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Ras Al Khaimah Economic Zone: A Thriving Ecosystem for Business Growth and Innovation

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RAKEZ

In an exclusive interview with the Integrator’s Senior Editor, Group CEO of RAKEZ Ramy Jallad explained the role of RAKEZ and provided insights into his role in driving the growth of the Ras Al Khaimah Economic Zone and what makes RAKEZ stand out in the UAE. He emphasizes RAKEZ’s focus on creating a dynamic ecosystem that supports businesses of all sizes, offering tailored solutions, mentorship, and industry-specific zones. RAKEZ hosts major global companies and is committed to digital transformation, sustainability, and fostering innovation.

As Group CEO of RAKEZ, can you share insights into your role and what sets RAKEZ apart from other economic zones in the UAE?

As Group CEO of RAKEZ, my vision extends beyond simply managing an economic zone—I’m driven by the idea of creating a dynamic ecosystem that fuels business growth and contributes to the broader economic development of Ras Al Khaimah and the UAE. My role is about actively shaping an environment where businesses of all sizes can thrive, innovate and expand, contributing to the long-term prosperity of the region. We’re building something greater here—a hub where businesses are supported at every stage of their journey and where they can play a vital role in the future of the economy.

What sets RAKEZ apart is our unwavering commitment to providing extended support to every client, whether they’re a small SME or a key industry player. For startups and small businesses, we offer more than just a place to operate. We guide them through the processes of setting up, scaling, and expanding, offering tailored business packages, mentorship programs, and advisory services designed to help them navigate challenges and achieve sustainable growth.

For larger corporations, our specialized zones and facilities cater to a variety of industries and business activities, such as advanced manufacturing, research and development, logistics and distribution, packaging, processing of goods, inventory management, and regional distribution. These zones are designed to meet the specific requirements of each industry, ensuring that even the most complex operational needs are addressed with tailored solutions. Whether companies are involved in large-scale production, innovation, or optimizing their supply chain, we provide the infrastructure and support to help them operate efficiently and scale seamlessly.

What makes RAKEZ truly unique is that we offer this level of support to all businesses, regardless of size or sector. We treat every client as a partner, working closely with them to ensure their success and providing them with the tools and resources they need to thrive. This client-first approach, combined with the cost-efficiency and strategic advantages of Ras Al Khaimah, is what makes RAKEZ a thriving hub for businesses of all kinds. Our mission is not just to attract investment but to support an ecosystem where businesses can contribute to the broader economy while achieving their own growth ambitions.

Could you highlight some of the major companies currently operating within RAKEZ, and discuss any strategic initiatives you’ve implemented to position RAKEZ at the forefront of the UAE’s business landscape?

RAKEZ is proud to host a diverse range of major global brands and companies across various industries, from manufacturing and logistics to services, e-commerce, and more. Some of the prominent companies operating within RAKEZ include Ashok Leyland, Dabur/Naturell, Ahmad Tea, Sobha, A2C, Streit Group, IAG, Sunreef, Knauf, Shandong, Vertiv, NI MET, and Huhtamaki. These key players in their respective sectors are part of a thriving community that benefits from RAKEZ’s strategic location, world-class infrastructure, and business-friendly environment, making it an ideal hub for businesses looking to expand and grow.

To ensure we remain at the forefront of the UAE’s business landscape, we have implemented several strategic initiatives aimed at driving growth, fostering innovation, and enhancing the overall client experience. A key part of this is the development of dedicated zones that cater to the unique needs of various sectors. For example, our industrial zones are designed to support industries of all scales, from light to heavy manufacturing, and are strategically located near logistical hubs and ports for maximum efficiency. Businesses in these zones benefit from a wide range of services, including logistics support, customs facilitation, and warehousing, all designed to streamline operations. Additionally, we offer on-site accommodation for labor and staff, reducing costs for businesses while improving convenience for employees.

In addition, we have invested heavily in digital transformation, ensuring that our clients have access to a fully digital ecosystem that simplifies business processes, from set-up to day-to-day operations. Our self-service client portal and mobile app allow businesses to manage their licenses, visas, and other services with ease, reflecting our commitment to providing a streamlined and efficient experience.

