The Citizen’s Account Program (CAP) in Saudi Arabia is a cash transfer program designed to provide financial assistance to citizens and mitigate the impact of economic reforms on Saudi households. This article delves into the program’s objectives, eligibility criteria, and the impact it has had since its implementation.
Key Facts
- Citizen’s Account Program: Saudi Arabia has implemented the Citizen’s Account Program, which provides monthly payments to eligible citizens. The program aims to reduce the country’s dependency on oil revenues and mitigate the impact of economic reforms on Saudi households.
- Cash Transfer Program: The Citizen’s Account Program has distributed a significant amount of payments since its launch in December 2017. As of April 2022, the program has distributed a total of SR116 billion ($480 million) to 10.3 million beneficiaries.
- Eligibility and Support: The program’s benefits are based on factors such as age, household monthly income, and the number of people living in a property. Approximately 76% of beneficiaries receive full benefits, with an average support of SR1,065 per household.
Objectives of the Citizen’s Account Program
The CAP was established with the following objectives:
- Reducing Dependency on Oil Revenues: The program aims to diversify the country’s economy and reduce its reliance on oil revenues, which are subject to fluctuations in global oil prices.
- Mitigating the Impact of Economic Reforms: The CAP provides financial support to citizens affected by economic reforms, such as the introduction of value-added tax (VAT) and the reduction of subsidies on essential commodities.
- Promoting Social Welfare: The program aims to enhance the social welfare of Saudi citizens by providing direct financial assistance to eligible individuals and families.
Eligibility Criteria and Benefits
The CAP is available to Saudi citizens who meet specific eligibility criteria. These criteria include:
- Age: Applicants must be 18 years of age or older.
- Income: Households with a monthly income below a certain threshold are eligible for the program.
- Number of Dependents: The number of people living in a property is also a factor in determining eligibility.
The program provides monthly payments to eligible beneficiaries. The amount of support varies depending on the household’s circumstances, with approximately 76% of beneficiaries receiving full benefits. The average support per household is SR1,065.
Impact of the Citizen’s Account Program
Since its launch in December 2017, the CAP has had a significant impact on the lives of Saudi citizens. The program has distributed a total of SR116 billion ($480 million) to 10.3 million beneficiaries as of April 2022.
The CAP has helped to mitigate the impact of economic reforms on Saudi households. The monthly payments have provided financial relief to families struggling with rising costs of living and reduced subsidies. Additionally, the program has contributed to improving the overall social welfare of Saudi citizens.
Conclusion
The Citizen’s Account Program is a significant initiative undertaken by the Saudi government to support its citizens during a period of economic transition. The program has successfully provided financial assistance to eligible individuals and families, helping to alleviate the impact of economic reforms and improve social welfare. As the Kingdom continues to diversify its economy and implement reforms, the CAP is expected to play a crucial role in ensuring the well-being of Saudi citizens.
References:
- Citizen’s Account Program (Saudi Arabia) – Wikipedia
- Saudi Arabia’s Citizen Account Program to continue in 2023 – Arab News
- The ‘New’ Saudi Arabia, Where Taxes Triple And Benefits Get Cut – Forbes
FAQs
What is the Citizen’s Account Program?
The Citizen’s Account Program (CAP) is a cash transfer program implemented by the Saudi Arabian government to provide financial assistance to eligible citizens.
What are the objectives of the CAP?
The CAP aims to reduce the country’s dependency on oil revenues, mitigate the impact of economic reforms on Saudi households, and enhance the social welfare of citizens.
Who is eligible for the CAP?
Saudi citizens aged 18 or older, with a monthly household income below a certain threshold, and a specified number of dependents are eligible for the program.
How much support do beneficiaries receive under the CAP?
The amount of support varies depending on the household’s circumstances, with approximately 76% of beneficiaries receiving full benefits. The average support per household is SR1,065.
How many people have benefited from the CAP?
As of April 2022, the CAP has distributed a total of SR116 billion ($480 million) to 10.3 million beneficiaries.
How has the CAP impacted Saudi citizens?
The CAP has helped to mitigate the impact of economic reforms on Saudi households, provided financial relief to families struggling with rising costs of living, and improved the overall social welfare of Saudi citizens.
Is the CAP a permanent program?
The CAP was initially introduced as a temporary measure to address the economic challenges faced by Saudi Arabia. However, the program has been extended several times and is currently scheduled to continue until the end of 2023.
What is the future of the CAP?
The long-term sustainability of the CAP will depend on various factors, including the Kingdom’s economic performance, the success of economic diversification efforts, and the government’s fiscal policies.