About Qawaem :
Qawaem is a program established by the Ministry of Commerce in cooperation with the Saudi Organization for Certified Public Accountants to provide a set of services related to financial statements and information of enterprises. It enables corporations and audit firms to upload and send their financial statements via XBRL language to be used by relevant parties, e.g. governmental sectors, etc.
Qawaem program aims at improving and increasing work efficiency and making use of the uploaded financial statements in order to provide outstanding services to beneficiaries, users and stakeholders through:
- Converting hard copies of financial statements into soft ones, uploading and making these available online, this shall support the credibility of financial statements with the stakeholders, e.g. Ministry of Commerce, General Authority of Zakat and Income, commercial banks and other beneficiaries.
- Prompt provision of financial statements to the stakeholders through supplying the required information with high accuracy and in a timely manner.
- Creating databases on accounts of the enterprises and corporations to be used by analysts, governmental agencies and researchers.
- Providing important economic information to assist planners.
- Identifying deviations in performance by enterprises through electronic comparison of performance indicators.
The above objectives shall collectively contribute to raising transparency level and accuracy of financial information, which in turn shall enhance the economic database of the commercial sector in the Kingdom of Saudi Arabia.
The economic feasibility of Qawaem e-project varies between a set of financial, logistic, statutory and economic benefits as follows:
Financial benefits :
Qawaem project shall assist working enterprises in the Kingdom to enter into contracts with all governmental or non-governmental authorities, especially those contracts which require review of financial statements of the enterprises. The e-project shall further assist enterprises and corporations in receiving the necessary financial requirements from the banks or financial institutions due to accuracy of their financial information. This builds confidence at the financing institutions and enables them to make the necessary decisions in favor of the two parties and preserves the rights of each other, which shall ultimately reduce commercial disputes or conflicts.
Logistic benefits :
Qawaem project provides variable choices to all sectors, whose work requires review of financial statements of companies or enterprises that work in the Kingdom, e.g. banks and financial institutions that need to review such statements in case of loan or financial facility applications. Qawaem shall assist these sectors in taking an informed decision that requires technical, financial and economic studies based upon the review of such financial statements.
Statistical benefits :
It is a strategic aim to find accurate statistics characterized by clarity and transparency on all working enterprises in the Saudi market to enhance transparency in the Saudi business sector. This shall further assist planners to develop plans and studies that promote business activities and assist entering into agreements, conventions and transactions with counterparts on a global basis. Thus, the information presented by Qawaem shall assist local, regional, Arab and international organizations working in the field of economic designs to rate the Saudi organizations and enterprises on a correct and accurate basis, the matter that shall enable them to obtain more advantages from such rating and achieve financial and economic targeted aims.
Statutory benefits :
The statutory feasibility of Qawaem project does not only include control and follow-up of financial statements of enterprises by relevant authorities and stakeholders, but also assists shareholders and entitled parties; such enterprises and institutions; to maintain their rights through complete and accurate review of such rights and entitlements and have a clear and transparent idea about the financial position of the company whose shares are owned by them.
Ministry of Commerce further defines the importance of economic feasibility of the e-project in contributing to activating the economic term of "corporate governance". The financial statements, which are audited by chartered accountants before being uploaded online on the e-platform, provide transparency in presenting information to all partners and shareholders. In addition, they help in supervising enterprises' commitment to rules and regulations of the Ministry of Commerce in terms of the timing of depositing financial statements, which achieves significant economic feasibility of the state and the relevant authorities.
Last Update : 3 March 2020