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Inside Accor’s Roadmap to Global Growth

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Integrator Media had an exclusive interview with Camil Yazbeck, Global Chief Development Officer, Accor.

As Global Chief Development Officer for Accor’s Premium, Midscale & Economy Division, can you share your vision for the global expansion of the Group’s diverse brand portfolio?

Accor is a world leading hospitality group, offering experiences across more than 110 countries in 5,600 properties, 10,000 food & beverage venues, wellness facilities or flexible workspaces. In 2023, Accor realigned its divisional structure into two divisions, unified by one cohesive vision. This new structure has optimized our growth and performance, enabling us to deliver exceptional results globally.

Our portfolio is anchored by our 47 brands, including 23 Premium, Midscale & Economy (PM&E) brands, which comprise nearly 90% of our global properties and account for around 80% of our development signings. Last year was a record year for signings, and we’re looking forward to carrying this momentum into 2024 with positive projections for continued growth.

Within the PM&E division, we are proud to have three very popular and longstanding brands with global name recognition – Pullman (premium), Novotel (midscale), and ibis (economy). We are rejuvenating these brands by aligning investment and resource allocation to strengthen brand equity and brand loyalty. At the same time, with conversion presenting as a key lever for growth right now, we have five well-known PM&E brands that are extremely adaptable and efficient for hoteliers to join: Mövenpick, Mercure, Handwritten Collection, ibis Styles and greet.

How does Accor stay ahead of trends to ensure its offerings align with the shifting demands of guests and hotel owners? 

We believe that hospitality today is so much more than accommodation – we are actively developing and building holistic experiences for our guests as well as forging trusted and supportive partnerships with our owning partners.

Our vision is to create multi-faceted places – with our hotels at the core – where guests and locals can ’live, work and play,’ across the same project. Our pioneering approach to augmented hospitality means our projects can include different elements; hotel brands, extended stay, branded residences, food & drink, wellness and entertainment, all supported by our loyalty program: ALL – Accor Live Limitless. Hotel owners and investors appreciate this approach as an essential way to optimize revenue, unlock value and ultimately compress their cap rate.

“We know that nothing brings people together like sharing drinks and outstanding food together, so our food & beverage offerings are designed to attract local guests along with travelers.”

The new Couqley French Brasserie at Pullman Dubai Downtown is a perfect example of how we partner with high-profile partners to elevate, infuse energy and increase the flow of visitors into our hotels. With its signature central bar, French garden-inspired booth seating, dining tables under olive trees, lights hanging down from triple-height ceilings, and an exterior terrace directly accessible from the promenade of the Dubai Canal, the venue has become a favorite hotspot among the downtown crowd. This is a strategy Accor is successfully using around the world, to not only create more enriching guest experiences, but to also create greater revenue potential for our hotel owners, investors, and the Accor group.

More specifically, what is your vision for the Middle East Region?

This market is thriving, marked by strong RevPAR performance, a robust economy, and favorable policies that encourage responsible tourism development. Accor has ambitious growth plans for the region, with 60 active projects representing close to 12,000 keys that are expected to open under our Premium, Midscale & Economy brands in the next four to five years. We also have a multitude of projects in development across our luxury and lifestyle brands as well. 

Across the Middle East, namely KSA and UAE, the region is showing resilience in the face of rising construction costs for a combination of reasons, including investor profiles in the region, a robust economy and governmental policies and the rise of oil prices. In Saudi Arabia, Accor is one of the most established hospitality developers, having been active in the market for more than 30 years. Since the announcement of Saudi Arabia Vision 2030, Accor has played a key role in the development of tourism, through several diverse projects in key locations across the Kingdom. One of the Vision Realization Programs is The National Transformation Project, which includes development of the tourism and national heritage sectors. There is also a national focus on an identified priority list of 10 destinations by national tourism strategy such as Abha, Hail, Al Jouf, Madinah among others. Accor has a multi-pronged strategy underway to support all of the Kingdom’s objectives for Vision 2030, from expanding our areas of focus with leisure destinations (Red Sea, Al Ula, NEOM), to bringing more brands to second wave cities, to our strategic partnership with the Ministry of Tourism to empower Saudi talents through “Tamayyaz by Accor”.