Another strategic focus has been sustainability. RAKEZ actively supports companies with sustainable practices by streamlining processes and recognizing businesses that adhere to regulations contributing to environmental goals. This not only aligns with global trends but also positions RAKEZ as a forward-thinking hub that attracts businesses looking to integrate sustainability into their operations.

Ultimately, our goal is to create a thriving, future-ready business environment where companies, whether large multinationals or SMEs, can innovate, expand, and contribute to the economic growth of Ras Al Khaimah and the UAE.

What are the key financial advantages of operating within an economic zone like RAKEZ? How did you successfully scale RAKEZ from 7,500 to over 25,000 companies?

Operating within an economic zone like RAKEZ offers significant financial advantages, which is a key reason why so many businesses choose to set up here. One of the primary benefits is cost-efficiency—our operating costs are up to 40% lower than in other regional markets, making it an attractive option for companies looking to optimize their expenses. We also offer a variety of business packages tailored to different needs, allowing companies to scale without the financial strain often associated with growth.

Another key advantage is the flexibility we provide. RAKEZ allows businesses to choose between free zone and non-free zone entity formations, offering investors a range of options that suit their operational requirements and market strategies. In addition, we offer fast-track visa and license issuance, along with a streamlined regulatory process, which reduces both the time and cost of setting up and running a business. This ease of doing business, combined with our strategic location, gives companies immediate access to key markets across the Middle East, North Africa, Europe, and Asia.

Scaling RAKEZ from 7,500 to over 25,000 companies has been the result of a clear, focused strategy that prioritizes both client experience and market responsiveness. We have consistently invested in enhancing our infrastructure, expanding our facilities, and introducing digital solutions that make it easier for businesses to set up and grow. Specialized zones for different business activities, along with a coworking center, have enabled us to attract companies from a wide range of sectors, each benefiting from tailored services and facilities designed to meet the specific needs of their industry.

Additionally, we have placed a strong emphasis on creating a supportive, business-friendly ecosystem. RAKEZ’s client-first approach means that businesses of all sizes receive ongoing support, whether through mentorship programs for SMEs or customized solutions for large multinationals. Our team is dedicated to understanding the specific needs of our clients and providing them with the tools and resources they need to succeed. This has helped us build long-term relationships with businesses, many of which have expanded significantly within RAKEZ.

What technology-driven tools or strategies do you employ to better understand and serve your clients? Additionally, how does RAKEZ collaborate with other government entities across the UAE?

At RAKEZ, technology plays a pivotal role in how we serve our clients, allowing us to remain agile and responsive to their needs. We’re proud to be the first economic zone in the UAE to offer the Instant License to free zone businesses, which enables entrepreneurs to get their ventures up and running almost immediately. This innovation eliminates the lengthy paperwork process and allows businesses to begin operations with minimal delay, reflecting our commitment to simplifying the setup experience.

Our fully integrated digital ecosystem—featuring a self-service client portal and mobile app—makes it easy for businesses to manage their operations, from license renewals to visa applications, with just a few clicks. These tools are designed to streamline the client experience and improve operational efficiency.

Beyond technology, we rely on data analytics to better understand our clients. By analyzing feedback and service interactions, we can tailor our offerings and proactively address any challenges, ensuring our clients receive personalized, efficient support throughout their journey.

RAKEZ also collaborates closely with various government entities across the UAE, such as the Department of Economic Development, Ras Al Khaimah Municipality, RAK Customs, Ministry of Industry and Advanced Technology, Ministry of Economy, Ministry of Interior, General Directorate of Residency and Foreigners Affairs, Environmental Protection & Development Authority, Chamber of Commerce, and many others. These partnerships allow us to offer a cohesive, business-friendly environment and ensure that our clients benefit from a seamless experience across all aspects of their operations.

What services or solutions does RAKEZ offer to manufacturers aiming to build sustainable ESG businesses?

At RAKEZ, we are deeply committed to supporting manufacturers in building sustainable, environmentally and socially responsible businesses that align with ESG principles. As sustainability becomes increasingly important across industries, we offer a variety of services and solutions to help manufacturers integrate these practices into their operations.

