Business | Economy
Saudis ease pain of surging prices
The Saudi government on Tuesday adopted a series of urgent measures to curb the rising cost of living in the kingdom.
- By Mariam Al Hakeem, Correspondent
- Published: 23:39 January 29, 2008
- A 50 per cent reduction in fees collected by state-owned Saudi ports on imported commodities.
- For three years, the Saudi government will bear 50 per cent of the charges of passports, car registrations, car ownership transfer and the renewal of Iqama (residence permits) for domestic workers.
- Government employees and pensioners would be paid five per cent of their salaries as 'high costs allowance' for three years.
- A sum of 10 billion Saudi riyals has been allocated for low-cost housing.
Riyadh: The Saudi government on Tuesday adopted a series of urgent measures to curb the rising cost of living in the kingdom.
The new measures were approved during the weekly meeting of the cabinet chaired by King Abdullah Bin Abdul Aziz on Monday.
The measures include a 50 per cent reduction in fees collected by state-owned ports on imported commodities. This measure will remain in effect for three years.
Steps
"The government will, for three years, bear 50 per cent of the charges of passports, car registrations, car ownership transfer and the renewal of Iqama [residence permits] for domestic workers," Iyad Madani, the minister of culture and information said in a statement after the cabinet meeting.
He added that the government employees and pensioners would be paid five per cent of their salaries as a "high cost allowance" for three years. The minister pointed out that the cabinet also decided to increase allocations social insurance by 10 per cent and to continue subsidies for essential commodities in a bid to control increasing prices of these items.
The move will be reviewed after three years.
The minister noted that the cabinet approved a fair competition law that will encourage competition, prevent monopolies and review the law of commercial agencies.
The cabinet also decided to initiate the monitoring role of the consumer protection society, intensification of efforts aimed at monitoring prices and combat commercial fraud.
Rent
To control increasing rents, the cabinet approved the urgent initiation of the General Housing Authority and to enable it to exercise its responsibilities this year.
It also called for the initiation of building low-cost housing units. A sum of 10 billion riyals has already been allocated from the Saudi budget for this purpose.
The cabinet has also decided to enact the real estate mortgage law and its related regulations.
Highlights: Reform measures
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