Saudi Arabia announces setting up its inaugural financial centre
Saudi Arabia is poised to make history by establishing its inaugural financial centre grounded in harmonised accounting standards.
Historic Transition to Accrual Accounting
This monumental move was unveiled by senior officials during the Leadership Forum for the Transition of Accrual Accounting held in Riyadh, signalling a transformative shift in financial practices.
Vision 2030 Goals Accelerated
The adoption of accrual-based accounting, characterised as a significant and auspicious move, is deemed essential for attaining the ambitious targets outlined in Vision 2030. This strategic shift, championed by Abdulaziz Al-Furaih, Chairman of the Steering Committee at the Ministry of Finance, aligns seamlessly with the kingdom's overarching vision for economic expansion and diversification.
Precision and Comprehensive Financial Insights
Al-Furaih emphasised the need for accrual accounting, pointing out that it would provide more accurate and thorough financial data. This change has the potential to improve decision-making procedures, streamline performance reviews, and guarantee accountability among government agencies.
Milestones and training initiatives
Providing insights into the progress of the transformation, Al-Furaih highlighted key milestones achieved, including the issuance of over 190 opening balance sheets for 2022 and more than 180 financial statements. Additionally, over 6,000 government staff have undergone extensive training to adeptly navigate the new accrual-based accounting system.
Strategic National Project for Informed Policy Decisions
It was highlighted by Hamad Al-Kanhal, Undersecretary for Finance and Accounts, that the transition to accrual accounting is an important national initiative. Establishing a solid foundation of financial data is the main goal since it will act as a guide for well-informed national policy decisions.
Leadership Forum Fosters Sector Collaboration
Significant announcements and insights were unveiled during The Leadership Forum, a gathering that brought together industry pioneers in the accounting sector and various public sector professionals. This collaborative forum served as a platform to discuss, deliberate, and strategize the ongoing transformative journey towards accrual-based accounting in Saudi Arabia.
