JEDDAH: It is apparent that the government is taking different measures to reach the Kingdom’s non-oil revenue target, a senior Saudi economist told Arab News.
Said Al-Shaikh, chief economist at the National Commercial Bank, added: “The government will benefit from the new decisions announced on Monday because it will help to finance infrastructure projects.”
According to the Cabinet announcement, the new procedures and revision of fees for visa services were based on a recommendation from the Ministry of Finance and the Ministry of Economy and Planning suggesting as part of the government’s initiatives on non-oil revenues.
Al-Shaikh said that the news about raising the fees for various services are obviously aimed at increasing the non-oil revenue.
“I believe this came as a surprise but in line with the Vision 2030 and the National Transformation Program 2020 to boost non-oil revenues to SR530 billion from the current SR163 billion,” he added.
“The raising of fees on various services will have a short-term impact on households. Eventually the revenue generated from these services will help provide good services,” said Al-Shaikh.
Sami A. Al-Nwaisir, chairman of Al-Sami Holding Group, said that the Cabinet decision is consistent with Saudi Vision 2030 to diversify non-oil revenues.
“Many of these services were below cost and were subsidized in the past during the boom period,” he pointed out.
The increase in fees will help in improving the services, which will bring more value to them, said Al-Nwaisir.
Most of the countries around the world — except Saudi Arabia — are used to such procedures, he added.
Well-known Saudi columnist Abdulateef Al-Mulhim commented: “With the increase in number of car accidents and highway fatalities, the government had tried through many ways to reduce the number of casualties.
“This trend had been going on for years. Since many rules and seminars to raise the awareness and the importance of safe driving failed to deliver, other rules and penalties had to be introduced because of the increase in the number of drivers who use their cars as killing machines through a term called drifting."
Al-Mulhim added: “The Council of Ministers has introduced many rules in order to protect the people on the streets.” He said: “The new rules are calling for high penalties for first timers and repetitive actions with penalties reaching tens of thousands of Saudi riyals and confiscation of the vehicles for long periods of time and possible auctioning of the cars involved in any drifting or using the cars in dangerous ways.”
Basil Al-Ghalayini, CEO of BMG Financial Advisers, welcomed the Cabinet announcement.
He said: “Although these newly increased tariffs will help financing the budget, they may restrict and discourage business travelers into the Kingdom which may negatively affect the private sector.”
Said Al-Shaikh, chief economist at the National Commercial Bank, added: “The government will benefit from the new decisions announced on Monday because it will help to finance infrastructure projects.”
According to the Cabinet announcement, the new procedures and revision of fees for visa services were based on a recommendation from the Ministry of Finance and the Ministry of Economy and Planning suggesting as part of the government’s initiatives on non-oil revenues.
Al-Shaikh said that the news about raising the fees for various services are obviously aimed at increasing the non-oil revenue.
“I believe this came as a surprise but in line with the Vision 2030 and the National Transformation Program 2020 to boost non-oil revenues to SR530 billion from the current SR163 billion,” he added.
“The raising of fees on various services will have a short-term impact on households. Eventually the revenue generated from these services will help provide good services,” said Al-Shaikh.
Sami A. Al-Nwaisir, chairman of Al-Sami Holding Group, said that the Cabinet decision is consistent with Saudi Vision 2030 to diversify non-oil revenues.
“Many of these services were below cost and were subsidized in the past during the boom period,” he pointed out.
The increase in fees will help in improving the services, which will bring more value to them, said Al-Nwaisir.
Most of the countries around the world — except Saudi Arabia — are used to such procedures, he added.
Well-known Saudi columnist Abdulateef Al-Mulhim commented: “With the increase in number of car accidents and highway fatalities, the government had tried through many ways to reduce the number of casualties.
“This trend had been going on for years. Since many rules and seminars to raise the awareness and the importance of safe driving failed to deliver, other rules and penalties had to be introduced because of the increase in the number of drivers who use their cars as killing machines through a term called drifting."
Al-Mulhim added: “The Council of Ministers has introduced many rules in order to protect the people on the streets.” He said: “The new rules are calling for high penalties for first timers and repetitive actions with penalties reaching tens of thousands of Saudi riyals and confiscation of the vehicles for long periods of time and possible auctioning of the cars involved in any drifting or using the cars in dangerous ways.”
Basil Al-Ghalayini, CEO of BMG Financial Advisers, welcomed the Cabinet announcement.
He said: “Although these newly increased tariffs will help financing the budget, they may restrict and discourage business travelers into the Kingdom which may negatively affect the private sector.”
