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The determination of Saudi Arabia's government to develop universities able to contribute to knowledge-based economy provides the rationale for the newly founded Albaha University to enhance the investment in its Intellectual Capital (IC). This paper presents and analyzes the state of IC management concept at Albaha University, noting the benefits and the caveats to its adoption, and relating this to the internal function of the University, especially in the areas of strategy formulation and execution, teaching and research, and staff development. The paper suggests increasing attention and investment in IC and its adoption by the University to speed up a shift from fuzzy goals to measurable outcomes, in order to improve its efficiency and effectiveness, and to drive the University towards sustainable competitive advantage.

Investing in the Intellectual Capital of Albaha University, Saudi Arabia: The Concept and Mechanisms