Research Gap
Research on non-profit organizations shows that the Saudi Arabian economy has numerous issues that make it challenging for investors to venture into the country’s market. First, the government plays a role in developing policies that enhance the sustainability of business operations in the country. Second, the lack of regulations and the irregular cash flows pose significant challenges that hinder the sector’s development (Hemrit, 2022). Third, the current trends in the country’s governance, the various legal policies that govern businesses and organizations, and the lack of formal laws that provide security for private and non-profit organizations make the environment unsafe and unsustainable for non-profit organizations (Anheier et al., 2019). Such aspects are considered among the trending issues that influence the development of the private sector. Such factors, which have not been extensively addressed in most studies, pose a significant challenge for the private sector to venture into business in Saudi Arabia (Qawariri, 2022). The a lack of extensive literature on how such factors threaten private investors in the country. The research questions at this stage include:
- What are the perceptions of the Saudi Arabian government on non-profit organizations?
- How does the legal framework in the country influence the development of non-profit organizations in the country?
The Perception of the Saudi Arabian Government on Non-profit Organizations
The perception of the Saudi Arabian government of non-profit organizations is another issue that needs to provide a research gap. Most studies focus on the various challenges that make non-profit organizations unpopular in Saudi Arabia. Still, few studies examine the Saudi Arabian government’s perception of non-profit organizations (Anheier et al., 2019). Understanding such issues can provide vital information on why most private investors are interested in venturing into the Arab state despite its promising economic progress in the last few decades (Kassem et al., 2021). Furthermore, reports on the analysis of the Saudi Arabian government show that the country believes that the sector has a medium to low impact on the development of the state (Hemrit, 2022). Due to such perception, the decision-makers pose little attention to the non-profit section, resulting in less empowerment of the sector and putting into question the sustainability of private businesses in the country (Qawariri, 2022). The lack of adequate information on governments presents a challenge in examining the sustainable measures implemented in the country to promote the development and growth of the country’s non-profit sector.
Lack of Adequate Information About the Legal Framework
The lack of adequate information about the legal framework supporting the establishment and sustainability of such organizations needs to be effectively examined. Islamic law shows that the country prohibits the development of foreign foundations and associations (Anheier et al., 2019). Such laws create barriers to the development of non-profit organizations in the countries. The current trends indicate the possibility of developing laws that may pave the way to developing non-charitable organizations in Saudi Arabia (Kassem et al., 2021). However, such mechanisms provide little information on how the government may offer an effective and sustainable environment for the non-profit organization. The lack of literature on such issues provides a significant opportunity for researchers to gather more information on the various legal problems influencing the development of a conducive environment for establishing such organizations (Anheier et al., 2019). Providing such literature would be highly valuable for policymakers and foreign investors to gain insight into how they can take advantage of the political and legal system to promote their philosophical initiatives.
Lack of Adequate Policy Regulations to Governing Non-charitable Organizations
The country is perceived to lack formal policy regulations that can be used to guide the operations of a non-governmental fororganization. Most non-profit organizations operating in the country are Arab-based and only governed by Islamic law (Anheier et al., 2019). The lack of foreign non-profit organizations has made the country lack formal regulations that can be used to provide a legal framework through which non-charitable organizations can be founded. Such aspects can be attributed to the culture maintained in the country, which is not accommodative to foreigners who may be willing to
Research Variables
The main research variables in the study entail the legal, political, economic, and cultural values that influence the development of non-charitable organizations in Saudi Arabia. In addition, the variables entail the various barriers that challenge the growth of non-profit originations in the country. Therefore, the dependent variable in the study is the development of non-profit organizations. The independent variables will comprise the factors that operate in isolation but significantly impact the development of a sustainable environment for the development of non-profit organizations in Saudi Arabia. The legal framework, cultural practices, economic barriers, and political factors will be the leading independent variables in the study (Choi et al., 2020). Such variables will be independently analyzed to provide information on their impacts on developing a sustainable environment for non-profit ventures. The information obtained from the study will be used to influence policy development in the country that will promote the development of a sustainable business environment.
Research Hypotheses
Based on the identified variables, the study will seek to confirm four main hypotheses that represent the business environment in the country. Such hypotheses will predict the relationship between the various variables and how they relate to the development of sustainability in the country. In addition, the research will seek to confirm the following hypotheses.
H1: The laws maintained in Saudi Arabia pose a significant challenge to the development of non-profit organizations in the country.
H2: The economic environment does not require the inputs of non-profitable originations for the county to attain sustainability.
H3: The country’s politics have created an unsustainable environment for the development and thriving of non-charitable organizations.
H4: The Islamic culture does promote the development of non-charitable organizations in the country.
References
Anheier, H. K., Lang, M., & Toepler, S. (2019). Civil society in times of change: Shrinking, changing and expanding spaces and the need for new regulatory approaches. Economics, 13(1). Web.
Choi, G., Jin, T., Jeong, Y., & Lee, S. K. (2020). Evolution of partnerships for sustainable development: The case of P4G. Sustainability, 12(16), 6485. Web.
Hemrit, W. (2022). Does insurance demand react to economic policy uncertainty and geopolitical risk? Evidence from Saudi Arabia. The Geneva Papers on Risk and Insurance-Issues and Practice, 47(2), 460-492. Web.
Kassem, H. S., Bagadeem, S., Alotaibi, B. A., & Aljuaid, M. (2021). Are partnerships in non-profit organizations being governed for sustainability? A partnering life cycle assessment. Plos One, 16(3), 0249228-0249230. Web.
Qawariri, E. M. M. (2022). Making CSR and sustainable development financially effective— The business case for CSR in Saudi financial social practice. Modern Economy, 13(3), 449-481. Web.