عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Public Pension Agency Merger Boosts Benefits for Workers in Saudi Arabia

Saudi Finance Minister Mohammed Al-Jadaan. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan. (SPA)
TT
TT

Public Pension Agency Merger Boosts Benefits for Workers in Saudi Arabia

Saudi Finance Minister Mohammed Al-Jadaan. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan. (SPA)

Experts have predicted that the decision to merge Saudi Arabia’s Public Pension Agency (PPA) into the General Organization for Social Insurance (GOSI) will reinforce benefits and programs offered to workers in the Kingdom.

The move is set to boost investment returns, reduce costs and help with their diversification, said Finance Minister and GOSI Chairman Mohammed Al-Jadaan in a statement.

Al-Jadaan said that the Kingdom’s fiscal policy aims to strike a balance between maintaining fiscal sustainability and enhancing economic growth and development, while also supporting economic transformation in line with the national vision for transformation, Kingdom Vision 2030.

Saudi Arabia is moving ahead by striving to increase efficiency and effectiveness within the framework of fiscal discipline, improving the basic services provided to citizens, diversifying government revenue sources and empowering the private sector.

Moreover, Al-Jadaan reviewed the merger as an administrative-organizational process that works to unify the insurance protection umbrella for employees of both the public and private sectors.

It will also contribute to eliminating overlap in similar specializations, achieving optimal utilization of resources, increasing operational and financial efficiency and improving services provided to clients.

This confirms the Saudi leadership’s interest in developing the social insurance sector as one of the key pillars that play an important role in the life of individuals, families and society in general.

Social insurance in the Kingdom reflects a symbiotic system that primarily works to enhance social protection.

“The decision will have a significant positive impact on the economic and social level in the Kingdom of Saudi Arabia,” Ibrahim Al-Omar, a Saudi academic and consultancy supervisor, told Asharq Al-Awsat.

“One of the immediate fruits of the merger will be building the largest investment portfolio, amounting to SAR 100 billion ($26.6 billion),” he said, explaining that it will positively impact financial markets in the Kingdom.

Most Viewed

 
 
Business

Saudi Arabia to Host Multilateral Industrial Policy Forum

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
TT
TT

Saudi Arabia to Host Multilateral Industrial Policy Forum

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Saudi Arabia, in partnership with the United Nations Industrial Development Organization (UNIDO), will host the Multilateral Industrial Policy Forum (MIPF) in October, underscoring the Kingdom's significant industrial transformation, in line with Vision 2030, and aiming to expand the Saudi industrial base and solidify its position as a leading global industrial center.
Organized by the Ministry of Industry and Mineral Resources in Riyadh, the forum is yet another substantial industrial development initiative the Kingdom relentlessly takes.
By carrying out programs focused on innovation, diversification, and boosting of the industrial sectors, including 12 strategic sectors identified in the National Industrial Strategy, Saudi Arabia seeks to raise competitiveness and support its national economy.
Beyond the National Industrial Strategy, the Kingdom has invested in developing industrial infrastructure, such as industrial cities and special economic zones, and fostered international cooperation to facilitate transfer of knowledge and technology. The forum, in which global experts and decision makers participate, is an ideal platform to exchange expertise and set best practices in industrial policies.
Saudi Arabia aims to develop policies that are in line with international standards, thus increasing the global competitiveness of its industrial sector. By leading initiatives for sustainable industrial practices, promoting international cooperation, exchanging expertise, and adopting environmentally friendly technologies, the Kingdom seeks to enhance the flexibility of its supply chains, in line with the Global Supply Chain Resilience Initiative.
The industrial sector in Saudi Arabia witnessed significant developments in 2023, including announcing major investment opportunities in targeted sectors, issuing a license for the first Saudi-made electric car brand "Ceer", and opening the first electric vehicle manufacturing factory "Lucid". The Kingdom aims to produce over 300,000 cars annually by 2030.
Attracting private sector investments is crucial to achieving the goals of the National Industrial Strategy. The industrial sector focuses on enhancing integration among various sectors and their supply chains, developing infrastructure, encouraging joint investments, promoting local content, and empowering national companies through policies, financing, and training.
In July 2022, the Ministry of Industry and Mineral Resources launched the Future Factories Program, which aims to transform 4,000 factories from labor-intensive models to efficient, automated operations utilizing advanced industrial solutions. This initiative seeks to enhance competitiveness, improve product quality, and increase exports of Saudi non-oil products.
The ministry has also made strides in improving the regulatory and legislative environment for the industrial sector, creating an environment conducive to investments and fair competition.
The ministry's goals for 2024 and 2025 include attracting investments in targeted industrial sectors, reaching a total investment volume of SAR451 billion, adding 1,500 products to the mandatory local content list, increasing the industrial sector's contribution to non-oil GDP to SAR412 billion, and boosting non-oil exports to over SAR300 billion. Moreover, the ministry aims to launch the industrial sector governance initiative to stimulate integration and concerted efforts among relevant stakeholders.
The second edition of the Multilateral Industrial Policy Forum, hosted by Riyadh under the theme "Transforming Challenges into Sustainable Solutions through Industrial Policies", will bring together some 3,000 industry leaders from around the world, including decision makers, CEOs, industry specialists, and people interested in developing industrial policies.