April 23, 2004

DEVELOPMENT OF THE ADMINISTRATIVE SYSTEM IN THE ERA OF THE CUSTODIAN OF THE TWO HOLY MOSQUES. KING FAHD IBN ABDUL AZIZ AT THE INAUGURAL CEREMONY OF THE SHOURA COUNCIL: THE KINGDOM OF SAUDI ARABIA WILL GO AHEAD WITH ITS REFORM PROGRAMS, AND WE WILL NOT BE TURNED AWAY FROM IMPLEMENTING IT. DEVIATING RELIGIOUS OPINIONS SEED DESTRUCTION AND DEVASTATION. THE ISLAMIC ADDRESS INSIDE AND OUTSIDE THE KINGDOM SHOULD BE ACHIEVED IN A FRAMEWORK OF MODERATION AND AWAY FROM EXTREMISM. The era of the Custodian of the Two Holy Mosques is shining with a series of achievements in the fields of development, administrative systems in all areas and the implementation of applications to serve the Saudi citizen and his ambitions is the core of all exerted efforts in the Kingdoms' development. The Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz Al Saud accords great care to this trend, which he emphasized in his speech at the inaugural ceremony of the third year of the Shoura (Consultative Council) for the third session at the Shoura Council in Riyadh on the 16th of Rabie Al Awal 1424H. On the occasion, the Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz Al Saud delivered the annual Royal speech which covered the Kingdom's internal and external policy. In his speech the Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz Al Saud announced that the Kingdom of Saudi Arabia would go ahead with its reform programs, broaden the scope of popular participation and open new areas for women to work in. Inaugurating the annual meeting of the Shoura Council in Riyadh, Custodian of the Two Holy Mosques King Fahd also reaffirmed the government's resolve to fight terrorism as well as administrative corruption and unemployment and poverty among Saudis. The economic reforms are vital for the development of the country and improve the living conditions of its citizens," the Custodian of the Two Holy Mosques said. The Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz Al Saud also rejected foreign intervention in the Kingdom's internal affairs. He urged the Shoura members to perform their duties in the best form and monitor the performance of the administrative bodies. Referring to the government's efforts to fight unemployment, the Custodian of the Two Holy Mosques King Fahd said educational and training opportunities would be made available for our sons and daughters, in addition to revising academic specializations to cater to the needs of society. King Fahd said Saudi experts have conducted in-depth studies on poverty. The Custodian of the Two Holy Mosques highlighted the importance of social harmony based on national unity to achieve progress. The King said such a move was essential to protect Saudi youth from the evil of destructive thoughts that promote extremism and hatred. The Custodian of the Two Holy Mosques described the Shoura as a partner of the government in its efforts to promote political and administrative development. He said the new judicial systems introduced by the state would help protect citizens from violations by public authority. King Fahd also disclosed that the government had approved the formation of a non-governmental human rights organization followed by establishment of a government human rights body. He said that the two bodies would contribute to protecting human dignity and rights. The Custodian of the Two Holy Mosques stressed the need to face global challenges. Underlining the significance of the Kingdom's reform program, King Fahd Ibn Abdul Aziz said the real reform is the one that emerges from the nation's faith and heritage. The Custodian of the Two Holy Mosques urged Saudis to play an effective role in the development process. King Fahd cautioned education officials that defects in curriculums could lead to moral or intellectual deviation. According to the directives of the Custodian of the Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz Al Saud and Crown Prince Abdullah Ibn Abdul Aziz, Deputy Prime Minister and Commander of the National Guard to improve services to citizen in all fields through improving the efficiency of governmental bodies a royal order was issued on 7/5/1420H to form a ministerial committee under the chairmanship of Prince Sultan Ibn Abdul Aziz, Second Deputy Prime Minister, Minister of Defence and Aviation and Inspector General with the membership of a number of princes, ministers and high-ranking officials to study ways of achieving the required aims. The Committee achieved thorough studies under the supervision of Crown Prince Abdullah Ibn Abdul Aziz, and issued its recommendations which were approved by the Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz. The Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz has issued Royal Decrees with the following orders [details]: Termination of the Ministry of Public Works and Housing, and the assigning of its responsibilities to the Ministry of Municipal and Rural Affairs and other governmental authorities of similar concerns. Termination of the Ministry of Industry and Electricity, and the assigning of all electricity activities to the Ministry of Water, which will be renamed the 'Ministry of Water and Electricity'; and all industrial activities to the Ministry of Commerce, which will be renamed the 'Ministry of Commence and Industry'. Renaming of the Ministry of Information as the 'Ministry of Culture and Information', and the transfer to that ministry of certain cultural activities from other governmental organs. Renaming of the Ministry of Posts, Telegraphs and Telephones as the 'Ministry of Communications and Information Technology'. Renaming of the Ministry of Communications as the 'Ministry of Transport'. First: Public Works and Housing 1- The Ministry of Public Works and Housing shall be terminated, and its activities transferred to certain other concerned government bodies as well as to the Ministry of Municipal and Rural Affairs. 