Al-Jasser to Asharq Al-Awsat: Saudi Arabia is a Vital Artery for Global Trade

Saudi Arabia's financial system has entered a new era of structured governance with the Cabinet's approval of an updated State Revenue System. Chaired by Crown Prince and Prime Minister Mohammed bin Salman, the session greenlit legislation that fundamentally shifts public finance management beyond mere fee collection to an integrated framework for strategic planning and comprehensive financial governance. This new system acts as a safeguard for medium- and long-term fiscal sustainability. It regulates every stage of public revenue management, from initial forecasting and estimation to final settlement. All public financial inflows are now unified under one regulatory framework. This expands the scope of state revenues to encompass natural resources and national assets, alongside fees, taxes, financial charges, and service revenues that primarily finance the non-oil government budget. The framework also distinctly categorizes proceeds from privatization and public-private partnerships, aligning with Saudi Vision 2030's goals to boost private sector involvement. It further regulates revenues from state-owned assets, financing, investment returns, fines, penalties, donations, grants, bequests, waqf income, zakat funds, and any other revenue channels approved by the Cabinet. A key reform is the shift to a ten-year revenue forecasting approach. The Ministry of Finance can now legally forecast government revenues for up to ten fiscal years, using data and development plans from various government entities. The Ministry can also revise these forecasts based on significant domestic or international economic developments, improving accuracy and reducing budget estimation gaps. The system mandates government entities to collect and record revenues within the fiscal year they are due and transfer them to the Saudi Central Bank according to established timelines.