On May 8-11, Riyadh held the International Conference and Exhibition for Education 2022. The conference captured a moment of a continuous effort by Saudi Arabia to reform its educational system. As part of this, in March, Crown Prince Mohammed bin Salman launched a new strategy to restructure the kingdom’s scholarship program for Saudi students studying abroad. The new phase of the program exhibits some distinct changes, which highlight the influence of the crown prince and his aspirations for the kingdom and Saudi youth. Specifically, the program targets new fields aligned with the priorities of Saudi Vision 2030 and boasts greater selectivity, favoring top global universities.

Enhancing Saudi Education and Image: The King Abdullah Scholarship Program

King Abdullah bin Abdulaziz’s scholarship program (the “Custodian of the Two Holy Mosques Scholarship Program”) ran for 15 years, developing and changing over three distinct phases. It was established in 2005 within the political context of the September 11, 2001 attacks on the United States. The attacks were a shock to long-standing Saudi-American ties, and in the wake of them, the kingdom embraced intelligence cooperation with the United States but, more importantly, understood the need for greater cultural understanding between the two countries.

In its first five-year phase, the program sought not only to improve Saudi education and human capital but also to enhance the Saudi image abroad. The scholarship program allowed Saudi youth to learn about other cultures while also showcasing Saudi culture to the rest of the world. More importantly, Saudi students were a means to exhibit the peaceful face of Islam, which was seen as having been hijacked by extremists.

The program offered a full-tuition scholarship, a living stipend, and health insurance. Students had the luxury of choosing their major, however the Ministry of Education encouraged them to pursue degrees in specializations that it saw as critical to Saudi Arabia’s future, such as business administration, medicine, and engineering. While students were sent to several countries as part of the program, the United States was the primary focus. Between 2005 and 2015, the United States accounted for 48% of all scholarships awarded.

Along with the financial gains for the United States from the enrollment of Saudi students in U.S. universities, the program also aligned with the political objectives of President George W. Bush’s administration at that time. Bush wanted to reestablish a warmer relationship with Saudi Arabia, and the program helped him promote to the Muslim world the image of the United States as a compassionate country, as he noted in a 2008 interview: “I would hope that people would know that when we try to use some of our influence to help on education programs, for example, or we welcome students, Saudi students, to the United States to study here, that it’s a sign of respect and a sign of my desire to reach out to all people regardless of their religion.”

In the second five-year phase from 2011-15, Saudi Arabia used the program to enhance the role of Saudi youth in developing the public and private sectors. The program was rapidly expanded, which caused some challenges back home. Due to the large number of Saudi graduates returning from abroad, the Saudi labor market became overloaded and highly competitive. Saudi graduates faced difficulties finding job opportunities. The program also strained the Saudi budget. For example, in 2010 and 2011, 26% of the education budget was allocated to King Abdullah’s scholarship program.

Retrenchment: The Scholarship Program Post King Abdullah

After King Abdullah’s death in early 2015, the Saudi budget deficit reached a record high of $98 billion due to the sharp decline in oil prices. As part of the government’s cost-cutting initiatives, the scholarship program was pared back significantly, with the number of Saudi students in the United States decreasing by 27%. In addition, the Saudi government tightened the standards for joining the scholarship program, limiting it to students enrolled in one of the top 100 universities in the world or in one of the top 50 programs in a particular field. In 2016, overall education spending was reduced by 12%.

To address the problems with the first two phases of the scholarship program regarding lack of job opportunities for the large number of newly educated Saudi graduates returning from abroad, King Salman bin Abdulaziz adjusted the third phase of the scholarship program by tying it to the Saudi labor market’s specific needs. Under the new “Your Job, Your Scholarship” program, educational funding was managed by specific government and private sector entities responsible for providing jobs upon the students’ return. Students accepted into this program were guaranteed employment when they completed their education. Additionally, during this period specific tracks were created. For example, the medical track focused on health majors, and the excellence track included unique specializations, such as marine science. The new tracks reflected the aspirations of Vision 2030 and paved the way for creating a more inclusive and comprehensive scholarship program.

While the Your Job, Your Scholarship program tied scholarships to the demands of the Saudi labor market, many Saudi applicants disliked deciding their path from the very beginning. Previously, students had the flexibility to switch majors and universities in pursuit of their true passion. However, with the Your Job, Your Scholarship program, students embarked upon a fateful decision that determined their careers.

A New Vision: The Crown Prince’s Scholarship Program

Mohammed bin Salman is reviving the scholarship program by launching a new phase. On March 7, four Saudi ministers announced a comprehensive strategy for the Custodian of the Two Holy Mosques Scholarship Program focusing on raising human capital efficiency and enhancing competitiveness in current and promising sectors.

