Pursuant to this statute, a fund called the "Higher Education Fund" shall be established, concerned with the development of higher education in universities and enhancing their capacity to perform their role in line with development requirements. It aims to diversify funding sources and develop their mechanisms, increase self-generated resources, enable universities to proceed with rationalizing and organizing scholarships, invest their funds, benefit from the revenues of the services they provide, and accommodate contributions from the private sector in financing programs, centers, and scholarships within the framework of those universities.

The fund shall have legal personality and administrative and financial independence, and its headquarters shall be in the city of Riyadh.

• Subject to the provisions of Royal Decree No. M/54 dated 19/10/1407 AH, the Fund shall be managed by a Board of Directors chaired by the Ministry of Higher Education and including the following members:

  • 1- A representative of the Ministry of Finance and National Economy.

  • 2- A representative of the Ministry of Planning.

  • 3- Three members representing the universities, selected by the Minister of Education.

  • 4- Three businessmen selected by the Minister of Education from those with scientific and professional competence.

• The Fund's Board of Directors is the supreme authority overseeing its affairs, management, and administration, setting the general policy it follows according to this statute and in a manner that contributes to meeting the urgent needs for developing universities, enhancing their capabilities, and increasing their capacity. It has, in particular, the following powers:

  • 1- Approving the Fund's annual budget.

  • 2- Approving the projects and programs financed by the Fund and monitoring their implementation. In the event of approving projects that result in the creation of positions or ongoing operational appropriations not approved in that year's budget, the concerned university shall discuss those projects with the Ministry of Finance and National Economy, and after agreement, the Fund's Board of Directors shall determine the start date for implementation.

  • 3- Approving the necessary plans to organize the utilization of the Fund's financial resources.

  • 4- Approving the Fund's organizational structure and appointing its administrative body.

  • 5- Issuing the administrative and financial regulations necessary for the Fund's operation and management to achieve its objectives.

  • 6- Accepting gifts, donations, bequests, and endowment revenues, in accordance with the governing rules.

  • 7- Approving the final account and the annual report on the Fund's activities in preparation for presenting them to the Higher Education Council before submitting them to the Prime Minister in accordance with the law.

The Board of Directors shall convene at the invitation of its President at least twice a year, and the President must convene the Board if requested by at least half of the members. The invitation letter must include the agenda. The meeting is valid only if the majority of the members, including the President of the Board, are present. Decisions are issued by the majority of the votes of those present, and in the event of a tie, the side supported by the President's vote shall prevail. The Board may invite those whose information and expertise it deems useful to attend its sessions without granting them voting rights. The Board's deliberations and decisions shall be recorded in minutes signed by the President of the Board and the attending members.

The Board may not issue decisions by presenting them separately to the members except in cases of necessity. In such cases, the approval of all Board members in writing is required, and these decisions must be presented to the Board at the first subsequent meeting to be recorded in the minutes of the meeting.

The Fund is represented in its relations with other entities and before the judiciary by the Chairman of the Fund's Board of Directors or his authorized representative.

• The fund shall have a General Secretary appointed by the Minister of Education from among the university faculty members for a renewable term of three years. The General Secretary is the executive responsible for managing the fund and reports to the Chairman of the Board. His responsibilities are concentrated within the limits stipulated in the statute and as decided by the Board of Directors. The General Secretary exercises the following powers:

  • 1- Preparing for the Board of Directors' meetings.

  • 2- Following up and implementing the decisions issued by the Board of Directors.

  • 3- Preparing the fund's draft budget, draft final account, and the annual report on the fund's activities.

  • 4- Supervising the employees of the fund according to the authorities granted to him and as determined by the regulations.

  • 5- Submitting periodic reports to the Board of Directors on the fund's work, achievements, and activities.

  • 6- Proposing the fund's plans and programs and supervising their implementation after approval by the Board of Directors.

  • 7- Issuing orders for the fund's expenses in accordance with the approved annual budget.

The fund shall have an independent annual budget, and the fiscal year of the fund shall commence with the beginning of the state's fiscal year.

• The fund's resources consist of:

  • 1- Amounts achieved by universities from rationalizing student rewards and organizing them according to the rules established for rationalizing rewards.

  • 2- Surpluses of the fund carried over from previous years.

  • 3- Returns on the investment of the fund's money.

  • 4- Revenues from the use of university facilities, and the financial revenues allocated thatare collected by the universities in return for the services, studies, and research they provide.

  • 5- Funds allocated by the state to the fund.

  • 6- Grants, donations, wills, and endowment revenues accepted by the Board of Directors.

  • 7- Other financial resources decided by the Board of Directors.