Human Resources Ministry Enhances Cooperative Sector To Support Saudi Vision 2030 Goals

Every year on July 5, the International Day of Cooperatives is observed globally. This day, recognised by the United Nations, underscores the significant role cooperatives play in sustainable development and economic participation. In Saudi Arabia, this sector is gaining attention as part of Saudi Vision 2030, aiming to enhance the non-profit sector's GDP contribution and foster community growth.

The Ministry of Human Resources and Social Development in Saudi Arabia prioritises empowering cooperatives. Through the General Directorate of Cooperative Societies, it seeks to expand their economic and social impact across various sectors. The ministry has streamlined cooperative establishment processes, reducing setup time from 60 days to just three.

This procedural efficiency improvement serves as a practical incentive for cooperative growth. The ministry also focuses on enhancing the environment for these societies by strengthening financing tools and expanding partnerships with both public and private sectors. These efforts aim to raise awareness and encourage citizens to form development-focused cooperatives.

Currently, there are 529 active cooperative societies in Saudi Arabia. The ministry's comprehensive plans aim to increase this number significantly. By 2030, they target a rise to 2,075 societies, marking a substantial growth of 295% from the present count.

The General Directorate of Cooperative Societies was established as a specialised body to develop this sector further. It oversees cooperative societies and streamlines their establishment processes. This strategic initiative reflects a commitment to procedural efficiency and provides incentives for growth within the cooperative sector.

Additionally, the ministry organises cooperative forums across various regions in Saudi Arabia. These forums are designed to boost community awareness about cooperatives' benefits and encourage citizens to establish economy-oriented cooperatives.

The Kingdom's focus on cooperatives aligns with its broader goals under Vision 2030. By enhancing the non-profit sector's contribution to GDP and fostering local community development, Saudi Arabia aims to create a more inclusive economy that benefits all citizens.

With inputs from SPA