In light of the new transformations, economic analysts have called for the establishment of a government agency on economic studies and research, or a national consulting firm solely dedicated to studies adopted by state funds, especially in the field of mega projects and development projects, so as to enhance the reliability of the advisory role.
They said that the organization or company should be a major reference in measuring feasibility, and follow developments. Therefore, the success of the economic achievement will reach impressive results and activate its future steps.
A report published by the magazine "Aliktisad", which issued by Asharqia Chamber in its issue of April 2018, stated that the projects announced by the state-with its huge hopes and positive potential-opened the door to the call for the importance of adopting the idea of establishing an independent agency. This agency or organization should be concerning with research and consultancy studies in parallel with the economical developments and in line with the new thinking that drives the process of economic transformation from traditional thinking to achieve the economy of production and dynamism in business and services. The report said that the establishment of a national investment advisory entity, whether an agency or a company, that undertakes the studies and research needed by the public sector is necessary. It suggested that the Public Investment Fund should be the entity that can adopt the establishment of this agency. It could be as a contribution of those who have experience in this field, such as King Abdulaziz City for Science and Technology, Saudi universities, the Institute of Public Administration, and multiple national research centers in government agencies and in the private sector.
The report added that the capital would not be an obstacle to the establishment of this entity because the General Auditing Bureau said that spending on studies and consultations in the public sector exceeded 11 billion riyals last year. It stressed that this figure is large and it could support the orientation to establish this entity in order to serve the trend in expanding opportunities that lead to the redistribution of national wealth and the investment of the minds of retired university professors and governmental employees, because these national competencies contributed to the construction of the country in the past decades, and they have experience and expertise to that need to be invested. This proposed entity is supposed to be the engine that leads the studies and consulting sector. This leads to the establishment of the research industry in the Kingdom, which would opens the way for job creation, develops centers for small and medium-sized research and research, and maximizes our national gains from the knowledge industry.
In addition, in its last issue of April "Aliktisad" addressed the issue of cement and the challenges facing it. It pointed out to the decision to cancel the export duties came to provide a breakthrough in the hope of these challenges in order to start again, and to contribute to fueling the locomotive of the national economy. Despite its vital role in the economic sectors, the cancellation of export duties of the cement industry will open up foreign markets to Saudi cement companies, all of which have suffered in recent years from falling domestic demand, rising stock levels and declining profits, as well as slower growth in the construction sector, and the non-inclusion of the cement industry within the strategic industries in the Kingdom. It pointed out that the export of cement would raise non-oil exports in the Kingdom by at least 5% during the coming period.
The report said that Saudi companies now have an opportunity to expand their sales of cement in the Gulf region, as the Kingdom accounting for about 61% of demand for cement in the region. The Kingdom has a production capacity of 68 million tons, while the annual demand in the Gulf region is 98 million tons. Cement companies in the United Arab Emirates are expected to be the first competitors for Saudi companies. The volume of cement production in the UAE is estimated at 41 million tons and the volume of demand is about 21.4 million tons. In Oman, the production volume does not exceed 6.1 million tons and the demand is 5.8 million tons. In Bahrain, the production volume is 1.2 million tons, the demand volume is 1.1 million tons. Kuwait does not exceed 5 million tons, while the demand for cement exceeds 6 million tons annually.
