Saudi Arabia Joins UAE and Qatar in Offering Tourist VAT Refunds

Key Points

• Saudi Arabia has introduced a tourist VAT refund system, aligning with similar offerings in the UAE and Qatar.
• The VAT refund is expected to boost spending, support Vision 2030, and enhance the appeal of cities like Riyadh and Jeddah.
• Major investments in retail infrastructure and projects such as Diriyah Square and Jeddah Central are set to benefit from increased tourism.

Summary

Saudi Arabia has launched a tourist VAT refund program, allowing visitors to reclaim the 15% value-added tax on eligible purchases when leaving the country. This move, similar to systems in the UAE and Qatar, aims to increase tourist spending, support the country's Vision 2030 objectives, and strengthen the competitiveness of Saudi cities like Riyadh and Jeddah as luxury and retail destinations. The initiative coincides with large-scale investments in retail and hospitality projects, including Diriyah Square and Jeddah Central, positioning the kingdom to attract more international travelers and diversify its economy beyond oil.