2- The responsibility of public housing shall be assigned to the Ministry of Labor and Social Affairs, and the strategy for public housing to the Ministry of National Economy and Planning. 3- The Real Estate Fund shall continue to perform its mission, and it will receive support to further enhance its role. Second: Education 1- A new Arabic name shall be adopted for the Ministry of Education [the old name meant 'knowledge' rather than 'education']. 2- The Minister of Education shall have two deputies, one for boys' education, and one for girls' education. 3- The Ministry of Education shall have two budgets, one for the education of boys and the other for the education of girls. 4- The Ministry of Education shall supervise all public education activities, and will therefore take over those in the National Guard, the Ministry of Defense and Aviation, and the Royal Commission for Jubail and Yanbu. 5- Universities shall be granted wider scope of independence to manage their own affairs, and their councils shall enjoy greater authority. Third: Culture, Information and Youth 1- The Ministry of Information shall be renamed the 'Ministry of Culture and Information'. 2- The Ministry of Culture and Information shall have an agency for culture, to which the following government organs will be shifted: a. King Fahd Cultural Center, the Folklore Administration, the Saudi Society for Culture and the Arts, the General Administration for Cultural Activities, and the General Administration for Literary Clubs, currently affiliates of the General Presidency for Youth Welfare; b. The General Administration for Public Libraries, currently an affiliate of the agency for cultural affairs at the Ministry of Education; c. The General Administration for Cultural Relations, currently an affiliate of the agency for cultural affairs at the Ministry of Education, with the exception of those concerned with education; d. 'Al-Majallah Al-Arabia', currently an affiliate of the Ministry of Higher Education. 3- Saudi Radio and Television, and the Saudi Press Agency (SPA), shall be formulated into two autonomous public establishments, with their boards of directors chaired by the Minister of Culture and Information. 4- The Supreme Council for Science, Art and Literature; the Supreme Council for Youth; and the Supreme Information Council, shall be terminated, since the goals for which they were established have been achieved. 5- The Department of Antiquities, currently an affiliate of the Ministry of Education, shall be transferred to the Higher Commission for Tourism, which shall be responsible for antiquities in addition to tourism. 6- The General Presidency for Youth Welfare shall remain responsible for sports activities. Fourth: Industry and Electricity 1- The Ministry of Industry and Electricity shall be terminated. 2- The electricity activities of the Ministry of Industry and Electricity shall be transferred to the Ministry of Water, which shall be renamed the 'Ministry of Water and Electricity'; this move reflects the close relations between water and electricity, and the extent to which electricity is produced by desalination stations. The commission for organizing electricity services plays a crucial role in policy-making in this field. 3- The industrial activities of the Ministry of Industry and Electricity shall be transferred to the Ministry of Commerce, which shall be renamed the 'Ministry of Commerce and Industry'; this move reflects the strong relation between commerce and industry. The commission for industrial cities and technology regions plays a crucial role in policy-making in this field. Fifth: Finance, National Economy, and Planning 1- The economic activities of the Ministry of Finance and National Economy shall be transferred to the Ministry of Planning, which shall be renamed the 'Ministry of National Economy and Planning'; this reflects the close relations between economy and planning. 2- The Ministry of Finance and National Economy will accordingly be renamed the 'Ministry of Finance'. Sixth: Transport and Communications 1- The Ministry of Communications shall be renamed the 'Ministry of Transport'. 2- The Minister of Transport shall be the Chairman of the Board of Directors of the Ports Authority, with the President of the Ports Authority appointed at the highest rank. Seventh: Telecommunications and Information Technology 1- The Ministry of Posts, Telegrams and Telephones will be renamed the 'Ministry of Communications and Information Technology'. 