Article 48 of the Saudi Law of Universities

This article gives the university two tools to develop its resources: endowments and companies.

First: endowments

• The university may create endowments.
• This is under the supervision of the Board of Nazirs.
• These endowments have independent legal personality, meaning they are an entity independent of the university itself.
• They are managed under the regulatory rules approved by the Universities Affairs Council.
• Provided this does not conflict with the founders' conditions.

The last restriction is important: the endowment founder's conditions are respected, and management rules may not contradict them. This reassures anyone wishing to endow property to the university that, according to the text, his conditions are observed.

Second: companies

The university and its endowments may:

• establish companies;
• or take part in establishing them;
• or enter them as a partner or shareholder.

This is in accordance with the statutory procedures; the article does not specify these procedures.

The article does not set out the composition or competences of the Board of Nazirs.

This article is linked to Article 47, which regulates the appointment of an external auditor of the university's accounts. Article 49 then lists the university's revenues, including the subsidy the State allocates under the rules regulating the university funding program, the financial consideration for programs and services, donations, gifts, grants, bequests and endowments, and the yield of its property, investments and endowments.

Anyone who wishes to endow property to a university or enter into a company with it may consult a lawyer specializing in commercial and company cases.