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Saudi Arabia’s Non-Profit Sector Sets $26.7B Economic Record

Abdul Razak Bello March 7, 2025Last Updated: March 7, 2025

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Saudi Arabia’s non-profit sector hit a most important milestone by contributing over SAR 100 billion ($26.7 billion) for the first time. The sector now represents 3.3% of the Kingdom’s GDP. Awqaf (endowments) generated SAR 48 billion while non-profit organizations added SAR 47 billion through their spending activities. The sector shows strong community involvement with 23% of Saudi citizens who take part in volunteer work. About 47% of citizens made charitable donations in 2024. The sector’s economic contribution jumped from 0.9% in 2023 to its current level. This rapid growth means the sector will reach its Vision 2030 target of 5% GDP contribution two years early, which shows the Kingdom’s successful economic diversification efforts.

Non-Profit Sector Drives Saudi Arabia Economy to New Heights

Saudi Arabia’s non-profit sector shows remarkable growth through multiple revenue streams and smart initiatives. Educational and research organizations lead the way in revenue generation. They have generated more than SAR 19 billion. Health organizations spent the most at SAR 15 billion after converting government assets into non-profit entities.

This growth fits perfectly with Saudi Arabia’s plans to diversify its economy. The funding landscape looks promising. Government support and digital donation platforms raised over SAR 15 billion in 2024. The National Platform for Charitable Work (Ehsan) received strong support from small donors. Large philanthropists contributed 26% of the total donations.

The sector will grow between 17% and 18.5% yearly over the next seven years. This is a big deal as it means that the sector’s deep roots in the Kingdom’s history and its role in economic development are paying off. The sector has expanded into several key areas:

Human services and social enterprises
Arts, culture, and community recreation
Health and education initiatives
Government partnerships

The General Authority for Statistics offers detailed data about the sector’s economic effect by measuring:

Worker compensation and weekly working hours
Volunteer participation rates by nationality
Expenditure volumes across different segments
GDP contribution percentages

The sector follows the United Nations Directory of Non-Profit Organizations classification system. This system has 12 main categories that match the International Standard Industrial Classification of Economic Activities. Such organization helps track and evaluate the sector’s performance effectively.

King Khalid Foundation’s biennial reports track progress toward Vision 2030 goals. The sector now has 6,902 NPOs, showing a 166% growth rate. Employment has risen to 72,151 workers. These numbers surpass the National Transformation Program’s target of 50,000 jobs, highlighting the sector’s vital role in job creation and economic growth.

Saudi Arabia’s steadfast dedication to promoting social development alongside economic growth shows in these results. Through strategic collaborations and innovative funding approaches, the non-profit sector strengthens its position as a vital force in the Kingdom’s economic diversification efforts.

Digital Platforms Transform Charitable Giving Landscape

Digital transformation in Saudi Arabia’s non-profit sector has created strong platforms that make charitable giving easier. The National Platform for Charitable Work (Ehsan), 2 years old, has processed donations worth SAR 5 billion. These donations have helped more than 4.8 million people.

Ehsan uses data and artificial intelligence to optimize development projects. The platform added the Istihqaq (eligibility) service with support from the Saudi Data and Artificial Intelligence Authority (SDAIA). This service checks beneficiary eligibility through a unified database. Each charitable entity has its own account system to manage donations and create reports.

The National Donation Platform (Tabara), launched in 2020, connects donors with beneficiaries across Saudi regions. The Ministry of Human Resources and Social Development oversees this platform. These digital platforms have collected over SAR 15 billion in 2024.

The platforms’ success comes from their intuitive design. Studies show donors participate because of sympathy, personal satisfaction, and community connection. A trustworthy and easy-to-use interface plays a vital role to encourage donor participation.

These digital initiatives show impressive results:

Ehsan saw over 558,000 donors helping 476,000 beneficiaries in just one day during Ramadan
The National Donation Platform processed 6,085,966 transactions by August 2023
Small donations (SAR 1, SAR 10, and SAR 100) show high participation rates. Major philanthropists contribute 26% of total donations

The platforms support charitable causes of all types, from education and healthcare to emergency relief. Users can share donation opportunities on social media through the Ghiras service, which increases reach and impact. Government entities’ involvement adds credibility and ensures effective use of resources.

These digital platforms have altered the map of Saudi Arabia’s charitable giving. They line up with Vision 2030’s goals to promote transparency and efficiency in the non-profit sector. This success highlights the sector’s dedication to technological progress and sustainable development.

Education and Healthcare Lead Sector Growth

Saudi Arabia’s non-profit sector shows education and research organizations leading the way with revenues of SAR 19 billion. Health organizations have made a big impact too, with SAR 15 billion in expenditures. We converted government assets into non-profit entities, which led to this success.

Vision 2030’s detailed approach to social development shapes the healthcare transformation. The Healthcare Sector Transformation Program builds an integrated system that welcomes state-of-the-art solutions, financial sustainability, and disease prevention. Saudi Arabia now offers better e-health services, improved care quality, and meets international standards.

SEHA Virtual Hospital stands out as a remarkable achievement in modern healthcare. Launched in 2022, this largest facility of its kind in the world connects more than 150 hospitals and provides over 30 specialized health services. The Kingdom values healthcare so much that it represents 16.96% of its 2023 budget.

The education sector keeps moving forward with several key initiatives:

Universities like Dar Al-Hekma and Effat now include social entrepreneurship in their curricula
New Arabic educational materials teach social entrepreneurship
Students participate in workshops and competitions that encourage innovation
Entrepreneurs connect with public and private organizations through technical support programs

The Ministry of Health aims to launch over 100 public-private partnership projects in health services, with expected private investments of SAR 47 billion. Right now, 19 partnership projects are active with investments of SAR 10.65 billion.

This growth helps achieve Vision 2030’s main goal of better quality of life throughout the Kingdom. Non-profit organizations deliver vital services:

Healthcare and support services for specific needs
Educational programs that build capacity
Programs that develop communities
Environmental protection initiatives
Help for vulnerable populations

The sector develops sustainably through institutional frameworks, official licensing, and regulated operations. Organizations manage themselves independently while following general laws and legislation, which creates a balance between freedom and responsibility in service delivery.

Saudi Arabia’s non-profit sector proves successful economic diversification through bold initiatives and digital innovation. The sector contributed a record-breaking $26.7 billion. Education and healthcare organizations lead this substantial growth with targeted programs and strategic collaborations.

Ehsan and Tabara digital platforms show how the Kingdom modernizes charitable giving. These platforms help millions of citizens participate effectively. The strong community spirit shines through high volunteer participation rates, which sets up the sector for continued growth.

Vision 2030 targets have been achieved ahead of schedule. This early success proves the sector’s crucial role in transforming Saudi Arabia’s economy. The non-profit sector continues to focus on education, healthcare, and social development initiatives. It serves as the life-blood of the Kingdom’s diversified economy and will affect positive change for years to come.