From the First Ministerial Decision (2009) to a Network of 61 Active Institutes Today

(Analysis and executive guide directed at associations wishing to enter the 'non-profit institute in partnership with the private sector' portal – fully based on the presentation by Engineer Ayman Al-Abdullah at the Non-Profit Sector Forum for Education and Training 2025)

Why These Institutes?

  • Skills Gap: The presentation noted that 63% of primary school students continue their university studies while the labor market needs more quickly produced technical skills.
  • Outcome: 25,000 initial training seats were identified with employment in 61 partnership institutes – 100% of them were linked to prior employment contracts.
  • Non-Profit Role: 43% of those institutes are operated under contracts with associations and endowments, with financial support covering 75% of their costs from 'Hadaf' and 'technical and vocational'.

Sequence of Decisions (2009 → 2025)

Year | Decision or Regulation | Impact on the Non-Profit Sector

2009 | Cabinet Decision No. 17 to establish 'Strategic Partnership Institutes' | Opened the door for the private and charitable sectors to establish vocational institutes linked to employment contracts.

2013 | Establishment of the 'National Center for Strategic Partnerships' (under the Excellence Colleges) | A unified supervisory entity that issues approvals and links funding to employment.

2018 | Launch of the specifically designed training support program (HRDF) – ceiling of 3,000 SAR/trainee | The non-profit sector receives 75% support in the presence of a vocational sponsor.

2020 | Update of the institutes' regulations: Acceptance of non-Saudis in the diploma system and flexible licensing | Increased the financial solvency of the non-profit institute by introducing paid seats for non-Saudis.

2023 | Expansion of support limits to 10,000 SAR + doubling the trainee bonus | Associations became able to adopt high-cost specialties (Aviation, Robotics…).

2024 | Requirement of 'Masar' quality classification to obtain operational contracts | Unifying governance and performance standards, giving preference to classified organizations ⭐⭐⭐ and above.

2025 | Linking job scopes to trainee accounting (1 trainee = 1 employed Saudi) | A significant incentive for companies to establish partnerships with non-profit institutes.

How to Prepare Your Association to Become a 'Partnership Institute'?

Step | What to Do? | Required Document

1. Choosing a Target Sector | Use skills gap maps for sector councils (13 councils) | Initial endorsement letter from the Skills Council

2. Previous Vocational Sponsor | Sign a Memorandum of Understanding with a recruitment company ≥ 30 seats/batch | MoU + Occupational Progression Plan

3. Sustainable Financial Model | 75% support from 'Hadaf' + 25% company contribution + 5% Maintenance Fund | Five-year cash flow model

4. Curriculum Approval | Alignment with 'TVTC' standards and attaching a certificate from the employee's company | C1 model for curriculum development

5. Governance Regulations | A tri-board of trustees (Association – Private Sector – Government Observer) | Minutes of the board's establishment

6. 'Masar' Classification | Self-assessment questionnaire + field visit + improvement plan | Quality report ⭐⭐⭐ (at minimum)

7. Operational Contract | Signing an operational contract with the National Center for Strategic Partnerships | NCSP contract ready for activation

Compliance Matrix: Entities, Requirements, Timing

Axis | Supervisory Entity | Submitted? | When?

Curriculum Quality | Technical and Vocational Training Corporation | 'C1 Model' + Simulation Plan | Upon establishment and updated every 3 years

Funding and Incentives | Human Resources Development Fund (Hadaf) | List of trainees + Employment Contracts | Quarterly

Operational Quality | 'Masar' Program (Education Evaluation Authority) | Self-study + Performance reports | Annually (Visit every 18 months)

Localization of Jobs | Ministry of Human Resources (Nafath+) | Employment Status Report | Semi-annual

Safety and Licensing | Civil Defense + Municipality | Training Facility License | Before opening and annual renewals

Summary Financial Scenario (Batch of 100 Trainees – Industrial Electronics Specialty)

Item | Cost/Trainee | Loaded Percentage | Contributor

Theoretical Training and Workshop | 12,000 SAR | 75% | HRDF

On-the-job Practical Training | 6,000 SAR | 25% | Sponsoring Company

Monthly Trainee Bonus (12 months) | 24,000 SAR | 100% (70% refunded after employment) | HRDF

Operational Expenses of the Association (Management, Quality, Maintenance) | 4,000 SAR | Foundation Grant (Donor Entity) | Association

Net Social Return: 100% employment after graduation + recovering 70% of bonuses → reinvested in the next batch.

Executive Recommendations for the Non-Profit Sector

  1. Choose a specialty with an active skills council to expedite curriculum alignment and approval.
  2. Sign a tri-party MoU before any structural investment; absence of a vocational sponsor disrupts support from 'Hadaf'.
  3. Prepare early for 'Masar' classification: mandatory for funding starting from 2026 batches.
  4. Allocate 5% of revenue to a maintenance fund that protects accreditation after the fifth year.
  5. Appoint a compliance coordinator to monitor the matrix above and submit documents on time.

Conclusion

Fifteen years of successive decisions have transformed the idea of a 'non-profit institute in partnership with the private sector' into a mature system: support reaching 75% of costs, unified governance, and quality classification that channels funding to the best. Associations that expedite completing the seven compliance steps today have the opportunity to capture a share of 25,000 initial training seats linked to employment – making a tangible economic and social impact before 2030.