2- The duties of information technology will be assigned to the Telecommunications Commission, the name of which will be changed to 'Telecommunications and Information Technology Commission', and which will supervise the activities of telecommunications and information technology. In his speech the Custodian of the Two Holy Mosques said that taking into account Islamic and Arab values, we do oppose all forms of terrorism, and will never allow any faction of deviated terrorists to harm the country and undermine the safety of its citizens and residents. With the grace of the Almighty Allah, we will not allow the existence of deviating religious opinions that encourage and seed terrorism, even though such opinions try to pass themselves as pious because we know true religion has nothing to do with terrorism or even the ideology of terrorism. This nation is determined on eradicating all forms of terrorism, and with the grace of the Almighty Allah and the cooperation of the citizens of this nation, that goal will be realized. If we, under any pretext, reject any form of intervention in our domestic affairs, we are at the same time, for the sake of reform, keen on scrutinizing our domestic affairs for revision. Since reform is an essential matter, we should never be affected by those who try to fish in troubled waters and who allege that such attempts of reform are the result of foreign pressures. All Saudis know that the march of reform has remained uninterrupted, and its course will continue, with the grace of the Almighty Allah. King Fahd Ibn Abdul Aziz went on to say: You have felt what has been taken at the reform arena in the political, administrative, economic and social spheres, and I shall review briefly what has been attained in this respect without elaboration. You were real partners of the government in the field of political and administrative development. I would like to point out to a number of initiatives pertaining to revision of the governmental structure which emerged at your Council, and were elaborately discussed and studied, and the new ministerial formation embodies these initiatives, and some initiatives are still under consideration. I would like to highlight the significance of the systems pertaining to filing lawsuits and criminal procedures, which were deeply studied by your respected council, and with the grace of the Almighty Allah they were issued to facilitate procedures in this respect and to make justice accessible to all citizens, and to protect them from violations of public authority. In the same pattern, approval was issued for establishing a non-governmental society, which will be concerned with the human rights, advocated by Islam. This will be followed by establishment of a governmental body, which will attend to the same rights. Such a development will make the efforts of the state and the citizens come together for the protection of the dignity, which the Creator has ordained for all faithful worshippers. I would like to confirm that we will go on the path of political and administrative reforms, and we will work for the revision of our systems and instructions, and will tighten control on the performance of the governmental organs, broaden the scope of the popular participation, and open wider horizons for the work of women within the framework of the teachings of Islam. It goes without saying that your respected council will play its role in realizing the desired reforms. In the economic sphere the state has made so many initiatives that aim at freeing the economy from the routine obstacles, encouraging the investors from inside and outside the Kingdom, as well as the privatization of the economic assets to enable citizens to own them. Moreover, these initiatives aim at paying careful attention to the tourism sector and the revision of taxation systems. The establishment of the supreme economic council and the ministry of economy and planning provides a clear evidence for the attention paid by the government to the economy. The economic reform is a continuous process and it is of vital importance; the success of the economic development and improvement of the living conditions for the citizens will depend on its success . While speaking about economic reform, I would like to focus on two major problems; namely, unemployment and poverty. The Custodian of the Two Holy Mosques added: You are fully aware of the efforts of the state for the Saudization of jobs. You know that to overcome the problem of unemployment, additional efforts are important to avail educational and training opportunities for our sons and daughters, along with the revision ofthe academic specializations in a manner that meets the needs of society for technicians and vocational cadres. With respect to poverty, the state has taken a pioneering initiative that sheds clear light on the problem. There are in-depth studies, conducted by Saudi experts, on the phenomenon of poverty. We hope that the studies will yield beneficial recommendations for the citizens who will feel their positive impacts everywhere. But the march of reform will not be fruitful without an atmosphere of social harmony based on the national unity. In this context, it has to be noted that national unity does not prosper in an air of extremism but it needs a clear atmosphere of brotherly and calm dialogue. If the adoption of a middle moderate speech is the responsibility of each citizen, it is also a fundamental responsibility of our Ulema on whom we depend to spread the tolerance basic to our Sharia and to spare our youth the evil of destructive thoughts that propagate extremism and hatred to result only in destruction and ruins. We have