The Ministry of Commerce clarified the expenditures of non-profit companies, which must be specified—whether all of them or some—in the company’s bylaws, and they include more than 20 fields.
These fields include: religious activities; education, training, and research and their areas; health, psychological, and nursing affairs, treatment of patients and their services; family and child care programs; support for programs of vocational, health, social, psychological, and scientific rehabilitation; literature, culture, arts, talents, hobbies and their activities; in addition to heritage, tourism, entertainment and their activities.
The expenditures also include support and sponsorship of various types of crafts and professions; sports activities; provision of legal services to serve the community; activities in information technology, data, and artificial intelligence; support for entrepreneurship programs and small and medium enterprises, consumer protection, and others. This is in addition to any other general non-profit expenditures and fields determined by the Ministry in coordination with the National Center for the Development of the Non-Profit Sector.
The law has granted government agencies, authorities, public institutions, universities, employees of the public sector, and other legal persons the right to establish non-profit companies in accordance with the provisions of the Companies Law.
A public non-profit company must take the form of a joint stock company, and the profits resulting from its activities shall be spent on general non-profit expenditures and fields that serve the community. A private non-profit company, on the other hand, may only take the form of a limited liability company, joint stock company, or simplified joint stock company, and the profits resulting from its activities shall be spent on any of the non-profit expenditures and fields.