During a recent announcement, Abdul Aziz Al-Furaih, chairman of the Steering Committee at the Saudi Ministry of Finance, disclosed plans for the launch of Saudi Arabia’s inaugural financial center. This center is designed to operate under a unified system, incorporating standardized norms, policies, and guidelines across the board. The initiative is anticipated to bolster the efficiency of the government’s financial and accounting operations.
At the “Leadership Forum for the Transformation to Accrual Accounting,” hosted by the Ministry of Finance in Riyadh, Al-Furaih underscored the benefits of adopting an accrual basis for accounting. He emphasized that such a shift would not only bring about substantial returns on investment but also provide thorough financial data that would be instrumental in enhancing decision-making processes. The system is also expected to facilitate performance assessments, target setting, and reinforce accountability and objectivity.
Al-Furaih elaborated on the significant milestones achieved in this transformation, including the production of over 190 opening balance lists for 2022—hitting 95 percent of the intended target. Moreover, the kingdom has prepared more than 180 transitional financial inventories for the same year, achieving 90 percent of its goal. He also mentioned the recording of over two million valuable assets and Saudi Arabia’s prominent international role within the “International Accounting Standards Board” for the public sector.
This foundational step, as Al-Furaih indicated, paves the way for subsequent measures to ensure the persistence of accrual-based operations and the consolidation of progress made thus far.
Hamad Al-Kanhal, the Deputy Minister of Finance for Financial Affairs and Accounts, linked the transition to accrual accounting with Vision 2030—a strategic national endeavor aimed at realizing several objectives and advantages, and establishing a solid foundation for building financial information to support official decision-making.
He also highlighted the Accounting Merit Pioneers program, a key tool in managing the transformation, launched at the Merit Center to foster competitiveness among government agencies. The program’s objective is to expedite the transition process, ensuring quality and timeliness.
Abdullah Al-Mahathal, head of the Accounting Entitlement Center, situated the forum within the broader context of change management. He celebrated the advancements made by government agencies in the shift to accrual accounting and stressed the importance of maintaining business continuity to safeguard the advancements of the recent phase.