10 Burning Questions About Saudi Arabia’s Non-Profit Sector – Answered!

Introduction:

Saudi Arabia strives for growth and progress in all fields, aiming to achieve sustainable development—a key pillar of Vision 2030. This vision focuses on advancing various sectors without depleting natural resources or compromising the rights of future generations.
The non-profit sector is vital in driving sustainable development through impactful social, environmental, and economic initiatives that enhance quality of life. These efforts include poverty eradication, quality education, gender equality, climate action, and more. Additionally, the sector fosters partnerships between the public and private sectors to achieve national development goals.
With the growing attention to the non-profit sector in the Kingdom, many questions have emerged regarding its direction, initiatives, and impact. In this article, we address some of the most frequently asked questions about Saudi Arabia’s non-profit sector and provide insightful answers.

The Non-Profit Sector in Questions [Everything You Need to Know]

1- What is the Non-Profit Sector?

Any institution that aims to address social and developmental needs without generating financial profits for its founders—whether individuals or corporations—falls under the non-profit sector. This means that any financial returns are reinvested into the community rather than distributed as earnings. In other words, the non-profit sector encompasses charitable activities, volunteer services, and non-governmental organizations (NGOs) that operate without a profit motive. Instead, they work toward goals such as philanthropy, solidarity, cooperation, social development, or other public or designated benefits.

2- What Are the Types of Non-Profit Organizations?

The non-profit sector in Saudi Arabia includes a diverse range of organizations, such as:

• Charitable associations
• Private foundations
• Social development committees
• Professional bodies
• Non-profit universities and colleges
• Chambers of commerce
• Scientific societies
• Non-profit hospitals
• Cooperative societies
• Family funds

3- What Are the Different Names for the Non-Profit Sector?

The non-profit sector has gained significant attention and is known by various names, all reflecting its purpose and role:

• The Third Sector – It operates alongside the public and private sectors.
• The Voluntary Sector – Highlighting the strong presence of volunteer work.
• The Charitable Sector – Emphasizing its core mission of doing good.
• The Civil Sector – Since it is driven by community members.
• The Social Economy Sector – Recognizing the role of some organizations in social entrepreneurship.
• Civil Society – As it includes independent organizations and associations separate from government and business sectors.

4- What Is the History of the Non-Profit Sector? When Did It Begin?

The roots of the non-profit sector in Saudi Arabia run deep in cultural and religious traditions, with charity and endowments playing a significant role in Islamic society for centuries. Before the establishment of the Kingdom, the sector evolved through four key phases that shaped its impact and responsibilities:

• Phase One (Pre-Establishment of Saudi Arabia): Charitable efforts were driven by individual initiatives and endowments, with communities establishing waqfs (endowments) to support the poor, build mosques, and fund education.

• Phase Two (Formalization Under Government Supervision): The sector became more structured with the establishment of charitable associations under government oversight, particularly through the Ministry of Labor and Social Development (now the Ministry of Human Resources and Social Development). Key initiatives included the Supreme Charity Committee, the National Ambulance Association, the Cooperative Societies System, and the First Women’s Charity Association.

• Phase Three (Early 2000s – Expansion & Regulation): The number of charitable and non-profit organizations grew significantly. Key developments included the establishment of the General Authority for Awqaf, the King Salman Humanitarian Aid and Relief Center, and the Association Support Fund. The government also introduced regulations to enhance transparency and governance.

• Phase Four (Vision 2030 – Transformation & Growth): With the launch of Vision 2030, the sector witnessed a major transformation. The government established the National Center for the Development of the Non-Profit Sector, introduced digital donation platforms, and announced the Prince Mohammed bin Salman Non-Profit City. Increased government support has positioned the sector as a key contributor to sustainable development.

5- What Are the Objectives of the Non-Profit Sector?

The non-profit sector aims to improve quality of life and promote social, humanitarian, and religious values. Its objectives vary based on societal needs and challenges, including:

• Providing aid to vulnerable groups, including the poor, sick, orphans, and elderly.
• Enhancing community skills through training, education, and awareness programs.
• Offering psychological and social support to those affected by wars, natural disasters, and crises.
• Supporting community development through financial, technical, and educational assistance.
• Protecting the environment and raising awareness about sustainability and conservation.

6- What Are the Key Areas of the Non-Profit Sector?

The scope of non-profit work varies by country and community needs. In Saudi Arabia, the National Center for the Development of the Non-Profit Sector has identified 10 main developmental areas, encompassing over 100 subfields. These key areas include:

• Environment
• Education & Research
• Development & Housing
• Culture & Entertainment
• Social Services
• Professional Associations
• Health
• Religious Guidance & Pilgrim Services
• Charitable Support Organizations
• Advocacy & Public Support

7- What Are the Most Notable Non-Profit Initiatives?

Saudi Arabia has seen significant growth in non-profit initiatives, especially with Vision 2030's strong emphasis on the sector. Some of the most prominent initiatives include:

• Misk Non-Profit City: The first non-profit city in Saudi Arabia, designed to elevate the sector globally. It hosts non-profit organizations and integrates cutting-edge technologies like AI, IoT, and robotics to foster innovation and volunteerism.
• Riyadh Non-Profit Foundation: Focuses on social and economic development by funding and designing innovative social programs. It supports key sectors such as health, education, culture, and environmental sustainability.
• Quality of Life Program: Aim to promote community activities by streamlining licensing for hobby clubs and enhancing the financial sustainability of the non-profit sector.
• Misk Foundation’s Non-Profit Youth Incubator: Provides intensive training in financial sustainability and strategic planning to empower youth-led non-profit initiatives.

8- What Are the Government-Backed Digital Donation Platforms?

Digital donation platforms were launched to connect donors with those in need, ensuring credibility and oversight by various government entities depending on the platform’s focus. Some of the most notable platforms include:

• Jood Eskan (2019): Provides housing units for the most vulnerable families and is overseen by the Sakan Charity Foundation under the Ministry of Housing.
• Ehsan (2020): Covers various charitable fields and is supervised by the Saudi Authority for Data and Artificial Intelligence (SDAIA).
• Waqfy (2020): Specializes in supporting endowments and is managed by the General Authority for Awqaf.
• The National Donations Platform (2020): Facilitates donations across various sectors and is overseen by the Ministry of Human Resources and Social Development.
• Shifa (2021): Focuses on healthcare donations and is supervised by the Health Endowment Fund under the Ministry of Health.
• Sahem (2022): Enables electronic donations to humanitarian programs led by the King Salman Humanitarian Aid and Relief Center worldwide.

9- What Challenges Does the Non-Profit Sector Face?

Despite its significant progress, the non-profit sector in Saudi Arabia encounters several challenges that may slightly hinder its goals. These challenges include:

• Financial Sustainability: While the government provides substantial support, securing additional funding sources remains a crucial issue. Innovative strategies are needed to ensure sustainable financing for social initiatives.
• Public Awareness: Continuous education and awareness about social responsibility can significantly increase community participation in non-profit activities.
• Governance & Transparency: Strengthening governance structures will enhance accessibility for all members of society, while improved transparency is essential to building public trust in non-profit organizations.

10- What Are the Key Achievements of the Non-Profit Sector in Saudi Arabia?

A report by the Unified Media Program highlighted the sector’s most notable achievements, including:

• Over 5,000 non-profit organizations now operating across the Kingdom.
• More than 834,000 volunteers engaged in charitable work.
• 0.87% contribution of non-profit organizations to the Kingdom’s GDP.
• 0.55% of the total workforce is employed in the non-profit sector.
• 6 billion SAR in government contracts allocated to outsourcing services to the non-profit sector.