Productive Families in Saudi Arabia

Productive Families in the Kingdom of Saudi Arabia are those that rely on their skills to meet their own needs or improve their standard of living by selling products they make at home. They may consist of one or more individuals living in the same residence due to family ties.

The Program for Productive Families and the Vocational and Craft Training Program for Women were transferred by a decision issued by the Council of Ministers from the Agency of the Ministry of Labor and Social Development for Social Security (currently the Ministry of Human Resources and Social Development) to the Social Development Bank in 2018. Each year, around SAR240 million is allocated to the Program for Productive Families, and approximately SAR50 million is allocated to the Vocational and Craft Training Program for Women.

The regulatory framework issued by the Council of Ministers for productive families aims to contribute to organizing the conditions of productive families by regulating their work methods. Additionally, it seeks to empower them to become self-reliant, provide financial and moral support, and assist them through training and qualification to compete in local and international markets. It also aims to provide a suitable work environment for productive families to practice their activities, encourage and qualify them for production and self-employment to improve their standard of living, and contribute to economic development by expanding participation to include Saudi women, people with special needs, and the unemployed. The framework also aims to help transform some families from being consumers to becoming producers.

The Social Development Bank is the official body responsible for the affairs of productive families in the Kingdom. Its tasks for serving productive families include issuing decisions to activate the regulations and implement the procedural guide, providing training and consulting services, and contributing to financial support and funding according to its policies and mechanisms. The bank also works on establishing and managing business incubators, providing shared spaces related to productive families, taking responsibility for providing markets and exhibition spaces, and contributing to bazaars and exhibitions locally and internationally. Additionally, it establishes a special registry for productive families to register interested parties at no cost and prepares a database for productive families, offering support and assistance for their development. The bank also runs programs to promote the culture of self-employment and contributes to transforming families from consumers to producers.

The bank provides refundable financial support estimated at around SAR50,000 through financing intermediaries in the bank's financial portfolios to fund projects for productive families and Saudi artisans and professionals. The repayment period is about thirty-six months, with monthly installments. According to the latest update on the bank's website in May 2024, the number of beneficiaries has reached approximately 165,000 productive families.