The Supreme Economic Council is chaired by His Royal Highness Prince Abdullah Ibn Abdul Azziz Al-Saud, the Crown Prince, Deputy Prime Minister, and Head of the National Guard, and His Royal Highness Prince Sultan Ibn Abdul Azziz Al-Saud, the Second Deputy Prime Minister, Minister of Defense and Aviation, and Inspector-General shall serve as deputy chair. The Council shall comprise the following members: the Chairman of the General Committee of the Council of Minister, two Ministers of State who are also members of the Council of Ministers, the Minister of Water and Electricity, the Minister of Trade and Industry, the Minister of Petroleum and Mineral Resources, the Minister of Finance, the Minister of Economy and Planning, the Minister of Labor and Social Affairs, and the Governor of the Saudi Arabian Monetary Agency.
The Supreme Economic Council was created by Royal Decree on 30th August 1999. It is an eleven-member council chaired by the Crown Prince. The Council was then organized by Minesterial Order no 111
Regulations for Establishing the Supreme Economic Council
Given the high priority of economic issues on the international agenda and their direct effects on the development and stability of nations, determining economic policies and managing economic affairs are among the most important duties and responsibilities of government authorities.
Rapidly changing economic developments at the local and international levels require, more than at any previous time, that governments focus on creating an effective, productive national economy that can meet their particular needs.
In view of the large number of government agencies and institutions concerned with economic affairs and the wide range of their responsibilities, it is essential to develop an organizational structure and management system that encompasses all these entities, based on sound research and analysis, to ensure coordination among the various agencies and integration of their activities, and to facilitate effective decision –making with respect to economic issues.
Article 1: Objectives of Economic Policy
Saudi Arabia’ economic policy is based on the principles of comprehensive social welfare and a free- market economy open to all goods, services, products, and capital, in order to achieve the following objectives:
1. Ensuring the security, welfare, and prosperity of the society while preserving Islamic values, the environment, and the country’s natural resources, taking into consideration both present and future needs.
2. Steady economic growth at an appropriate level to achieve a real increase in per capita income.
3. Price stability.
4. Providing opportunities for productive work and optimal employment of the work force.
5. Controlling the public debt and keeping it within acceptable limits.
6. Ensuring a fair distribution of income and opportunities for employment and investment.
7. Expanding the economic basic and increasing the sources of government revenues.
8. Increasing savings and developing additional savings and sound investments opportunities.
9. Increasing government revenues and linking them to the country’s economic growth, thus allowing the government to carry out its responsibilities with respect to national development and comprehensive social welfare.
10. Increasing capital investment and domestic savings in the national economy in an effective manner, supporting the government’s privatization program, and developing The Offset Program.
11. Increasing the participation of the private sector in developing the national economy through the government’s privatization program.
12. Strengthen the economy’s ability to react effectively and flexibly to changes in the international economic environment.
Article 2: Establishing the Supreme Economic Council
A body called the Supreme Economic Council shall be established, which shall be responsible for assisting the Council of Ministers in carrying out its duties and making decisions with respect to economic issues.
Article 3: Creating the Advisory Board for Economic Affairs
An advisory board for economic affairs shall be established under the auspices of the Chairman of the Supreme Economies Council, which shall review matters referred to it by the Chairman. The board shall comprise 10 highly qualified and experienced experts in economic and directly related fields who are not government official and who shall be appointed by royal decree. The board shall submit to the Chairman its opinions and recommendations concerning issues related to the national economy.
Article 4: Chairman and Members of the Council
The Supreme Economic Council shall be chaired by the Crown Prince, Deputy Prime Minister, and Head of the National Guard, and the Second Deputy Prime Minister, Minister of Defense and Aviation, and Inspector General shall serve as deputy chair.
The Council shall comprise the following members: the Chairman of the General Committee of the Council of Minister, two Ministers of State who are also members of the Council of Ministers, the Minister of Labor, the Minister of Trade and Industry, the Minister of Petroleum and Mineral Resources, the Minister of Finance, the Minister of Economy and Planning, the Minister of Water and Electricity, and the Governor of the Saudi Arabian Monetary Agency.
