MCI, Confirmed that the Electronic Platform has Great Economic Benefits for the Beneficiaries of this project
- "MCI" The platform works on keeping the rights of shareholders of Companies and commercial Establishments.
- The Ministry seeks to achieve an integral relationship among the Companies, Establishments and the concerned parties.
- The Electronic Platform would eliminate waste in time and money, and lack of transparency due to paper work.
- "Statements" (Qawa`em) would provide important economic information to assist planners in the Kingdom.
At the time when the Saudi Rules and Regulations oblige all the Companies and Commercial Establishments working in the Kingdom to deposit their financial statements at the Ministry of Commerce and Industry on an annual basis, the Ministry is seeking to revise those Rules & Regulations in purpose of doing the necessary and needed development or modification.
Among these Regulations and mechanism, the project of electronic, consolidated deposit of the Financial Statements of companies emerges, known as the Electronic Platform "Statements” (Qawa`em). MCI seeks, through this project, to provide a range of macro-economic feasibility for the commercial sector in the Kingdom, where the project aims to organize the relationship and to keep the rights of the institutions and companies working in the Saudi market, as well as the dealers with these companies, whether MCI itself, or the Department of Zakat and income, Commercial Banks, Finance Companies and shareholders in these companies and institutions, and also Accounting Offices working in the Kingdom, and finally the related government or private parties.
The Ministry is seeking through this project to convert the paper financial statements to electronic, and to be deposited automatically in order to support the credibility of the beneficiaries, as well as provide the relevant authorities with accurate information in a timely manner, the project provides as well information about the accounts of companies and Establishments to be used by analysts, government and researchers, also provides an important economic data base to help planners, and seeks to identify any deviations in the performance of companies and institutions.
The Electronic Platform "Statements" has got various economic feasibilities through a set of features such as: financial, logistical, systematic and statistical, according to the following:
Financial Advantages:
MCI aims that the Electronic Platform would help the companies and Establishments working in the Kingdom to conclude contracts with the government and non-government bodies; especially those contracts that require the review and access of the financial statements of the companies when dealing with them.
The Ministry hopes that such Electronic Platform would contribute in helping the companies and institutions in getting funding from banks or finance companies, due to the accuracy in the financial data of the company wishing to get fund. This would build the confidence with the funding party and enable this party to take the necessary decision that would be in favor of both parties and preserves their rights. This would reduce the commercial disputes or discords.
As well as the Electronic Platform would help the Department of Zakat and Income to estimate the due zakat on those companies and institutions accurately, an estimation based on audited lists by certified public accountant who is accredited by the Ministry of Commerce and the official bodies in the state.
MCI is doing its best in a way that such Electronic Platform would offer a helping hand to the Accounting Offices working in the Saudi market to upgrade their profession through getting the necessary fund from the official bodies in order to audit the financial statements electronically and then to be input into the Electronic Platform "Statements". This would benefit such offices professionally and financially and would contribute in preparing national cadres in such profession, and then to be trained according to the highest levels that befit the economic status of the Kingdom on Regional, Arab and International levels.
Logistics Advantages:
MCI, through launching the Electronic Platform, is keen to provide multiple options for all sectors that their work require access to the financial statements of a company or an institution working in Saudi Arabia, for example: Banks, Exchanges, finance companies, that need review and access to such statements, in case the owner of the company desires to obtain a loan or financial support from them; this requires precise decision either with approval or rejection. This decision needs technical, financial and economic studies by the specialists working in such bodies, after full access to the financial statement of the company or institution interested in funding.
Statistical Advantages:
Finding accurate statistics that are clear and transparent for all working companies in the Saudi market, represents a strategic objective of MCI, and that is what the Electronic Platform "Statements" would provide. The said platform would enhance the support of transparency in the Saudi Commercial Sector, also it provides accurate economic information for this sector to help those who are planning in the Kingdom on the development of plans and studies that would help improving the commercial activities or concluding agreements, treaties and transactions with their counterparts in different countries of the world.
The Ministry thinks that this information provided by the Electronic Platform "Statements" will help those working in the fields of economic classifications, whether local, regional, Arab or global, to put the Saudi companies and establishments in the right and the correct classification, which enable such companies of getting more advantages of this classification, and would benefit them financially and economically .
Those working in the sector and whoever interested of economists, researchers, journalists and others, know well the importance of accurate and fair index for companies and institutions working in the Saudi sector, this is achieved by the Electronic Platform, which provides accurate and transparent information and data.
Systematic Advantages:
During the design of the Electronic Platform, MCI was fully aware of putting precise control on the financial statements of companies and institutions working in the Saudi market, and following up that from the financial point of view by the organizing bodies, such as MCI and the Department of Zakat and Income.
The systematic feasibility of the platform would not stop at the process of monitoring and follow-up of the Financial Statements of the companies, but goes beyond that to help the shareholders and rights holders in such companies and institutions in preserving their rights, through the full access and review on those rights, and getting the knowledge about the financial situation of the company and the shareholders with extreme precision and clear transparency.
The Ministry did not overlook the importance of the economic feasibility of the project, but contribute well in the activation of the so-called economically "Corporation Governance", where the Financial Statements, audited by certified public accountants, allow the transparency in providing the information to all the partners, before depositing such statements in the Electronic Platform, in addition to the commitment to the Rules and Regulations of the Ministry of Commerce and Industry, especially in terms of commitment to the time of depositing the financial statements, thus achieving significant economic feasibility to the state and the relevant bodies.