A fund shall be established under this regulation called the (Human Resources Development Fund), which is specialized in facilitating the employment of citizens, training them, and encouraging them to work in the private sector. It shall have legal personality, enjoy administrative and financial independence, and shall be represented by the President of its Board of Directors. It is organizationally linked to the National Development Fund and its main headquarters shall be in the city of Riyadh. For the purpose of carrying out its activities, the fund may establish branches or appoint agents in other cities.

The fund aims to support efforts to qualify and employ the national workforce in the private sector. To achieve its objectives, it shall undertake the following:
1 - Providing grants for the qualification, training, and employment of the national workforce in the private sector.
2 - Participating in the costs of qualifying the national workforce and training them for jobs in the private sector. The Board of Directors of the fund shall determine the percentage of this participation, and the remaining percentage shall be paid by the employer benefiting from the qualification of the trainee.
3 - Bearing a percentage of the salary of those employed in private sector establishments after their qualification and training, as well as those employed in these establishments in coordination with the fund, with the employer paying the remaining percentage of the salary. The fund's bearing of this percentage shall be for a period not exceeding two years, and the Board of Directors shall set the necessary conditions for its disbursement.
4 - Supporting the financing of field programs, projects, plans, and studies aimed at employing Saudis and replacing them with expatriate labor.
5 - Providing loans to private establishments for the qualification and training of the national workforce that are established in the Kingdom, and to existing establishments for the purpose of expanding their activities or introducing modern methods.
6 - Conducting research and studies related to its activities in the field of qualifying, training, and employing the national workforce, as well as providing technical and administrative advice to establishments for the qualification and training of the national workforce.

1 - The fees determined by the state for the benefit of the fund.
2 - The subsidies provided by the state.
3 - The grants, donations, aids, and endowments that the Board of Directors decides to accept.
4 - The returns from the fund's investments for its resources.
5 - Service fees, and what is collected in order to carry out its activities in the field of lending.
6 - The financial compensation determined by the Council of Ministers for the services provided by the fund to the private sector for the qualification, training, and employment of the national workforce in this sector, to replace the expatriate labor.

1- Conducting an economic feasibility assessment for training programs and projects before lending to the establishment, taking into account the general objectives of the fund.
2 - Obtaining sufficient guarantees from the establishment being lent to, commensurate with the size of the financing provided by the fund.
3 - The amount of the loan granted for any program or project in a single establishment shall not exceed (2.5%) of the amounts allocated for loans in the annual budget of the fund, as well as (30%) of the total cost of the borrowing project.
4 - Monitoring the implementation of the programs and projects that are lent to ensure that they are progressing regularly according to the specified plan, and providing advice to the establishments regarding the problems and difficulties faced by these programs and projects. This monitoring is carried out by obtaining periodic reports on the progress of work in those programs and projects, and conducting inspection visits to them.

1 - The financial year of the fund is the financial year of the state.
2 - The administrative expenses of the fund for each year are financed from its revenues, provided that such expenses do not exceed a specific percentage of its revenues determined by the Board of Directors.

First - The Board of Directors of the Fund consists of the following:

1- Minister of Labor                                               President
2 - Membership includes representatives from each of: Ministry of Finance, Ministry of Economy and Planning, Ministry of Commerce, Ministry of Water and Electricity, General Organization for Technical Education and Vocational Training, Institute of Public Administration, and National Development Fund.
3- Three members representing the private sector, nominated by the Minister of Commerce, and their appointment is issued by a decision from the Council of Ministers.
The President shall designate a member to act on his behalf in case of his absence.

Second: The term of membership in the Council is three years.

1- Approval to expand its tasks to include the rehabilitation and training of Saudi citizens.
2 - Approval of the organizational structure.
3 - Issuance of all necessary regulations for the operation and management of the fund, including financial regulations and regulations specific to the fund's employees, in a manner that enables it to achieve its objectives.
4 - Formation of the executive committee of the fund, appointment of the general administrator, and determination of his powers.
5 - Issuance of an estimated budget for the fund's activities and its administrative expenses for each fiscal year, with the Board of Directors determining the rules to be followed in the event of a shortfall in revenues or an increase in expenses beyond what is estimated.
6 - Appointment of an auditor from among the licensed auditors, and determination of his fees and duration of work.
7 - Submission of the final account and the annual report on the fund's activities to the National Development Fund for review, in preparation for completing the applicable legal procedures.

1 - The loans granted by the fund enjoy the benefits and guarantees established for the rights of the public treasury.
2 - The General Auditing Bureau shall review and monitor the accounts of the fund in accordance with this regulation and the procedures of the fund.

This regulation shall be published in the official gazette and shall come into effect ninety days from the date of its publication.