Minister of Trade: Extending the term of national and sectoral committees for 3 years

In a move aimed at enhancing administrative stability and supporting the regulatory environment for the private sector, His Excellency the Minister of Commerce, Dr. Majid bin Abdullah Al-Qasabi, issued a ministerial decree amending a key article in the regulations governing national and sectoral committees affiliated with chambers of commerce and the Federation of Saudi Chambers. This decision comes as part of the Ministry's ongoing efforts to modernize legislative frameworks to keep pace with rapid economic changes.

Details of the new amendment

The ministerial decree amends Article 9 of the bylaws, stipulating that the term of office for national and sectoral committees will be three full years, officially commencing from the date of the committee's formation. The term will end either upon the expiration of the three years or by a reasoned decision from the Federation's Board of Directors, in accordance with the provisions of paragraph (c) of Article 20. This amendment aims to standardize term limits and ensure clarity in regulatory procedures, thereby providing these committees with sufficient time to implement their strategic plans.

The context of development and keeping pace with Vision 2030

This decision cannot be viewed in isolation from the comprehensive economic transformation underway in Saudi Arabia under Vision 2030. National committees play a pivotal role as a key link between the private sector and government entities. These committees act as a voice for investors and business leaders across various sectors (industrial, commercial, and service), identifying challenges and proposing appropriate solutions. Extending the term aligns with the Vision's objectives of empowering the private sector and increasing its contribution to GDP by granting sector representatives more time for institutional development and to address complex issues with relevant authorities.

The strategic importance of extending the cycle

This decision is significant because it addresses a previous challenge: the short timeframe that could hinder the completion of long-term projects and initiatives. The three-year term allows committee members:

• Develop long-term strategic plans and follow up on their effective implementation.
• Building strong, complementary relationships with relevant government agencies.
• Accumulating institutional experience and transferring knowledge more smoothly to subsequent cycles.

Expected impact and effective date

This decision is expected to positively impact the efficiency of chambers of commerce, enhancing the business environment and making it more attractive and stable. The decision stipulates that this amendment will take effect immediately upon publication in the Official Gazette, applying to all existing and future national and sectoral committees, thus establishing a new phase of organized institutional work that serves the national economy.