Our specialized industrial zones are designed with energy-efficient infrastructure that adheres to green building standards, ensuring reduced energy consumption and lower environmental impact. This infrastructure allows manufacturers to operate in a more sustainable manner while boosting operational efficiency.

We also promote circular economy practices by facilitating access to recycling services and encouraging the use of eco-friendly materials. This helps manufacturers minimize waste, improve resource efficiency, and significantly reduce their carbon footprint.

To ensure compliance with local and international ESG regulations, we offer manufacturers guidance and advisory services. This includes promoting initiatives such as the Barjeel Green Building Regulations and the Industrial Technology Transformation Index (ITTI), which provide manufacturers with a roadmap for smarter, more sustainable production practices. These frameworks allow manufacturers to enhance their sustainability and remain competitive in a rapidly changing market.

Additionally, RAKEZ supports innovation in water and energy management through systems like the BacComber System for cooling tower water treatment, which has reduced water usage and chemical reliance, contributing to a greener footprint. Furthermore, we provide sustainability-focused training and mentorship programs to help businesses continuously evolve and stay resilient in the evolving ESG landscape.

With fast-track services and a streamlined regulatory framework, RAKEZ makes it easier for manufacturers to focus on growth and innovation, while fully integrating sustainable practices into their operations.

What are some key trends emerging in the region, and how can businesses position themselves to capitalize on these trends?

Several key trends are emerging in the Middle East, reshaping the business landscape, particularly in manufacturing, technology, and sustainability. Businesses that can adapt and position themselves strategically stand to gain a significant competitive advantage in the region.

Digital transformation is rapidly advancing across all sectors, fueled by technologies such as artificial intelligence, automation, and the Internet of Things. Businesses that adopt these tools to optimize operations, enhance customer experiences, and improve decision-making will be better positioned to thrive. For manufacturers, embracing smart technologies like predictive maintenance, real-time data analytics, and robotics can lead to more efficient production processes and resource management. These digital solutions also enable greater agility in responding to supply chain disruptions or shifts in market demand.

At the same time, e-commerce is booming, driven by changing consumer preferences, increased internet penetration, and improved logistics. Retailers, manufacturers, and service providers are integrating online and offline experiences to reach broader audiences. Businesses that invest in their e-commerce capabilities and streamline logistics to enhance customer convenience will be well-positioned to capitalize on this trend. The growth of e-commerce also opens doors for specialized logistics providers and warehousing solutions.

Sustainability is becoming a central focus, as businesses in the Middle East align with global movements toward greener operations and responsible corporate governance. Governments are encouraging the adoption of ESG practices, and consumers increasingly favor companies that prioritize sustainability. Businesses that invest in eco-friendly infrastructure, sustainable practices, and CSR initiatives will not only contribute to environmental goals but also attract more customers and investors. For manufacturers, embracing circular economy principles and reducing carbon footprints can enhance both efficiency and profitability.

In response to global supply chain disruptions, there is a growing trend towards localizing supply chains. Businesses are seeking to source materials and components locally to reduce dependence on international suppliers and mitigate risks related to logistics and geopolitical instability. Companies that localize their supply chains or form strategic partnerships with regional suppliers will be more resilient and better equipped to manage disruptions. Governments are also supporting local manufacturing and production as part of broader economic diversification efforts, offering incentives and subsidies for businesses that align with these objectives.

Additionally, significant investments in infrastructure projects are being driven by government initiatives aimed at economic diversification and growth. Public-private partnerships are playing a key role in these developments, creating opportunities for businesses to engage in large-scale projects. Companies in sectors such as construction, logistics, energy, and technology can benefit by positioning themselves as key partners in these initiatives, leveraging government support to fuel their growth.

To capitalize on these emerging trends, businesses need to remain agile and proactive. Investing in technology, sustainability, and localized supply chains will be crucial to staying competitive. Collaborating with regional governments, forming strategic partnerships, and adapting to regulatory shifts will also be critical for businesses looking to expand in the Middle East. By aligning with these trends, companies can not only grow but also play a vital role in the region’s long-term economic transformation.

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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