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Historical Background

 Historical Background


The Ministry of Finance is one of the oldest ministries in the history of the Kingdom of Saudi Arabia. It was established in 1344 AH under the name "Directorate of Public Finance to Manage Financial Affairs" during the reign of King Abdulaziz Al Saud (may God have mercy on him) in the Makkah region. As its operations expanded, it was transformed into the "Agency of Public Finance" in 1347 AH. The agency's functions developed significantly, leading to a royal decree in 1351 AH (1932 AD) to convert the agency into a ministry of finance, responsible for organizing and safeguarding state funds, collecting revenues, securing its income and expenditures, and serving as the general reference for finances across all regions of the kingdom. The first Minister of Finance was Sheikh Abdullah bin Suleiman Al-Hamdan (may God have mercy on him).

In 1374 AH, the Ministry of Economy was merged with the Ministry of Finance, becoming the "Ministry of Finance and National Economy," and its headquarters was relocated to Riyadh. After merging the economic activities with the Ministry of Planning, the ministry's name was changed to its current title: "Ministry of Finance" in 1424 AH.

During the modernization phases that the Kingdom experienced in the early years of its establishment, the Ministry of Finance expanded its operations. Starting from 1355 AH, several directorates were established under its umbrella, including the General Directorate of Petroleum and Minerals, the General Directorate of Public Works, the General Directorate of Customs, the Directorate of Agriculture and Water, and the Affairs of Hajj, Endowments, and Broadcasting, as well as the Bureau of Employees and Retirees, the Labor System, the Institute of Public Administration, and the Agency of Transportation and Communications, which oversees the Directorates of Telegraph and Postal Services, the Directorate of Roads, and the Railways. Additionally, there are developmental funds such as the Real Estate Fund, Industrial Fund, Lending Fund, Agricultural Bank, and Public Investments, along with government agencies like the Zakat and Income Authority, the Retirement Authority, and the General Statistics Authority, as well as dedicated offices for companies and urban projects.

Throughout its historical journey of over eight decades, the Ministry of Finance has seen 13 ministers and has executed numerous national and developmental projects, the most notable being the massive royal expansions of the Grand Mosque in Makkah and the Prophet's Mosque in Madinah, the King Fahd Bridge between the Kingdoms of Saudi Arabia and Bahrain, Princess Nora bint Abdulrahman University, conference centers, government complexes in various cities of the Kingdom, accommodation centers, and border crossings with their respective residential areas.

To view the ministry's book click here​.

Last Update : 11/17/2024 1:09 PM