Regulations for naming new associations and non-profit organizations in Saudi Arabia

In a regulatory move aimed at enhancing transparency and governance in the third sector, the Saudi Ministry of Human Resources and Social Development has approved the issuance of a new guide outlining the precise foundations and criteria for selecting names for charitable associations, foundations, and family funds. This step is intended to ensure that the names of non-profit entities align with their vision and objectives, and to prevent any misleading information for the public or donors.

The context of Vision 2030 and the development of the non-profit sector

This decision comes within the context of the significant developments in the Kingdom's non-profit sector, aligned with the goals of Saudi Vision 2030, which aims to increase the sector's contribution to the GDP and enhance its social impact. Precise and clear names are an integral part of institutional identity, fostering trust between these entities and the community. A precise naming system prevents overlap in responsibilities and ensures that the name accurately reflects the association's or institution's actual activities, thus facilitating oversight and monitoring and increasing the efficiency of charitable and developmental work.

Key new rules and standards for naming

The new guidelines established a set of strict controls to ensure the sector's professionalism, prohibiting the use of misleading names or names similar to those of government entities to prevent confusion among beneficiaries. The criteria included the following points:

• Clarity and meaning: The name must clearly express the nature of the entity’s activity and the services it provides, and it must be unique and not duplicated.
• Legal and regulatory restrictions: The name must not contain any offense to religion, or any violation of public order and public morals.
• Sovereign symbols: The use of logos, flags or symbols associated with the Kingdom or countries and international organizations is prohibited without prior official authorization.
• Avoiding tribalism: The use of tribal, regional, and city names is prohibited unless the purpose is solely to define the geographical scope of the entity's services.

Conditions for naming entities after people

Regarding the naming of charitable institutions after people, the guide set specific standards to regulate this process, stipulating that the name must be three parts, and that the person concerned must be alive, or obtain official approval from the heirs in the event of his death, in order to preserve rights and prevent any future disputes.

Systematic reference and expected impact

The guide confirms that the National Center for Non-Profit Sector Development is the entity responsible for overseeing the implementation of these provisions, based on the Law of Associations and Foundations issued by Royal Decree No. (M/8) and the National Center's regulations issued by Cabinet Resolution No. (618). This guide is expected to expedite the establishment of entities by reducing the rejection rate of applications due to name discrepancies, in addition to enhancing the public perception of the non-profit sector as a well-regulated sector governed by high standards of transparency.