Official Gazette publishes approval of Higher Education Fund regulations

Saudi Arabia's Official Gazette has published Cabinet Decision No. 358, dated 25 Rabi' Al-Thani 1448 AH, approving the new regulations for the Higher Education Fund. This new framework replaces the previous regulations for the University Higher Education Fund, which were issued by Cabinet Decision No. 216, dated 8 Ramadan 1421 AH.

According to the Official Gazette, the fund aims to diversify funding sources and develop financial mechanisms for higher education institutions, enhance their self-generated revenues, invest their assets and funds, manage their investments, and support and develop projects for higher education institutions. These objectives are in accordance with the new regulations and are intended to help achieve financial sustainability for higher education institutions and strengthen their ability to fulfill their developmental roles.

The Cabinet decision approving the regulations stipulates that the Board of Directors of the Higher Education Fund shall exercise its authority under paragraph (13) of Article (6) of the regulations in accordance with the National Framework for Fees and Financial Charges, issued by Cabinet Decision No. 611, dated 22 Sha'ban 1447 AH.
The details of the regulations are as follows:

Article One:
The following terms and phrases, wherever mentioned in these regulations, shall have the meanings assigned to each:
1- The Fund: The Higher Education Fund.
2- The Regulations: The regulations of the Fund.
3- The Minister: The Minister of Education.
4- The Board: The Board of Directors of the Fund.
5- The Chairperson: The Chairperson of the Board.
6- The CEO: The Chief Executive Officer of the Fund.
7- Higher Education Institutions: Universities or colleges in the Kingdom authorized by law to provide post-secondary education, in accordance with applicable regulations.

Article Two:
The Fund shall have legal personality and financial and administrative independence. It is organizationally linked to the Minister, with its headquarters in Riyadh, and may establish branches or offices within the Kingdom as needed.

Article Three:
The Fund aims to diversify funding sources and develop mechanisms for higher education institutions, enhance their self-generated revenues, invest their assets and funds, manage their investments, and support and develop projects for higher education institutions. These efforts are in accordance with the regulations and contribute to the financial sustainability of higher education institutions and their ability to meet development requirements.

Article Four:
Without prejudice to the powers of other government bodies, the Fund shall have the necessary powers to achieve its objectives, including:
1- Setting policies, plans, programs, and projects related to the Fund's areas of competence.
2- Establishing or contributing to projects, programs, and initiatives that benefit higher education institutions.
3- Managing the investments, assets, and funds of higher education institutions, in agreement with them.
4- Operating higher education institution facilities, independently or in partnership with others, in agreement with the institutions.
5- Investing funds generated by higher education institutions through student stipend optimization, in accordance with established rules.
6- Engaging in all types of investment, including securities, asset and real estate ownership, and their disposal by sale, mortgage, or otherwise, in accordance with relevant regulations.
7- Charging fees for services and activities provided in the course of its operations, as determined by the Board.
8- Establishing companies or other special-purpose entities within the Kingdom, alone or in partnership with others, and acquiring shares or stakes, in accordance with legal procedures.
9- Concluding agreements and memoranda of understanding with relevant entities outside the Kingdom, in accordance with legal procedures.
10- Organizing and participating in conferences, seminars, and workshops related to the Fund's areas of competence, inside and outside the Kingdom, in accordance with legal procedures.
11- Representing the Kingdom internationally within the Fund's areas of competence, in accordance with legal procedures.
12- Supporting and conducting research and studies in the Fund's areas of competence, independently or in cooperation with relevant entities.
13- Providing financial, economic, technical, and training advice and services in the Fund's areas of competence.
14- Promoting education development plans, activities, and initiatives in the Kingdom, and contributing to their funding and support.
15- Undertaking any activity or work approved by the Board that achieves the Fund's objectives and aligns with its nature.

