JEDDAH: The General Organization for Social Insurance (GOSI) has invested SR46 billion in local companies including banks, industries and hospitals, according to its annual report for 2009.
"The organization has invested SR900 million in two new industries last year," the report said. Last year GOSI distributed SR7.3 billion among its beneficiaries. The amount is 16 percent more than that of the previous year. Total benefits distributed by the organization amounted to SR61.3 billion.
The number of GOSI subscribers rose by 8.9 percent in 2009. They include 577,600 from the public sector and 12.5 million from the private sector, bringing the total to more than 13 million by the end of 2009, including 4.39 million who are currently in employment and 790,000 Saudis.
"More than 240,000 people are presently receiving GOSI pensions valued at SR621 million a month," the report said. GOSI distributed more than SR56 billion on pension until last year, it said, adding that two million people benefited from these pensions.
"Last year alone the organization gave SR7 billion to 243,000 beneficiaries, registering a 16.1 percent increase compared to the previous year. GOSI's occupational hazard section has given SR4.7 billion to employers who suffered injuries or were involved in accidents while working since it was introduced in 1982. More than 1.6 million benefited from this service.
"In this category we spent more than SR400 million last year and about 38.2 percent of the amount went for medical care," the report said.
GOSI is considered one of the largest investors in the Saudi capital market; it invests in stocks of banks, industries, telecom companies and cement factories. It currently owns 12 buildings including commercial centers and residential apartments, involving a total investment of SR2 billion, the report said. It has embarked on two new projects in Riyadh worth SR2.39 billion.
As many as 218,000 companies and institutions are currently members of GOSI with Riyadh hosting the largest number or 18.5 percent of its clients, followed by the Eastern Province (13 percent), Makkah province (9.5 percent), and Qassim (9.1 percent). Trade is the main activity (34.3 percent) of the majority of companies, followed by construction (32.3 percent), downstream industries (14.6 percent) and services (nine percent).
GOSI was established to implement the provisions of the Social Insurance Law and follow-up the process of achieving the compulsory insurance coverage, collecting contributions from employers and paying benefits for the eligible contributors or their family members.
GOSI is a semi-state body that enjoys administrative and financial independence. It also provides the contributors and their families with a decent life after leaving work due to retirement, disability or death; medical care for contributors afflicted with work injuries or occupational diseases; and necessary compensation in the event of occupational disability or death.
By P.K. Abdul Ghafour
© Arab News 2010