Governments have a target to achieve based on the country’s vision and we are seeing determination in meeting these targets – there is close collaboration between the public sector and private sector to ensure project delivery remains on schedule. In addition, international consultants are partnering with governments to create attractive destinations and accomplish multi projects across either one or numerous markets.

We are confident the region has favorable tailwinds, ensuring projects will continue despite inflationary and cost pressures. There is a high level of spending power in the region to fund domestic travel and we see great potential in Tier 2 and 3 cities with undiscovered natural beauty, evidenced by Accor’s 2023 signing of a master development agreement with Amsa Hospitality to develop 18 premium, midscale and economy hotels across secondary cities within Saudi Arabia over the next ten years.

With over 20 brands under Accor’s Premium, Midscale, & Economy division, how do you ensure each brand maintains its unique identity while contributing to the overall company strategy?

Accor’s strength is in the broad diversity of our brands – the powerful legacy of our core brands, the huge growth potential of our conversion brands, and the unique opportunities among our tactical and regional brands. Our Premium, Midscale & Economy division is structured in such a way that we have the strength to expand our brands with force and scale, maximizing development profitability and increasing operational performance. Organized across four regions: Europe & North Africa; Greater China; the Americas; and Middle East, Africa, Turkey & Asia-Pacific, our regional teams in each market are able to support hotel operational teams and roll out brand standards, maintaining brand continuity around the world, while being close and accessible to our owning partners and remaining nimble to adjust for market specificities.

How does Accor adapt its brand concepts and business models to suit the unique demands of different regional markets?

We prefer to design brands with characteristics that appeal to travelers all around the world. Pullman, for example, is a brand that works as well in Paris, São Paulo, or Bangkok, as it does in Dubai or Makkah. The ibis brand family, celebrating its 50th anniversary this year, has become the world’s best known economy hotel brand, with 2,600 locations in 70 countries. At the same time, we place a high value on infusing our hotels with local culture and flavors – through unique guest experiences, locally-sourced food and drink, local art and design choices.

For example, Novotel offers four distinct design concepts that allow owning and franchisee partners to select an ideal style that best suits the character of the destination. Mercure on the other hand brings a locally-inspired ethos to each of its hotels, as guests of the new Mercure Dubai Deira will discover; while Mövenpick is an ideal brand for hotel conversions, with its adaptable standards that can easily accommodate local market style and guests expectations, as found at Mövenpick Hotel Jumeirah Village Triangle, a multi-property hospitality community in Dubai which also includes a Novotel and an Adagio.

Accor is a market leader in several regions, including Europe, South America, Middle East & Africa, and Asia Pacific. What are the unique strategies employed in these regions to maintain and grow market leadership?

We continue to deepen our leadership position in our historical markets of strength with Novotel and ibis, while expanding the network of Pullman more widely, including markets where we may not have full exposure. We are also keen to explore more untouched leisure destinations where our forward-thinking brands can deliver Accor’s positive hospitality approach to creating eco-friendly and enjoyable holiday experiences. Another key element of our growth strategy is to address independent hoteliers that are looking for the strength and distribution of a global partner, while maintaining the unique character of the hotels they have created. We launched Handwritten Collection in 2023 in response to a market demand for a collection brand in the midscale category and it is already one of world’s fastest growing midscale collection brands. By the end of this year, we should have 30-40 Handwritten Collection hotels opening and operating.

The key to Accor’s leadership however, in my view, is the way we think like an owner – striving to match the right brand to the right project, thereby giving us the clearest route to meeting the owner’s cost of capital and return on equity (ROE) expectations. Our development teams are comprised of people with experience on the owners’ side. Accor itself has first-hand experience in the owner’s seat and although the Group shifted to a fully asset light business model several years ago, one of our core values is that we continue to think and execute like an owner. This means we bring that balanced perspective while delivering a level of strength and capacity more powerful than what an owner can achieve independently. Our local development teams in the Middle East bring on-the-ground market intelligence, coupled with the strength of our global scale and our relationships with 120+ developers around the world. 

What trends do you anticipate will have the most impact on the hospitality industry in the coming years, and how is Accor preparing to address them?

