The Human Resources Development Fund (HRDF) was established by Council of Ministers No. 107 dated 29/04/1421 AH with the aim of supporting efforts to rehabilitate and employ the national workforce in the private sector. In order to achieve its goals, HRDF may:

1. Provide subsidies for the qualification, training, and employment of the national workforce in the private sector.
2. Participate in the costs of qualifying and training the national workforce for jobs in the private sector. The HRDF Board determines the proportion of such participation, and the remainder is paid by the employer benefiting from the trainee's qualification.
3. Set aside a percentage of the salary for those employed in private sector establishments after rehabilitation and training, as well as for those employed in these establishments in coordination with HRDF. The employer pays the remaining percentage of the salary. This percentage shall be covered by HRDF for a period not exceeding two years, with the Board establishing the necessary conditions for its disbursement.
4. Support the financing of field programs, projects, plans, and studies aimed at recruiting Saudis and replacing expatriate workers.
5. Provide loans to establishments for the rehabilitation and training of the national private labor force established in the Kingdom, and to existing establishments for expanding their activities or introducing modern methods.
6. Conduct research and studies on its activities in the field of rehabilitation, training, and employment of the national labor force, and provide technical and administrative advice to establishments specializing in the rehabilitation and training of the national workforce.

HRDF is also linked to the National Development Fund (NDF), which was established by Royal Decree No. A/13 dated 13 Muharram 1439 AH, corresponding to 4 October 2017. NDF enjoys legal personality, financial, and administrative independence and is organizationally linked to the Prime Minister. NDF aims to enhance the performance of the funds and associated development banks to achieve their intended objectives and align with the priorities of national development and economic needs in accordance with the goals and pillars of Saudi Vision 2030.