The Kingdom of Saudi Arabia (KSA) is on the verge of a significant development in its financial sector, with plans to open its inaugural financial center, which aims to elevate financial efficiency and accounting performance through the adoption of unified accounting standards.
This strategic move was announced by Abdul Aziz Al-Furaih, the chairman of the Ministry of Finance’s Steering Committee, during a leadership forum in Riyadh focused on the shift to accrual accounting.
Al-Furaih conveyed that the transition to the accrual method of accounting is expected to yield substantial advantages, justifying the investment of time and resources. He stressed that this approach would enable more accurate and comprehensive financial reporting, which would enhance decision-making, performance evaluation, and accountability within government bodies.
The chairman also showcased the progress made so far, including the issuance of 190 opening balance sheets for the year 2022 and 180 financial statements. Additionally, over 6,000 government employees have been trained on the accrual accounting system.
Hamad Al-Kanhal, the Deputy Minister of Finance, reinforced that this initiative is in line with the goals of Vision 2030, which includes enhancing the quality of financial information to support informed decision-making.
Furthermore, Abdullah Al-Mahathal, the head of the Accounting Entitlement Center, emphasized the necessity of continuous support for businesses to ensure they fully reap the benefits of this shift towards an accrual-based accounting framework.