Prince Sultan College was founded in 1998 and enrolled students the following year. The Ministry of Higher Education PSC was promoted to Prince Sultan University (PSU) in 2002.

It was inaugurated by HRH Crown Prince Sultan bin Abdul Aziz Al-Saud who was the Deputy Premier, Minister of Defense, and Inspector General. PSU is a non-profit institution established in Riyadh by the Al-Riyadh Philanthropic Society, which is the legal umbrella of PSU. It was launched under the auspices of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz when he was at the time the governor of Riyadh region and the chairman of the Board of Directors in dedication to the late Crown Prince Sultan. PSU is licensed by the Ministry of Higher Education