The CUA Evidence Base for a New Saudi Private University
The CUA Evidence Base for a New Saudi Private University
The CUA Evidence Base for a New Saudi Private University
Why the feasibility study is mandatory
This is a Classification A guide because the requirement is express, rather than inferred from a general licensing practice. Article 4 of the Statute requires an entity seeking to establish a higher-education institution to attach a study that demonstrates and substantiates the feasibility of its establishment, validated by a consulting office licensed in Saudi Arabia. The same Statute defines a university as a private higher-education institution comprising at least three colleges or institutes. That legal definition is the boundary of this guide.Official source: Umm Al-Qura, *Statute Regulating Private Colleges and Universities*, Articles 1 and 4
The Council of Universities’ Affairs is the statutory body responsible for regulating university affairs and issuing their policies and regulations. The Law of Universities provides that universities and their branches are established by a Council of Ministers decision on a CUA recommendation. It also gives the CUA power to approve the regulations governing private universities and colleges and to recommend establishment decisions.Official source: Bureau of Experts, *Law of Universities*, Articles 1, 4 and 7
Establishment evidence: the published baseline
For the establishment request, the Statute identifies five baseline attachments or data items: the applicant’s legal form; the approved feasibility study; proof of financial solvency and capacity to establish and operate the institution; the institution’s name and location; and a statement of the intended university colleges, academic departments, and specialisations. A permanent committee within the General Secretariat studies establishment applications and makes its recommendation to the Council.Official source: Umm Al-Qura, *Statute Regulating Private Colleges and Universities*, Articles 4 and 5
The CUA’s Executive Rules add that the establishment request is made on the General Secretariat’s designated approved form. Depending on the applicant’s legal status, the published examples include a commercial register, legal-entity formation evidence, a non-profit licence, or Ministry of Investment approval for a foreign investor. The Rules also call for evidence that the proposed programmes align with labour-market needs and development requirements. These are conditional illustrations tied to legal status, not a claim that every applicant must provide every item.Official source: CUA, *Executive Rules Regulating Private Colleges and Universities*, Art. 3, p. 2
What the CUA framework examines
The CUA publishes a dedicated Framework 1: New Local Private HEI. Although that official framework is headed “University or College,” the material below is limited to its application to the statutory new-university case; it does not bring in the distinct matrices for a local branch, an international branch campus, or a new programme. Its six connected domains are market and competition; resources; quality and accreditation; financial analysis; and an implementation plan.Official source: CUA, *Feasibility Studies Assessment Framework and Methodology*, Framework 1, pp. 1–14
The market case must connect the proposed university to the Saudi macroeconomic context and the higher-education market. It should address demand for the proposed academic programmes, future demand over a 5–10-year horizon, comparable providers, capacity and utilisation, fee structures, target beneficiaries, geographic presence, sectoral alignment, current labour-market demand, and future market needs. In the published matrix, the labour-market analysis sits inside a sub-domain identified as Critical.Official source: CUA, *Feasibility Studies Assessment Framework and Methodology*, Framework 1, pp. 1–5
The resource case extends beyond a campus concept. It asks for founder profiles and relevant experience, partner profiles where applicable, location suitability analysis, and a high-level master plan. It also calls for evidence on delegated authority, oversight, regulatory compliance and risk management; an organisational structure with sufficient qualified academic, administrative and technical personnel; adequate student services; learning and information resources; an internal quality-assurance framework; and a route to institutional and programme accreditation.Official source: CUA, *Feasibility Studies Assessment Framework and Methodology*, Framework 1, pp. 6–10
The financial case is correspondingly specific. The published requirements cover revenue streams, student and fee projections, recurring operating costs, capital expenditure and timing, pre-operating expenditure, the capital structure, projected income statements, balance sheets and cash flows, NPV, IRR, payback analysis, and breakeven/scenario analysis. The implementation material then asks for a timed action plan covering the initial 5–10 years, programme rollout, and admissions ramp-up.Official source: CUA, *Feasibility Studies Assessment Framework and Methodology*, Framework 1, pp. 10–14
Assessment and licence sequence
The CUA guide separates critical requirements from additional requirements. Critical components are assessed pass/fail, and failure to fully satisfy any critical requirement results in automatic disqualification under the guide. Additional requirements are assessed for comprehensiveness, transparency and evidence-based justification, using a 0–2 scale. The guide states that the total score on additional requirements must be at least 70% for an application to be considered successful.Official source: CUA, *Feasibility Study Guide*, pp. 5–7
Establishment approval is not permission to operate. Once approval to establish has been issued, the owner applies to the General Secretariat for the licence, and the institution may not commence operations before that licence is issued. The licence application must use the designated form and be accompanied by an engineering-agency certificate acceptable to the General Secretariat, showing conformity of facilities, equipment and institutional entities with requirements and standards approved by competent Saudi bodies.Official source: Umm Al-Qura, *Statute Regulating Private Colleges and Universities*, Art. 7Official source: CUA, *Executive Rules*, Art. 4, p. 3
Evidence limitation: No sufficient official Saudi source was identified to establish a government fee, processing time, or publicly accessible electronic submission link for this pathway in the sources verified for this guide. The reviewed Rules refer to a designated approved form, but a publicly downloadable establishment or licensing form was not identified. This is not evidence that such arrangements do not exist; it means they must not be stated as published requirements without current confirmation from the competent authority.
