Non-profit sector contributes over $26.66bln to Saudi economy for first time
RIYADH — The Saudi non-profit sector has exceeded, for the first time in its history, the ceiling of SR100 billion in economic contribution, equivalent to 3.3 percent of the gross domestic product (GDP). This was revealed in a Non-Profit Sector Outlook report titled "Prospects for the Non-Profit Sector 2025," prepared by the King Khalid Foundation.
The report highlighted key contributions within the sector: Endowments accounted for SR 48 billion, according to the General Authority for Awqaf, while non-profit organizations contributed SR 47 billion in spending, based on data from the General Authority for Statistics (GASTAT).
Additionally, volunteering added an estimated SR 5 billion in economic value, while cooperative societies contributed SR 2 billion, according to the Ministry of Human Resources and Social Development.
The sector's rapid growth is on track to achieve the Vision 2030 target of reaching 5 percent of GDP two years ahead of schedule. Education and research organizations led the sector in revenue generation, surpassing SR19 billion, while health organizations recorded the highest spending at SR15 billion, driven by the conversion 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.
The report also examined funding sources, emphasizing the role of government support and digital donation platforms, which collectively raised over SR15 billion in 2024.
The National Platform for Charitable Work (Ehsan) saw a significant contribution from small donors (SR1, SR10, and SR100), while major philanthropists (donations of SR100,000 or more) accounted for 26 percent of total contributions.
At the community level, the report monitored citizens' positive engagement in non-profit work through volunteering and donation, as 23% of citizens volunteered, while 47 percent of citizens donated during 2024. This indicates the community's interest in practicing social responsibility as a way of life. This was reflected in their confidence rates in the non-profit sector, which reached 86 percent of Saudis at present compared to 73 percent in 2017.
It is worth noting that the Non-Profit Sector Outlook Report is the first reference report in the Kingdom on the status of the Saudi non-profit sector and its economic and developmental contributions.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Web Release
10 hours ago
- Web Release
The Ministry of Investment for Saudi Arabia shows support for new health and fitness event
The Ministry of Investment for Saudi Arabia and its Sport Sector Team have signed an investment agreement with RX Arabia to support the successful launch of FIBO Arabia in the Kingdom, which will debut at the Riyadh Front Exhibition & Conference Center from 1-3 October 2025. The sports and fitness industry in Saudi Arabia continues to gain considerable momentum. Organised by RX, a global leader in events and exhibitions, and under the theme for a strong and healthy society, FIBO Arabia is already 60% sold out following a successful sales launch at FIBO's flagship tradeshow in Cologne, Germany last month. There, 1,200 exhibitors and partners from 60 nations and 154,748 visitors from 129 countries were welcomed. The launch of FIBO Arabia coincides with the Saudi government's significant support for investing in the country's sports sector as part of the Kingdom's 2030 strategy to diversify its economy. The government aims to increase sports spending by US$22 billion by 2030, encompassing sports clubs, academies, sportswear and equipment, and sports facilities. Vasyl Zhygalo, Managing Director, Middle East and Emerging Markets, RX: 'We are honoured that the Ministry of Investment for Saudi Arabia is supporting the launch of FIBO Arabia. This underscores the importance of health and fitness to the Saudi Arabian government and highlights its investment-friendly attitude towards overseas entrepreneurs and progressive companies that want to invest in their health and fitness sector.' The country's focus on becoming a global sports hub is underscored by the announcement of major events to take place in Saudi Arabia, including the 2034 FIFA World Cup, the 2027 AFC Asian Cup, and the 2029 Asian Winter Games, which will provide a significant boost to its position as a global sports hub. Furthermore, according to Gymnation, which operates a chain of fitness centres in Saudi Arabia and the UAE, the Saudi fitness market is expected to grow at a compound annual growth rate (CAGR) of 9.7% between now and 2032 when the health and fitness market is projected to be worth US$2.28 billion. The growth in the market is largely attributed to government initiatives aimed at enhancing the population's quality of life and promoting physical activity, as well as a rise in health consciousness among the population. Basim K. Ibrahim, Sport Sector Investment Development Director, Ministry of Investment for Saudi Arabia, added: 'FIBO Arabia represents a pivotal platform in advancing Saudi Arabia's Vision 2030 goals by promoting a culture of fitness and wellness while also highlighting the Kingdom's growing potential as a hub for investment within this sector. With increasing emphasis on exercise, sports, and wellbeing across the Kingdom, the event provides a vital opportunity for international and local brands to showcase the latest innovations and technologies in the industry. We look forward to the positive impact FIBO Arabia will have on our communities and the exciting prospects it will unlock for the future.' Professional development will be a key focus of the show, with FIBO Arabia hosting a series of expert-led workshops, seminars, and keynote sessions. These continuing education opportunities are designed to equip attendees with the tools, insights, and certifications needed to thrive in today's rapidly evolving fitness and wellness landscape. From innovation and education to networking and live engagement, FIBO Arabia 2025 promises to be a must-attend event for anyone passionate about shaping the future of health, fitness, and wellness in the Middle East and beyond. For more information on FIBO Arabia, please visit
