The words and phrases listed below — wherever they appear in these regulations — shall have the meanings specified next to each of them, unless the context requires otherwise:

• Minister: Minister of Human Resources and Social Development, Chairman of the Board of Directors of the Technical and Vocational Training Corporation.

• Governor: Governor of the Technical and Vocational Training Corporation.

• Corporation: Technical and Vocational Training Corporation.

• Training Unit: A non-profit training establishment operating in the field of technical and vocational training.

• Board of Directors: Board of Directors of the Training Unit.

The Training Unit is an entity with a legal personality whose primary purpose is to provide services in the field of technical and vocational training within the Kingdom, without aiming to achieve material profit. Its establishment and growth depend on continuous self-financing, and it may accept donations but is not permitted to collect contributions.

The training unit is established by an individual or a group of individuals or a person or several persons with legal status.

The following conditions must be met to establish a Training Unit:

• A) The applicant or applicants for the License must be of Saudi nationality, or one of the foreign companies.

• B) The applicant or applicants for the License must be fully competent.

• C) The applicant or applicants for the License must prepare the foundational system for the Training Unit for which the License is sought.

The License for the Training Unit shall be as follows:

• First: A decision shall be issued by the governor approving the preliminary establishment of the non-profit Training Unit, and the Training Unit shall then proceed with the following:

  • A) Selecting a Board of Directors in accordance with Article (8) of these regulations.

  • B) Providing the institution with the names of the Board members and the tasks assigned by the Board to the President, Vice President, General Secretary, and Treasurer, and specifying the bank or banks with which the Training Unit wishes to deal.

  • C) Obtaining the approval of the Ministry of Municipal and Rural Affairs for the designated location of the Training Unit.

• Second: A decision shall be issued by the governor for the final license of the Training Unit after fulfilling the conditions stated in these regulations, and submitting an estimated budget for the Training Unit prepared by a licensed accountant, thus the Training Unit shall acquire legal personality.

The Training Unit shall have a Board of Directors consisting of no less than five members, nominated by the founder and approved by the governor. The law shall specify the term of membership of the Board of Directors, which shall not exceed four years and is renewable.

A copy of the minutes of each Hearing of the Board of Directors, along with the decisions made, must be provided to the Technical and Vocational Training Corporation within twenty days from the date of the Hearing. The Corporation has the right to object to those decisions within twenty days from the date they are recorded. In the event of a disagreement between the Board of Directors and the Corporation, the matter shall be presented to the Board of Directors of the Technical and Vocational Training Corporation, and its decision shall be final.

The institution is responsible for supervising the activities of the Training Unit and monitoring the implementation of the provisions of these rules and the instructions issued pursuant to them. For this purpose, it has the right to review its books, records, and documents, and to receive a copy of the financial statements for the previous fiscal year, audited by a licensed accountant, within a period not exceeding four months from the end of the fiscal year, and a copy of the estimated budget for the new fiscal year, signed by the Chairman of the Board of Directors at least two months before the start of the fiscal year. The Training Unit is also required to provide any other information requested by the institution.