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Economic Reforms

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Economic Reforms

The NCC works on implementing many reforms aimed at enhancing the competitive environment by studying the obstacles and challenges facing the public and private sectors, identifying, and analyzing them to propose solutions and initiatives. In order to implement reforms at the level of laws and regulations to develop the legislative and procedural environment that stimulates the improvement of the competitive environment, by relying on the strength of the integrative partnership relationship that the NCC built and strengthened with government entities and the private sector.

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Reforms​ Factors:

  • Legislative and Regulatory Reforms

  • Reforms related to improving the business environment

  • Reforms related to simplification and automation of procedures

  • Reforms related to enhancing women's participation in economic development

  • Analysis of challenges and economic studies

    The most prominent reforms related to improving the business environment in Saudi Arabia
    1. Customs clearance in Saudi ports within 24 hours, through the unified electronic platform "Fasah".
    2. Licensing for commercial activities to operate 24 hours.
    3. 60 minutes to complete the procedures of transferring the real estate ownership.
    4. Reducing the total requirements for investment licenses by 54% in accordance with international best practices.
    5. Issuing a resolution not to obligate private sector establishments to have the official stamp, and to suffice with the approval of the Chamber of Commerce.
    6. Issuing a resolution not to impose any fees or financial compensation without studying the economic and social impacts.
    7. Unifying the reference of the unified service centers to be under the supervision of one government entity.
    8. Issuing the royal order to translate the laws and regulations related to the business environment into English.
    9. Issuing the approval to publish commercial rulings issued by the Supreme Court on the Ministry of Justice website.
    10. Issuing the approval to amend the time frame for updating the electricity tariff rates prior to their application; to be at least 30 days after the date of its announcement.
    11. Launching the Private Sector Feedback Platform, which aims to be a link between investors and government entities, and to study and analyze challenges and proposals.
    12. Cancel the requirement to obtain a work visa approved by the cultural attachés for health practitioners, and to be only satisfied with "Mumaris plus" classification system of Saudi Commission for Health Specialties.
    The most prominent reforms related to facilitating and automating procedures in Saudi Arabia:

    1. ​Reducing the number of restricted chemicals by 73%, from 131 down to 35, to facilitate import procedures.

    2. Applying the system of fines to electrical service providers in cases of power o​utages and delays in service delivery.

    3. Completing the online link between the Ministry of Foreign Affairs and the Chambers of Commerce in the Kingdom to apply the online certifying of the business sector's transactions.

    4. Completing the online link between the Ministry of Foreign Affairs and the Ministry of Justice to verifying and certifying POAs via Saudi embassies and consulates.

    Economic studies and reports:

    The NCC conducted economic studies in a number of different sectors aimed at identifying obstacles and proposing the necessary reforms in their regard; the most prominent of these studies are:

    1. Enterprise profitability and the performance of the Saudi Stock Market.

    2. Opening up opportunities in the European Union for Saudi Dates.

    3. Venture Capital Market Analysis and Startups.

    4. Challenges of the insurance sector in Saudi Arabia.

    5. The tourism sector and its main challenges.

    6. The endowment sector in Saudi Arabia and the fields of endowment investment development.

    7. Enhancing the competitiveness of e-commerce.

    The most prominent reforms related to enhancing women's participation in economic development in Saudi Arabia
    1. Standardizing the procedures for obtaining a passport, and allowing women to travel without restrictions.
    2. Gender equality in access to financing services.
    3. The husband and the wife have the right to receive the Family Register Card from the Civil Affairs.
    4. Prevent dismissing working pregnant women.
    5. Issuing the approval of the amendments to the provisions of the scholarship and training regulation to empower women.
    6. Ensure paying salaries during maternity leave.
    7. Gender equality in retirement age.
    8. Preventing gender discrimination in wages and jobs.
    9. Enabling women to establish and practice business without obtaining male guardian approval.
    The most prominent legislative and regulatory reforms in Saudi Arabia:
    1. ​Raising foreign ownership to 100% in the sectors of engineering, minerals, defense, transportation, wholesale and retail trade, education, health, publishing and media.
    2. Issuing the Contractors' Classification System (CCS).
    3. Modifying the Precious Minerals and Gems Law.
    4. Issuing the New Bankruptcy Law and its executive regulations.
    5. Issuing the Commercial Mortgage Law and its implementing regulations.
    6. Improving the executive regulations of the Capital Market Authority and the Companies Law to enhance the protection of minority investors.
    7. Improving the regulations of the Saudi Building Code.
    8. Establishing the Saudi Center for Commercial Arbitration.
    9. Issuing the resolutions number 713 and 476, to seek public feedback on rules and regulations before been approved.
    10. Issuing the new Government Tenders and Procurement Law and its executive regulations.
    11. Issuing the Movable Asset Guarantees Law and its executive regulations.
    12. Issuing the Commercial Courts Law and its executive regulations.
    Enablers

    ​In accordance with its strategy, the NCC works on a number of mechanisms and enablers, such as identifying challenges, and proposing plans aimed at raising the Kingdom's competitiveness through a number of enablers, most notably:

    1. Awareness and communication.

    2. ​Knowledge exchange and continuing education.

    3. Implementing reforms.

    4. Verify implementation of reforms (commitment).

    5. Supporting laws and regulations, and the like.​

    Translating the laws, regulations and requirements of the business sector

    ​The NCC, in coordination with the Official Translation Department at the Bureau of Experts at the Council of Ministers, and 40 government entities, translated more than 800 legal documents in implementation of Royal Decree No. 54351, on May 21, 2020, to translate the laws, regulations, and requirements related to the business sector, aiming at facilitating procedures and enabling local and foreign investors to access information related to commercial activities in Saudi Arabia electronically.