Neutral service note: Googan Business Services can assist with preparing feasibility studies and supporting documentation based on the project’s scope and the requirements of the relevant authority.
Common Evidence for a New Saudi Private University Establishment Case
Practical Preparation Sequence Based on Official Requirements
Confirm the university route
Establish that the proposal is a private university of three or more colleges/institutes, rather than an independent college, branch, foreign university, or another route. This decides whether this guide and Framework 1 are relevant.Official source: Statute, Art. 1
Establish the applicant’s legal profile
Document the applicant’s legal form and determine which legal-status evidence applies: commercial registration, entity-formation document, non-profit licence, or Ministry of Investment approval for a foreign investor. This is a practical filing step derived from Article 3 of the Executive Rules.Official source: Executive Rules, Art. 3
Commission the compliant feasibility study
Use a Saudi-licensed consulting office for the study that proves the case for the university, then align its structure with the CUA new-local-private-HEI matrix.Official source: Statute, Art. 4Official source: Framework 1
Develop the market and labour-market case
Cover demand, supply, competitors, capacity, fees, sector alignment, current labour-market demand, and future needs. Check the labour-market analysis carefully because the relevant sub-domain is marked Critical.Official source: Framework 1, pp. 1–5
Evidence resource, governance and quality readiness
Bring together founder, site, facilities, governance, organisation, student-support, information-resource, quality-assurance and accreditation evidence. The framework treats these as study coverage requirements, not as a universal list of separate attachments.Official source: Framework 1, pp. 6–10
Test sustainability and launch planning
Connect revenues, operating and capital expenditure, funding, forecasts, NPV/IRR/payback, breakeven and scenarios to a timed first 5–10-year launch plan.Official source: Framework 1, pp. 10–14
Lodge the establishment request
Submit the establishment request to the General Secretariat on its designated approved form with the statutory materials: legal form, feasibility study, solvency/capability evidence, name/location, and planned colleges, departments and specialisations. The permanent committee studies and recommends on the request.Official source: Statute, Arts. 4–5Official source: Executive Rules, Art. 3
Complete the post-approval licence application
Following establishment approval, the owner applies for the operating licence using the designated form and accepted engineering certificate. Operations cannot start before the licence is issued. The Rules state a three-year period from notification of the establishment decision to complete establishment requirements and secure the licence, with a possible one-year committee extension under Article 6.Official source: Statute, Art. 7Official source: Executive Rules, Arts. 4–6
Guide Table
| Document type | Common use | Note |
|---|---|---|
| Market and demand | Understanding of the higher-education market, demand for target programmes and future prospects | The matrix calls for enrolment-pool estimates and a 5–10-year outlook. |
| Supply and competitive position | Relevant providers, capacity, utilisation, fee structures, target groups and geographic presence | Comparison must address similar academic offerings in KSA and the relevant area. |
| Labour-market fit | Connection of planned programmes to sectors, priorities, graduate demand and emerging needs | Labour-market analysis is included in a Critical sub-domain. |
| Founders and partners | Relevant qualifications and experience of founders, plus partners where delivery relies on them | Partner profiles are required only where applicable. |
| Location and facilities | Site suitability and a master-plan view of planned facilities and physical, virtual and social resources | Site/floor-plan information is requested where available. |
| Governance and organisation | Delegated authority, oversight, compliance, risk management and capable organisational capacity | The framework calls for supporting evidence and an organisation chart. |
| Student and learning support | Student-support model, learning/information resources, access and technical support | Evidence should cover service adequacy, monitoring and supporting systems. |
| Quality and accreditation | Internal quality framework and a plan toward institutional and programme accreditation | ETEC is named, alongside international accreditation where applicable or desired. |
| Financial analysis | Revenue, students/fees, costs, investment, funding, projections and investment-return analysis | NPV, IRR, payback, breakeven and scenario analysis are expressly listed. |
| Implementation | Timed action plan, programme rollout and admissions ramp-up | The planning horizon covers the initial 5–10 operational years. |
| Move to operating licence | Accepted engineering certificate after establishment approval | This is a licence-stage attachment, not a replacement for the feasibility study. |
Frequently Asked Questions: New Saudi Private University Feasibility Evidence
Is a feasibility study compulsory for a new Saudi private-university proposal?
