• The private sector Compete with governmental sector for supporting the local economy


    «The economics of the Middle East conference » starting tomorrow in Riyadh .. Report:

     The private sector Compete with governmental sector for supporting the local economy



    Tomorrow in Riyadh the opening of the first International Conference of its kind in the region, to promote the role of the private sector in economic development in the Middle East, with the participation of international and regional specialists, organized by the Council of Saudi Chambers Conference on the economics of the Middle East and the role of the private sector, which seeks to initiate a transparent and inclusive dialogue between the decision-makers in organizations and government bodies, institutions and private sector organizations, and exchange views on the needs of the private sector in aspects of systems and support. The Conference held in cooperation with the International Monetary Fund, the International Finance Corporation, with the full support of the Ministry of finance, for the purpose of identifying opportunities and challenges facing private sector growth in the region and develops practical strategies for enhancing the role of the private sector in economic and human development. In this regard, the report of the economic growth in the private sector and its role in the economic development process in Saudi Arabia, after having contributed to the non-oil private sector gross domestic product (GDP) in the local economy by 58 per cent in 2012.
    He said in a report issued by the Council of Saudi Chambers finally: the growth of the private sector is not always top of the non-oil sector, the private sector has achieved economic growth rates than the public sector in different years, as in 2008 and 2010. The report said, the growth rate of the private sector in these two years amounted to about 11.1 10.3 percent, compared with 6.2 and 7.5 per cent for the Government sector. But the public sector has achieved growth rates in the years 2011 and 2012 8.7 and 5.4 per cent, compared with 7.7 and 4.8 per cent for the private sector. This rise is due to massive government spending and capabilities, which are used as a catalyst for the growth of the public sector, the private sector was affected by political instability and economic regional and global. The report indicators of stress evolution of the role of the private sector in the growth and development of the economy, the rise in non-oil sector investments of 1.2 billion riyals in 1970, to 341.4 billion in 2011, rising non-oil sector's contribution to GDP from 11.5 billion riyals, 1970, to 576.8 billion in 2011.
    The number of shares traded also grew in the stock market of about 1 million shares in 1985 to about 82.5 billion in 2012, the number of factories operating in the 199 factory in 1970 to more than two at 5043. The number of workers in these factories from 13.9 thousand workers in 1970 to more than 638 thousand workers in 2011 rose capital of the operating plants from 2.9 billion in 1970 to about 507 billion in 2011. And the cumulative number of registered private businesses in Saudi Arabia licensed by the Ministry of trade and industry, from 78.8 thousand in 1979 to about 1,000 in 889.6 2010, total employment in the private sector activities towards 8.5 million workers, compared with 239 thousand in the Government sector, and GDP increased by over five times from 1970 To 2012.
    Localization of private sector played a supporting role to consolidate the Government's saudization direction, by bringing increased employment in Saudi Arabia, to help reduce unemployment among citizens, the private sector has a clear impact on employment levels. Private sector absorbs approximately 8.5 million Saudi and non-Saudi, according to statistics at the end of 2012, while such as Saudis working in the private sector about 11 per cent of the total employed in the private sector at the end of 2011, to 13.4 per cent in 2012. This is due to the growth of employment in the private sector, which hit in 2011 and 2012 around 16.5 and 21.4 percent, respectively, compared with an estimated growth rate of 10.7 percent for non-Saudis in the same years, respectively.
    The education sector
    for private sector participation in educational services, the number of private schools about 2452 school beside 360 kindergartens, representing approximately 10 percent of the total schools in Saudi Arabia. It also invests in many sectors, such as transportation, printing, operation and maintenance of the school and others, by investing in training, the establishment of training centers that meet the needs of the labor market of qualified national personnel.
    The water and electricity sector
     summoned State technical and material capabilities of the private sector, to meet the needs of agricultural and livestock sector of fresh water, and started to take advantage of the capabilities of this sector, with the allocation of the saline water conversion Corporation. It also issued resolutions on encouraging the private sector to invest in the construction and operation of desalination plants, which convert saline water into a holding company with production companies, with the participation of the private sector. And with the growing trend towards greater involvement of the private sector in projects for desalination and electricity production, the attribution of a number of projects to the private sector, through construction and acquisitions to the companies with common ownership between private and Government and private sector have reached in the Shuaiba power and water to about 60 percent.
    Health services
     Within the framework of efforts to improve health services, private sector increased investment in the provision of health services, the number of hospitals to 415 hospitals in 2010, of which 249 Hospital of the Ministry of health, and 39 hospitals affiliated to governmental agencies and 127 private hospitals is approximately 30.6% of the total working in Saudi hospitals.
    The social role of the private sector
     The private sector has an important role to play at the social level and social responsibility, and shows through the implementation of training programs on health and safety for staff and materials to maintain the environment and share expertise, time and donating money to improve the levels of education, solidarity with universities to provide information technology skills to students. As well as providing financial support for modern information technology centers, management of the waste disposal process, participation in social activities and charity and sponsored many national and social events and provide training programs and scholarships for Saudis, and conferences designed to promote domestic and foreign investment in the Kingdom.  Also sponsor activities of raising awareness about safe driving and civil defense, the strengthening of drug control efforts, and to support schools, hospitals and health education programs such as world day of diabetes and the World Health Day, World AIDS Day, supporting charities and associations for orphans.
