Saudi Gazette report

RIYADH — The Saudi non-profit sector has exceeded, for the first time in its history, the ceiling of SR100 billion in economic contribution, equivalent to 3.3 percent of the gross domestic product (GDP). This was revealed in a Non-Profit Sector Outlook report titled "Prospects for the Non-Profit Sector 2025," prepared by the King Khalid Foundation.

The report highlighted key contributions within the sector: Endowments accounted for SR 48 billion, according to the General Authority for Awqaf, while non-profit organizations contributed SR 47 billion in spending, based on data from the General Authority for Statistics (GASTAT). Additionally, volunteering added an estimated SR 5 billion in economic value, while cooperative societies contributed SR 2 billion, according to the Ministry of Human Resources and Social Development.

The sector's rapid growth is on track to achieve the Vision 2030 target of reaching 5 percent of GDP two years ahead of schedule. Education and research organizations led the sector in revenue generation, surpassing SR19 billion, while health organizations recorded the highest spending at SR15 billion, driven by the conversion of government assets in health and education into non-profit entities. Meanwhile, organizations focused on culture, entertainment, and social services reported the highest employment rates.

The report also examined funding sources, emphasizing the role of government support and digital donation platforms, which collectively raised over SR15 billion in 2024. The National Platform for Charitable Work (Ehsan) saw a significant contribution from small donors (SR1, SR10, and SR100), while major philanthropists (donations of SR100,000 or more) accounted for 26 percent of total contributions.

At the community level, the report monitored citizens' positive engagement in non-profit work through volunteering and donation, as 23% of citizens volunteered, while 47 percent of citizens donated during 2024. This indicates the community's interest in practicing social responsibility as a way of life. This was reflected in their confidence rates in the non-profit sector, which reached 86 percent of Saudis at present compared to 73 percent in 2017.

It is worth noting that the Non-Profit Sector Outlook Report is the first reference report in the Kingdom on the status of the Saudi non-profit sector and its economic and developmental contributions.