Saudi Finance Minister Mohammed al-Jadaan told a meeting at the Eastern Province Chamber of Commerce that the government will fund the private sector with 53 billion dollars in the next four years.
Jadaan highlighted that, to achieve the economic vision for 2030, the non-oil sector should achieve an annual growth of 8.5 percent and a GDP increase by 400 million US dollars.
The Chamber of Commerce received Jadaan and Minister of Commerce and Investment Dr. Majid al-Qasabi within an open meeting between the ministers and businessmen in the eastern province to ensure the importance of the role played by the private sector to achieve Saudi vision 2030.
Jadaan confirmed that no tax will be imposed on the profits of companies or the incomes of citizens until 2020, and that the percentage of added value tax will remain at five percent until then.
He said the financial dues owed to contractors, suppliers and importers will be paid within a maximum period of 60 days from the date the entitlements are due.
He also explained that during the years 2015 and 2016, the Kingdom laid down many financial and economic policies and implemented a number of measures that are in tandem with the policies of the biggest economies of the world.
These measure include partially reforming the prices of energy products, amending some government fees and stopping several allowances so as to review them and divert them to those who deserve them.
He pointed to the success achieved by the program for the issuance of international bonds with the increasing global demand that exceeded $50 billion.
Meanwhile, Qasabi stressed the role of the private sector in achieving Vision 2030.
“By the year 2030, the Ministry of Commerce and Investment aims to raise commerce and investment in the Kingdom to the top ten in the global competitiveness index. The Kingdom should become one of the most important 15 economic systems in the world,” Qasabi stressed.
Qasabi said that foreign investment will be increased from 3.8 to 5.9 percent of the GDP, and the contribution of SMEs in the GDP will be increased from 20 to 25 percent.
On motivating the private sector, Qasabi said that the ministry is developing the regulations and bylaws so that they attract more global investments and are globally competitive.
“The ministry is striving to bolster competitiveness, improve business environment and develop SMEs, apart from developing national industries and services,” Qasabi said.
The aim is also to implement privatization and raise the awareness of consumers and traders together.