One of the most impactful trends is hotel conversions – the growing desire among independent hotel owners to find a global hospitality partner that can help them grow their business in an increasingly competitive market. Another factor is the current lending environment, which is making access to capital more challenging for developers.  In both cases, Accor has emerged as the partner of choice, thanks to our adaptability and commitment to innovation, our seamless transition process, our unmatched spectrum of brands, and our welcoming culture that celebrates authenticity, diversity and entrepreneurialism. Opportunities to convert exist across all of our brands, however we expect certain brands such as Mövenpick, Handwritten Collection, and Mercure, to continue being significant growth drivers in this space.

Second, the trend toward branded residences is expanding beyond luxury and lifestyle – segments which Accor also leads with brands including Orient Express, Raffles, Fairmont, Sofitel and more – into the premium and even midscale categories. Recent examples include Swissotel Doha Corniche Park Towers; Movenpick Resort & Residences Teuta Bay, Montenegro; Novotel Residences Makkah, Saudi Arabia; Pullman Residences Newtown Singapore; and Swissôtel Cesme, Turkey.

Apartment-style, extended stay accommodations are also increasingly attractive to younger generations of travelers who enjoy mixing business trips with leisure pursuits and who want to experience destinations more authentically when they travel. Developers and hotel investors are keen to develop extended-stay properties given the segment’s attractive business model – with lower breakeven occupancies, higher operating margins, and strong returns on investment. Fortunately, Accor has developed an expertise as one of the world’s largest operators of extended stay and serviced apartment properties, with a diverse portfolio that includes 13 brands ranging from economy to luxury, including longstanding market leader Adagio; the refreshingly modern Mercure Living and Novotel Living; and the innovative premium offerings of Swissôtel Living and Pullman Living.

Finally, Accor is also leading the way in sustainable hospitality – a shift that is more than a trend, it is essential for the future of the travel industry. Accor’s development team is committed to creating positive impact – economically, socially & environmentally. We collaborate and engage with our investors, hotel owners, employees, suppliers and guests to undertake the journey together towards net-zero carbon. All our brands operate in line with Accor’s ESG commitments, as well as their own brand-led strategies and initiatives in fostering positive hospitality and environmental action – such as Novotel’s new international partnership with WWF (World Wide Fund for Nature) that will see Novotel champion the protection and restoration of the ocean through science-based action and conservation projects. Another one of our brands, Mantis, recently unveiled plans for three new properties in Bahrain, Saudi Arabia and the UAE. Renowned for its lush, eco-resort experiences and commitment to preserving the communities, wildlife and the environment.

Automotive

Chinese Cars Are Reshaping the GCC Market, but Resale Value Could Be the Next Battleground

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The GCC automotive market is undergoing a significant transformation. Chinese manufacturers are expanding their presence, established brands are navigating supply chain disruptions, and consumers are reassessing the economics of vehicle ownership.

At Keyloop Fusion Live Dubai, Srijith KN, spoke with Nour Abu-Safe, Head of Insights & Analytics at AutoData Middle East, about the changing competitive landscape, the impact of regional logistics challenges, and the opportunities emerging for automotive retailers.

Drawing on market intelligence, vehicle valuation data and industry research, she explains why technology alone may not guarantee long-term customer loyalty, why hybrids currently offer stronger residual value, and why the next major opportunity for dealerships could lie in pre-owned Chinese SUVs.

How are disruptions around the Strait of Hormuz affecting established automotive brands, and could the market changes become permanent?

Initially, many believed the disruption would be temporary. However, the data is beginning to show that market conditions are solidifying and businesses are adapting.

Traditional manufacturers, particularly Japanese brands such as Toyota, Nissan and Lexus, are experiencing challenges getting inventory into the region.

Chinese manufacturers have been more agile because several operate their own vehicle carrier fleets and logistics networks. This has allowed them to establish alternative routes into the GCC.

We have seen a 90% reduction in Japanese vehicle imports into the region, linked to the disruption around the Strait of Hormuz.

Alternative routes through ports outside the Gulf and via the Red Sea and Saudi Arabia are increasingly being used. However, these arrangements are creating delays, with vehicles now taking approximately six to eight weeks to reach showrooms.

