Established in 1967 as a private university by a group of businessmen led by Muhammad Bakhashab and including author Hamza Bogary, it was named after the country's first monarch, King Abdulalziz ibn Saud.

In the year 1964, the idea of establishing a private university in the city of Jeddah was originally put forward by Mohammed Ali Hafiz.

In the same year, a preparatory committee of 6 members was formed, including Mohamed Ali Hafiz and Muhammad Abu Bakr Bakhashab.

These goals were met through efforts of high-ranking businessmen and notable Saudi figures; and additionally with the help of King Faisal's encouragement and financial support.

[5] In 2018, it was ranked the 1st Arab university by Times Higher Education due to very strong citation impact and highly international outlook.

[8] The university has 13 different research centers, predominantly in the fields of medicine (medical genomes and osteoperosis), environment and energy, climate change, and desalination.

In 2015, FEA received its fourth international accreditation, the AACSB making it one of the top business colleges in the middle east and across the world.