Since its inception in December 2017, the Citizen Account Program has been crucial in protecting Saudi families from the direct, indirect, and anticipated consequences of economic reforms in the Kingdom. Through monthly cash transfers, the program directly deposits financial support into the accounts of beneficiaries, ensuring that the most vulnerable populations can mitigate the financial strain caused by reforms. This initiative has been a fundamental part of the government’s broader efforts to safeguard the well-being of its citizens as the Kingdom navigates major changes in its economic landscape.
The launch of this program reflects the government’s understanding that certain segments of the population, particularly low-income families, would face significant difficulties in bearing the full impact of these reforms without additional support. Among the most impactful reforms are those related to the energy and water sectors, which involve price increases that will inevitably drive up the overall cost of living. The Citizen Account Program thus serves as a buffer, enabling citizens to manage the effects of these price hikes and maintain their quality of life.
Continuing Financial Support for Beneficiaries
In line with the royal directives issued by The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and based on the recommendations of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, the government has decided to extend the additional financial support provided through the Citizen Account Program. This extension will ensure continued support for beneficiaries for an additional three months, covering payments up until the March 2023 batch. Furthermore, registration for the program has been reopened to allow new beneficiaries to join and access the support they need.
This extension builds upon a royal directive issued in July 2022, which allocated a substantial amount of SAR 20 billion to support the Citizen Account Program. This includes SAR 8 billion designated as additional financial aid for beneficiaries to help ease the financial pressures at the close of the fiscal year 2022. The directive also emphasized the reopening of the registration process under the same established criteria, ensuring that support is distributed efficiently and equitably.
These ongoing efforts demonstrate the government’s unwavering commitment to ensuring that Saudi citizens are not left to bear the burdens of economic reforms alone. The financial backing provided by the Citizen Account Program is a critical part of the Kingdom’s broader social safety net and economic modernization strategies.
Core Objectives of the Citizen Account Program
The Citizen Account Program has been designed with several key objectives in mind, all aimed at ensuring the economic stability and well-being of Saudi citizens. The primary goals of the program include:
Alleviating Financial Burdens: The program seeks to reduce the financial strain on Saudi families, particularly those in low- and middle-income brackets. By providing direct cash transfers, it ensures that families can better cope with rising costs, especially as the Kingdom adjusts energy and water prices as part of its ongoing economic reforms.
Mitigating the Impact of Economic Expansion: As Saudi Arabia embarks on a series of ambitious economic expansions and reforms, there is an inherent risk that some citizens may experience financial hardship. The Citizen Account Program acts as a buffer, compensating citizens for any potential risks or disadvantages that might arise from these efforts, ensuring that they are not disproportionately affected by the Kingdom’s growth initiatives.
Enhancing the Quality of Life: By providing direct financial support, the Citizen Account Program helps improve the standard of living for recipients. It ensures that citizens can maintain a stable financial position despite the broader economic changes taking place around them. The program is designed to help foster a more equitable society by reducing the financial disparity between different socioeconomic groups.
Optimizing Government Support: One of the key elements of the program is its ability to streamline and optimize the way government support is distributed to citizens. Rather than providing blanket subsidies for energy products, the program targets assistance to those who need it most, using a comprehensive system that ensures benefits are directed effectively. This approach enhances the efficiency of government spending and ensures that funds are allocated in a way that maximizes their impact.
Encouraging Sustainable Resource Consumption: The program also plays a role in encouraging responsible consumption of energy and water. By incentivizing rational use of resources, it aligns with the Kingdom’s broader goals of sustainability and resource conservation. This is an essential component of the program, as it helps reduce overall demand for energy and water products while promoting environmentally responsible behavior among citizens.
Through these core objectives, the Citizen Account Program reflects the Kingdom’s commitment to supporting its citizens in the face of economic transformation, ensuring that financial support reaches those who need it most while encouraging more sustainable consumption practices.