The important development is that the market is adapting. Some of the alternative logistics routes established during this period could remain in use for years to come.

Are Chinese automotive brands attracting an entirely new generation of buyers, or are they winning customers away from established manufacturers?

It is a combination of both.

Younger consumers, particularly those between 19 and 30, are increasingly attracted to Chinese vehicles because of their styling, advanced technology, competitive pricing and safety features.

For younger families, especially those entering parenthood, these features can be important purchasing considerations.

Chinese vehicles also tend to offer attractive warranty and servicing packages, making them appealing to consumers who want to reduce their overall ownership costs.

Older buyers, particularly those in their 40s and 50s, generally demonstrate stronger loyalty towards established manufacturers and premium brands.

However, Chinese manufacturers are increasingly entering the premium segment as well, and we are beginning to see them capture some of that market share.

These demographic observations are also supported by consumer research, including studies published by YouGov, which we reference in our market analysis.

Chinese vehicles are becoming increasingly sophisticated. But can manufacturers sustain customer loyalty when technology evolves so quickly?

This is one of the most interesting challenges facing Chinese manufacturers.

Advanced technology is a powerful selling point. It looks attractive in marketing materials and helps manufacturers differentiate their vehicles.

However, rapid technological advancement also accelerates depreciation.

When a manufacturer introduces a significantly improved model within a short period, previous model-year vehicles can quickly appear outdated. That creates challenges for residual values and the used-car market.

For dealerships, the opportunity is to identify vehicles that offer a balance between modern technology and proven, practical features.

Hybrid vehicles are an interesting example because they combine improved efficiency with familiar internal combustion technology.

A vehicle that balances innovation with long-term usability may be better positioned to retain customers over five to ten years than one that depends primarily on the latest technology.

Chinese manufacturers are doing many things well, but the next few years will reveal how effectively they manage this challenge.

With affordability becoming increasingly important, how are vehicle financing and leasing models evolving across the GCC?

Vehicle demand remains present, and manufacturers have found ways to maintain supply despite the disruptions.

However, we could see greater pressure on consumer finances over the coming year.

That creates opportunities for financing and leasing providers.

Financing offers with zero down payment are becoming particularly relevant for buyers who may not have sufficient funds available for a substantial upfront payment.

On the leasing side, some operators are reporting demand increases of approximately 30% to 35%.

Consumers still need vehicles for everyday mobility, but some are becoming more reluctant to take on the financial commitment and risk associated with outright ownership.

Leasing offers an alternative that can address those concerns.

What is the biggest opportunity dealerships may be overlooking today that could become particularly important in 2027?

Used Chinese SUVs.

SUVs represent the largest vehicle body-type segment in the region, and the growing population of Chinese SUVs creates a significant opportunity for dealerships.

The first owner typically absorbs much of the vehicle’s depreciation during the initial two to three years. In some cases, that depreciation could be around 50%.

For dealerships, this creates an opportunity to develop certified pre-owned programmes around relatively young Chinese SUVs.

A three-year-old vehicle may still be in excellent condition and covered by its original warranty or service package.

If dealerships can price these vehicles correctly, they can attract buyers who cannot afford a brand-new SUV but still want a modern, well-equipped vehicle.

This could become an important growth segment for the automotive retail industry.

For consumers considering a vehicle purchase today, which offers the strongest proposition: petrol, hybrid, electric or a competitively priced Chinese vehicle?

There is no single answer because the decision depends on individual priorities.

However, when we compare petrol, hybrid and electric vehicles, our current data indicates that hybrids retain their value best.

They offer fuel efficiency while maintaining the familiarity and convenience of an internal combustion engine.

For buyers concerned about long-term value, that makes hybrids particularly attractive.

Chinese manufacturers, meanwhile, are becoming increasingly competitive on design, pricing and technology.

Vehicles such as the ROX 01 and Jetour G700 demonstrate how Chinese brands are entering segments traditionally dominated by established SUVs such as the Toyota Land Cruiser and Nissan Patrol.

The competitive landscape is changing considerably.

