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FINANCIAL NEWS
Saudi corporates to pay bonuses, following royal excessive handout
03 Feb 2015
(MENAFN) A number of Saudi biggest companies stated that they are planning to spend hundreds of millions of dollars in bonuses, copying the kings orders to handout Saudi state employees, reported the Gulf Times.
Shakeel Sarwar, head of asset management at Securities & Investment Co in Bahrain said ‘I expect almost all Saudi listed and non-listed companies to make such payments, which will have a short-term impact on their operating profitability.’
Saudi Electricity Co. plans to distribute USD149 million for all its Saudi employees, sated in a bourse statement, bonuses will not exceed USD13,298 for each employee.
Many banks will also distribute two-month bonuses. The government possess major stakes in National Commercial Bank, SAMBA, and Riyad Bank.
‘Saudi companies don’t pay income tax, so these occasional one-off payments can be construed as indirect taxes for the benefit of the overall society and population,’ said Sarwar.
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