Through Vision 2030, Mohammed bin Salman has announced ambitious projects in tourism and technology exemplified by new development projects, such as Qiddiya, the Red Sea Development Project, and Neom. These projects not only require investments but also national competencies to help achieve them. Thus, the new scholarship strategy concentrates on four tracks that will assist Vision 2030 in both current and prospective needs as well as nurturing research and future leaders.

The first track, “Imdad,” targets majors that support the Saudi labor market to fill fields with high current demand, including information technology, natural sciences, mathematics and statistics engineering, manufacturing and construction, business management, and tourism. The second track, “Promising,” sends students to study in sectors with future promise, including sports, digital economy, public administration, business administration, marketing, and institutional behavior. The third track, “Research and Development,” sends students to acquire doctorate degrees in advanced fields, such as cyber​security, digital currencies, artificial intelligence, sustainability and environmental management, aviation and defense, nuclear energy, intelligent energy management systems, and smart and sustainable cities. Finally, the “Pioneers” track aims to graduate world pioneers in any specialization as long as it is from one of the top 30 educational institutions in the world.

As is clear in the target fields, the new iteration of the scholarship program seeks to serve the goal of economic diversification at the heart of Vision 2030. The need to diversify Saudi Arabia’s exports and revenue streams away from oil and gas toward other avenues, such as tourism and entertainment, is a vital part of the strategy. Indeed, those promising sectors have launched their own scholarship programs; for instance, the Saudi Ministry of Culture now sends students to top universities worldwide to study music, cooking, and animation, among other creative fields.

A number of changes in the scholarship program from the King Abdullah era to that of Mohammed bin Salman stand out. One is the shift from quantity to quality. Mohammed bin Salman’s scholarship program aims to send 70,000 students to join the top 200 universities worldwide by 2030. This is a relatively small number compared to the old program, during which nearly 70,000 Saudis graduated from U.S. universities alone over 10 years.

Further, one of the reasons for the enormous number of Saudi students in the United States under King Abdullah’s scholarship is the vast number of U.S. universities, despite the fact that the scholarship at the time included universities from different countries. With the new program, the Saudi government has narrowed the options to only high-ranking U.S. universities. This reduction of U.S. universities will inevitably reduce the number of Saudi scholarships in the United States and might lead Saudi students to explore their options elsewhere, such as France, Japan, South Korea, Russia, Italy, Germany, Singapore, Malaysia, India, the United Kingdom, and, most importantly, China, where the list includes 30 universities.

Prior to the decision to include several Chinese universities, Mohammed bin Salman visited Beijing in February 2019. Saudi Arabia and China signed $28 billion in economic cooperation deals at a joint investment summit, including an agreement to include the Chinese language in the Saudi high school curriculum. The Saudi government has also included Chinese as a major in the kingdom’s universities. This underlines a new trend in Saudi foreign policy: an interest in building a stronger strategic relationship with China in light of its rising economic importance as Saudi Arabia’s largest trading partner. The increasing tension in U.S.-Saudi relations is also a factor. Emma Soubrier has observed how this desire for strategic diversification has played out in other sectors, as Saudi Arabia has sought new defense partners beyond traditional suppliers. The signing of a contract for ammunition with the Chinese company Norinco worth 430 million Saudi riyals (over $114 million) is one sign of this trend.

New Horizons, and New Competition

The Saudi scholarship program has evolved in line with changes in both domestic needs and the international context. In its origins, scholarships focused on improving cultural and political ties with the United States. Today’s program reflects the kingdom’s desire to expand globally without heavily relying on a single country. Initially, most Saudi graduates specialized in engineering, medicine, and management, as these careers were prevalent at the time and specializing in arts and culture was not socially acceptable. Today, the Saudi government supports greater diversity in educational choices, encouraging Saudi youth to pursue their passions.

Although many Saudis are enthusiastic about the new scholarship opportunities, the program’s greater competitiveness and focus on high-ranking global universities may raise some concerns. Many Saudis are interested in artificial intelligence, smart cities, tourism, and other required fields in the new scholarship program, but they may find it challenging to get accepted. One option is to offer more diverse fields of study in Saudi universities so that passionate students who are not fortunate enough to receive scholarships can find alternatives in their own country. Saudi leaders hope that the new competencies of Saudis benefiting from the new scholarship program’s diverse specializations will return to the kingdom and enrich local universities, propelling Saudi Arabia to become a regional leader in education and development.