Article 5: Duties and Responsibilities of the Council
In accordance with the relevant legislation, the duties and responsibilities of the Supreme Economic Council shall include, but not be limited to, the following:
1. Develop economic policy and determine appropriate options.
2. Promote coordination among the various government entities that are directly involved with the national economy, taking the necessary measures to ensure that their efforts are integrated and complementary.
3. Monitor the implementation of economic policy and the decisions of the Council of Ministers related to economic issues, and submit a periodic report to the Council of Ministers.
4. Review the following:
a. The general framework for the development plan prepared by the Ministry of Planning, the draft plan, progress reports on the plan, and the corresponding economic report.
b. Fiscal policy and guidelines for preparing the draft budget, and the expenditure priorities developed by the Ministry of Finance and National Economy, which are used as a basis for preparing the budget.
c. The draft budget and the budgets of the various government entities that are prepared by the Ministry of Finance.
d. Domestic and international trade policies; regulations aimed at controlling the labor and capital markets, protesting the rights of consumers, and creating a suitable environment for investment and competition; agricultural and industrial policies developed by the competent authorities.
e. Reports and other matters submitted by government agencies, committees, or the Council of Ministers concerning such economic issues as prevailing prices, taxes and duties, government revenues, expenditures, investments, debts, and concessions, matters submitted by the Ministerial Privatization Committee, The Offset Program Committee, the ministerial committee established by Royal Order No. 154/8 of 27/1/1404 A.H. [November 3, 1983], and the activities of the joint economic committees; and the final account statements of the central government and the various relevant government agencies.
f. Draft regulations and instructions related to economic issues, draft commercial and economic agreements, and regulations aimed at protecting the environment, in cooperation with the competent agencies.
g. Matters submitted by the Council of Ministers or the Royal Chamber.
5. Take what is necessary to prepare studies and reports on economic issues, by requesting that from the relevant government agencies, or obtain assistance from outside experts and consultants. The Supreme Economic Council shall also listen to information, reports, and monetary policies submitted by the Saudi Arabian Monetary Agency.
6. Prepare a periodic reports on the national economy, based on information submitted by the relevant agencies.
7. Perform any other duties assigned to it by relevant legislation
Article 6: Meetings of the Council
Meetings of the Supreme Economic Council shall be held only if a majority of its members, including the Chairman or Deputy Chairman, are present. The Council shall issue resolutions passed by the majority of its members.
Article 7: The Standing Committee of the Council
A standing committee shall be established for the Supreme Economic Council, consisting of Council members who shall be appointed by royal decree. The duties and responsibilities of the Standing Committee shall also be determined by royal decree.
Article 8: The Secretariat- General of the Council
A secretariat- general shall be established, which shall be located in the Secretariat- General of the Council of Ministers and shall be headed by a secretary- general with grade 15 or higher. The Secretariat- General shall be provided with all the necessary equipment and at least 25 experts and specialists in the fields of economics, finance, planning, international trade, management, and laws, while taking into account, to the extent possible, the need to rationalize on administrative body. The Secretariat – General shall obtain economic information from the relevant agencies and shall carry out its duties.
Article 9: Financing for the Council
The funds required by the Supreme Economic Council and the Advisory Board to carry out their duties and responsibilities shall be allocated from the budget of the Secretariat- General of the Council of Ministers. Specifies amounts shall be allocated under the relevant items for both entities, including expenditures for studies, research, and compensation for assistance provided by experts. The Secretariat-General of the Council of Ministers shall disburse these funds based on the decisions of the Supreme Economic Council, its Chairman, and the Secretary- General, within the limits established by regulations. The by- laws of the Supreme Economic Council and the Advisory Board shall establish rules for holding meetings and shall determine the administrative organization as well as the financial and administrative antiprotons necessary to carry out their duties.
Article 10: General Provisions
1. The Supreme Economic Council shall establish a preparatory committee and shall determine its duties and responsibilities.
2. The Supreme Economic Council may establish other committees, comprising its members or other persons, to study particular issues and submit a report on them.
3. Any member of the supreme e economic council may propose an issue to be discussed by the Council.
4. The Supreme Economic Council may request ministers, government officials, or other experts to provide the Council with information on a particular topic.
5. The panel of Experts of the Council of Ministers, in cooperation with the Institute of Public Administration, shall draw up the by-laws or the Supreme Economic Council and the Advisory Board, as well as their organizational and administrative structures, which shall be issued by a decision of the Supreme Economic Council.