LONDON: Two British parliamentary committees are due to quiz tax officials about how Starbucks was able to avoid paying tax on 1.2 billion pounds ($ 1.93 billion) of sales since 2009.
Lawmakers said a Reuters report that showed Starbucks had been telling investors its UK unit was highly profitable while telling British authorities the unit was lossmaking, and thereby not liable for tax, undermined public trust in the tax system.
Margaret Hodge, chair of the Public Accounts Committee and a member of parliament for the center-left opposition Labour party, is among several lawmakers who said they wanted Her Majesty’s Revenue and Customs (HMRC), the UK tax authority to launch a investigation into Starbucks’ tax affairs.
Hodge said the head of HMRC and other officials would be testifying to the committee, which is tasked with ensuring value in government financial affairs, next month and that HMRC had “questions to answer” over about Starbucks’s practices.
There was no evidence that Starbucks had been engaged in any kind of wrongdoing. It said it paid its tax in Britain to the letter of the law.
The Treasury Subcommittee, which oversees HMRC, is also due to question HMRC officials and its chairman, lawmaker George Mudie, said he planned to question them about Starbucks.
He said he also hoped the committee could hear from executives from the company, although he noted he would need broader committee support to call the company to testify.
Labour members of parliament John Mann, who sits on the subcommittee, said he would like it to hold an investigation focusing on Starbucks but Mudie said this was unlikely.
HMRC does not comment on individual taxpayers and rejected any challenge to its efficacy.
“We make sure that multinationals pay the right tax to the UK in accordance with UK tax law,” it said in a statement.
Steve Baker, a member of parliament for the center-right Conservative party that rules in coalition, also called for an inquiry.
“I am a highly free market person but what I want is simple transparent tax law that is actually obeyed ... there are some serious questions to answer here,” he said.
Taxpayer confidentiality means HMRC would not be able to confirm a probe even if it did launch one.
Baker and Hodge said the government could get around this and reassure the public the matter was not being ignored, by it confirming in parliament that an HMRC probe was taking place.
Labour member of parliament Michael Meacher said he planned to table a motion asking the government to launch its own investigation into Starbucks and potentially other big companies that are paying minimal taxes on big UK revenues.
The legislators said such investigations should also lead to recommendations on how to change tax law to prevent companies from shifting profits overseas.
Starbucks declined to say if it was considering any changes to its accounting practices but said it was “totally committed to the UK.”
“Starbucks pays and will continue to pay our share of taxes in the UK to the letter of the law,” Kris Engskov, managing director of Starbucks Coffee UK, said in a blog on the company’s website.
He went on to note Starbucks’ contribution to the UK economy as an employer and as a customer for farmers and cake makers.
Unions said the Reuters story on Starbucks showed the government needed to do more to close loopholes that allowed companies avoid taxes.
“Hardworking families are being forced to pay off the deficit while companies like Starbucks laugh all the way to the bank,” Unite General-Secretary Len McCluskey said.
The Northern Ireland Committee of the Irish Congress of Trade Unions called for a boycott of the cafe chain, a call echoed by some members of parliament.
“Support local cafes and bars, and send Starbucks and other tax dodgers a clear massage — Unless you contribute to society, this society has no cash for your coffee,” ICTU Assistant General-Secretary Peter Bunting said.
Starbucks faces UK tax probe
Starbucks faces UK tax probe
Saudi Arabia set to lead $500bn wave of GCC debt maturities: Kamco Invest
RIYADH: The Gulf Cooperation Council region is expected to see elevated levels of fixed-income maturities over the next five years, driven primarily by Saudi Arabia and the UAE, a new analysis showed.
In its latest report, Kamco Invest said fixed-income maturities in Saudi Arabia are projected to total $174.5 billion between 2026 and 2030, closely followed by the UAE at $171.8 billion.
Saudi Arabia’s debt market has recorded robust growth in recent years, attracting strong investor interest in fixed-income instruments amid a global environment of elevated interest rates.
In October, Kuwait Financial Center — also known as Markaz — said Saudi Arabia dominated the GCC’s primary debt market in the third quarter, raising $20.32 billion through 36 issuances, a 62.7 percent year-on-year increase in value.
