JEDDAH: Social insurance pensioners in the Kingdom will receive a five percent inflation allowance from next month for three years, according to a decision taken by the Council of Ministers chaired by Custodian of the Two Holy Mosques King Abdullah on Monday.
Suleiman Al-Humaid, governor of the General Organization for Social Insurance, commended the Cabinet decision that would benefit more than 250,000 GOSI pensioners and their families, adding that they would get an allowance of five percent in the first year, 10 percent in the second year and 15 percent in the third year.
According to the Cabinet decision, the allowance would be calculated on the basis of a maximum of the first SR25,000 of pensions and earnings. At present, GOSI distributes more than SR650 million monthly to its pensioners.
Shoura members said 30 percent of pensioners in the Kingdom receive less than SR2,000 per month, while 64 percent receive less than SR4,000. According to the National Association for Pensioners, around 40 percent of pensioners rent their homes.
The Cabinet also agreed to license three companies in Riyadh, Jeddah and Dhahran to develop the Kingdom into a knowledge economy.
In a statement issued after the meeting, the Cabinet said the development of a knowledge economy would take place through partnership between educational and research institutions on the one side and the business and investment community on the other.
The Cabinet said the partnership between the two sides would be maintained on a commercial basis by investing in joint ventures that would enhance the expertise of university professors and students and help them apply their know-how.
The three technological companies -- Riyadh Wadi Company, Jeddah Wadi Company and Dhahran Wadi Company -- will invest in the transfer and development of technology and prepare university students to work for the private sector by providing them with necessary training and creating new job opportunities.
Spelling out other objectives of the companies, the Cabinet said they would also work to attract domestic and foreign investments for carrying out their projects.
The Cabinet meeting referred to the Arab League summit in Libya and hoped it decisions would strengthen cooperation among Arab countries.
"The Cabinet praised the efforts of Arab countries to overcome obstacles in achieving Arab unity," said Culture and Information Minister Abdul Aziz Khoja. "Arab countries have to make joint efforts to end injustice against the Palestinians. They have to take a firm stand against Israeli aggressions against the Palestinians," he said quoting the Cabinet.
The Cabinet discussed ways to strengthen the Kingdom's ties with Central Asian countries. It authorized the Saudi Arabian General Investment Authority, the Higher Education Ministry, the Saudi Commission for Tourism and Antiquities, the Technical and Vocational Training Corporation, the King Abdul Aziz Museum (Darat) and the King Abdulaziz City of Science and Technology to hold talks with Central Asian countries and sign cooperation agreements.
The Cabinet commended the Saudi security forces for arresting 113 terror suspects, including expatriates last week.
According to the Interior Ministry spokesman, the militants were planning to carry out a number of attacks targeting oil and economic installations and security officers across the Kingdom.
Khoja said the Cabinet also agreed to license American Insurance Group (AIG) and Arab National Bank for Cooperative Insurance. The entry of global insurance giant AIG into the Kingdom reflects its economic strength. It also endorsed the judicial cooperation agreement with Sudan.
The Cabinet appointed Saleh bin Abdul Rahman Al-Asheikh as civil engineering consultant at the Ministry of Municipal and Rural Affairs; Abdul Rahman bin Saad Al-Dawood as assistant secretary-general of the Supreme Judiciary Council; and Abdul Aziz bin Suleiman Al-Mishaal as consultant for drafting at the Cabinet's Commission of Experts.
By P.K. ABDUL GHAFOUR
© Arab News 2010
