Saudi Arabia is considering imposing income tax on foreign residents, Ibrahim al-Assaf, the finance minister said, as the cash-strapped kingdom seeks to raise non-oil revenues and cut spending to fund its $72bn plan to diversify the economy. Riyadh, scrabbling to raise the funds needed for wide-ranging reforms from fiscal and investment policy to education and housing initiatives, is taking the unprecedented step of tapping global bond markets and reprioritising domestic spending. Income tax on the one-third of residents who are non-Saudis would raise a significant amount of non-oil revenue for the government, but could also make hiring expatriates more difficult. The Gulf’s income tax-free status is a key element in attracting foreigners to the region. At a news conference in Jeddah late on Tuesday, Mr al-Assaf sought to clarify confusion over plans for expatriate taxes