“The bulk of the maturities in Saudi Arabia are for bonds and sukuk issued by the government at $106.4 billion, while in the case of the UAE, the lion’s share of maturities are for instruments issued by corporates at $136.2 billion,” said Kamco Invest.
Over the next five years, fixed-income maturities in Qatar are expected to reach $85.6 billion, while Kuwait, Bahrain and Oman are each projected to record maturities of around $25 billion.
Citing Bloomberg data, the report showed that GCC sovereign maturities stand at $244.8 billion over the 2026–2030 period, while corporate maturities are higher at $263.3 billion.
“Both bond and sukuk maturities are expected to remain elevated starting from 2026 until 2030 and then gradually taper for the rest of the tenor. The higher maturities during the next five years reflects deficit financing issuances from GCC governments as well as investment and refinancing related issuances from the corporates,” said Kamco Invest.
The report added that the majority of maturities are denominated in US dollars, accounting for 64.7 percent, followed by local-currency issuances in Saudi riyals and Qatari riyals at 10.6 percent and 6.3 percent, respectively.
Owing to the strong credit profiles of GCC governments, most maturities fall within the high investment-grade category. A-rated instruments account for $208.7 billion, while total investment-grade maturities stand at $239.1 billion.
In terms of instruments, conventional bonds dominate, with maturities of $317.6 billion over the next five years, compared with $190.5 billion for sukuk. Corporate bond maturities, at $173.4 billion, exceed government bond maturities of $144.2 billion.
By sector, banks and other financial services firms account for $210.4 billion in maturities through 2030, representing 79.9 percent of total corporate maturities and 41.4 percent of overall GCC maturities. The energy sector follows with $21.8 billion, or 8.3 percent, of corporate maturities, while utilities and industrials account for $13.6 billion and $5.4 billion, respectively.
Real estate maturities are concentrated mainly in the UAE and Saudi Arabia, at $11.2 billion and $4.3 billion, respectively, through 2030.
Issuances in 2025
Aggregate bond and sukuk issuances in the GCC reached $206.6 billion through the third week of December 2025, broadly unchanged from $206.8 billion in the same period a year earlier.
However, issuance patterns shifted markedly. Government issuances declined sharply to $77.9 billion in 2025, from $98.6 billion in 2024, while corporate issuances rose to a record $128.6 billion, up from $108.2 billion.
In terms of type of issuances, sukuk issuances witnessed a sharp decline during 2025, whereas bond issuances showed a healthy growth.
“Aggregate GCC bond issuances stood at $125.2 billion in 2025, the highest on record, compared to $106.2 billion during 2024, whereas sukuk issuances declined by 19.1 percent to reach $81.4 billion this year as compared to issuances of $100.6 Bn during 2024,” said Kamco Invest.
Despite an 18.3 percent decline, Saudi Arabia remained the region’s largest fixed-income issuer, with total issuance of $82.0 billion in 2025, down from $100.3 billion the previous year.
Issuances from Qatar fell 21.7 percent to $22.1 billion, while the UAE recorded modest growth, with total issuance rising to $64.9 billion from $63.4 billion. Kuwait posted the sharpest increase, with issuance surging to $20.5 billion from $2.6 billion in 2024 following the approval of its debt law.
Green issuances
Green-instrument issuance in the GCC rose sharply in 2025, though it remained below the record levels seen in 2023. Total green issuance reached $12.5 billion, up from $4.6 billion in 2024 but below $17.3 billion recorded in 2023.
The UAE led the region with $5.6 billion in green issuance, compared with $3.8 billion a year earlier. Saudi Arabia followed with $5.1 billion, after recording no green issuances in 2024.
Green sukuk are Shariah-compliant instruments designed to finance environmentally sustainable projects, including renewable energy, clean transportation and climate-resilient infrastructure.
Outlook
Kamco Invest expects higher issuance levels in 2026, particularly among GCC countries facing fiscal deficits. The UAE and Qatar are also projected to see elevated corporate issuance.
A potential decline in interest rates could further support issuance activity, especially early in the year, as borrowers seek to lock in lower funding costs.
“Maturity refinancing is expected to result in approximately $85.4 billion in issuances during the year, while government deficit financing led by lower average oil prices would also contribute to the overall trend during the rest of the year,” the report said.
Based on IMF forecasts, deficit financing could result in issuance of close to $60 billion in 2026, it added.