learned from the experiences of the east and the west that real reform emerges from the nation's faith and heritage, accepted by the nation willingly without coercion, and comes gradually to avoid the destructive rush and deadly tardiness. This reform will be the method that we will travel confidently and faithfully. In order that no one will misunderstand the seriousness of the state in going ahead with the reform on a developmental pattern that satisfies us and with the credibility that is based upon deeds not words, I say to every citizen that each one of us has a role and a responsibility and there is no time for dependency and blame of others or casting of doubts about the truth and integrity of the one who wants the reform. I say to each official in the government, responsibility is an honor, is carried out with obligations and does not grant one any privileges. I say to every businessman that the nation is not just capital and profit, but it is an investment in its security and safety. I say to every female citizen whether a sister, mother, daughter or a wife, this nation is for all and the good citizen is partner in making the future. And I say to the officials of education in all its stages they are breeders of the future generations. Good curricula imbibe thoughts and convictions into the minds of the young and the innocent souls for the good and benefit of the nation. However, a defect in education, God forbid, is a main cause for any moral or intellectual deviation and for deficiency in work and participation. And I say to the media staff and intellectuals that the media is not for propaganda and acculturation is not for prestige. Furthermore, the national unity, and its presence on the international stage depends on responsible media and pioneering and diverse cultural initiatives. And I say to every citizen that one of the most fundamental obligations is the confrontation of narrow mindedness, regionalism and social division. Facing up to these ills is required by our religion and national unity. I also say to each member of the Shoura Council and members of the councils of the regions and provinces that you are required to improve your methods and shoulder your responsibility within the context of participation and monitoring of the performance of the administrative bodies. We are facing a world at a crossroad, as ideals have been changed and some coalitions have been terminated and others have been formed. The principles of international order have receded. The revolution of information has affected all international foundations: social, economic and political. All countries are dealing with these changes and trying to understand them and to relate to them with their cultural, social and political realities. They also aim at linking them to their historical heritage and values. We are part of this world and we cannot be disconnected from it. We will not feel satisfied to be just spectators while the whole world is competing to form the new world especially as this country is located at the heart of the Muslim World, and is considered the cradle of Arab identity. Therefore, we should all live up to such challenges. We will not be so until we retain our tolerant belief and maintain our national unity, which is our message inside and outside the Kingdom and support one another in carrying out responsibilities and duties. In light of all this Crown Prince Abdullah Ibn Abdul Aziz, Deputy Prime Minister and Commander of the National Guard agreed for the National Dialogue to be convened. The four-day gathering aimed at strengthening the national unity and dialogue to serve the national interest and establishing firm principles and rules for dialogue and tolerance among individuals. The meetings were organized by King Abdul Aziz Public Library in Riyadh under the title "National Intellectual Dialogue". Crown Prince Abdullah Ibn Abdul Aziz, the Deputy Prime Minister and Commander of the National Guard confirmed the need to consolidate efforts against attempts to strike national solidarity and stability or Saudi's interests. The Crown Prince also stressed difference of opinion is a reality that must be reckoned with when initiating or engaging in dialogue or promoting religion. Crown Prince Abdullah Ibn Abdul Aziz urged adoption of methods other than "ban and cover up" that is no more adequate to safeguard the Muslim and Saudi community against unwelcome trends that are by-products of today's accelerating scientific advancement. He stressed the importance of sound reasoning and substantiated argument and logic as well as respect for the other and allowing opportunity for free expression and dialogue without the threat of division and dissent. These remarks came in the address delivered on behalf of Crown Prince Abdullah Ibn Abdul Aziz in the opening of the National Gathering for Intellectual Dialogue. The opening session of the meetings included an encouragement and support address by Crown Prince Abdullah Ibn Abdul Aziz, Deputy Prime Minister and Commander of the National Guard. In the address, the Crown Prince said the gathering would discuss the local and external Islamic discourse. Crown Prince Abdullah said the goal of the discussion would be to strengthen the Kingdom's adherence to Islam, its relations with the Islamic world and its national unity. The Crown Prince added that this should