
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
