Human Resources Development Fund (HRDF)(Hadaf)
Human resources development constitutes one of the major problems that the Kingdom faces in its efforts to strengthen the process of its economic development, using a series of economic reforms whose effects have become visible when the government of the Custodian of the Two Holy Mosques has taken a number of decisions and steps. Some of the major decisions and steps that have been taken are the Saudization of jobs and the preparation of Saudi youth in order to assume their responsibilities and participate in the growth and development of the national economy. In addition, companies in the private sector are to be encouraged and assisted so that they can hire Saudis and make their capabilities and services available to them.
In consequence of this, the economic policy makers of the Kingdom have realized the importance of making human resources development a top priority, establishing and developing effective modern mechanisms that will usher and guide it. These mechanisms are to comply with the needs of the local labor market in order to guarantee the highest returns both in terms of quantity and quality. They should also support and invigorate the national economy so that it can stand up to regional and international competition.
Giving importance to the investment in human resources development has considerably increased, starting from the first five-year plan in 1970 and going up to the end of the seventh five-year plan in 2004 (see figure 1). Hence, the training and preparation of Saudi human resources and the development and enhancement of their skills has become the first priority in the development policies of the government. Consequently, 276 billion riyals have been earmarked for human resources development in the seventh five-year plan.
As a result of this, the Council of Ministers had made Resolution No. 107 dated July 2000, and the Royal Court released Royal Decree No. 18M dated August 2000 to establish the Human Resources Development Fund. The Fund will have a legal personality and will be administratively and financially independent. Its Board of Directors will represent it and its head office will be in Riyadh. It will also have offices and agents that will carry out its activities in other cities in the kingdom. The Fund will concentrate on the encouragement, training and employment of Saudis in the private sector.