The Cabinet issued a decision approving amendments to the regulations of the University Higher Education Fund, a move aimed at expanding the Fund's financial base and enhancing its ability to support the academic education system in the Kingdom. This decision includes the inclusion of a quarter of endowments as one of the official sources of funding for the Fund, thus opening new horizons for financial sustainability in the education sector.
The official decision stipulated amending 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 regulate the acceptance of these resources, ensuring they are directed towards serving the strategic objectives of higher education.
Enhancing financial sustainability in line with Vision 2030
This step aligns with the objectives of the Kingdom's Vision 2030, which focuses heavily on diversifying revenue streams for government and public institutions and reducing overall reliance on the state budget. The higher education sector is one of the most important sectors the Kingdom seeks to transform towards financial independence and sustainability, as the revenue from endowments contributes to supporting university budgets and funding research and construction programs without placing an additional burden on the public treasury.
Endowments: A historical source of education
Historically, endowments (waqf) played a pivotal role in Islamic civilization in establishing and sustaining prestigious educational institutions and universities. Reactivating the role of endowments in higher education is a corrective step that revives this civilizational legacy through modern organizational mechanisms. By allowing the fund to accept a quarter of endowments and bequests, the door is opened for businesspeople and philanthropists to actively contribute to the advancement of education, thus strengthening the concept of social responsibility and community participation in human development.
Expected economic and developmental impact
This amendment is expected to contribute to increased spending efficiency within Saudi universities, as the fund will provide financial liquidity that can be invested in developing digital infrastructure, supporting research chairs, and funding scholarships for outstanding students. Furthermore, the existence of a clear regulatory framework for accepting these donations and endowments under the umbrella of the "Higher Education Fund" enhances transparency and governance, encouraging donors to direct their endowments to this vital sector, thereby improving the ranking of Saudi universities at both the regional and international levels.