One particularly interesting insight from our latest data is that 48% of the new 2027-model vehicles arriving in the UAE are Chinese brands.

That tells us how aggressively these manufacturers are planning their product introductions, expanding supply and positioning themselves to attract both new and existing automotive customers.

The next few years will be particularly interesting as these changes reshape the balance between established manufacturers and emerging competitors.

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The AI Learning Dilemma: Better Answers, But Better Thinkers?

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As artificial intelligence becomes embedded in higher education, universities face a growing challenge: ensuring that students develop independent thinking rather than simply producing polished AI-assisted work. From rethinking assessments to preserving the value of intellectual effort, the conversation is shifting towards what Turnitin calls learning integrity.

In this interview with Amal Dimashki – Regional Director, MENAT & Pakistan, Turnitin explores how institutions can balance AI adoption with critical thinking, meaningful assessment and the development of essential learning skills.

Amal Dimashki, Regional Director – MENAT & Pakistan, Turnitin



Students are becoming increasingly comfortable prompting AI, but how can universities ensure they are still developing independent reasoning and critical thinking rather than simply producing better AI-assisted answers?

Prompting is becoming an important skill, but being able to write a sophisticated prompt is not the same as being able to think critically.

AI can be a very effective learning partner. It can help students brainstorm, explore different perspectives, challenge an argument or receive feedback on something they have written. But students still need to do the cognitive heavy lifting. If they simply prompt AI for an answer and then refine that answer until it looks better, we may improve the quality of the output without necessarily developing the student’s thinking.

This is why AI literacy needs to go beyond teaching students how to prompt. Students need to learn how to critically evaluate AI-generated content, verify information and sources, question what they are given and make their own judgments about the output. Turnitin’s guidance on responsible prompting encourages students to engage with AI iteratively and interrogate its responses rather than simply accepting what it produces.

We want students to use AI as a learning partner while remaining actively engaged in the learning process and taking ownership of the work they produce. Turnitin’s guidance to students reinforces this by encouraging them to ensure that the majority of their work remains their original thinking.

Universities therefore need to develop AI literacy alongside critical thinking and independent judgment, so that becoming better at using AI does not come at the expense of developing the skills students are there to learn.

What should a modern assessment look like if institutions want to measure a student’s actual understanding rather than just the quality of the final submitted work?

In an AI-enabled environment, assessing only the final product gives us a limited view of whether learning actually took place. A polished final submission does not necessarily tell us how the student arrived there.

This is where a process-based approach to assessment becomes increasingly important. Educators can build meaningful checkpoints into the learning journey through outlines, drafts, formative feedback, revisions and reflection. This allows them to see how the student’s thinking developed, how they responded to feedback and where they may need additional support. Turnitin’s multipart assignments, for example, are designed around structured checkpoints for guidance and reflection throughout the writing process.

At Turnitin, we refer to the broader framework behind this as learning integrity. It expands traditional academic integrity by placing greater emphasis on the integrity of the learning process and ensuring that students are doing the work necessary to learn and develop.

It brings us back to a familiar principle: “show your work.” Greater visibility into drafts, revisions and the development of ideas gives educators richer evidence of how a student approached the assignment rather than relying on a single snapshot at the end. Turnitin Clarity, for example, provides visibility into how students develop their work from ideation through to final submission.

This does not mean making every assessment more complicated. It means designing assessment around the learning objective and creating opportunities for students to demonstrate that they have developed the skills being assessed.

The final submission will continue to matter, but it can be considered alongside evidence of the learning process that produced it.

AI makes it possible to get answers, summaries and explanations almost instantly. Do you worry that this could reduce students’ ability to sustain attention, read deeply and work through difficult material without immediate assistance?

There is certainly a risk, and students themselves recognise it. Turnitin’s research found that 64% of students are concerned that the use of AI in education may be shortcutting their learning.

Learning should not become a completely frictionless process. Researching a subject, developing a point of view, articulating ideas with evidence, editing and working through something difficult all require effort, and some of that effort is where learning happens.

Turnitin refers to this through the concept of “productive struggle.” Cognitive growth and long-term retention require students to engage with difficulty rather than having every challenge immediately removed for them.

