Saudi Arabia's Non-Profit Sector Tops SAR 100 Billion Impact
Saudi Arabia's non-profit sector has contributed over SAR 100 billion to the national economy, making up 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. GASTAT
The report highlights key economic contributions within the sector: Awqaf accounted for SAR 48 billion, as per the General Authority for Awqaf, while non-profit organizations contributed SAR 47 billion in spending, based on data from the General Authority for Statistics (GASTAT). Additionally, volunteering generated an estimated SAR 5 billion in economic value, and cooperative societies added SAR 2 billion, according to the Ministry of Human Resources and Social Development.
The sector's rapid growth is positioning it to achieve the Vision 2030 goal of reaching 5% of GDP two years ahead of schedule.
Education and research organizations led revenue generation, surpassing SAR 19 billion, while health-related organizations recorded the highest spending at SAR 15 billion—largely driven by the transformation of government assets in health and education into non-profit entities. Meanwhile, organizations focused on culture, entertainment, and social services reported the highest employment rates. Ehsan
The report also examined funding sources, emphasizing the impact of government support and digital donation platforms, which collectively raised 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 (donating SAR 100,000 or more) accounted for 26% of total contributions.
Community engagement in the non-profit sector remained strong, with 23% of Saudi citizens participating in volunteer work and 47% making donations in 2024.
The full report is available for download on the King Khalid Foundation's official website: www.kkf.org.sa.
Related Topics :
Saudi Non-Profit Sector Revenue Surges to $14.5 Billion in 2023
Future of Sustainability Initiative: Saudi Arabia Promotes Fashion Recycling
Saudi Arabia Shines at ITB Berlin with Immersive 'Saudi Land' Showcase
Saudi Arabia to Launch NextGen Investment Forum to Cultivate Future Hospitality Leaders
Short link :
Post Views: 1
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
6 hours ago
- Arab News
Saudi carrier flynas to expand operations across 4 hubs, official says
RIYADH: Saudi Arabia's low-cost carrier flynas is set to expand operations across its four main hubs — Riyadh, Jeddah, Madinah, and Dammam — as part of an ambitious growth plan, according to a top official. In an interview with Al-Eqtisadiah, Waleed Ahmed, the company's official spokesperson, said that flynas holds the largest aircraft order in the Kingdom and one of the biggest in the Middle East, with a total of 280 aircraft set to be received. This follows a major deal signed in July with Airbus to acquire 160 new aircraft — including 30 wide-body A330neo and 130 single-aisle jets across A320neo, A321neo, and A321LR models. The airline has seen a sharp rise in passenger traffic, with volumes climbing from around 11 million in 2023 to more than 14.7 million in 2024, reflecting the low-cost carrier's rapid expansion in line with Saudi Arabia's push to position itself as a leading global hub for tourism and business. 'These numbers reinforce the company's role in supporting Vision 2030, which aims to increase the number of passengers to 330 million and attract more than 150 million international passengers by that year.' Ahmed said, as quoted by Al-Eqtisadiah. He also highlighted that, as part of its ambitious strategic plan, flynas has expanded its summer schedule by launching four new destinations for the first time: Krakow in Poland, Geneva in Switzerland, Milan in Italy, and Rize in Turkiye, in addition to its usual summer routes. Last week, flynas finalized its initial public offering at SR80 ($21) per share — the top of its indicated price range — following strong demand from both institutional and retail investors. The pricing values the airline at an estimated market capitalization of SR13.6 billion at listing. The offering followed the company's announcement last month of its intention to float 30 percent of its share capital on the Saudi Exchange, making flynas the first airline in the Kingdom to go public and the first Gulf airline IPO in nearly two decades. In line with its ongoing fleet expansion, flynas recently took delivery of its fourth Airbus A320neo of 2025, bringing the total number of A320neo aircraft in its all-Airbus fleet to 57. The current fleet includes 63 aircraft — 57 A320neo, four A320ceo, and two A330neo wide-body jets.
