Saudi Decision Package: Exempting residents from the financial compensation and initiatives of more than 70 billion riyals to meet the Corona challenge

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                    Corona's latest news: Within the framework of the Saudi government’s endeavor to safety citizens and residents, and to face the financial and economic impacts of the virus                     </p><div><p><strong>Within the framework of the Saudi government’s endeavor to protect citizens and residents, and to confront the financial and economic effects of the outbreak of the Corona virus, the Minister of Finance and the designated Minister of Economy and Planning Professor Muhammad bin Abdullah Al-Jadaan stated that the government has taken a number of precautionary measures to contribute to protecting citizens and residents in the Kingdom, and to provide the necessary financial requirements to implement Preventive and direct measures to deal with the consequences of the epidemic and work to limit its spread, and ensure the continuity of the work of government agencies, stressing that the health and safety of citizens and residents come first in the priorities of government action And that the government will provide all the additional funds required for the health sector, and to provide the necessary health services for the prevention, treatment and prevention of proliferation.</strong>

The minister explained: “The government has prepared urgent initiatives to support the private sector, especially small and medium enterprises and economic activities most affected by the consequences of this epidemic, as the size of these initiatives reaches more than 70 billion riyals, and is represented in Exemptions and postponements of some government dues To provide liquidity to the private sector so that it can be used to manage its economic activities, in addition to Support program Which announced by the Saudi Arabian Monetary Agency to banks and financial institutions, and small and medium enterprises in the amount of 50 billion riyals in the current stage.
The urgent initiatives were as follows:

  1. Exemption From the financial compensation for expatriates whose residency expired from its date to 30 June 2020, by extending their residency period for a period of three months without consideration.
  2. Empowering employers to Recovery Issuance of work visas fees that have not been exploited during the period of prohibition of entry and exit from the Kingdom even if they are stamped in the passport, or extended for a period of three months without consideration.
  3. Empowering employers to Extension Exit and return visas that have not been used during the three-month ban on entry and exit from the Kingdom free of charge.
  4. Empowering business owners for a period of three months from Delay Supplying value-added tax, selective goods tax and income tax, postponing the submission of zakat declarations, postponing the payment of obligations due therefrom, granting zakat certificates without restrictions for the duration of the fiscal year 2019 declaration, and expanding to accept installment requests without requiring a down payment by the General Authority of Zakat and Income, in addition to Postponing the implementation of procedures to stop services and seizing funds from the General Authority of Zakat and Income, and setting the necessary standards to extend the postponement period for the most affected activities as needed.
  5. Delay Collecting the import duties for a period of thirty days in exchange for providing a bank guarantee for the next three months, and setting the necessary standards to extend the delay period for the most affected activities as needed.
  6. Delay Paying some government services fees and municipal fees due on private sector establishments for a period of three months, and setting the necessary standards to extend the delay period for the most affected activities as needed.
  7. Authorization The Minister of Finance to approve lending and other forms of financing and exemption from payment of fees and returns of loans granted until the end of the year 2020 AD, for the corporate sustainability program initiative.
  8. Forming a committee chaired by the Minister of Finance and the membership of both the Minister of Economy and Planning, the Minister of Commerce, the Minister of Industry and Mineral Resources, the Vice Chairman of the National Development Fund and the Governor of the National Development Fund; it undertakes the following:
  • Determining incentives, facilities, and other initiatives led by the National Development Fund or any of its funds and banks, with the aim of alleviating the extraordinary economic situation, in light of the implications of the Corona virus, and the impact of the precautionary measures taken by the Kingdom’s government and the low oil prices, and reviewing them.
  • Determine and design design criteria and controls for implementing initiatives.
  • Determine the amounts that will be used to support these initiatives from the funds available at the funds and banks of the National Development Fund for this purpose and as needed.
  • The committee may conduct transfers between these funds and banks and the Saudi Export-Import Bank as needed.
  • The committee directs both the Kafala program and the General Authority for small and medium enterprises to develop the necessary initiatives to support this purpose in this exceptional stage, and to support them from the funds available at the funds and banks of the National Development Fund as needed.

According to the statement of the Ministry of Finance, the government decided to use the tools available to finance the private sector, especially small and medium enterprises, in addition to strengthening support programs to mitigate the impact on the private sector and economic activities, and to ensure the promotion of financial stability, and the government confirms its keenness to pay the dues in accordance with their deadlines, in addition to measures that Maintains the integrity of the financial sector.

The Minister of Finance affirmed that the government has the ability to diversify funding sources between public debt and government reserves, enabling it to deal with emerging challenges, and allows positive intervention in the economy through appropriate channels and times, while limiting the impact on the government’s goals in maintaining financial sustainability and economic stability on Medium and long term.

He added that some of the budget allocations will be reviewed and reoriented to the sectors most in need under the current circumstances, including allocating additional amounts to the health sector as needed. An emergency budget is also allocated to cover any costs that may arise during the developments of this global event.

He emphasized that the government’s focus will continue to make efforts at all levels to address the epidemic’s health and social risks, and the government will continue to raise the efficiency of financial and economic performance, enabling it to address the effects of the virus’s spread, in addition to maintaining financial and economic gains made during the period The past, praising the interaction of male and female citizens and their circumvention around their leadership, and the facilities provided by businessmen in the Kingdom to commercial establishments by exempting them from rent and other dues in such circumstances in the country, noting the necessity of continuing Ah instructions issued by the Ministry of Health, including the community can overcome the crisis with minimal damage.

The minister pointed out that the spread of the (Covid 19) virus affected most countries, which requires continued coordination at the international level, especially through the Group of Twenty, and through the relevant international institutions, to confront this stage with minimal human and material losses.

Generous directives were also issued to form a number of ministerial committees that aim to study the effects and repercussions of the emerging Corona virus crisis and its challenges in a number of sectors and regions and study opportunities to address them with support or stimulus or others, namely: (Energy Committee – Trade, Tourism, Entertainment and Sports Committee – Industry and Mineral Resources Committee Logistics Services Committee.







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