At least 36 Tadawul-listed firms and lenders will be impacted by Saudi Arabia’s latest unprecedented move to impose public service fees, data compiled by Argaam showed.
The fees revealed by the Saudi cabinet on Monday are “significantly below” a ceiling that was initially approved in mid-September, NCB Capital said in a recent report.
“Out of the companies analyzed, the impact on 2016E net income ranged between 0.01 percent - 3.33 percent,” NCBC added.
Petrol stations and consumer staple segments under retail are expected to be hit hard. They will be required to pay 1.36 percent and 0.79 percent of their net income, respectively, for such fees.
The healthcare segment will likely be the least impacted, as fee-to-net income is forecast to stand at just 0.02 percent. Banks followed with 0.07 percent.
“We believe the municipal fees will help in achieving the Ministry’s KPIs, such as increasing the percentage of budget financed by internal revenues from 11 percent to 40 percent by 2020, NCBC said.
|
Public Services Fees (SAR) |
||
|
Service |
Final fee |
Maximum limit |
|
Issuing commercial activities license per m² |
6 |
300 |
|
Licensing hotels & hotel apartments per unit |
250 |
12,000 |
|
Gas stations per station |
5,000 |
10,000 |
|
License fees for telecom towers (per tower) |
500 |
600 |
|
ATM license |
1,000 |
1,200 |
Etihad Etisalat Co. (Mobily) will be affected the most. The telco will have to pay 3.3 percent of its net income in 2016.
It was followed by Abdulmohsen Alhokair Group for Tourism and Development Co. and Aldrees Petroleum and Transport Services Co., with 1.6 percent and 1.5 percent, respectively.
The final fees, which will be imposed starting Dec. 9, have already been announced by the Ministry of Municipal and Rural Affairs (MOMRA), and are part of the kingdom’s efforts to raise non-oil revenues amid slumping crude prices.
|
Impacted Companies |
||
|
Company |
Total fees |
Fees-to-net income ratio |
|
Jarir |
819,360 |
0.10 % |
|
Al Hokair |
1,953,540 |
0.24 % |
|
Extra |
344,211 |
Unknown |
|
SACO |
919,854 |
0.70 % |
|
L’azurde |
24,300 |
0.02 % |
|
Al Othaim |
1,770,001 |
0.66 % |
|
Farm Superstores |
1,203,777 |
1.12 % |
|
Saudi German |
57,196 |
0.01 % |
|
Al Hammadi |
52,184 |
0.02 % |
|
Aldrees |
1,903,500 |
1.53 % |
|
SASCO |
49,500 |
0.26 % |
|
SAVOLA |
7,154,922 |
0.81 % |
|
Herfy |
928,000 |
0.46 % |
|
STC |
8,550,000 |
0.11 % |
|
Mobily |
4,500,000 |
3.33 % |
|
Zain |
3,150,000 |
Unknown |
|
Saudi Real Estate Co |
304,425 |
0.36 % |
|
Dar Al Arkan |
755,100 |
0.27 % |
|
Taiba |
498,150 |
0.19 % |
|
Makkah Constructions |
157,500 |
0.05 % |
|
Jabal Omar |
630,900 |
0.69 % |
|
Dur |
437,850 |
0.30 % |
|
Al Hokair Tourism |
3,079,552 |
1.62 % |
|
Al Tayyar |
598,500 |
0.05 % |
|
NCB |
5,537,700 |
0.06 % |
|
Alinma |
1,497,600 |
0.10 % |
|
Al Rajhi |
7,702,200 |
0.09 % |
|
Banque Saudi Fransi |
939,600 |
0.02 % |
|
Riyad |
4,389,300 |
0.11 % |
|
SABB |
1,327,500 |
0.03 % |
|
Samba |
1,047,600 |
0.02 % |
|
Saudi Hollandi |
778,500 |
0.05 % |
|
Saudi Investment |
714,600 |
0.07 % |
|
ANB |
2,482,200 |
0.08 % |
|
Aljazira |
1,125,000 |
0.16 % |
|
Albilad |
2,390,400 |
0.29 % |
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