Yes. Article 4 expressly requires a study demonstrating feasibility, validated by a consulting office licensed in Saudi Arabia.Official source: Statute, Art. 4
What makes the proposal a “university” under this route?
The Statute defines a university as a private higher-education institution with three or more colleges or institutes. A proposal outside that definition should not be treated as this pathway.Official source: Statute, Art. 1
Which body receives an establishment request?
The request is filed with the CUA General Secretariat. Its permanent committee studies establishment applications and recommends them to the Council.Official source: Statute, Arts. 4–5
What baseline materials are published for the establishment file?
The Statute names the legal form, feasibility study, solvency/capacity proof, name and location, and proposed colleges, departments and specialisations.Official source: Statute, Art. 4
Can the feasibility case be prepared without a Saudi-licensed consulting office?
The official text does not establish that an in-house study alone is sufficient. It requires the feasibility study to be approved by a consulting office licensed in Saudi Arabia.Official source: Statute, Art. 4
Must the sponsor evidence financial capacity?
Yes. The Statute requires proof that the applicant has the financial solvency and capability to establish and operate the institution, subject to the Executive Rules.Official source: Statute, Art. 4
Which principal areas does the CUA study framework cover?
It covers market and competition, resources, quality and accreditation, financial analysis, and the implementation plan. Each area is broken down into specific requirements.Official source: Framework 1, pp. 1–14
What does “Critical” mean in the CUA guide?
Critical requirements are assessed pass/fail. The guide states that not fully satisfying any critical requirement leads to automatic disqualification.Official source: Feasibility Study Guide, p. 6
Is there a different treatment for a non-profit university?
The CUA guide identifies a new local non-profit HEI as a Category A case and refers to exemptions from some feasibility-study requirements, including simplified financial documentation. Its published wording does not establish that the statutory feasibility-study attachment in Article 4 is wholly removed; confirm the scope of any exemption directly with the CUA before filing.Official source: Feasibility Study Guide, p. 4Official source: Statute, Art. 4
What score is stated for additional requirements?
The guide states that the total score for additional requirements must be at least 70%. It assesses them for comprehensiveness, transparency, and evidence-based justification.Official source: Feasibility Study Guide, pp. 6–7
Does the framework call for NPV, IRR and payback analysis?
Yes. The new-local-private-HEI framework expressly includes high-level NPV, IRR and payback-period analysis within its financial statements and indicators requirements.Official source: Framework 1, pp. 12–13
Are partner profiles always required?
No. The framework says a partner profile is not required when programmes are delivered solely through the HEI’s physical and human resources. Otherwise it calls for prospective-partner profiles, programme support and responsibilities.Official source: Framework 1, p. 6
Is establishment approval enough to begin operating?
No. After establishment approval, the owner must apply for the licence, and the university cannot begin operating before the General Secretariat issues it.Official source: Statute, Art. 7
What engineering evidence is expressly identified for the licence stage?
The Executive Rules call for a certificate from an engineering agency accepted by the General Secretariat, demonstrating compliance with applicable Saudi requirements and standards for facilities, equipment and institutional entities.Official source: Executive Rules, Art. 4
Do the verified sources publish a government fee, processing time or public online filing link?
No sufficient official Saudi source was identified to establish this requirement. The Rules refer to a designated approved form of the General Secretariat, but the reviewed sources do not publish a downloadable public form or establish a fee, processing time or public electronic-filing link.Official source: Executive Rules, Arts. 3–4
This guide is for general information and is not legal or consular advice. Always verify current requirements with the receiving authority.