be achieved in a framework of moderation and away from extremism. The issue under debate was the trends affecting Islamic address and the importance of maintaining moderation and refrain from extremism in Saudi's relations with the outside world. The discussions covered two main topics of "national solidarity and the role of scientists and intellectuals in that regard" and "understanding international treaties and relations and the effect that has on national solidarity." The first topic focuses on sub-issues like extremism, countering pretexts for violations, intellectual diversity in the community, the rights and duties as well as role of women, freedom of expression and Fatwa and religious verdict in our age and society. The second topic included discussions on international relations as regulated in Islam, Da'wa and religious preaching in Muslim and non-Muslim states, the importance of mutual interests in Saudi's international relations, treatment of and interaction with non-Muslims as dictated by Islam, and definition and restraints of Jihad. The conference was full of scientific discussions which focused on internal and external Islamic discourse, stressing the Kingdom's adherence to Islam, its ties with the Muslim world and its national unity within a framework of moderation. Crown Prince Abdullah Ibn Abdul Aziz received the final communiqué and recommendations issued by the forum. The final communiqué and recommendations issued by the National Meeting for Intellectual Dialogue noted that the meeting was the result of a proposal approved by Crown Prince Abdullah Ibn Abdul Aziz, the Deputy Prime Minister and Commander of the National Guard to discuss issues relating to internal and external Islamic discourse. It added that the Crown Prince's inaugural speech at the meeting was delivered on his behalf by Chairman of Shoura Council Sheikh Dr Salih Ibn Abdullah Ibn Homaid. Participants of the meeting held nine working sessions, and a concluding session. The sessions covered a number of axes. The first axis was: The national unity and the effects of the scholars in it. The axis included the following topics: (1) Identifying national unity; the importance of unity and the Islamic principles upon which unity is based and the pioneering role of Islamic education and Muslim scholars in the Kingdom of Saudi Arabia in preserving national unity. (2) Immoderation, inflexibility and the expansion in filling the justifications in order to disengage from the Sharia principles and their affects on the society. (3) The intellectual variation among sections of the society. (4) Women's rights, duties and roles in society. (5) freedom of expression. (6) The contemporary Fatwa and linking it with the social reality, and its effect on the national unity. The second axis was: the international relations and laws and the effects of understanding them on the national unity. The axis included the following topics: International relations in Islam, the internal Dawa and the Dawa in Muslim and non-Muslim countries: (1) The importance of mutual interest in relations between the Kingdom of Saudi Arabia and other countries. (2) Dealing with non-Muslims in the light of the Holy Quran and Sunnah (the tradition of the Prophet). (3) The concept of Jihad (struggle for the faith) and its rules. Following discussions and dialogues which were carried out in a brotherly and frank atmosphere and a true desire to originate the working methods in the Kingdom, the participants issued the following recommendations: 1- Regard the inaugural speech of Crown Prince Abdullah Ibn Abdul Aziz, the Deputy Prime Minister and Commander of the National Guard, as a major guiding document for the parties of the dialogue, since it stressed the following important contents: -The awareness of the dangers that are threatening the Kingdom and the severe attacks against its religion and national unity, and the elements of discord with all its tribal, regional and intellectual forms and which may cause destruction of the ties and basis of building fraternal relations in the framework of one homeland. -The awareness of the fact that differences, intellectual diversity and the multiplicity of believes are real facts in our lives and human natures and can be invested in building a strategy in the field of Dawa, advice, dialogue and directing the person to the right direction which serves the Kingdom's targets and values. -Taking into consideration the contemporary fact, the technological progress in communications and fast exchanging of data without obstacles which necessitates putting new systems to safeguard the religion, the country and the citizen. -Concentrating the care, and thinking of the internal and external Islamic discourse in a way that confirms the Kingdom's adherence to Islam, its relations with the Muslim world and its national unity that is to be achieved in a framework of moderation and not extremism. -Implementing all this within the course of objective and calm scientific dialogue far from dissension, hard feelings and mistrust. 2-Recommendation of obeying Almighty God in secret and public, the return to Allah because the dangers that hit the country are because of its alienation from Allah , His book and His Prophet's methods. 