Legislation may soon be drafted to guarantee loans given to small and medium enterprises (SMEs) through the Saudi Credit and Savings Bank (SCSB) after the Shoura Council made the suggestion during its 45th ordinary session, chaired by Deputy Speaker Mohammed bin Amin Jaafri, yesterday.
Shoura Council Assistant Speaker Fahad Al-Hamad said that the suggestion would protect SMEs' creditors. The proposal was put forward by the council's finance committee based on an SCSB annual report.
The SCSB plays a vital role in financing SMEs with as many as 21,000 benefiting from a total investment outlay of SR 4 billion. Saudi Banks have also contributed directly to nationalizing projects and providing 30,000 job opportunities for Saudis in various sectors, with plans to finance another 6,000 projects with SR 2 billion, this year.
SMEs in Saudi Arabia accounted for 22 percent of the total national output and 51 percent of the total work force in 2009, 40 percent of them in the construction sector. Currently, 31 percent of the Saudi work force is engaged in the commercial sector and 15 percent in social services.
The council also approved a report from the Committee on Housing, Water and Public Services suggesting the drafting of a framework agreement for cooperation between the Kingdom and Ethiopia in the fields of agriculture, livestock and fisheries.
The house also approved a draft agreement between the Kingdom and host countries, such as Ethiopia, Turkey, Ukraine, Egypt, Sudan, Kazakhstan, Vietnam, Poland, and the Philippines. The agreement would provide land for cultivation under the Agricultural Investment Abroad program ordered by Custodian of the Two Holy Mosques King Abdullah. The council also called for information sharing between the two parties to promote investment in the fields of agriculture, livestock, fisheries and beekeeping.
Under King Abdullah's initiative,the Kingdom plans to provide food security with agricultural investments abroad. The program has resulted in Saudi public and private investment companies purchasing and farming land in countries better suited for the cultivation of food staples.
The council also approved the formal application for membership of the Kingdom to the postal services agreement (PSA), which was approved in August 2008 in Geneva. The proposal was submitted by the Transport, Telecommunications and IT committee.
Accordingly, Foreign Minister Prince Saud Al-Faisal was authorized to sign the enrollment documents, which will allow Saudi Post to offer remittance services in coordination with the Saudi Arabian Monetary Agency.
During the reading of the annual report of the Ministry of Islamic Affairs, Endowments and Guidance presented by the Islamic and legal affairs committee, the Shoura members pointed out the need to fill the vacancies of 30,000 jobs for imams (prayer leaders) and muezzins (prayer callers).
The council called on the ministry to provide better financial incentives to attract applicants for these vacancies and asked that it ensure that all mosques in the Kingdom are supplied with water and power to meet their needs.
