Students who opt for what's considered traditionally masculine haircuts and outfits now face immediate dismissal without prior warning, Okaz reported.
The university not only informed the students of the new policy, but their guardians as well.
According to Saudi daily Okaz, the university announced said measures via SMS to its female students and their guardians.
The texts reportedly said that any student with a "boyish haircut and appearance" will face immediate suspension without any previous warning.
"Therefore, we hope you do not imitate men in any way to avoid dismissal," the text message said.
It is worth noting that female students are allowed to uncover their hair at the university, despite the kingdom's dress code, due to the gender segregation applied. However, the university fears men present in nearby buildings might be able to see the students, Okaz added.
The policy, which stems from conservative Muslims' belief that cross-dressing is sinful, will be applied starting next month.
It generally applies to both sexes
Muslim men are discouraged from dressing in a "feminine" manner, and vice versa, based on quotes that are believed to have been said by Prophet Muhammed.
The kingdom keeps a close eye on cross-dressing, with members of the Haia force monitoring people's attire and reporting violations to the police.
Last year, Saudi authorities arrested a male Snapchat celebrity in Riyadh for dressing in feminine attire. Similarly, fifty young men were arrested in Mecca for haircuts and accessories that are considered "un-Islamic".
Forced to abide by the kingdom's Islamic dress code, some of the young women at the university can't fully express their identities in the presence of men ... now they can't do it around their female peers either.
We just have one question: what would Saudi Princess Deena Aljuhani say about the short hair policy?
Founded in 1974, the Imam Mohammad Bin Saud Islamic University offers undergraduate and postgraduate programs ranging from Islamic studies and social sciences, to economics and engineering.
It has intermediate and secondary Islamic institutes in the United Arab Emirates, the United States, Indonesia, Malaysia, Djibouti and Japan.
The university is keen on applying the Islamic Sharia on all campuses.