The Ministry of Labor and Social Development (MSLD) recently signed two memorandums of understanding with a number of entities to establish strategic partnership in the nonprofit sector. The agreements for empowerment and financial stability call for the creation of funds worth a total of SR2.05 billion. The signing came on the sidelines of a four-day forum on «The Role of the Nonprofit Sector in the Implementation of Saudi Vision 2030 in Riyadh from Dec. 3-6. According to the ministry, the signing of the agreements serves as a starting point to make sure that the nonprofit sector is financially supported in the long run, contributing to national growth within Saudi Vision 2030 and the National Transformation Program 2020 that aims to expand the scope of the sector to fulfill development goals. The first agreement focuses on setting up the empowerment program to help charitable foundations and private committees to manage loan portfolios and microfinance services with the aim of supporting the needy categories across various parts of the Kingdom. The second agreement is in a bid to provide loans and grants to private charitable bodies so as to own and establish their investment projects and endowments, contributing to their financial sustainability as a result. With further details from the MLSD, the first agreement was inked between the ministry, the Human Resources Development Fund (HADAF), the Social Development Bank and the Sulaiman Bin Abdulaziz Al-Rajhi Charity to set up the empowerment program with a SR1 billion fund. An additional SR150 million grant, which is non-refundable, is allocated to build capabilities and support operation costs and loan portfolios, the ministry added. The ministry said it will empower charities to achieve their missions and goals as well as activate the role of these foundations in expanding the development work through offering both microfinancing services and non-financial support to allow beneficiaries of social security assistance to start small businesses and reduce their reliance on aid services. Furthermore, the NGOs under the empowerment program will have access to loan portfolios to provide microfinance services to low-income individuals and productive families, which is in line with Saudi Vision. The ceremony was led by Dr. Salem Al-Dini, deputy minister for social development at the ministry, Dr. Abdulkarim Al-Nujaidi, HADAF director general, Abdullah Al-Namlah, SDB director general, and Dr. Sulaiman Al-Zakeri, CEO of the Sulaiman Bin Abdulaziz Al Rajhi Charity. On the other hand, the ministry, the SDB and the Sulaiman Al Rajhi Charity signed the second partnership to create the financial sustainability program with a capital of SR900 million to fund charitable foundations and nonprofit organizations and sustain their existence for long-term. The program would offer interest-free loans and non-repayable grants to allow these NGOs to own endowments and investments that yield stable incomes as well as diversify their income sources.
