Transferring the responsibility for compensating victims of natural disasters to municipalities

The Saudi Cabinet, in its latest session, approved amendments to several regulations governing the disbursement of government aid, including transferring the responsibility for compensating victims of natural disasters from the Ministry of Finance to the Ministry of Municipalities and Housing. This strategic step reflects the wise leadership's commitment to enhancing the efficiency of compensation and relief efforts and expediting procedures for supporting citizens and residents affected by emergencies.
A new mechanism to expedite compensation for victims of natural disasters
Pursuant to this government decision, the phrase “Ministry of Municipalities and Housing” was replaced with “Ministry of Finance” in paragraphs (5) and (6) of Article Five of the Regulations and Procedures for Disbursing State Aid to Those Affected by Disasters such as Floods, Fires, and the Like. These regulations had previously been issued by Cabinet Resolution No. (246) dated 21/9/1426 AH. The amendment also included replacing the same phrase in subparagraph (b) of paragraph (3), as well as paragraph (4) of Article One of Cabinet Resolution No. (140) dated 10/3/1439 AH. This organizational update reflects a precise restructuring of the government roles related to support and compensation files.
The historical development of relief efforts and crisis management in the Kingdom
Historically, the Kingdom of Saudi Arabia has placed great importance on establishing an integrated system for crisis and disaster management. For many years, the Ministry of Finance was responsible for assessing damages and disbursing financial compensation to those affected by floods, heavy rains, and fires. With the rapid development of government structures within the framework of Saudi Vision 2030, the need to unify field and administrative efforts has become apparent. Given that the Ministry of Municipalities and Housing possesses executive branches in all regions and governorates of the Kingdom and directly oversees infrastructure, flood drainage, and public utilities, transferring these responsibilities to it is a natural progression aligned with the institutional modernization process. This ensures a faster and more accurate response in assessing the physical damage on the ground.
The strategic dimensions of the decision and its direct impact on quality of life
This regulatory amendment is of paramount importance and will have a far-reaching positive impact at the local level. By assigning compensation responsibilities to the entity with direct field experience, bureaucratic procedures will be streamlined, and financial support will reach those in need more quickly during crises. This shift directly contributes to alleviating the economic and psychological burdens on affected families and enhances the resilience of Saudi cities in the face of global climate change. Regionally and internationally, this decision stands out as a pioneering model of good governance and risk management, demonstrating the ability of Saudi government agencies to adapt and continuously update their legislation to ensure the highest levels of efficiency and transparency in the delivery of public services and to achieve sustainable development that prioritizes human well-being.



