Saudi Cabinet approves new cooperatives law, labor minister hails move
Labor minister Ahmed Al-Rajhi praises the leadership's approval of the new cooperatives law, saying it will drive sector growth and sustainability.
Saudi Arabia's Cabinet has passed a new cooperatives law, with the labor minister hailing the move as a significant step forward. Ahmed Al-Rajhi, the Minister of Human Resources and Social Development, praised the leadership's decision, stating that it will stimulate sector growth and sustainability. The minister credited King Salman and Crown Prince Mohammed bin Salman for their support in getting the law approved by the Cabinet.
Al-Rajhi emphasized that the new law represents a major shift toward a more flexible legislative framework, emphasizing growth, empowerment, and sustainability. He explained that the law enhances the independence of cooperatives, upholds principles of governance, transparency, accountability, and member participation. Furthermore, the legislation empowers central cooperatives and expands the scope of shared services.
The minister highlighted that the law also regulates mergers to optimize resource use and competitiveness, supports the diversification of activities and investments, and helps achieve the sector's financial sustainability. Al-Rajhi noted that the legislation is the result of an institutional effort that incorporated international experiences and best practices, drawing input from relevant authorities, the cooperative sector, and stakeholders.
The labor minister concluded by affirming that the new law lays the foundation for a more dynamic and sustainable cooperative sector. He stressed that it supports local community empowerment, creates new economic opportunities, and broadens partnerships, ultimately boosting the sector's contribution to non-oil GDP and national development.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