Zawya
15 hours ago
- Zawya
World Bank upgrades UAE's 2025 growth forecast to 4.6%, boosted by non-oil sector growth
The World Bank has revised the UAE's GDP forecast to 4.6% in 2025, up 0.6 percentage points from its January projection, with the country's non-oil sector emerging as a 'key contributor' for this growth. The UAE's growth forecast for 2026 has also been revised to 4.9% for 2026, up 0.8 percentage points from January, with the country's oil GDP expected to expand, reflecting a phasing out of OPEC+ decisions, the World Bank said in its latest 'Global Economic Prospects' report. 'Gradual resumption of oil production between May 2025 and September 2026, is expected to support oil GDP growth despite downward pressure on global oil prices,' the World Bank said, adding that the non-oil sector will have a projected expansion of 4.9% in 2025, supported by growth in tourism, construction, transportation, and financial services The momentum will continue into 2027, with a projected GDP growth forecast of 4.9%. According to previous year figures, the UAE recorded robust economic growth in 2024, driven by strong domestic demand, structural reforms, and targeted investments. In 9M 2024 the real GDP expanded 3.7% year-on-year, supported by a 4.5% expansion in the non-oil sector. The growth in 2025 has also been attributed to 'ongoing business climate reforms, infrastructure investments, and governance enhancements,' which have further supported economic diversification and competitiveness,' the report said. 'However, key sectors such as logistics may be impacted by ongoing trade uncertainties and disruptions.' On Tuesday, the bank cut its global growth forecast for 2025 by 0.4 percentage points to 2.3%, saying that higher tariffs and heightened uncertainty posed a 'significant headwind' for nearly all economies. The bank lowered its forecasts for nearly 70% of all economies, including the US, China and Europe, as well as six emerging market regions, but ruled out a global recession. Meanwhile, GCC economies will grow 3.2% for 2025, 4.5% for 2026, and 4.8% for 2027. (Writing by Bindu Rai, editing by Daniel Luiz)
Web Release
16 hours ago
- Web Release
Nissan achieves 10% growth in Fiscal Year 2024 across the Middle East, driven by SUV demand and iconic nameplates
Nissan has announced a 10% year-on-year growth in the Middle East region for fiscal year 2024 (April 2024 – March 2025). Spanning over 18 markets, including the Gulf states, Saudi Arabia, Levant, Iraq, and CIS, the brand's regional business unit achieved strong results, fueled by increased demand for SUVs and crossovers, which accounted for more than 55% of total sales. SUV sales rose 17% year-on-year, led by the World Premiere of the All-New Nissan Patrol in Abu Dhabi, which saw a 21% increase in sales. Closing FY24, Nissan expanded its SUV range with the Magnite, a compact SUV introduced regionally in Saud Arabia, offering a value-driven option for city living. Saudi Arabia remains Nissan's largest market in the Middle East, contributing over 35% of total regional sales in FY24. The Kingdom continues to be a key pillar in Nissan's regional strategy, with the SUV portfolio including Pathfinder with a 27% increase, and KICKS with a 10% increase, resonating strongly with Saudi consumers. This market remains pivotal to Nissan's growth, especially in the SUV segment, which has seen strong demand in recent years. Thierry Sabbagh, President of Nissan Middle East and INFINITI and Divisional Vice President for KSA, Middle East, and CIS, said 'FY24 marked a strategic turning point for Nissan in the region. Amid shifting market dynamics and heightened consumer expectations, we remained focused on what drives long-term value, strong partnerships, competitive product lineup, and operational agility across our markets. Our performance in Saudi Arabia, our largest market, reflects the strength of our product strategy and the trust we continue to build with customers and dealers alike. As we look ahead, we see clear opportunities for growth, particularly across the SUV segment, supported by a robust FY25 product pipeline and closer collaboration with our trusted partners across the region.' Beyond Saudi Arabia, Gulf markets played a key role in driving regional sales growth. These markets saw a 16% uplift in sales, with Qatar emerging as standout performer with a 32% increase. The UAE registered a 16% increase in sales, while Bahrain posted an 11% rise. The Patrol saw impressive gains in these markets, with sales surging 80% in Qatar and over 30% in both the UAE and Bahrain. Additionally, the X-TRAIL recorded strong double-digit growth across several key markets, including a 32% increase in the UAE, and 25% in Kuwait. Product performance across the region also showcased the strength of Nissan's portfolio. The Pathfinder achieved a remarkable 96% year-on-year increase, driven by robust demand in the UAE. Meanwhile, the KICKS saw a 28% regional increase, with particularly strong performances in the UAE and Bahrain This momentum was further boosted by the February 2025 launch of the all-new KICKS, which featured upgraded features and a refreshed design, reflecting its popularity among younger, tech-savvy urban drivers. Entering FY25, Nissan stands on a solid foundation, having reinforced its product lineup with both iconic models and exciting new introductions. Building on its momentum, FY25 will see the continuation of Nissan's product offensive strategy, with new models and nameplates set to launch across the region. With the recent introduction of the new Magnite and KICKS strengthening Nissan's SUV offering, the brand remains focused on meeting the growing customer demand for SUVs and crossovers. Guided by a commitment to innovation, quality, and customer engagement, Nissan is poised for sustained growth in the evolving Middle East market.
