Saudi Cabinet approves new cooperatives law, labor minister hails move

Minister of Human Resources and Social Development Ahmed Al-Rajhi expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman following the Cabinet's approval of the new cooperatives law.

Al-Rajhi said the decision reflects the leadership’s commitment to developing the legislative and regulatory environment for the cooperative sector, strengthening its economic and social role, and increasing its contribution to development goals and economic diversification.

He noted that the new law marks a significant shift toward a more flexible legislative framework focused on growth, empowerment, and sustainability, while enhancing the independence of cooperatives and upholding principles of governance, transparency, accountability, and member participation.

Enhancing services and sustainability

Al-Rajhi added that the law empowers central cooperatives and expands the scope of shared services, while regulating mergers to optimize resource use and competitiveness. It also supports the diversification of activities and investments, and helps achieve the sector’s financial sustainability.

The minister explained that the law is the result of an institutional effort that drew on international experiences and best practices, with input from relevant authorities, the cooperative sector, and stakeholders, ensuring it meets the sector’s current and future needs.

Al-Rajhi concluded by affirming that the new law lays the foundation for a more dynamic and sustainable cooperative sector, supports local community empowerment, creates new economic opportunities, and expands partnerships—boosting the sector’s contribution to non-oil GDP and national development.