The merger of “insurances” and “retirement” enhances the leadership in providing benefits to workers in Saudi Arabia

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The merger of “insurances” and “retirement” enhances the leadership in providing benefits to workers in Saudi Arabia


Thursday – 7 Dhu al-Qi’dah 1442 AH – 17 June 2021 AD Issue No. [
15542]

Riyadh: Fath Al-Rahman Yusuf

At a time when Saudi Arabia has made great strides in the path of comprehensive reforms, specialists expected that the Cabinet’s decision to merge the General Pension Agency into the General Organization for Social Insurance under one umbrella would stimulate the provision of benefits and programs to workers in the Kingdom, while Muhammad Al-Jadaan sees , the Saudi Minister of Finance, in the merger is an administrative and regulatory process that works to unify the insurance protection umbrella for employees of the public and private sectors.
According to the Minister of Finance and Chairman of the Board of Directors of the General Organization for Social Insurance, the decision to merge will contribute to removing overlap in similar specializations, achieving optimal utilization of resources, increasing operational and financial efficiency and improving services provided to clients, noting that the merger will lead to strengthening the financial position of the Fund. Pensions by maximizing investment returns and creating integrative efforts to enhance capacity in investment performance and strategic distribution.
The Saudi Minister of Finance pointed out that the merger decision is an extension of the ongoing reform and administrative restructuring process in accordance with the objectives of the “Kingdom Vision 2030.” This confirms the leadership’s interest in the social insurance sector, as it is one of the pillars that has an important role in the life of the individual, the family and the community, as it is a symbiotic system that enhances social protection.
For his part, Academic Dr. Ibrahim Al-Omar, supervisor of the Shara Consulting Studies Office, told Asharq Al-Awsat that the decision will have a significant positive impact on the economic and social level in the Kingdom of Saudi Arabia, as it is a decision stemming from the Kingdom’s vision to develop the financial sector.
Al-Omar added, “One of the direct fruits of the merger will be building the largest investment portfolio of 100 billion riyals ($26.6 billion), and therefore it will have positive effects on the capital market in Saudi Arabia, and will also have significant positive effects to improve the operational performance of each of the interest Retirement pensions and social insurance, where both sides play the same role, and therefore their merging will increase operating efficiency and ensure more reliability and liquidity for both institutions.”
Depending on the age, the merger decision will end the state of overlap and competencies between the two parties, in addition to having positive future effects on the development of insurance products to cover the needs of employees and workers in the Kingdom.


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