Key Drivers Behind the Citizen Account Program
The launch of the Citizen Account Program was motivated by several key factors that reflect both the economic challenges facing Saudi citizens and the government’s broader strategic goals. The primary drivers behind the program include:
Reducing the Impact of Economic Reforms on Vulnerable Groups: One of the central reasons for launching the program was to reduce the adverse effects of economic reforms on people with low or limited incomes. These citizens would be most affected by price increases in energy and water products, and the program aims to cushion them from these impacts by providing financial assistance.
Achieving Fiscal Balance: The Kingdom’s fiscal policies involve adjusting the prices of energy and water products to achieve greater financial sustainability. While these reforms are necessary for long-term fiscal health, they could burden families in the short term. The Citizen Account Program helps manage these price increases, ensuring that the fiscal adjustments are balanced with adequate support for citizens.
Improving Government Support Efficiency: The Citizen Account Program enhances the overall efficiency of support distribution by developing a centralized system for distributing government benefits. This system allows the government to redirect financial aid to where it is needed most rather than applying broad subsidies to all citizens. The program thus helps optimize public spending and ensures more targeted assistance.
Redistributing Support to Those Who Truly Need It: The program ensures that government support is redistributed to actual beneficiaries. Cash allowances are disbursed through bank transfers, directly reaching eligible families. This targeted approach helps reduce waste and ensures that financial resources are spent most virtually.
Encouraging Responsible Consumption: A key goal of the program is to promote the rational consumption of energy and water products. By linking financial support to consumption behaviors, the program encourages citizens to be more mindful of their resource use, aligning with the Kingdom’s broader goals of sustainability and conservation.
These objectives highlight the multifaceted nature of the Citizen Account Program, which serves not only as a financial lifeline for vulnerable citizens but also as a tool for achieving the Kingdom’s economic and environmental goals.
How to Benefit from the Citizen Account Program
To apply for and receive benefits from the Citizen Account Program, eligible citizens must follow a simple registration process. Applicants are required to provide the following documentation and information:
National identity and family card: These documents are used to verify the applicant’s identity and family status.
Employment details and salary information: This is essential for determining eligibility based on income.
Additional income information: If applicable, applicants must disclose any other state benefits or additional sources of income.
Spouse’s income: If married, applicants must disclose their spouse’s income, if any.
Bank account number (IBAN): The account must be active to receive monthly payments.
Status card for unemployed individuals: Individuals without employment must provide a status card indicating their unemployment status.
Status cards for government employees and private-sector workers: Employed individuals must provide relevant documentation confirming their employment status.
Income Criteria: The monthly income of the applicant must not exceed SAR 20,000 in order to qualify for the program.
Benefits of the Citizen Account Program
The Citizen Account Program provides financial support to eligible families based on their income level. The benefits are structured as follows:
100% compensation for low-income families: Families with a monthly income below SAR 20,160 are eligible for a monthly payment of SAR 1,200.
75% compensation for middle-income families: Families with an income slightly above the low-income threshold will receive SAR 1,000 per month.
50% compensation for families with above-average income: Families in this bracket receive SAR 600 per month.
Who is Eligible to Benefit from the Program?
The Citizen Account Program is designed to provide support to various groups within the Saudi population, including:
Single Saudi nationals: Any unmarried Saudi national is eligible to apply for the program.
Saudi families: The program is available to families that meet the income and documentation requirements.
Holders of a mobility card: Individuals who hold a mobility card in the Kingdom are also eligible for benefits.
Saudi families married to non-Saudis: Saudi families who are married to foreign nationals can benefit from the program as long as they meet the eligibility criteria.
Non-Saudi spouses of Saudi citizens: The spouses of Saudi nationals, regardless of their nationality, are also eligible to receive support through the program.
Through its inclusive design, the Citizen Account Program ensures that financial aid reaches all segments of the population that require assistance, reinforcing the Kingdom’s commitment to providing economic stability for all its citizens.
