VAT to increase to 15% in KSA – what does this mean for PPPs?

Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, announced on 11 May 2020 that VAT in the Kingdom (currently at 5%) will be increased to 15% from 1 July 2020. While this move is undoubtedly a sound fiscal step in the context of the ongoing global economic slump resulting from the COVID-19 crisis, the timing of the announcement has taken most (particularly in the CAPEX heavy infrastructure and utilities market) by surprise. It goes without saying that all PPP developers, in whatever sector, need to take a fresh look at their resultant cash-flow and revenue generation position and...

Nigeria considers changes to Nigerian content requirements in the oil and gas sector

What has happened? The Nigerian government has prepared new legislation – the Nigerian Content Development and Enforcement Bill (“ Bill ”) – to revise the country’s regulatory approach to mandatory Nigerian content in the oil and gas sector and beyond. The Bill was submitted to the House of Representatives on 18 December 2019 for its first reading and has made slow legislative progress since (and which seems likely to slow further as the Government tackles the effects of Covid-19 and the oil price crash).. What does it cover? The Bill, if it becomes law, will repeal and replace the Nigerian...

Are the financial markets ready to weather the COVID-19 Storm?

The current COVID-19 pandemic is causing significant concern in the financial markets, reviving memories of the 2008 financial crisis. The sudden and almost complete shutdown of many non-essential businesses due to the mandatory ‘social distancing’ requirements has resulted in a wave of business closures, factory shut-downs, lay-offs and government-backed furloughs in many countries across the world. The UN's trade and development agency estimates that the slowdown in the global economy caused by COVID-19 is likely to cost at least $1 trillion. The financial crisis of 2008 resulted in a...
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