We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 21 Jan 2016 05:00 PM

Font Size

- Aa +

Saudi Arabia to consider reforms to social insurance fund

Shura Council also recommends that fund diversifies property portfolio in bis to increase returns

Saudi Arabia to consider reforms to social insurance fund

Saudi Arabia's Shura Council is considering proposals to revise the investment strategy of the kingdom's social insurance fund in order to raise returns, the government advisory body said in statement posted on state news agency SPA.

The Shura Council's finance committee also recommended the General Organization for Social Insurance (GOSI) consider tying retirement benefits to the inflation rate and diversifying its real estate portfolio beyond the capital Riyadh, SPA said.

Saddled with a huge budget deficit due to low oil prices, the government of the world's top oil exporting country is looking at a wide range of reforms to save money, increase the efficiency of state spending and increase revenues.

GOSI is one of the world's largest public pension funds, with some $448 billion in assets, according to a survey by the Organisation for Economic Co-operation and Development in 2013.

Among the benefits offered to its roughly 9.5 million subscribers are medical insurance, old-age pensions and disability and survivor grants.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.