In the opening meeting in Asharqia Chamber.
Ministers
of Trade and Finance: The private sector is a leading partner in
achieving the vision of 2030, and We came to listen to the proposals of
businessmen in the Eastern region to motivate the growth of the private
sector.
Asharqia Chamber hosted on Sunday 9 of April, the Minister of Trade and
Investment and the Minister of Finance, in an open meeting between ministers
and businessmen of the Eastern Region. The Minister of Trade and Investment, Majid bin Abdullah Al Qasabi, stressed the importance of the role played by
the private sector to achieve the vision 2030, noting that this visit aims to
listen to the proposals, visions, views
of businessmen and women of the Eastern Region to motivate the private sector.
Al
Qasabi explained in the meeting, which was chaired by the Deputy Chairman of Asharqia Chamber of Commerce Muhammed bin Saad
Al Faraj and attended by the advisor in the general secretariat of the Council
of Ministers Fahd Al Sukeit, the Director General of Customs in charge Mr.
Ahmed Al Qahbani and a number of officials of the Ministry of Commerce and
Finance. The
ministry aims by 2030 to make Saudi Arabia one of the top 15 economic systems
in the world, as well as increasing foreign direct investment from 3.8% to 5.9%,
and increasing the contribution of small and medium institutions gross domestic
production from 20% to 35%.
Al Qasabi explained
that the system of trade and investment is based on a strategy consisting of 5
main topics starting with 18 portfolios and 41 initiatives and ending 173
projects and 11 indicators to measure performance.
In
order to motivate the growth of the private sector, Al Qasabi said that the
ministry is working on improving regulations to attract and compete internationally and seeks to enhance
competitiveness and improve the business environment and the development of
small and medium institutions, as well as the improvement of national industries and
services and the implementation of the privatization program.
The
ministry also works to raise the level of awareness of the consumer and the
trader, and has implemented some incentive measures such as the launch of a
commitment project to verify electronically the extent to which commercial
establishments comply with government regulations and to grant commercial
records a unified legal identity with a 700 identification number, also
canceling the company seal and non obligation in the documentation and
cancellation of the requirement to open the bank account of a company under establishment.
Regarding to the progress of the local content and the building of a competitive
domestic sector, Al Qasabi said that a comprehensive and unified national
strategy for local content such as the development of non oil exports, the settlement
of military industries and the Public Investment Fund program is being
developed, as well as sectors with promising growth potential (mining / export / finance /
Umrah, etc).
For
his part, the Minister of Finance, Muhammed Abdullah Al Jadaan, stressed that
in order to achieve the goals of vision
2030, the private non oil sector must grow by 8.5% annually and increases the domestic
gross production of the same sector by 1.6 trillion riyals off the stable
policies, so that decisions will not be enforced, and the private sector will
be supported by motivating packages of 200 billion riyals over the next four
years.
Al
Jadaan noted that the profit tax will not be imposed on Saudi companies nor on
the citizen income tax. The added value ratio will not be raised by more than
5% until 2020. The financial dues will be paid to the contractors, suppliers
and contractors within a period not exceeding 60 days from the date of validity.
In
2015 and 2016, the Kingdom of Saudi Arabia has made many financial and economic
policies and implemented a number of measures in line with the policies of the
world biggest economies, such as reforming the prices of energy products in
part and observing the prices of some government fees and stopping a group of allowances to examine them and guide
them to their beneficiaries, noting that the international issuance program has
achieved an increase in the global demand exceeding $ 50 billion.
Regarding
the achievements in the customs sector and directly related to the business
sector, Al Jadaan pointed that the number of documents required to complete
import procedures (12 to 4) and export (from 9 to 3) has been reduced and that
exporters and importers are not required to submit proof of payment, for
the establishment of a "platform of permissions" with customs business partners to facilitate the
completion of customs procedures before the arrival of the mission, and other
measures that facilitate trade.
He
pointed to the principles that were taken into account in the preparation of
the 2017 budget, taking into consideration the international and domestic
economic situation, oil prices and the payment of commitments due from public
expenditures, programs and projects, as well as budgetary consistency with the
target economic growth and taking into consideration the sustainability of the fiscal
situation fiscal
discipline down the fiscal balance in 2020.
He
stressed that the private sector is essential to economic development, pointing
that the Ministry of Trade and Finance is keen on this partnership and came to
hear theses and opinions on many issues that will develop the mechanism of
action and motivates the growth of the
private sector.
Muhammed
Al Faraj, Deputy Chairman of the Chamber, said that the meeting is part of the
efforts of Asharqia Chamber to play its awareness role in order to discuss the
challenges and enrich the visions and ideas about the programs and plans of the
Ministries of Trade and Finance in the framework of their implementation of the
vision of the Kingdom of 2030. From
a radical transformation in the structure of the national economy. The
diversification of the economic base and the reformulation of productivity in
accordance with specific strategic plans and goals are almost identical to the
private sector and its starting points.
Al
Faraj stressed that the vision 2030 which was launched by the King Salman Bin
Abdul Aziz, is about the participation and the social dialogue as a basic base.
He pointed that this open meeting between representatives of the governmental
and private sectors embraced by Asharqia Chamber,
Is only a sign of moving forward in making a debate and dialogue that will go
on.
Al
Faraj pointed that the vision and its policies, goals and programs require a lot of
flexibility and mutual work between the public and private sectors, and needs more
efforts to overcome the obstacles and challenges facing the private sector so that
they can contribute effectively to the achievement of creativity, regional and
global competition.
At
the end of the meeting, Al Faraj presented memorial gifts to His Excellency the
Minister of Trade and Investment, Majid bin Abdullah Al Qasabi, and His
Excellency the Minister of Finance, Muhammed Abdullah Al Jadaan.
