Riyadh Gov. Prince Khaled bin Bandar has stated that the private sector (PS) is an effective partner in development as a key pillar of the national economy, representing 95 percent of the size of the stock market.
Prince Khaled made this observation at the opening of the International Corporate Sustainability Conference (ICSC) on Wednesday, organized by Council of Saudi Chambers (CSC) jointly with Capital Market Authority (CMA), and attended by top listed companies CEOs and foreign experts.
Various ministers were also present, including Minister of Commerce and Industry Tawfiq Al-Rabiah and Minister of Economy and Planning Mohammed Al-Jasser.
The governor noted that Custodian of the Two Holy Mosques King Abdullah’s leadership is committed to support the PS providing all avenues to overcome obstacles and difficulties for this sector, and improve its efficiency in a bid to increase its competitiveness.
The government also paves the way for expanding the scope of its activities and diversify the production base and the creation of a regulatory environment to help the sector meet the challenges of the times and implications of the partnership with regional and international economic blocs, making it face the fiercest competition.
He hoped the private sector will lead the role in the services of the nation and expressed his thanks to CSC and CMA.
He added that corporate sustainability rely on activating the role of the PS in development through the social and developmental challenges. These turn into opportunities for investment enabling innovation while increasing productivity and efficiency in performance through strategic and corporate plans that focus on increasing profits. These help in improving performance and encouraging innovation, including simulating the needs of stakeholders and society.
“The role of the companies in the modern era are no longer focused only on profits but has been involved in contributing to the development of society in terms of social responsibility,” the prince added.
He continued: “What we seek today is the fundamental and scientific basis in accordance with the international standards for the PS to bear its responsibilities entrusted to it and thus contributing to the activation of the production process to achieve the desired economic growth.”
The two-day event in partnership with Tamkeen discussed the importance of corporate social responsibility, institutions, and governance practices, in addition to disclosure and its role in achieving quality and excellence in those companies.
Al-Rabiah stressed the PS’ vital role and importance and stated that the most important focus of the Saudi economy is to enable the private sector and increase its role in development and provision of essential ingredients for the growth of institutions.
He added that last year there were a number of new listed companies converting, some of them into public companies, and contributing to provide the elements of governance and enhance their chances of success.
He pointed out that in the context of ensuring the application of the government to promote the investment environment in Saudi Arabia, the ministry has initiated to work in-depth study on the corporate system and modify some of the articles and provisions to meet the aspirations of strengthening the role providing an appropriate environment.