The role of endowments in increasing the gross domestic product in the Kingdom of Saudi Arabia

Abstract

   The endowment has great importance in the development of societies. Therefore, research comes to identify the role of the endowment in increasing GDP, based on economic and statistical data. Using a standard model that shows the relationship between the dependent variable (GDP), and the independent variables under study in Saudi for the period (1994:2022). The standard model equation has been estimated by (ARDL) Model to verify the existence of a long-run equilibrium relationship between the independent variables and GDP and to verify this relationship by the error correction model (ECM). Endowment institutions are the pillars of economic and social life. There is a great opportunity for the endowment sector to regain its vital position and become a major contributor to the non-profit sector. As Saudi Vision 2030 aims to increase the contribution of this sector to GDP from 0.3% to 5%. The endowment has multiple positive economic and social effects, as there is a positive relationship in the short run between the collective, social, and personal service variables and GDP. Among the most important challenges facing non-profit sectors, financial flows at a rate of 30.16%. The research recommends the issuance of legislation that guarantees good investment in the endowment, its financial independence, the development of its management, and the qualification of its cadres, under the umbrella of endowment governance.