RIYADH: Bond sales and indirect taxation are part of Kuwait's strategy to address its budget deficit, Al-Jarida paper reported, citing the country's finance minister
Minister Khalifa Hamada made the remarks in response to a parliamentary question about the government's strategy.
Taxes are selective, “imposed at high varying rates on the selling price of goods harmful to public health and the environment, in addition to luxury goods specified by law,” in addition to value-added tax, Hamada explained.
There is need for cooperation between the government and the parliament "to allow the issuance of bonds, and the orderly and limited withdrawal from the Future Generations Reserve Fund, to cover the deficit as a temporary measure, pending the completion of the reforms contained in the government's work program," the newspaper quoted the minister as saying.
Kuwait plans taxes and sovereign bonds to balance budget, says minister
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Kuwait plans taxes and sovereign bonds to balance budget, says minister
- Sale of bonds seen as temporary measure to address deficit
Closing Bell: Saudi main index closes in red; Nomu gains
RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend on Tuesday, as it shed 34.44 points or 0.33 percent to close at 10,290.76.
The total trading turnover of the benchmark index stood at SR3.57 billion ($950 million), with 80 of the listed stocks advancing and 178 declining.
The Kingdom’s parallel market Nomu advanced by 0.43 percent or 100.66 points to close at 23,327.60.
The MSCI Tadawul Index, however, declined by 0.19 percent to 1,368.49.
The best-performing stock on the main market was Almasane Alkobra Mining Co., as its share price increased by 7.83 percent to SR95.
The share price of Electrical Industries Co. advanced by 6.17 percent to SR11.18.
Saudi Arabian Mining Co., known as Maaden, also saw its stock price climb by 5.74 percent to SR64.50.
Conversely, the share price of Shatirah House Restaurant Co. declined by 8.14 percent to SR8.13.
On the announcements front, Saudi Telecom Co. said that it plans to issue a dollar-denominated international sukuk under its $5 billion International Trust Certificate Issuance program.
According to a Tadawul statement, the issuance program was set up on Jan. 6, following a board approval obtained on Sept. 30.
Stc added that the issuance will be conducted through an offshore special purpose vehicle established outside Saudi Arabia, adding that the proceeds will be used for the company’s general corporate purposes.
The statement further said that the sukuk may be issued in one or more tranches or series by way of an offer to eligible investors in the Kingdom and internationally.
The telecom giant added that the amount and terms of the offer of the sukuk will be determined based on market conditions.
The share price of stc edged down by 1.08 percent to SR42.06.
