Saudi Arabias Non-profit Sector Tops $26bn In Economic Contribution For The 1st Time

RIYADH: Saudi Arabia’s non-profit sector surpassed SR100 billion ($26.6 billion) in economic contribution in 2024 for the first time, accounting for 3.3 percent of the Kingdom’s gross domestic product, a new analysis revealed.

A report from the King Khalid Foundation highlighted that Awqaf represented SR48 billion of the SR114 billion generated, while non-profit organizations contributed SR47 billion in spending, based on data from the General Authority for Statistics.

The new figures fall in line with the Vision 2030 goal of lifting the sector’s contribution to 5 percent of the GDP by 2030. The division’s rapid growth is on track to achieve this goal two years ahead of schedule.

At the end of 2023, the non-profit sector contributed just under 0.9 percent to the economy, according to management consultancy Strategic Gears.

The KKF report further showed that volunteering added an estimated SR5 billion in economic value, while cooperative societies contributed SR2 billion, according to the Ministry of Human Resources and Social Development.

Regarding revenue generation, education and research organizations led the sector, exceeding SR19 billion, while health organizations recorded the highest spending at SR15 billion, driven by the conversion of government assets into non-profit entities. 

Organizations focused on culture, entertainment, and social services reported the highest employment rates.

The report further shed light on funding sources, stressing the role of government support and digital donation platforms, which collectively raised over SR15 billion in 2024.

The National Platform for Charitable Work, or Ehsan, saw a significant contribution from small donors, while major philanthropists, donations of SR100k or more, accounted for 26 percent of the total.

The analysis highlighted that on the community level, engagement in the non-profit sector remained strong, with 23 percent of Saudi citizens participating in volunteer work and 47 percent making donations in 2024.

Speaking to Arab News on the sidelines of COP16 in December, the CEO of the National Center for Non-Profit Sector Ahmed Al-Suwailem said that the Kingdom surpassed its Vision 2030 target of 1 million volunteers six years ahead of schedule.

During the interview, Al-Suwailem explained that the nation’s volunteering journey achieved the target just prior to the end of 2024. 

This falls in line with promoting the concept of volunteering and community participation in Saudi Arabia.