As an extension of ongoing Government efforts to deal with the effects and consequences of the Novel Coronavirus pandemic and take all measures to confront the financial and economic impacts on the private sector and economic activities most affected by the pandemic implications.King Salman bin Abdulaziz Al Saud issued a Royal Order to approve a package of additional initiatives, consisting ofsupport, exemption, and expediting payment of private sector dues.
On this occasion, His Excellency the Minister of Finance and Acting Minister of Economy and Planning, Mr. Mohammed bin Abdullah Al-Jadaan, thanked the Custodian of the Two Holy Mosques King Salman bin Abdulaziz - may Allah bless him - for his gracious approval of the additional initiatives, stressing that the government has taken a number of additional precautionary measures, which aim to provide liquidity to the private sector so that it can be used to manage its economic activities, and that the government works continuously to study the effects and repercussions of the Novel Coronavirus crisis and its challenges in a number of sectors and regions, and study opportunities to address them, whether with support or incentive or others.
His Excellency clarified that the additional initiatives prepared by the government to support, exempt and expedite payment of the private sector dues is an extension of the announced urgent initiatives to support the private sector, especially SMEs and economic activities most affected by the consequences of this pandemic, which exceeded SAR 70 billion, represented in exemptions and postponement of some government dues, and the government would pay through the Sanad system 60% of the salaries of Saudi private sector employees with a total value of SAR 9 billion, in addition to the support program announced by the Saudi Arabian Monetary Authority for banks and financial institutions and SMEs with a value of SAR 50 billion at the current stage.
Additional initiatives were as follows:
First: allocating SAR 50 billion to expedite payment of the private sector dues.
Second: Offering a 30% discount on the value of electricity bill for consumers in the commercial, industrial and agricultural sectors for a period of two months (April - May), with the possibility of extension if needed.
Third: optionally allowing subscribers in the industrial and commercial sector to pay 50% of the value of the monthly electricity bill for the months (April, May, and June), provided that the remaining dues are collected in divided installments throughout a period of six months starting from January 2021 AD with the possibility of postponing the payment period if required.
Fourth: To support self-employed individuals who are not employed by any company and registered with the Transport General Authority in the activities of passenger transport and were stopped due to the precautionary measures of the Coronavirus, by paying an minimum amount of salaries to them.
Fifth: Rapid activation of Council of Ministers Resolution No. (649) of Dhul-Qi'dah 13, 1440 AH, which requires companies in which the State owns more than (51%) of its capital, to take into account the general principles and rules for putting out to tender works and purchases and giving preference to local content and SMEs, which would increase the economic mobility in the local market and direct demand towards local products and services.
His Excellency the Minister of Finance, and Acting Minister of Economy and Planning, confirmed that additional funds were allocated to the health sector as needed, as the volume of support for the health sector reached SAR 47 billion in order to raise the health sector's readiness, secure medicines, operate additional beds, and provide necessary medical supplies such as ventilators and laboratory tests devices and supplies, as well as to secure the necessary medical and technical personnel from inside and outside Saudi Arabia.
His Excellency Al-Jadaan praised the active role played by all medical teams and security men in the Kingdom, and their continuous efforts to enhance health security in the Kingdom, stressing the need to follow the instructions of the Ministry of Health to get out of this crisis with minimal material and human losses.