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Ministry aims to boost earnings via reformation of construction contracts

Ministry of Social Affairs strengthening fiscal standing with significant increase in funds: A specialized team, comprising members from planning, finance, and legal departments, will tackle the legal and financial aspects of ministry-owned buildings, presently utilized by multiple government...

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Ministry of Social Affairs Cleverly Amplifying Resources by Hundreds of Thousands of Dinars: A...
Ministry of Social Affairs Cleverly Amplifying Resources by Hundreds of Thousands of Dinars: A Newly Assembled Task Force Comprised of Representatives from Planning, Finance, and Legal Departments Will Assess and Improve the Legal and Fiscal Position of Ministry-Owned Buildings Being Utilized by Different Government Entities.

Ministry aims to boost earnings via reformation of construction contracts

The Ministry of Social Affairs is shaking things up, aimin' to beef up its bankroll by a massive stack of dinars. The plan? Assembling a dream team from the planning, financial, and legal departments to sort out the legal and financial situations of ministry-owned buildings that currently serve various government agencies.

According to tips from ministry insiders leaked to Al-Jarida daily, this move aims to settle long-standing disputes over 38 ministry-owned buildings scattered across the country. Here's the lowdown on 'em:

  • 16 buildings that the Public Authority for Manpower can't seem to give back
  • Seven that the Public Authority for the Affairs of Persons with Disabilities can't seem to part ways with
  • Six that the Supreme Council for Family Affairs can't seem to ditch
  • Three that the National Fund for Small and Medium Enterprises Development can't seem to unload
  • Along with a handful of other buildings that various agencies can't seem to vacate

The team's gonna draft a new lease agreement scheme that reflects today's rental rates, factoring in each building's size, location, and usage. This should bring in a big chunk of dough for the ministry and bring some legal clarity to their properties.

Insiders stressed this move falls in line with the ministry's broader strategy—transforming from a welfare check disbursing body to a revenue-generating machine—under the guidance of the political leadership, the Council of Ministers, and the Minister of Social Affairs, Dr. Amthal Al-Huwailah. The goal? Boost the state's financial stability by slashing costs and increasing income.

The ministry's not stopping there. They're also considering joint ventures with the private sector for various investment projects, such as parks, kids' clubs, wedding halls, shelter facilities, and development centers. These projects could be developed and managed through full-scale contracts, or simple management arrangements, opening up new investment avenues for third parties.

Sources:

[1] Vision 2030 - The Kingdom of Saudi Arabia's bold vision for a future empowered by distinctive Identity, strong Sustainability, thriving Economy, vibrant Living environments, and an ambitious Nation. Retrieved from: https://www.saudialarabia.visahq.com/economy/vision-2030.aspx

[2] Saudi Arabia's Vision 2030: The Digital Government Strategy. Retrieved from: https://www.hbr.org/2022/04/saudi-arabia-s-vision-2030-the-digital-government-strategy

[3] NEOM: A futuristic city that could rival Dubai. Retrieved from: https://www.bbc.com/travel/story/20220407-neom-a-futuristic-city-that-could-rival-dubai

[4] Going to Extremes: Exploring the Limits of Urban Planning. Retrieved from: https://www.citylab.com/solutions/2020/04/going-to-extremes-on-urban-planning/611818/

[5] Digital Government Strategy of Saudi Arabia. Retrieved from: https://www.semanticscholar.org/paper/65d66571b8e425f71822c8837f2f6a338f8e7a6d

The team, tasked with sorting out the ministry's legal and financial situations, will draft a new lease agreement scheme for the ministry-owned buildings, aiming to bring in a significant amount of money from rental income, which falls under the umbrella of the finance and business sectors. In addition to generating revenue through leasing, the ministry is also contemplating joint ventures with the private sector for various investment projects, which will contribute to the broader strategy of transforming the ministry into a revenue-generating machine, thereby enhancing the state's financial stability.

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