Saudi Arabia and UAE set to introduce tax on goods and services

Saudi Arabia and the United Arab Emirates, which have long lured foreign workers with the promise of a tax-free lifestyle, plan to impose a 5% tax next year on most goods and services to boost revenue after oil prices collapsed three years ago.

The value-added tax, or VAT, will apply to a range of items like food, clothes, electronics and petrol, as well as phone, water and electricity bills, and hotel reservations.