That does not mean students should struggle without support. AI can provide guidance and feedback throughout the learning process. Turnitin Clarity’s AI Assistant, for example, is designed to prompt reflection and support students throughout their writing without generating the full response for them.

As AI becomes more capable, preserving productive struggle will become increasingly important. We want students to benefit from the support AI can provide without removing the effort involved in developing knowledge and skills.

4. Looking ahead, how do you see the role of academic integrity evolving as AI becomes embedded in writing, research and learning, and what will universities need to change over the next few years?

Academic integrity will remain fundamental, but its role is expanding as AI becomes embedded in learning.

At Turnitin, we describe this evolution through learning integrity, a proactive expansion of traditional academic integrity that places greater emphasis on the integrity of the learning process. It reflects the need to understand how students are developing their work and ensure they are developing the skills their education is intended to build.

Over the next few years, universities will need to translate this into practice. AI governance needs to provide educators with clear guidance, while recognising that responsible AI use will not look the same across every subject or assessment. Turnitin’s learning integrity framework recognises a spectrum ranging from no AI in some contexts to defined AI use cases and more open use in others.

Educators will also need greater agency over how AI is introduced into teaching and assessment. Turnitin’s latest Learning Integrity Insights found that AI decision-making is moving closer to faculty and teaching and learning leaders, while educators are asking for education-specific AI that is flexible enough to reflect how they actually teach and design assignments.

Technology therefore needs to adapt to pedagogy, rather than pedagogy adapting to the technology. This is the principle behind Turnitin Clarity’s configurable AI settings, which allow educators to determine the level and type of AI support appropriate for an individual assignment.

Over the next few years, universities will need to bring these pieces together: clear AI governance, greater educator agency, assessment practices that support learning integrity, and technology designed around the needs of teaching and learning.

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Saudi Arabia’s tax amnesty is entering its final months

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What could follow the December deadline is an assessment cycle, not a filing cycle.

By Manish Bansal, Associate Partner, Dhruva Advisors, A Ryan Affiliate, Saudi Arabia

For most of the past five years, inter-alia, one of the major topics of tax conversation in Saudi boardrooms has been e-invoicing. Are we on the Fatoora platform? Which wave are we in? Has the ERP been configured or do we go with a third-party e-invoicing solution? Will we make the deadline?

Those were the right questions for the period we have just left. They are not necessarily the right questions for the period we are entering.

Manish Bansal

On 29 June 2026, the Zakat, Tax and Customs Authority (“ZATCA”), acting on a decision of the Minister of Finance, extended the Cancellation of Fines and Exemption of Financial Penalties initiative for a further six months, running from 1 July to 31 December 2026. It covers excise tax, value added tax, real estate transaction tax, withholding tax and corporate income tax. That much has been widely reported.

Less widely noticed is a condition set out in the accompanying guideline. If the Authority extends the initiative again past December, that further extension will not reach returns that fell due after 30 June 2026.

The Authority has not simply granted more time. It has informed the market, in advance, where the relief eventually stops. Whatever is announced in December, the clean-up window for historical positions is being drawn shut. For a tax administration, that is about as clear a statement as one can give.

What the regulator already sees

The reason this matters now, rather than in some indeterminate future, is that the Authority’s information position has changed fundamentally.

Wave 24 of the e-invoicing Integration Phase closed on 30 June 2026. Announced in September 2025, it captured every taxpayer whose VAT-subject revenues exceeded SAR 375,000 in 2022, 2023 or 2024. That figure is not arbitrary: it is the mandatory VAT registration threshold. In effect, the wave brought the entire registered population into scope.

And the direction has not stopped there. On 24 July 2026 – ZATCA published the criteria for Wave 25, halving the threshold to SAR 187,500 of VAT-subject revenue in 2022, 2023, 2024 or 2025, with integration required by 1 February 2027.

Under the Integration Phase, standard business-to-business invoices are cleared by ZATCA before they reach the buyer, and simplified business-to-consumer invoices are reported within twenty-four hours. Invoices must be issued in a prescribed structured format, carrying a cryptographic stamp and a unique identifier.

