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Kingdom’s non-profit sector: Means of economic and social development

The non-profit sector in the Kingdom is one of the most important pillars of both economic and social development. Evidence for this is the Kingdom’s government’s endeavor to raise the sector’s contribution to the gross domestic product from 0.3% to 5% in 2030.

Of course, the non-profit sector in the Kingdom occupies a prominent place in Vision 2030, which aims to develop this sector as an important and effective partner in the exceptional and comprehensive development renaissance that the Kingdom is witnessing.

Vision 2030 and the National Transformation Program aim to create the appropriate environment to drive the non-profit sector in the Kingdom towards growth, transforming it into an attractive job market, and community development. They also aim to increase the number of volunteers to one million, and increase the percentage of development expenditure for the sector for these institutions; to reach 51% instead of 21% of its total expenditure, in addition to raising the efficiency and effectiveness of human capital.

Endowment funds

If we are talking about the non-profit sector in the Kingdom, we should not overlook endowment funds, which are one of the new methods of forming and managing endowments. In addition to the fact that these funds provide the necessary support to all beneficiaries of endowments, especially associations of all kinds.

Endowment investment funds are suitable for various forms of endowments, whether buildings, universities, farms, and others. This comes as Saudi Arabia plans, according to its Vision 2030, to raise the proportion of development projects with a social impact from 7% to 33%.

National Center for the Development of the Non-Profit Sector

The National Center for the Development of the Non-Profit Sector aims to organize the role of the non-profit sector organizations in the Kingdom, activate it, and expand it in the development fields. It also works on integrating government efforts in providing licensing services to these organizations, financial and administrative supervision of the sector, and increasing coordination and support.

The center was established in the context of developing the non-profit sector, which is a strategic goal within the Vision 2030 plan aimed at empowering the non-profit sector in the Kingdom and achieving a greater impact for the sector on the social and economic levels. The center is one of the initiatives of the National Transformation Program for the development of the non-profit sector.

The center undertakes multiple tasks that will enable the sector to grow and activate its role in achieving sustainable development. As it will work with all its partners from government agencies, non-profit organizations, companies, and individuals, according to comprehensive governance that achieves a practical flow, providing everyone with the possibility of contributing according to their roles within the non-profit sector system.

Volunteering statistics

Statistics conducted in the Kingdom showed that the alternative economic value of the work of volunteers amounted to more than SAR 1.15 billion.

During the same year, the total number of volunteers was 251,484 male and female volunteers. 805,242 volunteer opportunities were launched, and more than 42 million were beneficiaries of volunteer activities. The economic return through voluntary work was more than SAR 916 million. The non-profit sector in the Kingdom increased to 3,068 organizations by the end of 2021, or by 88% compared to 2017.

The number of these organizations, in the second quarter of 2022, according to the statistics of the Ministry of Human Resources and Social Development, reached 258,304, a rate that exceeded the target. These organizations managed to launch 146,608 volunteer opportunities.

Among the most prominent achievements in the non-profit sector in the Kingdom: are 24 million beneficiaries of volunteering, while the estimated economic return from the volunteering process amounted to SAR 282,564,596.

The report on the prospects for the non-profit sector issued by the King Khalid Foundation for the year 2022 showed an increase in the number of organizations registered in Saudi Arabia to about 7,000 organizations, with a growth rate of 1%, and an increase in the contribution of the non-profit sector to Saudi Arabia’s GDP by more than SAR 8 billion ($ 2.1 billion) annually.

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