    The Chamber Council plan to activate the private sector
     Under the current international trading system after accession to the WTO, the work of the Council of Saudi Chambers more importance, and requires a double effort to contribute to activating the role of the private sector in the national economy. According to the report, the focus in the next phase, the deepening of the culture of the private sector in the global trading system and WTO rules to maximize the benefit, and the private sector to deal with the anticipated changes in the coming years as the Gulf common market, Gulf common currency. The Council works to provide all lead to raising the competitiveness of industry and exports, and contribute to the efforts of the investment climate becomes more attractive to foreign investment, and do everything possible to contribute to making the Saudi economy is not only attractive but also a competitor in the domestic and foreign markets.
    The Council shall Endeavour to achieve a business unit and prevent dispersed branch associations with subjective objectives and interests with a narrow vision, and move and educate public opinion on many economic issues, such as consumer protection, combating commercial fraud, and others, and providing advisory services for entrepreneurs in the various economic sectors. It also works on the formulation and delivery of the viewpoint of the private sector in various economic issues to the Government, to provide economic information to business and foreign investors, raising the skills of the private sector through training, workshops and conferences. The Chamber Council plans to the Board to serve the goals and directions of economic plans and policies, the Council's focus and guide the activity of the private sector to operate in accordance with the policy and objectives of the General plan for the State.
    It also encouraged Saudi businessmen to expand economic relationship with countries targeted by the plan or the State seeks to create an economic partnership with, and contribute to strengthen and support the orientations of economic policy of the State in different areas such as localization, consumer protection, employment creation, the promotion of employment of women and expanding their participation in economic activity, and so on. It also encourages the social role of business in the State to expand this role and contributes to the formulation of regulations on economic activity affecting the work of the private sector, and the transport problems of the private sector in foreign trade and investment to the authorities to adopt appropriate policies in cooperation with other States.
    Factors in expanding the role of the private sector to a variety of factors, pushing towards strengthening the role of the private sector in the national economy in the future, the most important directions of the State in economic policies based on the expanding role of the private sector in economic activity, and the entry of the private sector in many sectors that were the preserve of the Government. Also the increased reliance on the private sector to strengthen economic ties with business partners, and the private sector to the primary beneficiary of the economic agreements concluded by the Government at the international, regional Factors, increasing the importance of strengthening the partnership between the public and private sectors, and the increasing role of the private sector and their organizations in the formulation of economic policies and systems, and the increasing role of the private sector and their organizations in the formulation of the Government's negotiating positions, and the increasing importance of the role of the private sector in finding new avenues for investment under the current surge in liquidity.
    The report is expected, in the light of these factors, the sector becomes 2025 m contributor in the growth of the national economy, and the largest container and the first contributor in providing employment in the national economy. Also expected to be the first investor in projects in all economic sectors, then the player's Chair in economic plans, goals and objectives of the policies of the President, diversification of the economic base and diversify sources of income and employment in the various sectors.
    The challenges of the present and future sector facing the private sector, according to the report, Council challenges affect the future course of economic activity, and requires serious handling by the private sector and the regulatory institutions, private Chamber. The most important challenges quickly understand the Saudi private sector to World Trade Organization rules in various fields and deepen the culture, to really see the benefits and rights contained in these conventions, and his success in converting the advantages offered by the World Trade Organization, the GCC common market, and other conglomerates that Kingdom has membership opportunities to export, by increasing the capacity of Saudi products to access foreign markets.
    Overcoming the competition of foreign products entering the Saudi market freely and lower tariffs or at no charge, through partnerships with foreign companies to attract more investment, technology, and integration of local industries, mergers between companies in one industry to increase its capacity to cope with this competition. Effective mechanisms for coordination between the private sector and the Government, to deal with any difficulties encountered in the private sector, and the transfer speed point of view of the private sector to the Government on economic issues. Trained in the private sector to deal with any unlawful economic practice of Saudi products in domestic and international market, such as dumping or subsidy, or monopolistic practices, success in building a new type of partnership between the private sector and consumers, have their content compatibility of interests to both parties, and in the interest of Saudi consumer to buy national products to encourage the private sector to expand and create more jobs for nationals.

    The report noted, the private sector and institutions focus on the future, focusing on industries and services of cognitive component, through the interest of private sector enterprises with innovation and development at all stages of production, promotion of inventions and innovations that offer new products, reduce production costs, by reducing the consumption of energy, water, and other resources, and encourage the development of production lines, the productivity, and reduce waste in the production requirements, and raise the quality of the product, and encourage innovation in industrial design products, industrial products, earned an international reputation, increase demand and strengthen confidence in, and using the methods in production and marketing, and to make all the standard specifications of Saudi industrial products compliant with the standards in the global market, and obtain international quality certificates such as ISO, HACCP and other certificates that facilitate access of industrial products to global markets.

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