Article Five:
1- The Fund shall have a Board of Directors chaired by the Minister, with the following members:
a- The Secretary-General of the Council of University Affairs.
b- A representative from the Ministry of Education.
c- A representative from the Ministry of Finance.
d- A representative from the Technical and Vocational Training Corporation.
e- Three representatives from higher education institutions.
f- Two members with expertise and specialization in areas related to the Fund's work.
g- The Chief Executive Officer.
2- The members mentioned in subparagraphs (e) and (f) of paragraph (1) shall be appointed by order of the Prime Minister based on the nomination of the Chairperson. Their term shall be three years, renewable once for a similar period.
3- The representatives of government entities must hold a rank not lower than grade 13 or its equivalent.
4- The Chairperson shall select a deputy from among the members listed in subparagraphs (a), (b), (c), and (d) of paragraph (1).

Article Six:
The Board shall oversee the management and affairs of the Fund and take all necessary decisions to achieve its objectives within the scope of the regulations. Specifically, the Board shall:
1- Approve policies, plans, programs, and projects related to the Fund's areas of competence.
2- Approve spending controls for higher education institutions within the Fund's areas of competence.
3- Accept oversight of endowments assigned to it for higher education institutions targeted by the Fund, in accordance with relevant procedures.
4- Approve the organizational structure and guide of the Fund.
5- Approve the financial and administrative regulations governing the Fund, as well as other internal and technical regulations necessary for its operations. Financial regulations and provisions with financial impact must be approved in agreement with the Ministry of Finance, and administrative regulations in agreement with the Ministry of Human Resources and Social Development, in accordance with applicable rules and instructions.
6- Approve the Fund's final accounts and annual activity report, in preparation for completing legal procedures.
7- Approve the Fund's annual budget.
8- Approve the investment of the Fund's assets to support its objectives, in accordance with applicable regulations and instructions.
9- Approve the acquisition and disposal of assets and real estate by the Fund, including sale, mortgage, or otherwise, in accordance with relevant regulations.
10- Approve the policy for operating higher education institution facilities.
11- Approve partnerships with local and international entities, in accordance with relevant regulations.
12- Establish companies or other special-purpose entities within the Kingdom, alone or in partnership with others, and participate in existing ones, acquire shares or stakes, and any related rights, in accordance with legal procedures.
13- Approve fees for services and activities provided by the Fund for which the Board deems it appropriate to charge.
14- Appoint one or more external auditors for the Fund, as well as an internal financial controller.
15- Approve the auditor's report.
16- Review periodic reports on the Fund's operations and take necessary decisions.
17- Approve the Fund's agreements, memoranda of understanding, and contracts, in accordance with legal procedures.
18- Accept donations, grants, endowments, bequests, and income from endowments, in accordance with relevant regulations.
19- Approve the establishment of branches or offices for the Fund within the Kingdom.
20- Form permanent or temporary committees from among its members or others, assigning them tasks as deemed appropriate, and specifying each committee's chair, members, and responsibilities. Committees may seek assistance from others as needed.
The Board may delegate some of its powers under paragraphs (11), (17), and (18) of this Article to its Chairperson or other members or Fund staff, as required for operational efficiency.

Article Seven:
1- The rules for holding Board meetings are as follows:
a- The Board shall meet at least three times a year, or as needed at the discretion of the Chairperson or Deputy Chairperson, or upon the request of at least one-third of its members. Invitations to meetings must be sent in writing by the Chairperson or Deputy Chairperson at least seven days in advance and must include the agenda.
b- Board meetings are held at the Fund's headquarters, but may be held elsewhere in the Kingdom by decision of the Chairperson or Deputy Chairperson.
c- A meeting is valid only if a majority of members, including the Chairperson or Deputy Chairperson, are present.
Decisions are made by a majority of those present; in the event of a tie, the Chairperson's vote prevails.
d- The Board may invite experts and specialists to attend meetings and provide information, opinions, and advice, but they do not have voting rights.
e- Board members may not abstain from voting or delegate their vote to another member in their absence.
f- Board deliberations and decisions are recorded in minutes in Arabic, signed by the Chairperson and attending members. Any dissenting member may record their objection and reasons in the minutes.
g- The Board may hold meetings and vote remotely using technology.
h- The Board shall have a secretary appointed by the Chairperson.