Amending the regulations of the Higher Education Fund and adding a quarter of the endowments to its resources
In a strategic move aimed at enhancing the financial sustainability of the education system in the Kingdom of Saudi Arabia, the Council of Ministers issued a decision approving amendments to the regulations of the University Higher Education Fund. This decision represents a qualitative shift in the mechanisms for financing university education, as the amendments focused primarily on expanding the Fund's financial resources to include sustainable endowment sources.
Specifically, the official decision amended paragraph (1) of Article Four of the Fund's regulations, to read as follows: “Accepting gifts, donations, bequests, and a quarter of endowments, in accordance with the applicable rules.” The amendment also included paragraph (1) of Article Nine, granting the Fund's Board of Directors full authority to approve the acceptance of these resources, including “a quarter of endowments,” thus providing regulatory flexibility and a clear legal framework for receiving and managing these financial assets.
This decision is of paramount importance when viewed within the context of the Kingdom's Vision 2030, which actively seeks to empower the non-profit sector and increase its contribution to the GDP, in addition to enhancing the efficiency of government spending and diversifying income sources for educational institutions. By integrating endowments (waqf) into official resources, the decision revives the historical and cultural role of Islamic endowments, which were the primary source of funding for universities and schools throughout Islamic history. This ensures greater financial independence for universities and reduces their overall reliance on the state budget.
On the economic and developmental front, this expansion of resources is expected to enable the Higher Education Fund to support high-quality research projects, develop university infrastructure, and more efficiently fund scholarship and training programs. Furthermore, opening the door to endowments and bequests encourages businesspeople and philanthropists to contribute to the advancement of education, confident that a governmental regulatory framework will ensure these funds are spent appropriately in service of science and knowledge.
These amendments are not merely a procedural change, but rather the establishment of a new phase of “sustainable financing” in the higher education sector, which enhances the competitiveness of Saudi universities regionally and internationally, and supports their transformation into productive and financially stable institutions capable of keeping pace with rapid global changes.
