Okaz, 30 June 2026: Saudi Arabia has introduced updated executive regulations for Saudi Arabia Cabinet Decision No. 61/1437 Law of Civil Society Associations and Organisations, expanding investment opportunities while tightening governance, disclosure, and compliance requirements.
According to the National Centre for Nonprofit Sector Development, the new regulations grant associations and foundations greater scope to grow resources and invest assets under defined controls, supporting financial sustainability and enabling broader developmental programmes. The move reflects a policy shift toward diversifying income sources and reducing reliance on traditional funding.
At the same time, the regulations strengthen governance obligations by clarifying the roles and responsibilities of boards and executive management, enhancing decision‑making accountability, and imposing stricter disclosure and internal control requirements. Updates also cover general assembly procedures, voting mechanisms, and membership rules to improve institutional efficiency and member participation.
On licensing, the regulations set a five‑year term, with nonprofits given up to 180 days after expiry to renew before losing rights. Clearer procedures for establishment and application review have also been introduced. Financial provisions include detailed rules for asset management, liabilities, and reporting, aimed at reinforcing transparency and trust in the sector.
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