When instructions were issued by the Kingdom of Hejaz that financial matters were to be managed by a finance directorate, a single entity in the form of a General Directorate of Finance was established on 14/10/1927 . Royal Order No. 381 was issued on 14/5/1932 . changing the name of the General Directorate of Finance to the Ministry of Finance, thus becoming the second ministry to be established after the Ministry of Foreign Affairs. The Ministry of Finance was made responsible for regulating, managing and securing the collection of state funds, and their expenditures, and became the general authority for financial matters in the Kingdom of Hejaz and Nejd and its subsidiaries. In 1936, as the activities of the Ministry of Finance expanded in scope, a number of general directorates were established within the ministry, including the Petroleum and Minerals Directorate, the Public Works Directorate, and the Customs Directorate, in addition to special bureaus concerned with corporations, development projects, cash, Zakah, revenue, and Hajj Affairs. The Personnel and Retirement Bureau was established in 1938 . followed by the Agriculture Directorate in 1948, and on 16/4/1955 , a Communications Agency was established within the Ministry of Finance, and included the Electricity and Postal Directorates and the Roads and Railway Authority. In order to meet the requirements of economic expansion, Ministerial Order No. 518 was issued on 9/8/1951 establishing a bureau to monitor economic affairs and issues related to various international organizations set-up in accordance with the the Security Council resolutions and the United Nations decisions, and also official regional conferences. Royal Decree No. 1697 was issued on 27/6/1953 establishing the Ministry of Economy to replace the Bureau for Economic Affairs. Royal Decree No. 31 was issued on 4/9/1954 merging the Ministry of Economy and the Ministry of Finance into a single ministry called the Ministry of Finance and National Economy. Royal Order No. 2/A was issued on 1/5/2003 transferring responsibility for economic activity from the above-mentioned ministry to the Ministry of Planning, and thus changing the name of the Ministry of Finance and National Economy to the Ministry of Finance, and the name of the Ministry of Planning to the Ministry of Economy and Planning.
Duties of the Ministry
- Supervising implementation of the government’s fiscal and monetary policy and monitoring its implementation by the relevant agencies.
- Preparing the government’s budget, discussing it with government agencies, and monitoring its implementation.
- Controlling the current accounts between the Ministry of Finance and all other government agencies.
- Monitoring the pre-disbursement phase of budgetary funds for all government agencies.
- Supervising government revenue collection activities and ensuring that they comply with the relevant rules and regulations.
- Supervising the annual closing of the government’s accounts and expenditures.
- Supervising and protecting government’s properties.
- Representing the government in international and regional economic and financial institutions, monitoring international financial and economic developments, and preparing thenecessary studies and reports.
- Implementing the government’s resolutions with respect to external assistance.
- Monitoring implementation of the government’s policy for providing loans to individuals and national corporations for various developmental activities through its banks andfunds, including the Agricultural Bank, the Credit Bank, the Industrial Development Fund, the Real Estate Development Fund, and the Public Investment Fund.