3-The meeting also recommended that a National Dialogue Centre be set up to organize further gatherings and prepare studies and research in this regard. The participants wished that Crown Prince Abdullah Ibn Abdul Aziz approve this proposal. 4- Preservation of the Kingdom's national unity based on the real Islamic faith and the principles from which the state obtains its system and the society obtains its identity. 5- Laying emphasis on the status of Muslim scholars' status and their role in maintaining national unity. 6- The importance of tackling the daily affairs of citizens and the equilibrium in distributing developmental programs among the Kingdom's regions. 7- The continuation of development of education to accord with the modern age and the interests of national unity. 8- Young people should be taken into consideration in development plans. 9- The Saudi mass media should contribute in strengthening the national unity, respect the scholars and not to prejudice the fundamentals of this unity. 10- The continuation of the reform process in all its aspects and expand the base of popular participation in order to strengthen national unity. 11- Islam is a religion of moderation and does not accept extremism and inflexibility. 12- The rule of satisfying the excuses is one of the rules which are considered by Sharia. This rule should be followed with moderation. 13- The importance of dialogue as a way of expression of view and a way to achieve coexistence through a comprehensive methodology adherent to the principles of Sharia. 14- Differences, intellectual diversity and the multiplicity of believes are real facts in our lives and human natures and can be invested in building a strategy in the field of Dawa, advice, dialogue and directing the person to the right direction which serves the Kingdom's targets and values. 15- Working to treat the issues, problems, complaints, practices and traditions that are violating the Islamic Sharia which women currently face, highlighting the real image of women in Islam and expanding women's participation to serve the issues of Muslim women. 16- Guaranteeing the freedom of speech in accordance with Islamic controls. 17- The Fatwa has a supreme status and a great mission in the Islamic society. Thus, it should accord with the modern age and benefit from the specialists in other sciences. It is also important to set up centres for studies and scientific researches that support the Fatwa and form committees for Fatwa in all Kingdom's regions. 18- It is necessary to be aware of the regional and international conditions, to follow the interests which are based on justice in setting up the international relations, to benefit from the scientific and intellectual energies in originating the international relations on the method of Islam and to introduce initiatives that explains Islam's solutions for the world problems. 19- Jihad should be linked to the reality, and declaring Jihad is the ruler's responsibility. Its rules should be well explained in order to be misunderstood. 20- The participants confirmed that resisting the Zionist occupation in Palestine is a legitimate right, and they support, in particular, the efforts exerted by the Kingdom of Saudi Arabia in supporting the Palestinian people in order to regain their stolen rights. 21- The participants of this meeting express their feeling of anguish because of the outrageous aggressions against Muslim citizens and expatriates, and the foreigners who are supposed to be protected. They also state that this is considered a fight against God and His Prophet and Islam is innocent from such criminal acts. 22- The participants submit their thanks, appreciation and gratitude to Crown Prince Abdullah for calling for this meeting and for sponsoring it. They requested from the meeting's chairman to submit a cable of thanks and appreciation to the Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz, his entrusted Crown Prince Abdullah Ibn Abdul Aziz and Prince Sultan Ibn Abdul Aziz, the Second Deputy Prime Minister, Minister of Defence and Aviation and Inspector General. Crown Prince Abdullah Ibn Abdul Aziz, the Deputy Prime Minister and Commander of the National Guard had confirmed the need to consolidate efforts against attempts to strike national solidarity and stability or Saudi's interests. The Crown Prince also stressed difference of opinion is a reality that must be reckoned with when initiating or engaging in dialogue or promoting religion. Crown Prince Abdullah Ibn Abdul Aziz urged adoption of methods other than "ban and cover up" that is no more adequate to safeguard the Muslim and Saudi community against unwelcome trends that are by-products of today's accelerating scientific advancement. He stressed the importance of sound reasoning and substantiated argument and logic as well as respect for the other and allowing opportunity for free expression and dialogue without the threat of division and dissent. These remarks came in an address delivered on behalf of Crown Prince Abdullah Ibn Abdul Aziz in the opening of the National Gathering for Intellectual Dialogue. The opening session of the meetings included an encouragement and support address by Crown Prince Abdullah Ibn Abdul Aziz, Deputy Prime Minister and Commander of the National Guard. The Council of Ministers approval and passing of the Saudi Arabian Capital Markets law, which establishes the framework for the Kingdom's capital market was also an important step in the history