Saudi Arabia plans financial incentives to foster growth in non-profit sector
Sector may see relief from fees and duties as part of new initiative
Dubai: Saudi Arabia is reportedly considering financial incentives such as exemptions from labour fees, expat fees, zakat and customs duties.
According to Ahmed Al Rajhi, Minister of Human Resources and Social Development, a ministerial committee is exploring a list of 21 incentives aimed at bolstering the non-profit sector, during a virtual meeting with non-profit organisation leaders.
The committee includes ministers from finance, economy and planning, commerce, human resources and social development.
Action on their recommendations is expected by the end of October, following a comprehensive review.
The non-profit sector in Saudi Arabia has seen significant growth, with a 181 per cent increase in the number of organisations, now totalling 5,000.
This includes 4,000 societies, 400 private firms, and 530 family funds. Additionally, the sector’s contribution to the GDP is currently estimated at 0.87 per cent.
During the meeting, which was attended by over 1,000 sector leaders and stakeholders from across the Kingdom, participants discussed challenges and proposed recommendations to further develop the sector.
Al Rajhi confirmed that 50 per cent of identified challenges have been addressed, with plans to resolve remaining issues within the next year.