«Al Jazeera» – Economy:
The Federation of Saudi Chambers, represented by the National Committee for Precious Metals and Gemstones, explained that one of the most important challenges facing the sector is the mechanism for applying value-added tax on gold, pointing out that there are many countries exempting gold from value-added tax, and there are countries that make it only on goldsmithing fees, and it is assumed The value-added tax is on crafting fees only, as the metal is exempt in the Kingdom from customs duties and value added.
The committee added: “One of the challenges is exaggerating the value of the violations imposed without giving prior warning before the violation, and the Emiratisation rate in the sector is 100%, as it is assumed that the Emiratisation rate does not exceed 70%, due to the need for workers to have experience in precious metals and precious stones. The committee stated that Working hours are among the obstacles to resettlement, given that gold shops work, as is customary, on two shifts throughout the week. To provide a stable work environment with the development of incentives to encourage Emiratisation and increase job opportunities in this sector, in addition to issues of commercial cover-up, which amounts to more than 35% in this sector.
The committee stresses that the Corona pandemic has significantly and directly affected the disruption of supply chains between factories globally and locally with distribution centers and then sales centers, and led to an increase in expenses, which negatively affected trade and merchants and the exit of many facilities from the market as a result of the lack of financial ability to survive. The committee attributed the reasons for the crazy rise of gold, along with many other metals, to the Corona crisis and the suspension of the supply chains supplying gold from Switzerland to the countries of the world, which led to the difficulty of delivering gold to consumers in a timely manner and caused the price of gold to rise, in addition to the global crisis between Ukraine and Russia, as gold A balance of all developments in the world and is negatively affected by any economic, political or security crisis, and as it is known that the relationship between gold and oil is a positive relationship and between gold and the dollar an inverse relationship, so the rise of oil had a significant impact on the rise of gold, during this crisis investors turned to gold as a safe haven During the crises, the precious metals markets in the world witnessed a clear rise in demand for them, especially the gold metal, which recorded the highest levels, as an ounce of gold jumped to levels of more than 2000 dollars and then retreated slightly from it with expectations of other changes during the coming period, and despite that, gold remains the vessel The best investment is the safe haven in investing before and following.
