Saudi Arabia's non-profit sector adds over $26.7 billion to economy in new record

Saudi Arabia's non-profit sector has surpassed 100 billion Saudi Riyals (approximately $26.7 billion USD) in economic contribution for the first time, accounting for 3.3% of Saudi Arabia's Gross Domestic Product (GDP), according to the "Non-Profit Sector Outlook 2025" report released by the King Khalid Foundation. This milestone achievement signifies a new phase in the development of Saudi Arabia's non-profit sector, highlighting its growing importance to the national economy.

The report emphasized the main sources of contribution within the sector. Specifically, Awqaf contributed 48 billion Saudi Riyals, according to the General Authority of Awqaf, while non-profit organizations contributed 47 billion Saudi Riyals in expenditures, according to the General Authority for Statistics (GASTAT). Furthermore, volunteer services contributed approximately 5 billion Saudi Riyals in economic value, and cooperatives contributed 2 billion Saudi Riyals, based on data from the Ministry of Human Resources and Social Development.

This sector's rapid growth is expected to achieve the "Vision 2030" target of reaching 5% of GDP two years ahead of schedule. Education and research organizations lead in terms of revenue, exceeding 19 billion Saudi Riyals, while health organizations recorded the highest expenditure, reaching 15 billion Saudi Riyals, largely due to the government's transformation of assets in the health and education sectors into non-profit entities. Simultaneously, organizations focused on cultural, 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 together raised over 15 billion Saudi Riyals in 2024. The National Platform for Charitable Work (Ehsan) received significant contributions from small-scale donors (1 Saudi Riyal, 10 Saudi Riyals, and 100 Saudi Riyals), while major philanthropists (donations of 100,000 Saudi Riyals or more) accounted for 26% of total donations.

At the community level, engagement with the non-profit sector remains high, with 23% of Saudi citizens participating in volunteer work and 47% making donations in 2024. This demonstrates the active support and involvement of the Saudi public in non-profit causes, suggesting a strong culture of giving back to the community.