Institutional assessment of Saudi Arabia’s Cooperative Societies Council: A path to strengthening cooperatives

Institutional Assessment of the Cooperative Societies Council (CSC)

The ILO's fact-finding mission involved consultations and interviews with key stakeholders. These included representatives from various ministries (Human Resources and Social Development, Agriculture, Housing), development funds (Agricultural development fund, Social development fund), the SME General Authority, the Food and Agricultural Organization (FAO) and cooperatives across sectors such as agriculture, digital, and fisheries. The ILO team gathered insights into the current state of cooperatives in KSA, the role of the CSC and its interactions with the cooperative movement and other supporting institutions.

Preliminary findings include:

• Strong government support for cooperatives: The Saudi government offers support to cooperatives through training programs and dedicated funds across various ministries. This reflects the government's strong commitment to fostering cooperative development.
• Steady development with opportunities for growth: Cooperatives in the KSA have made significant progress, reinforced by strong government support and new grassroots initiatives. While traditional sectors, such as agriculture and retail, continue to dominate the cooperative landscape, there are opportunities for growth in emerging sectors, including technology, green industries, and the provision of care. These areas show potential to attract younger entrepreneurs and women. Additionally, the social sector could benefit from greater involvement of cooperatives alongside civil society organizations.
• Expanding the potential of the cooperative model: A notable feature of the cooperative landscape in Saudi Arabia is the prevalence of the shareholder-based model. While this model has supported growth, there is significant potential to deepen member engagement and foster stronger inter-cooperative collaboration. Shifting towards more member-driven models could enhance cooperatives' ability to contribute even more effectively to both economic and social development.

• Strengthening the CSC's role: The CSC has made significant strides in promoting cooperatives. There are opportunities to enhance its impact further. Improving its connection with the member base, particularly through the establishment of regional council structures, could strengthen engagement. Moreover, exploring sustainable, member-driven models for financial support could reduce the CSC's reliance on government funding and help build a more resilient and self-sustaining cooperative ecosystem.

  © Ministry of Human Resources and Social Development, Kingdom of Saudi Arabia
  Participants in the KSA's national cooperative strategy workshop led by the Ministry of Human Resources and Social Development.

ILO's contributions to Saudi Arabia's national cooperative strategy

In addition to the fact-finding mission, the ILO participated in the KSA's national cooperative strategy workshop led by the Ministry of Human Resources and Social Development. The ILO had previously provided recommendations on the cooperative strategy based on the Promotion of Cooperatives Recommendation, 2002 (No. 193).

The workshop gathered representatives from the government, the cooperative movement, and sectoral and regional organizations. The aim was to discuss the strategy, identify key challenges and opportunities, and identify concrete action areas to advance cooperative development in Saudi Arabia. The workshop's workstreams tackled several critical areas, including creating an enabling environment for cooperatives, strengthening the role of the Cooperative Societies Council (CSC) and its federations, fostering partnerships and collaboration within and among cooperatives, improving access to finance for cooperatives, and addressing skills development for cooperative members and workers. Additionally, the workstreams focused on enhancing technical and financial sustainability, fostering innovation, raising awareness of cooperative culture, promoting cooperative education, and encouraging greater engagement of cooperative members.

During the workshop, the ILO contributed to discussions on the role of the Cooperative Societies Council (CSC) and its two federations-agriculture and consumer cooperatives-highlighting its integration into the broader national strategy. The ILO stressed the importance of establishing a grassroots-driven, independent CSC with a clear mandate to support cooperatives and play a coordinating role across all public and private support programmes for cooperatives.

In addition, the ILO participated in a panel discussion where it shared insights on global cooperative trends, including the significance of youth-led and women-led cooperatives, the potential of platform cooperatives, and the role of digital tools in fostering innovation. The ILO also welcomed the collaborative nature of the workshop, which involved key stakeholders from various sectors, viewing it as an essential step in shaping the future of cooperatives in Saudi Arabia.

Participants at the KSA's national cooperative strategy workshop led by the Ministry of Human Resources and Social Development.

Next steps

The ILO will finalize the institutional assessment of the Cooperative Societies Council (CSC) and prepare a comprehensive report that outlines key findings and strategic recommendations. This report will undergo validation with key stakeholders to ensure alignment and consensus. Building on these findings, the ILO will support the development of a strategic action plan focused on capacity building, addressing the identified challenges, and strengthening the overall impact of the CSC and the cooperative sector in Saudi Arabia.

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