RIYADH, Dec 3(Arab News): Economists are calling on the Shoura Council to consider allowing government officials to engage in commercial activities due to increases in the costs of living.
The economists say this will put an end to the rampant practice of civil servants undertaking business ventures in other people’s names, a growing phenomenon that has negatively affected Saudization.
The demand coincides with the recent release of a report by Global Finance showing that the per capita income of Saudi citizens has seen a substantial increase in the current year.
Noted economist Tala’at Hafez said that in terms of the GDP per capita income of individuals, the Kingdom holds the sixth position among Arab states and 38th among 182 countries listed in the report. GDP per capita income in Saudi Arabia jumped from $23,221 to $23,701 during 2010.
According to Hafez, the Global Finance report shows that the per capita income of Saudi citizens saw a substantial growth over the last 10 years. It shot up from about $6,910 in 2000 to $23,701 in 2010, a three-fold increase within a decade. He attributed this mainly to the surge in oil prices that hit a record level of $147 per barrel in mid-2008.
“The policy to diversify sources of revenue taken by the government at the end of the last decade contributed in improving the per capita income of Saudi citizens. Moreover, the high oil prices have enabled the government to pump huge amounts of revenue to implement massive infrastructure projects as well as to allocate funds for capital investments,” he said, adding that the government has been able to unveil the largest ever budget in its history this year with a projected spending of SR540 billion.
“The lion’s share of this budgetary spending was earmarked to develop potential human resources as well as improve living conditions,” he said.
Even though the GDP per capita income of Saudi citizens has witnessed a substantial growth over the last few years, life has become more expensive for them as the Kingdom continues to face inflationary pressures with an increase in food prices and rents.
Salem Baojaja, professor of accountancy at Taif University, underscored the need to take steps to support citizens to cope with increased costs of living.
“One of the ideal measures is to allow government employees to embark on commercial activities so that they can have additional incomes. This will help citizens achieve a balance between their revenue and expenses as well as improve their living conditions. Moreover, it would also put an end to people operating businesses in other people’s names, the major beneficiaries of which are foreigners,” he said.
Baojaja noted that the current civil service law in the Kingdom prevents government officials from engaging in commercial activities or having other jobs. He noted that the Shoura Council had earlier discussed a proposal about allowing government officials and employees (in ranks 1 to 8) to engage in commercial activities in a way that does not affect their official duties.
“The council rejected the proposal with an overwhelming majority. Several members then expressed apprehension that any such legislation may produce adverse effect on the efficiency and productivity of public servants,” he said.
Baojaja urged the Shoura Council to review the decision and remove hurdles that stand in the way of government officials running commercial firms under strict terms and conditions.