Saudi Arabia is taking significant steps to foster the growth and development of its non-profit sector. Minister of Human Resources and Social Development Ahmed Al-Rajhi recently announced plans to offer various incentives to associations and societies operating in this field.
Government Review of Non-Profit Incentives
A ministerial committee is reviewing a list of 21 incentives aimed at boosting the non-profit sector. These include exemptions from various fees and duties, including labor fees, expat fees, zakat and customs duties. The committee, comprising ministers from finance, economy and planning, commerce, and human resources and social development, plans to submit its recommendations by October 2024.
Growth in the Non-Profit Sector
The non-profit sector in Saudi Arabia has seen remarkable growth, achieving a 181 percent increase. The sector now includes 5,000 organizations, with 4,000 societies, 400 private firms, and 530 family funds. The sector’s contribution to the GDP has reached 0.87 percent.
Addressing Challenges and Promoting Growth
The government is committed to addressing the challenges faced by the non-profit sector. Through meetings with private organizations and charitable societies, they have already resolved 50 percent of these challenges.
The National Center for the Development of the Non-Profit Sector aims to find solutions for the remaining challenges within a year.
A recent meeting attended by over 1,000 stakeholders from various regions of Saudi Arabia provided an opportunity to discuss challenges and recommendations for further sector development. The goal is to ensure that the non-profit sector aligns with the objectives of the Kingdom’s Vision 2030.