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‘War’ is the only fitting description for the intensity of contest for labour skills and it’s getting even fiercer. The underlying problem is the shortage of available skills. That’s clearly seen in the fact that a record 57% of all mid-market companies now see this as a constraint to their growth, nearly twice the long-term average, as highlighted by Grant Thornton International’s Global Business Pulse.

The stampede of mid-market companies looking to expand internationally continues, despite the added challenges of transport costs and disruptions. The percentage of companies expecting to increase exports in the next 12 months remains high at 45%, while the percentage expecting to increase international revenue has risen 3 percentage points to 44%, according to Grant Thornton International’s Business Pulse.

We share a brief overview of the QR code announcement, along with download links.

With less than 16 days remaining to e-invoicing becoming mandatory in Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) have provided further clarity to the applicable penalties which will be enforced for any non-compliance with the e-invoicing regulations.

As we move from voluntary ESG initiatives to mandatory legislation, we explore what the banking sector needs to prioritise.

Four key barriers in the way of the mid-market realising its sustainability aspirations.

Environmental, social and governance (ESG) credentials are no longer merely a ‘nice to have’: they are a must have for much of the mid-market.

The Board of Directors for Zakat, Tax and Customs Authority (ZATCA) have approved the amendments to Article 20 of the VAT Implementing Regulations for Saudi Arabia, which are effective from 1 November 2021. We share a summary of the updates.

The Personal Data Protection Law (PDPL) was implemented by Royal Decree M/19 of 9/2/1443H (16 September 2021) approving Resolution No. 98 dated 7/2/1443H (14 September 2021). It was published in the Official Gazette on 24 September 2021. The Saudi Data & Artificial Intelligence Authority (SDAIA) will supervise the implementation of the new legislation for the first two years, following which a transfer of supervision to the National Data Management Office (NDMO) will be considered.

In December 2021 Saudi Arabia will make electronic invoicing mandatory for all in country taxpayers. The implementation of the electronic invoicing system, named “FATOORAH” will commence on December 4th and will be implemented in two phases. Phase One will commence from 4 December 2021 and will focus on e-invoicing generation and saving enforcement, with Phase Two commencing from 1 January 2023 aimed at integration enforcement which will be implemented in phases. We share insights of Phase One.

Eight of the 13 monitored mid-market industries returned to positive health in H1 2021, as assessed by Grant Thornton’s unique Global business pulse, compared with just two in H2 2020. And the spread of index results narrowed markedly, as more industries enjoyed the benefits of the overall mid-market recovery. Among the biggest industry movers, transport jumped 10.4 points into positive territory to 0.7, while healthcare and manufacturing rose 6.6 points, both also returning to positive ground.

Grant Thornton’s unique Global business pulse index has tracked performance of several industries between 2020 and the same period in 2021. The overall healthcare industry index score turned positive in H1 2021, climbing nearly 7 points to 1.6, which is higher than the global average. The outlook rose by a robust 12 points to 52, above the pre-pandemic level of 51. This was driven by a strong rebound in optimism, shooting up 27 percentage points (pp) to 65%, following a sharp fall in H1 2020 and only modest improvement in H2.

Grant Thornton’s unique Global business pulse index has tracked performance of several industries between 2020 and the same period in 2021. After showing strength in H2 2020, the financial services (FS) industry index declined 2 points and remains in negative territory at -5.3. Supply and demand constraints dragged on the overall FS industry, despite a sharply improved outlook rising to 62, close to the record high of 64 in early 2017.

Grant Thornton’s unique Global business pulse index has tracked performance of several industries between 2020 and the same period in 2021. The telecoms, media and technology (TMT) industry turned positive in H1 2021, with the index marginally above the global average. The outlook in the sector surged to a record high of 67, driven by positive investment intentions and conditions. Conversely, restrictions worsened 9 points owing to rising concern about demand and supply constraints. The media sector was the most pessimistic in outlook.

Higher growth expectations are being seen widely across the world, with slightly elevated levels recorded in the more developed parts where vaccine roll-outs are helping economies to rebound strongly.

Technology firms have experienced high growth potential in 2021, with this trend projected to continue, however firms need to consider how to build resilience against changing customer behaviours, how to access and retain tech talent as demand increases for this new human capital and how to navigate the complexities of an increasingly digital world. We explore these questions further.