The Private Sector would be enabled to Contribute to the Realization of the Kingdom's Vision 2030 Strategic Objectives
His Excellency the Minister of Commerce and Investment, Dr. Majid bin Abdullah Al Qasabi issued a decree to amend the Implementing Regulations of the Chambers of Commerce & Industry, in accordance with the best comparative regulatory practices, that may help ensuring the active governance, besides activating the role of the committees and business councils, where the new version of the Regulation is considered the first of its kind since 1401.
This amendment is resulted from the Ministry’s keenness to review and develop the Rules & Regulations to meet the current and future needs, and comes within MCI initiatives to improve the trade and investment environment in the Kingdom, and to enable the private sector to contribute to the realization of the Kingdom's Vision 2030 strategic objectives.
The new amendments containing giving the Council of Saudi Chambers a number of authorizations, such as establishing the new chamber of commerce in accordance with the standards that take into account the objective of its foundation, the economic status of the city and how far the beneficiaries need its services, as well as the field of its competences. The previous regulation provides for submitting the application to MCI Minister, for establishing the Chamber of Commerce & Industry, and to be signed by a number of traders and manufacturers, not less than thirty natural or legal persons.
Among the new authorizations, H.E. the Minister granted the Council of Chambers the powers of settling any disputes that may arise within the chambers of commerce. This would enable them to perform their work and achieve their objectives properly.
For having further steps in the organization and governance process, the new implementing regulations have entrusted the Saudi Councils of Chambers the task of preparing four Regulation Lists for regulating the functions of Specialized Committees, National Committees, Saudi-Foreign Business Councils and the Executive Committee of the Chamber Councils Board of Directors.
The new regulation also grants every voter the right to elect one-third of the chamber candidates for the membership of the Board of Directors, related to the category of traders, as well as one-third of the candidates for manufacturers. The old voting mechanism, subject of electing only one trader or manufacturer, to be abolished.
Due to the importance of the job of the Chairman of the Chambers Council and his two Deputies, as well as the issue related to the representation of the Kingdom and the participation in the official delegations abroad, also the communication with various foreign trade and investment sectors, in addition to the experiences and qualification needed at the leading jobs inside the chambers, the new Regulations stipulated that the Chairman of the Chamber Board of Directors and his two Deputies should acquire a university degree, and to be fluent in English, as well as to be a Chairman of a Chamber of Commerce or a Vice-Chairman, or who had already worked in such position.
The new Regulation also stipulated a new mechanism for the calculation of votes, when taking the decisions of the Chambers Council, based on the number of participants in each chamber, in a manner that achieves balance and justice, taking into account the adequate representation of large chambers and ensuring the active participation of small and medium-sized chambers. The old regulations made all chambers equal, regardless of the number of members or the beneficiaries. The new mechanism stipulates that every member of the Chamber Board of Directors to have a number of votes proportional to the number of subscribers in each chamber at the ended year, in accordance with the following: (from 1 to 5000 : one vote) , (5001 to 15,000 : two votes), (15.001 to 50.000 : four votes), (50.001 and more : eight votes).
Under the new amendments of the Regulations, it is adopted to use the electronic voting devices for the election of Chambers Boards of Directors, as well as granting the rights to candidates to organize election campaigns, in accordance with the guidelines and conditions that ensure fair competition among candidates, taking into account the public morals.
It is worth mentioning that the chambers of Commerce & Industry are considered one of the main pillars for the growth and prosperity of business and economic activities, since the activation of the chambers of Commerce & Industry and their implementing regulations, in a way imitating the best comparative practices and the outcome of the national economy, is considered an important step towards promoting and boosting the domestic market attractiveness, also increasing its reliability. Notably, the Regulation amendments have been effected after making the necessary coordination with the Ministry of Energy, Industry and Mineral Resources, following the study of the best relevant practices.
For reviewing the Amended Implementing Regulations, please click here