Nonprofit Sector Growth and Economic Impact
Saudi Arabia’s nonprofit sector has undergone a remarkable transformation, evolving from a traditional charitable ecosystem into a strategic driver of social innovation and community-led development, according to Abdullah Al-Shomer, General Manager and Official Spokesperson of the National Center for Nonprofit Sector (NCNP). The sector’s value has surged from approximately SR8 billion ($2.1 billion) to nearly SR73 billion, representing about 1.55% of the country’s gross domestic product. This growth aligns with Vision 2030, which aims to increase the sector’s contribution to 5% of GDP by 2030, up from about 1% in 2023.
“The sector has grown nearly sevenfold,” Al-Shomer told Arab News. The NCNP, established to regulate, empower, and connect nonprofit organizations, has been central to this expansion. Since 2021, Saudi Arabia has witnessed a 96% increase in specialized nonprofit organizations, many of which now deliver services previously managed by government agencies. In 2024, the number of nonprofit organizations grew by 341%, exceeding annual planning targets by double.
Role of NCNP as an Enabler
Al-Shomer emphasized that the NCNP is not a funder or a charity but an enabler. “We are not a funder, and we are not a charity ourselves; we are an enabler,” he said. The center provides licensing mechanisms, governance frameworks, and transparency tools to ensure sustainable expansion across the Kingdom. This regulatory support has allowed nonprofits to operate independently while maintaining public trust.
One clear example of nonprofit impact is in housing. In Abha, a single nonprofit organization provided affordable housing solutions to 1,000 families. Nationwide, during the first half of 2025, about 54,000 families benefited from Sakani home ownership support, and almost 30,000 housing units had been handed over by September 2025. These efforts demonstrate how nonprofits are stepping in to address critical social needs.
Autonomy and International Collaboration
Despite international perceptions of Saudi Arabia as a highly centralized state, Al-Shoner rejected the notion that nonprofits function merely as extensions of the government. “What we have built is a model in which the government sets the framework while the impact is driven by people,” he said. Saudi nonprofits are legally independent entities that raise their own funds, run their own programs, and make their own decisions. The state’s role through the NCNP is to ensure governance, accountability, and public trust, while strategic decisions remain with each organization’s board and community.
Saudi Arabia is also making it easier for international nonprofit organizations to operate in the Kingdom. Existing partnerships include collaborations with the Asian Venture Philanthropy Network in Singapore, Stanford University, and counterparts across Gulf Cooperation Council countries such as Oman and Kuwait. Efforts are underway to streamline licensing procedures to reduce barriers for overseas organizations wishing to establish operations in Saudi Arabia.
Digital Platforms and Women’s Role
Digital platforms like Ehsan and Takatuf have simplified charitable giving and volunteering. Ehsan, launched in 2021 under the Saudi Data and Artificial Intelligence Authority, allows donors to contribute in under 10 seconds. In late 2024, the NCNP signed a partnership agreement with Google Cloud to strengthen AI and analytics capabilities, and the center received the Google Cloud Public Sector Innovator Award that same year.
Women are a major force in the sector, making up 58% of volunteers nationwide. They lead initiatives in healthcare, education, family development, disability services, and financial inclusion. Al-Shomer noted that this reflects both Vision 2030’s empowerment agenda and a longstanding societal readiness now finding institutional expression. “We expect that role to continue to deepen,” he said.
Key Milestones and Future Outlook
One significant milestone was the transformation of King Khaled Eye Specialist Hospital into a nonprofit entity in late 2024. This transition allowed the institution to attract partnerships, retain global talent, and sustain excellence without relying entirely on the state budget. The model is now being explored across healthcare, education, culture, and research sectors.
According to the NCNP’s 2025 Annual Report, Saudi Arabia ranks first among Middle East and North African countries on the Global Philanthropy Environment Index, achieving the region’s highest score for enabling philanthropic activity. The NCNP aims to position Saudi Arabia as the philanthropic hub of the MENA region, supported by streamlined licensing and expanding international partnerships.
Reflecting on his personal motivation, Al-Shomer said: “I have seen first-hand the operational challenges and regulatory hurdles that limited what the sector could achieve. What drives me is watching those constraints being systematically removed.”
