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Saudi Gazette report
RIYADH — Saudi Arabia is exploring the prospect of giving several incentives including exemption of labor fee, expat fee, zakat, and customs duties for the associations and societies operating in the non-profit sector. This was announced by Minister of Human Resources and Social Development Ahmed Al-Rajhi.
“A ministerial committee is currently studying a list of 21 incentives to develop the nonprofit sector, and these included giving an exemption of labor fees, financial fees, zakat and customs duties for this sector,” he said during a virtual meeting of leaders of non-profit sector organizations on Thursday.
Al-Rajhi, who is also chairman of the Board of Directors of the National Center for the Development of the Nonprofit Sector, said that the ministerial committee, which is comprised of ministers of finance; economy and planning; commerce; and human resources and social development, is currently studying this matter, and intends to submit its recommendations by the end of October 2024 after completion of the study of the file.
The minister noted that the non-profit sector has achieved a growth rate of 181 percent, reaching the number of organizations operating in this sector 5,000, and these included 4,000 societies, 400 private firms and 530 family funds, while the percentage of contribution of the nonprofit sector to the GDP reached 0.87 percent.
The minister said that all challenges in the non-profit sector were identified through meetings with private organizations and charitable societies, and 50 percent of these challenges were resolved, while the National Center for the Development of the Non-Profit Sector intends to find radical solutions to all other challenges within a year.
The meeting was attended by more than 1000 sector leaders, workers, interested parties, and stakeholders from various regions of the Kingdom. During the meeting, challenges and recommendations were presented that would enhance the development of the sector and achieve its goals in a way that contributes to the objectives of the Kingdom’s Vision 2030.
