The Council of Economic and Development Affairs (CEDA) is a council that deals with all economic and developmental matters in the Kingdom of Saudi Arabia. It was established by Royal Decree in 2015 and is organizationally linked to the Council of Ministers. CEDA supports the state and unifies its directions in all matters related to the economy and development.
Establishment of CEDA
The establishment of CEDA followed the abolition of twelve councils and high committees, including the Higher Economic Council. The council, chaired by His Royal Highness Crown Prince Mohammed Bin Salman, the crown prince and prime minister, consists of twenty-five members and is the first of its kind in the Kingdom. It was created to establish a real connection between government entities related to economic, financial, social, and educational affairs.
CEDA examines all government draft laws and regulations before submitting recommendations to the Council of Ministers for approval and has the authority to prohibit or cancel any new regulations that may impact the economic landscape in the Kingdom. CEDA can also compel government entities to reconsider their decisions. In this capacity, CEDA serves as a supervisory and monitoring entity for the implementation and accountability of significant or strategic economic decisions.
Tasks of CEDA
The council monitors and evaluates the economic conditions and expectations in the Kingdom, the region, and the world. It provides advice on formulating and implementing effective macroeconomic policies. It also advises on policy operations and reforms that enhance a secure financial system, sound institutional practices, and the removal of barriers to create a healthy economic and investment environment.
In its first year of establishment, the council held about fifty sessions and concluded the year with a session dedicated to reviewing its work and decisions. The council identified ten strategically important programs for the government to achieve Saudi Vision 2030, building upon what was previously outlined in the National Transformation Program 2020 and the Fiscal Balance Program 2020. It formulated the mechanisms for its functioning in accordance with the governance of the vision, which was approved in May 2016.
In its first year, the council made several important decisions, including opening the market to global companies for direct investment, imposing fees on undeveloped lands, and initiating the privatization program for some government sectors.
Role of CEDA in supporting the national economy
In 2017, CEDA launched executive programs to achieve Saudi Vision 2030. One of the key programs is the Financial Sector Development Program, aimed at supporting the development of the national economy, diversifying sources of income, and encouraging savings, financing, and investment. Through this program, the government seeks to transition to a knowledge-based economy, diversify sources of income through creativity and innovation, and leverage existing financial resources through new and secure investments.
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