Saudi Arabia is looking at ways to boost the non-profit sector by offering several incentives such as exemptions of labor fees, expat fees, zakat, and customs duties to associations and societies operating in this sector. Minister of Human Resources and Social Development Ahmed Al-Rajhi announced this during a virtual meeting with leaders of non-profit organizations. A ministerial committee is currently studying 21 incentives to develop the non-profit sector, with the aim of submitting recommendations by the end of October 2024.
The non-profit sector in Saudi Arabia has seen a significant growth rate of 181 percent, with 5,000 organizations currently operating in this sector. This includes 4,000 societies, 400 private firms, and 530 family funds. The sector’s contribution to the GDP has reached 0.87 percent. Al-Rajhi highlighted that challenges in the non-profit sector have been identified through meetings with private organizations and charitable societies, with 50 percent of these challenges already resolved.
The National Center for the Development of the Nonprofit Sector intends to find solutions to all remaining challenges within a year. The meeting with over 1,000 sector leaders, workers, and stakeholders aimed to discuss challenges and recommendations to enhance the sector’s development and achieve its goals in alignment with the objectives of Saudi Arabia’s Vision 2030. The ministerial committee studying the incentives for the non-profit sector is comprised of ministers of finance, economy and planning, commerce, and human resources and social development.
The proposed incentives, including exemptions of labor fees, financial fees, zakat, and customs duties, are expected to provide a significant boost to the non-profit sector in Saudi Arabia. These measures aim to encourage the growth and development of associations and societies operating in the non-profit sector, ultimately helping them achieve their goals and contribute to the Kingdom’s Vision 2030 objectives. The sector’s growth rate and contribution to the GDP highlight its importance in the country’s economy, making it a key focus for government initiatives and support.
The National Center for the Development of the Nonprofit Sector’s efforts to address challenges within the sector demonstrate a commitment to finding sustainable solutions and fostering its growth and effectiveness. By engaging with sector leaders, workers, and stakeholders, the government is taking a collaborative approach to ensuring the success and sustainability of the non-profit sector. With the support of various ministries and stakeholders, the non-profit sector in Saudi Arabia is poised for further growth and development in the coming years.
