On 8/9/1421 AH, The Cabinet resolved its decree No. (216) on the reorganization of the students rewards in higher education sectors in order to rationalize them, as well as to approve the establishment of a fund for higher education. The idea of reorganizing the rewards and then establishing a fund for higher education was based on a clear defined policy relevant to the inputs and the outputs of university education, where the financial reward was an urgent need in the past and an incentive to urge secondary education graduates to enroll in higher university education to meet the needs of the Kingdom in all fields. This policy has succeeded in achieving its desired results in a record time. Consequently, many university graduates joined many sectors and institutions to meet their needs. According to the steady increase in the number of graduates either of secondary education or equivalent sectors as well as the need for expansion in higher education institutions besides the development of the existing ones to cope with this increase, the Ministry of Higher Education studied the current situation in the area of rewards and bonuses and hence felt the need to reorganize them in order to promote their use, taking into account the following considerations:

1. The reward is essential for many segments of society.
2. The reward is an incentive for general education students for admission to one of higher education institutions.
3. Reducing the impact on hard working students in their education.
4. Urging students to persevere and strive to raise their educational level and complete their university studies in the time limit, which greatly helps in reducing the waste in any educational institutions and which in turn increases the internal efficiency of these institutions.
5. The standards of rewards organization must be objective and easily applicable in all institutions of higher education.

         Then, the issue was brought to the Higher Education Council, and specialized committees were set up to study it. Therefore,  The Higher Education Council issued a resolution No. 2/12/1419 on 29/2/1419 AH restricting the rewards expenditure for the following categories:

1. The students of the specializations required by development plans which suffer from a lack of demand by students and the Higher Education Council is in charge of identifying those specializations.
2. Needy students and the Higher Education Council identifies and the rules of rewards expenditure.
3. Reward are not expended in the following cases: --
- If the student exceeds the minimum duration of the program curriculum.
- If the student has apologized or postponed the study in accordance with the provisions of articles (XIII and XIV) of the Rules of the Study and Tests of the university phase.
- Through the summer vacation only if the student is registered for a summer semester.
- If there is an academic warning in accordance with the provisions of paragraph (A) of Article (Twenty) of the Regulation referred to, and re-award if the warning is lifted.

         The Higher Education Council has laid a regulation to implement this resolution. The Council has also set up a mechanism to invest the amounts available and resulting from the application of paragraph (C), referred to above, and suggested a number of recommendations, most notably the establishment of a " university higher education fund ", as approved by the Supreme Economic Council, after careful study on the restructuring of the rewards, and to establish "the university higher education fund" according to resolution No. 9-21 issued on the date of 7/9/1421 AH as well as the approval of the Cabinet in accordance with the resolution referred to above.

        Article I of the "Organization of the university higher education fund,"  defined the objectives and the functions of the fund which are concentrated in: " developing higher education in the universities and increasing their ability to perform their roles which commensurate with the requirements of development, and aims to diversify the sources of funding and their development mechanisms to enable the universities further rationalize and manage the rewards, investment their money, benefit from the proceeds of the provided services, absorbing the contributions of the private sector in the financing scholarships programs and centers in the framework of these universities. "

       The Fund began its work in the year when its establishment decree was issued. In addition, the fund drew its policy to achieve the objectives for which it was established. The Fund gives special importance to the support and the financing of scientific and academic programs at universities, and the establishment of new colleges and the expansion of existing ones, which serve the labor market.

        The Fund has a moral personality and administrative and financial autonomy and is administered by a board of directors chaired by the Minister of Higher Education and the membership of a representative of the Ministry of Finance, the representative of the Ministry of Economy and Planning, and three members representing universities, and three businessmen with sufficient scientific and professional competence .

Source :
Higher Education Fund website , accessed 30/3/2009