Malta, Saudi Arabia To Sign Double Tax Pact
Ministry of Foreign Affairs Malta
02 January 2012
This
afternoon, Deputy Prime Minister and Minister of Foreign Affairs travelled to
Riyadh, capital city of The Kingdom of Saudi Arabia for bilateral talks. Talks
will be held with his counterpart, Prince Saud
bin Faisal bin Abdul-Aziz Al Saud on Tuesday. The visit will include the
signing of the “Cooperation Agreement on the Fight against Illicit Trafficking in
Narcotic Drugs and Psychotropic Substances and against Organised Crime” and the
“Convention on the Avoidance of Double Taxation” between the two countries.
Saudi
Arabia is the largest and most powerful member of the Gulf Cooperation Council.
The population of Saudi Arabia is around 26.5 million. Saudi Arabia has an
oil-based economy. It possesses more than 20% of the world's proven petroleum
reserves, ranks as the largest exporter of petroleum, and plays a leading role
in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45%
of GDP, and 90% of export earnings. About 40% of GDP comes from the private
sector. Roughly 6.4 million foreign workers play an important role in the Saudi
economy, particularly in the oil and service sectors. High oil prices through
mid-2008 have boosted growth, government revenues, and Saudi ownership of
foreign assets, while enabling Riyadh to pay down domestic debt.
There are currently 10 companies registered with the
MFSA with Saudi Arabian shareholding. Trade between the two countries is on an
uptrend in Malta’s favour by a very wide margin. Imports are largely made up of
two product categories: plastics and articles thereof (66%), and products of
the milling industry (29%). Exports also have a limited base although values
are much higher. The major product categories are printed books (45%),
preparations of cereals (24%), and miscellaneous edible preparations (24%).
In 2008, Malta exported Eur15.3 million worth of goods to Saudi Arabia,
while imports marked Eur 1.5 million.