Saudi Arabia is undergoing one of the most profound cultural, economic, and technological changes of the 21st century. A decade ago, the Kingdom was an extremely conservative monarchy backed by Islamic theocrats. Today, Saudi women can wear what they choose, drive the fanciest automobiles, and work anywhere. There are cinema halls, music festivals, and sports events. There are even discussions regarding specialised venues in Riyadh for international diplomats. Saudi Arabia has come a long way under the leadership of the Crown Prince and Prime Minister, Mohammed Bin Salman.
The public sector has seen a surge of 113% (USD 137 billion) since 2016 in non-oil government revenues, and the sovereign wealth fund Public Investment Fund (PIF) tripled the assets it manages to SAR 3.53 trillion. According to the United Nations (UN), the Kingdom became fourth globally in the e-government development index for the digitisation of judicial court sessions (98% of sessions have been digitised) and improved public confidence (over 99.85%) in security services. Moreover, 65% of Saudis have their own homes, and 96% have healthcare coverage. These are incredible achievements in such a short time.
The private sector also has a stellar record, with its contribution to GDP reaching 47%, effectively doubling its monetary value and quadrupling Foreign Direct Investment (FDI) in the last decade. There are 1.27 million SME businesses and 7.86 million employees. It is a thriving economy which was once just feeding off oil revenues.
However, this is not the whole picture. There is a “third sector,” the non-profit sphere, which is also contributing to GDP and the overall flourishing of the desert Kingdom. Moving beyond traditional charity, this sector is transforming into a sustainable developmental engine under “Vision 2030.”
Structural Explosion And Economic Scale
The most visible change in the “third sector” is its shift from a fringe activity to a core economic pillar, now strictly regulated and professionalised by the new National Centre for Non-Profit Sector (NCNPS).
While the sector currently contributes approximately 1.2% to 3.3% to the GDP (including Awqaf), Vision 2030 has set an aggressive target to reach 5%. The momentum is already visible. In 2024 alone, non-profit revenues surged by 22% to reach SAR 73.1 billion, with total expenditures rising to SAR 60.8 billion. Since 2017, the number of non-profit organisations has skyrocketed by over 370%, jumping from roughly 1,700 to over 7,000 registered entities by 2025.
Perhaps most significantly, the sector has transformed into a legitimate employment engine. The workforce has expanded from a mere 19,000 employees in 2017 to over 140,000 today. Furthermore, the focus has shifted from simple “feed and clothe” charity to complex service provision. Education and Research are now the leading revenue generators (29%), followed by health (24%) and culture (19%).
From Donation To Investment
The historic reliance on one-off donations is being replaced by a mindset of asset management and investment. This is largely driven by the modernisation of “Awqaf” (endowments), which acts as the “sovereign wealth” of the third sector with assets estimated to contribute over SAR 48 billion to the economy.
New regulations by the General Authority for Awqaf and the Capital Market Authority (CMA) now allow these endowments to invest directly in financial markets. Examples include the “King Saud University Waqf Fund” and the “Nafaqah Waqf Fund,” which generate permanent operating income rather than depleting their capital.
Furthermore, the Kingdom is piloting Social Impact Bonds. It’s a “pay-for-success” model where private investors fund social projects, such as water scarcity solutions, and are repaid by the government only if specific outcomes are met.
This shift toward long-term capacity is evident in 2024 data, which shows a spike in “fixed asset purchases” by non-profits totalling SAR 4.37 billion. Organisations are increasingly buying hospitals, schools, and infrastructure rather than spending cash solely on consumables.
Professionalisation And Digital Integration
Finally, the operational model of the Third Sector has been revolutionised by technology and governance. The launch of the “Ehsan” platform centralised charitable giving, using data to track over SAR 6 billion in donations and ensuring funds reach verified, high-impact projects.
This professionalism extends to human capital. Vision 2030 has set a target of one million volunteers per year, a goal that has been exceeded ahead of schedule with nearly 1.5 million volunteers. Crucially, the trend is moving toward “skilled volunteering” rather than unskilled labour.
With the NCNPS enforcing strict governance standards, transparency reports indicate that specialised organisations aligned with national development priorities now make up over 92% of the sector.
Simultaneously, hybrid “Social Enterprise” models like Glowork are blurring the lines between private business and social missions, ensuring that the “third sector” is not just a beneficiary of Saudi Arabia’s growth, but a primary driver of it.
Saudi Arabia’s third sector might not be as large as its public sector or as flashy as its private enterprises. But they do contribute a meaningful chunk to the economy and ensure that the Kingdom’s growth is also humanistic and not just purely superficial, exclusionary or material.