Arab News
9 hours ago
- Arab News
Non-oil sector drives Saudi Arabia's GDP growth to 3.4% in Q1: GASTAT
RIYADH: Saudi Arabia's economy expanded by 3.4 percent year on year in the first quarter of 2025, propelled by robust growth in non-oil activities, according to official data. The estimates released by the General Authority for Statistics showed that the seasonally adjusted real gross domestic product also saw a quarterly rise of 1.1 percent, signaling sustained economic momentum. The non-oil sector emerged as the primary engine of growth, increasing by 4.9 percent compared to the first quarter of 2024. In contrast, oil activities contracted by 0.5 percent year on year, reflecting ongoing volatility in the energy sector. Saudi Arabia's GDP growth aligns with the broader Middle East trend, where countries are steadily advancing economic diversification. The UAE's Ministry of Economy forecasts a 5-6 percent growth rate in 2025, fueled by robust performance in key sectors such as technology, renewable energy, trade, financial services, and infrastructure. Meanwhile, Fitch Ratings has lowered Qatar's 2025 real GDP growth forecast from 2.9 percent to 2.6 percent, citing the effects of US tariffs on global growth, weaker energy prices, and heightened investor caution amid rising international uncertainty. In a release covering the latest Saudi Arabia figures, GASTAT stated: 'The main driver of growth in real GDP was non-oil activities, which contributed 2.8 percentage points. Government activities and net taxes on products also contributed positively adding 0.5 and 0.2 PP respectively.' Sectoral performance According to the GASTAT report, several non-oil sectors posted strong growth across the quarter, with the wholesale and retail trade, restaurants, and hotels sector leading at an 8.4 percent annual increase. The transport, storage, and communication sector also showed robust performance, growing by 6 percent year on year. Meanwhile, finance, insurance, and business services expanded by 5.5 percent despite experiencing a slight 0.1 percent quarterly dip. These gains highlight the diversification and resilience of the economy beyond the oil industry. Gross fixed capital formation jumped by 8.5 percent annually, underscoring confidence in the economy, while government spending rose by 5.2 percent. Private consumption grew by 4.5 percent year on year, though it declined slightly from the previous quarter. Trade balance improvement Saudi Arabia's exports rebounded sharply, rising by 12.3 percent quarter on quarter, while imports fell by 10 percent over the same period, narrowing the trade deficit. The data highlights the Kingdom's progress in diversifying its economy under Vision 2030, with non-oil sectors increasingly offsetting fluctuations in oil revenues. In its latest World Economic Outlook report, the International Monetary Fund projected Saudi Arabia's GDP to grow by 3 percent in 2025, a downward revision from its January estimate of 3.3 percent. The IMF also trimmed its projection for 2026, reducing the expected growth rate by 0.4 percentage points to 3.7 percent. These forecasts reflect broader trends in the global economic environment, where shifts in energy markets and oil production adjustments continue to play a pivotal role in shaping near-term growth prospects. The Kingdom's economic performance remains closely tied to hydrocarbon sector dynamics, but ongoing reforms under Vision 2030 are gradually reducing this dependence, fostering more sustainable, long-term growth. Further reinforcing this outlook, a December 2024 report from Mastercard Economics emphasized the accelerating expansion of Saudi Arabia's non-oil sector, which has become a key driver of economic resilience. The analysis projected that the Kingdom's GDP will grow by 3.7 percent year on year in 2025, a figure slightly higher than the IMF's estimate, largely due to strong performance in non-oil industries such as tourism, entertainment, technology, and manufacturing. The Mastercard report also noted that economic diversification will remain a top priority in 2025, with Saudi authorities leveraging the country's strong fiscal buffers to fund ambitious infrastructure projects and attract private investment. Key initiatives include mega-developments like NEOM, the Red Sea Project, and Qiddiya, alongside investments in renewable energy and digital transformation. 'Population growth is an important driver of economic activity, and particularly private consumption,' the report added.
Asharq Al-Awsat
10 hours ago
- Asharq Al-Awsat
Saudi Arabia Eyes Tourism as Key Economic Pillar by 2030
Saudi Arabia is positioning its tourism sector to rival oil as a cornerstone of the national economy by 2030, targeting a 10% contribution to GDP. This ambitious goal is part of the Kingdom's broader Vision 2030 plan to diversify income sources and reduce reliance on hydrocarbons. To achieve this goal, Saudi Arabia is developing a comprehensive tourism ecosystem. This includes mega-projects like NEOM, Qiddiya, and the Red Sea, alongside nationwide infrastructure upgrades spanning major cities, villages, and remote areas. These efforts are already bearing fruit: the Kingdom surpassed 100 million visitors well ahead of schedule, prompting an upward revision of its target to 150 million tourists by the end of the decade. Tourism revenues have surged, growing more than 148% in 2024 compared to 2019. The sector's contribution to GDP has doubled to 5%, also generating thousands of new jobs and reinforcing Saudi Arabia's presence on the global tourism map. Speaking at the Saudi-US Investment Forum in Riyadh, Minister of Tourism Ahmed Al-Khateeb highlighted the Kingdom's rapid progress in establishing tourism as a foundational economic sector. He credited sweeping reforms, a pro-investment regulatory framework, and a robust national tourism strategy for the industry's momentum. The transformation includes major legislative and operational milestones: the rollout of a new tourism law, streamlined e-visa procedures, the establishment of training programs for Saudi talent, and the introduction of tech-driven visitor experiences. These initiatives aim to enhance both competitiveness and sustainability. Industry experts say Saudi Arabia's geographic, climatic, and cultural diversity gives it a strong edge. From the mountains of Asir and the historic sites of AlUla to the beaches of the Red Sea, the Kingdom offers varied attractions catering to a broad range of travelers. Nasser Al-Ghailan, a tourism investor and partner in Amla Tourism Group, said these natural advantages have been transformed into strategic assets. He pointed to infrastructure improvements, expanded airport capacity, and new airline routes connecting the Kingdom to the region and the world. 'Combining modern infrastructure with digital innovation and high service quality has made Saudi Arabia a rising player on the global tourism stage,' he said, noting growing interest from investors. In the Asir region, Abdullah bin Ahmed, Vice President of the Tourist Guide Club, emphasized the importance of community engagement and local workforce development. He sees tour guides as cultural ambassadors who can convey the richness of Saudi heritage to international audiences. 'People are the heart of the tourism experience. Empowering them is key to long-term success,' he said. According to the UN World Tourism Organization, Saudi Arabia led the G20 in tourism growth in 2024, with a 69% rise in international arrivals compared to 2019. With strategic investments and a clear vision, Saudi Arabia is on track to become a premier global destination, delivering unique travel experiences while maintaining a delicate balance between economic growth, cultural preservation, and environmental sustainability.
