Shedding light on the non-profit sector in Saudi Arabia

A report by Strategic Gears on Saudi Arabia’s non-profit sector provides a comprehensive review of the current state of the sector, highlights key trends and developments within the ecosystem, and identifies opportunities for non-profit organizations in the Kingdom.

Spanning sectors such as human services, arts and culture, community recreation, health, education, social enterprises, and government, the non-profit sector plays a key role in Vision 2030, underpinning the Kingdom’s interlinked approach to achieve growth and social impact, while preserving its unique culture and heritage.

On the back of its much-cited report, Strategic Gears was earlier this week invited by national TV station Al-Ekhbareya to provide commentary during a special feature on the non-profit sector.

Fatima Al-Mubarak (an associate partner) at Strategic Gears, made an appearance to discuss the economic and societal importance of the thriving third sector.

“The non-profit sector in Saudi Arabia has deep roots in the Kingdom’s history and is playing a growing role in the domestic economy,” she said. “Moreover, the sector plays a major role in driving the ambition to provide every Saudi with a better quality of life in the future.”

While the sector has shown rapid growth in recent years, Al-Mubarak highlighted how there remains a long road ahead. “At the end of 2023, the non-profit sector contributed just under 0.9% to the economy. The goal of Vision 2030 is to lift the sector’s contribution to 5% of GDP by 2030. Achieving this would require the sector to grow by a factor of five in the next five years.”

Opportunities and priorities

“The main priorities for the non-profit sector in the coming years can be synthesized into three points,” summarized Al-Mubarak during her airtime on Al-Ekhbareya.

“First, the involvement of volunteers in the sector must be increased, so that the aggregate volunteer hours of work surpass 800 million hours – an important reference target set by the National Transformation Program.”

“The second priority should focus on supporting the realization of Vision 2030’s social responsibility objective of building a vibrant society. Non-profit organizations, by design, serve the economic and social wellbeing of vulnerable households so that they can have a decent living standard. Introducing and implementing initiatives that build a better quality of life for all are essential.”

The third factor relates to increasing the number of non-profit organizations, and just as important, their scope, geographical coverage, and impact. “As it stands, the sector is concentrated in activities related to housing (33%), social services (24%), and religious guidance (18%). Organizations that relate to health and education assistance make up only 10% of the sector combined,” Al-Mubarak pinpointed.

Saudi Arabia’s plan for the non-profit sector is part of its broader Vision 2030 initiative, which seeks to diversify the economy and promote social development.