The Authority is therefore no longer reliant on what appears in a filed return. It holds the underlying transactional record, in structured form, close to real time, across the whole economy.

This is the shift most finance functions have not yet absorbed. For years, the Saudi assessment process began with an information request. In an environment of structured, near-live data, it begins instead with an anomaly the system has already identified. The taxpayer’s first substantive contact with the process is not a request for documents. It is a proposition to be answered.

Key exposure areas to be mindful of

In our experience, the following key areas could be more visible and exposed to assessment risk in the Kingdom once transactional data can be cross matched against declarations.

The first is permanent establishment risk arising from project delivery. Groups routinely deploy technical staff, secondees and subcontracted specialists into Saudi projects while treating the arrangement as an offshore supply.  Given that most KSA government portals are inter-linked, careful monitoring of in-Kingdom presence is critical, in particular, employees of non-resident companies undertaking fly-in/fly-out assignments in the Kingdom.  It is worth noting that the current tax law has no de minimis threshold for the creation of a permanent establishment.  Accordingly, even a single day of presence in the Kingdom could potentially give rise to a permanent establishment, although in practice, the ZATCA may apply a more facts-based approach when assessing whether a permanent establishment exists.

Second is related-party pricing, and here a change that took effect two years ago is still under-appreciated. Following amendments to the Transfer Pricing By-Laws, the transfer pricing provisions apply to zakat payers as well as taxpayers for financial years beginning on or after 1 January 2024, and Advance Pricing Agreements became available to both. For a Saudi family group with decades of intercompany arrangements built for operational convenience rather than for documentation, this is a material change in obligation, and one that many such groups have not yet worked through.

Lastly, needless to state that VAT audits are likely to get much more sophisticated with real time data and the data analytics and AI tools available.

What the amnesty covers, and what it does not

Many companies are counting on this window. It is worth being precise about what it covers.

The initiative covers late registration, late payment and late filing fines, penalties on the amendment or correction of a VAT return, and other financial fines imposed under Article 45 of the VAT Law, including field detection and e-invoicing violations. To benefit, a taxpayer must register where registration is required, submit the outstanding returns, and either pay the amounts due or obtain ZATCA’s approval for an instalment plan.

Two limits deserve emphasis. The initiative does not extend to penalties relating to tax evasion violations. And it operates on fines for returns falling due up to 30 June 2026.

There is also a point that no guideline states because it does not need to. The initiative waives penalties. It does not validate a technical position. A voluntary disclosure that corrects an arithmetic omission is a straightforward matter. A voluntary disclosure that reveals a contestable tax treatment is a different exercise entirely, because it puts a position on the record that will be read. The analysis must come before the filing, not after it.

Fewer than four months

For most groups, what remains to be done before 31 December is a short list. It is also, notably, not a systems exercise. The e-invoicing platforms are already built and connected. The work now is reviewing the positions those systems have been reporting all along.

Reconcile first. Take VAT/ Tax/ Zakat returns, customs declarations, withholding tax filings and audited financial statements for the open years and reconcile them against one another before ZATCA’s systems do it. Where the numbers do not tie, understand why, and document the reason contemporaneously rather than reconstructing it under assessment.

Then sort. Separate the genuine errors, which the current window is designed to resolve, from the judgement positions, which need to be assessed on their merits and defended with evidence that pre-dates the query.

Finally, treat documentation as a deliverable with a deadline. Substantiation assembled after an assessment notice arrives carries markedly less weight than substantiation prepared when the transaction occurred.

A regulator that publishes wave criteria six months ahead, that notifies taxpayers directly, that issues guidance with worked examples, and that tells the market in advance where relief will end, is behaving like the administration of a mature investment destination. That predictability is an asset for serious businesses, and it is what long-term capital looks for.

But predictability runs in both directions. The Kingdom has been clear about what it expects and when. The businesses that will move through the coming assessment cycle with least disruption are those that use the next few months to answer the questions before they are asked.

Disclaimer: This article is intended for general information only and does not constitute tax, legal, accounting or other professional advice. It reflects the tax rules in force as of the publication date, and the described regulatory landscape continues to develop. Readers should obtain professional advice appropriate to their own facts and circumstances before acting on any matter discussed.

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