Dr. Faisal Al-Farsi on Social Protection Reforms | Together We Progress Forum 2025
The Legacy of the Previous Social Protection System
At the Together We Progress Forum 2025, Dr. Faisal Al-Farsi, CEO of the Social Protection Fund, shared crucial insights into the challenges faced by the previous social protection system and the transformative changes currently underway.
Dr. Al-Farsi highlighted that one of the most significant challenges of the previous system was the existence of multiple pension funds offering varied benefits. This fragmentation resulted in a substantial deficit in funding, making it difficult to meet obligations to beneficiaries. Additionally, some pension funds encountered obstacles in transferring subscriptions between institutions and sectors, complicating administrative processes and hindering benefit enhancements.
Introducing a New System for Social Protection
The new social protection system aims to tackle these billion-dollar deficits that have accumulated over the years. Dr. Al-Farsi emphasized the importance of addressing the historical imbalance between subscriptions and benefits provided. The new framework is designed to create a more sustainable and equitable social protection system for all stakeholders.
Flexibility and Sustainability in Social Protection
A key feature of the new social protection law is its flexibility. Dr. Al-Farsi stated that while the law can be amended to adapt to changing circumstances, maintaining the sustainability of the fund is paramount. This approach is essential to prevent the recurrence of deficit issues that plagued the previous system.
Clarifying End-of-Service Benefits
Moreover, Dr. Al-Farsi clarified that end-of-service benefits are strictly the responsibility of the institutions involved and bear no relation to the Social Protection Fund. This distinction aims to streamline processes and ensure that the fund can focus on its primary objectives.
Conclusion: A Path Forward for Social Protection
Dr. Faisal Al-Farsi’s insights at the Together We Progress Forum 2025 illuminate the ongoing reforms in the social protection landscape. By addressing past challenges and implementing a more sustainable and flexible system, the goal is to enhance the welfare of beneficiaries and secure the long-term viability of the fund. As these changes take shape, the focus remains on creating a robust framework that meets societal needs while ensuring financial stability.