of the Saudi financial market as this law aims at restructuring the Capital market on modern bases that will enhance the confidence in and attraction to the market while providing clarity, transparency, protection and equality in dealing with clients. The law comprises the following: The establishment of the Saudi Arabian Securities and Exchange Commission to protect the interests of investors, to ensure orderly and equitable dealings in the securities business, and to promote and develop the capital market. The law vests the Commission with powers to license financial intermediaries and to authorize offering securities to the public. The law also establishes the Saudi Arabian Stock Exchange (SASE), incorporating the national securities depository centre. The Cabinet said that the Capital Markets law would facilitate the licensing of financial intermediaries and the issuance of an increased number and variety of securities. The Capital Markets law will result in the restructuring of the capital market in Saudi Arabia based on international best practice, promoting greater efficiency and transparency. The law is integral to the government's aim of privatisation, which will generate increased participation by citizens in the capital market and thus the national economy. The Cabinet said that the Commission would be governed by five commissioners, who will be appointed by Royal Decree. The Commission will develop and regulate a capital market that is dynamic, fair, transparent and efficient, and will contribute to the nation's economic development. The Securities and Exchange Commission SEC will be the primary regulatory body for the Saudi Arabian capital market. The new law is expected to promote a stronger, more efficient capital market, which will meet the nation's economic and developmental aspirations. The Commission will endeavour to deepen and broaden the market to enhance socio-economic development. In order to enable SEC to achieve the objectives of investor protection and capital market development, the Commission will: Regulate investments and securities in Saudi Arabia; register and regulate the Saudi Arabian Securities Exchange (including the national securities depository) Register securities to be offered for subscription or sale to the public; organize training programmes and promote high ethical standards Register and regulate non-bank financial intermediaries, including members and employees of the Stock Exchange, and others involved in the organization and operation of the capital market, including custodians of securities and credit-rating agencies Protect the integrity of the securities market against abuses arising from the practice of insider trading Review, approve and regulate mergers, acquisitions and all forms of business combinations Provide investor education and promote investor awareness Prevent fraudulent and unfair trade practices relating to the securities industry Perform such other functions and exercise such other powers not inconsistent with the law as necessary or expedient for giving full effect to the provisions of the law. The Cabinet said that the Stock Exchange, which incorporates the national securities depository, will be a private sector company. The Board of SASE will initially consist of nine members, three from the government (the Ministries of Finance, Commerce and SAMA), and six from among shareholders of the Exchange. SASE will be the only stock exchange in the Kingdom, and will perform the following functions: Ensure the fairness and transparency of markets operated by the Exchange Admit members (both brokering and clearing) List and explain the requirements and conditions for the listing of securities Promote high ethical standards among members, their employees and market participants Promote high standards of corporate governance Ensure timely and accurate dissemination of market information Establish and operate a nation-wide system for securities trading, settlement clearing and depository, in order to protect investors and maintain fair and orderly markets Provide modern communication and data processing facilities in order to foster efficiency, enhance competition, and increase the information available to market participants. Shares were first offered to the public in the Kingdom in 1954. The market remained informal until the mid 1980s, when a Ministerial Committee comprising the Ministers of Finance and Commerce and Governor of the Saudi Arabian Monetary Agency (SAMA) was formed, with overall responsibility for market regulation and development. Saudi Arabia introduced the world's first fully electronic market in the early 1990s, comprising trading, clearing settlement and depository. A new infrastructure for the market (Tadawul) was implemented in the year 2001. The market has grown significantly during this time. By 15 June 2003, market capitalization stood at over SR477 billion (US$127 billion), which confirmed Saudi Arabia's market as the largest in the region, and one of the largest emerging markets in the world. The number of companies listed on the market remains comparatively low, at 65. Trading in shares on these companies is limited to Saudi nationals and citizens of other Gulf Cooperation Council (GCC) member states. Non-GCC nationals participate in the market by investment in ope-end mutual funds offered by Saudi Arabian banks.