Saudi Arabia’s non-profit sector contributes 3.3% of GDP, with education and health sectors leading growth, according to King Khalid Foundation report.

RIYADH, Saudi Arabia. — For the first time in its history, Saudi Arabia’s non-profit sector has exceeded SAR 100 billion in economic contribution, accounting for 3.3% of the Kingdom’s gross domestic product (GDP), according to the “Prospects for the Non-Profit Sector 2025” report by the King Khalid Foundation.

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

This rapid growth positions the sector to achieve the Vision 2030 target of reaching 5% of GDP two years ahead of schedule.

Education and research organizations led the sector in revenue generation, surpassing SAR 19 billion, while health organizations recorded the highest spending at SAR 15 billion, driven by the conversion of government assets in health and education into non-profit entities. Organizations focused on culture, entertainment, and social services reported the highest employment rates.

Funding sources were diverse, with government support and digital donation platforms collectively raising over SAR 15 billion in 2024. The National Platform for Charitable Work (Ehsan) saw significant contributions from small donors (SAR 1, SAR 10, and SAR 100), while major philanthropists (donations of SAR 100,000 or more) accounted for 26% of total contributions.

Community engagement remained robust, with 23% of Saudi citizens participating in volunteer work and 47% making donations in 2024.

Princess Nouf bint Mohammed, CEO of the King Khalid Foundation, commented on the sector’s growth: “The remarkable expansion of our non-profit sector reflects the Kingdom’s commitment to fostering social development and economic diversification. This milestone brings us closer to realizing the ambitious goals of Vision 2030.”

Source: Saudi Press Agency