* All Saudi Arabian banks decline but one * Aramco to announce Q1 earnings on Tuesday * UAE has no plans to follow Saudi in VAT increase By Ateeq Shariff May 11 (Reuters) - Saudi Arabia's stock market ended lower on Monday after the kingdom said it will triple value-added tax (VAT) and suspend a cost of living allowance for state workers as it seeks to shore up its finances. The austerity measures are being introduced as the world's largest oil exporter suffers from slumping oil prices, while at the same time measures to fight the new coronavirus outbreak are likely to curb the pace and scale of economic reforms launched by Crown Price Mohammed bin Salman. Finance Minister Mohammed Al-Jadaan said the cost of living allowance would be suspended from June 1, and VAT would be increased to 15% from 5% from July 1. Saudi Arabia's benchmark index dropped 1.2%, with Al Rajhi Bank falling 1.5% and National Commercial Bank , the country's largest lender, losing 2.4%. State-owned oil giant Saudi Aramco was also down 0.8% ahead of its first-quarter earnings announcement on Tuesday. In Dubai, the index fell 1%, driven by losses in financial shares. Sharia compliant lender Dubai Islamic Bank ended down 2.3%, while Emirates NBD Bank lost 0.9%. The Abu Dhabi index closed flat. Aquaculture firm International Holding jumped 9.2%, whereas Abu Dhabi Commercial Bank declined 2%. The lender reported an 84% fall in first-quarter net profit last week as it took $292 million in impairments on debt exposure to troubled hospital operator NMC Health and payments group Finablr. Meanwhile, the United Arab Emirates was not currently planning to follow Saudi Arabia by raising its VAT rate from 5%, the finance ministry said on Monday. Qatar's index fell 0.5%, hurt by a 7% slide in United Development. Egypt's blue-chip index added 0.4%, with tobacco monopoly Eastern Company climbing 6.3%. SAUDI ARABIA dropped 1.2% to 6,604 points ABU DHABI was flat at 4,121 points DUBAI declined 1% to 1,884 points QATAR eased 0.5% to 8,864 points EGYPT rose 0.4% to 10,296 points BAHRAIN lost 1.3% to 1,252 points OMAN slipped 0.1% to 3,466 points KUWAIT was down 1% at 5,120 points (Reporting by Ateeq Shariff in Bengaluru; Editing by Kirsten Donovan)
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