Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
In Saudi Arabia, between 2000 and 2024, the gross enrolment ratio for tertiary education rose steadily from 28.38% to 83.88%. While data on the initial government funding per tertiary student as a percentage of GDP per capita and the initial household funding per tertiary student as a percentage of GDP per capita are not available.
Tuition-free status
Public universities are government-funded and they provide undergraduate programs free of charge to Saudi citizens.
Governance
According to the Law of Universities, responsibility for financing and overseeing higher education in Saudi Arabia is primarily centralised under the Ministry of Education, which chairs and leads the Council of University Affairs, the main national body responsible for approving universities’ financial, administrative, and academic regulations, determining fee charging rules, regulating investments and self-generated revenues, approving student funds, and governing overall financial performance. The Ministry of Finance participates in the Council through its Vice Minister, and its role aligns higher education financing with national fiscal frameworks. The Law further specifies that the oversight extends down the institutional hierarchy, with boards of trustees and university councils operating under the authority of the Council of University Affairs, and they manage academic, financial, and administrative matters such as curriculum criteria and compliance, subject to regulations and delegation rules approved at higher levels.
1. Education resources to subnational governments
There are no funding mechanisms for transferring resources to local governments from the central governments for public higher education. Under Article 49 of the Law of Universities, public higher institutions receive subsidies directly from the state.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
There is no evidence that private higher institutions receive funding when no public university is available. Article 45 of the Statute Regulating Private Colleges and Universities lists the resources of the institutions, and the subsidy of the state is not specified. However, they are subject to accreditation and supervision by national bodies, including institutional and program accreditation by the Education and Training Evaluation Commission as well as oversight by the Council of Universities’ Affairs and its General Secretariat regarding licensing, performance monitoring, and compliance with applicable regulations and standards.
Allocation and equity
No evidence was found of a formula-based allocation mechanism through which public higher education institutions receive government funding targeting equity for specific groups. Instead, the Law of Universitiesindicates that each public university operates with its own independent annual budget, which the university is required to prepare and propose, and which must be approved by its Board of Trustees in accordance with applicable regulations.
3. Education resources to students
Admission for vulnerable groups
No evidence was found of specific admission criteria for vulnerable groups. Admission to higher education is merit-based and requires obtaining a recent high school diploma (normally within the last five years) and passing the aptitude and other required tests set for each college or major by the competent evaluation body.
Scholarships, grants and loans for vulnerable groups
As stipulated in the Statute Regulating Financial Affairs in Universities, Saudi students enrolled in undergraduate or graduate programs who are not in employment are entitled to receive financial support in the form of monthly allowances. At the undergraduate level, students in scientific disciplines receive a monthly stipend of 1,000 riyals, while those enrolled in arts and humanities programs receive 850 riyals per month. Graduate students receive a monthly allowance of 900 riyals, in addition to an annual book and reference allowance equivalent to one month of the stipend. Furthermore, graduate students are granted a one-time lump sum to support thesis production costs, amounting to 3,000 riyals for master’s students and 4,000 riyals for doctoral students. While these stipends are provided on a universal basis and are not explicitly equity targeted, visually impaired students receive an additional monthly financial allowance, benchmarked to the basic salary of a public servant at the fifth rank, first degree, to cover the costs of reader support services and assistive educational aids.
Administered by the Social Development Bank, a government owned development finance institution operating under a public social and economic mandate, the programme provides education purpose personal loans to support individuals enrolled in education institutions affiliated with the Bank, with the objective of enabling beneficiaries to continue their studies by covering tuition and related education costs. Eligibility is limited to Saudi nationals and access is guided by income-based affordability criteria, with applicants required to meet income thresholds set by the Bank and its financing rules. Beneficiaries may receive financing of up to 100,000 SAR, repayable over a maximum period of four years through monthly installments.
4. Support for students’ living costs
Transportation
No evidence was found of a nationwide or centrally administered government subsidy for student transportation. Instead, transportation support is provided at the institutional level. Many public universities independently operate and fund free internal shuttle or bus services for students, typically connecting student housing with academic campuses, as observed at institutions such as Taibah University and King Abdullah University of Science and Technology.
Accommodation
No evidence was found of a standalone or dedicated scheme specifically supporting student accommodation in Saudi higher education. However, Article 43 of the Statute Regulating Financial Affairs in Universities stipulates that a university may provide accommodation to an undergraduate or graduate student who is not a regular employee, provided that housing is available within the university.
Textbooks
No evidence was found of a standalone or dedicated scheme specifically for purchasing student textbooks. Instead, textbook support is provided through existing student allowance programme for master’s level students, who are eligible to receive an additional annual allowance explicitly intended to cover the cost of books and academic references.
