RIYADH, 16 June — A recent Cabinet decision calling for publication of economic and financial statements at regular intervals will ensure transparency and promote confidence in the economy, high-level sources told Arab News.
The Council of Ministers, chaired by Custodian of the Two Holy Mosques King Fahd, took the significant decision recently after discussing proposals made by the Supreme Economic Council (SEC) and an experts committee in this regard.
Crown Prince Abdullah, deputy premier and commander of the National Guard, is the chairman of SEC, a mini-Cabinet set up last year to take vital policy decisions. SEC has been playing a pivotal role in promoting economic reforms in the country.
The financial statements, the sources said, would cover the gross national product (GNP), the gross domestic product (GDP), public expenditures and revenues from productive public sectors, and measures taken to offset budget deficits.
They said the reports would also focus on government debts as well as statements of the financial and banking sectors including those on their liquidity, monetary base, total deposits and assets.
The Cabinet decision also covers financial statements of Saudi Arabian Monetary Agency (SAMA), its budget and local share prices as well as statements related to oil and non-oil exports, imports, balance of payment, international reserves and currency exchange rates.
Other figures that come under the new decision are statistics related to manpower and population, salary, foreign investment flow, and economic indicators of the private sector. The government would upgrade its database to publish the financial statements, the sources said.
The SEC endorsed the proposal to publish regular financial statements at a meeting held on May 27. The SEC meeting also took other important decisions like cutting of import duties from 12 to five percent and the opening up of the telecommunications sector.
The new decisions come at a time when Saudi Arabia is making serious efforts to join the World Trade Organization.
SEC’s Secretary-General Dr. Abdul Rahman Al-Tuwaijeri said the decision to reduce the customs tariff was meant to strengthen the competitive edge of the Saudi economy and reduce the burden on citizens.
The lowering of customs tariff coupled with other economic reforms are expected to go a long way in attracting part of the estimated $800 billion in private wealth owned by Saudis and other Gulf nationals abroad, economic analysts said.
