The market value of private education in Saudi Arabia exceeds 37 billion dollars
The education sector in the Kingdom of Saudi Arabia is the largest market for education in the Gulf region, with its capacity tripling over the markets of the neighboring countries combined, expecting the growth of the private education sector market, particularly in the foreign school’s segment.
The Gulf region has 39.6 thousand schools, providing education services to 9.1 million students, of whom 68 % are in Saudi schools, which represent 85 %of the region’s schools.
The current market value of the private education sector in Saudi Arabia exceeds 37 billion dollars by the end of 2018, indicating that the Kingdom suffers from a shortage of private schools available in it compared to neighboring countries; therefore, it opened the doors to foreign investment recently.
The proportion of private schools in the Kingdom is less than 20 %of the total number of schools, and only 6 % do not belong to international brands, according to the report.
In the context of the desire to change this composition, the Saudi government has taken a number of important steps that have included making full ownership available to foreigners, which would encourage the growth of the private school sector.
Saudi Arabia education statistics
The Saudi Vision 2030 aims to support the growth of the education sector, which is one of its main pillars. Therefore, the government allocated $ 51 billion in the 2019 budget compared to $ 35 billion in 2011 for education, to allow this sector to win the lion’s share of the general budget allocations, representing 21 % of government spending And 7 % of GDP.
And the population of Saudi Arabia is expected to grow during the next 11 years from 33.4 million currently to 44.9 million, indicating that the number of students enrolled in schools is 6 million students and that with population growth will create the need to add 1.1 or 2.1 million new seats to meet the needs of students by the year 2030.
There is a factor influencing the potential for the growth of the private education sector in Saudi Arabia, which is the affordability with per capita income exceeding $ 20,000 a year.
The average tuition fee for international schools ranges between $ 9.5 thousand and $ 16 thousand annually.
The private education market in Saudi Arabia has become a magnet for investors, as its value is expected to double over the next five years,
The private education market in the Kingdom, which amounted to $ 5 billion in 2017, is expected to grow to $ 12 billion (46 billion riyals) by 2023.
In addition, the private education market in the Gulf countries has become a special attraction in Saudi Arabia for many reasons.
The pre-school enrollment rates are increasing continuously, especially in Saudi Arabia, which has the largest population in the Gulf states, noting that the number of private schools in the Kingdom is witnessing a significant increase, as the number of students in private schools is expected to increase from 18 % In 2017 to 30% by 2023.
the education system in Saudi Arabia
The education sector in the Kingdom witnessed the granting of 9 foreign education companies new licenses during the first half of 2019, with foreign investments estimated at 141 million dollars.
The size of the education market in the Kingdom is estimated at 37.2 billion dollars (139.5 billion riyals), as the education sector in the Kingdom represents about 80% of public education expenditures in the Gulf Cooperation Council countries in 2019, as the education sector received the largest item in the Kingdom’s financial budget.
The share of the private sector in the education sector is currently 12.6%, and students enrolled in private education constitute 15.7% out of 7.7 million students, while educational institutions represent 18.3% out of 36,461 educational institutions in the Kingdom, in light of population growth and the desire to obtain high-quality education, The demand for private education has increased significantly.
In addition to allowing foreign investors full ownership in the year 2018, the Kingdom has taken a number of initiatives to encourage private investment, including providing subsidies to kindergarten and nursery schools, financing school construction, and encouraging public-private partnerships.
The education sector in Saudi Arabia is distinguished by being one of the most attractive sectors in terms of investment opportunities in the Kingdom and in the MENA region in general.
Investment opportunities vary in the education sector and include: early childhood schools, general education, higher education, educational techniques, specialized training, equipment and contracting for the education sector
It is noteworthy that the new investment licenses granted by the authority during the second quarter of this year increased by 103% compared to the same quarter of last year, recording 291 new investment licenses, 66% of which are full foreign ownership and 34% joint ventures with local investors.
The construction sector topped the list of sectors that acquired the largest number of licenses with 61 licenses in the second quarter of this year compared to 15 licenses for the same quarter of last year, an increase of 307%, followed by the communications and information technology sector with 51 licenses compared to 20 licenses for the same quarter of last year An increase of 155%.
The manufacturing sector came in third with 45 licenses in the second quarter of this year compared to 27 licenses for the same quarter of last year, an increase of 67%, then the professional, scientific and technical sector resolved with 35 licenses, up from 22 licenses for the same period of last year, an increase of 59%.
The reforms in the business environment that the Kingdom recently witnessed represented a new attraction for foreign investment, as the Kingdom established in early 2019 the National Competitiveness Center as a complement to the work carried out by the Executive Committee “Taysir”, which was established in the beginning of 2018 to support the performance of the private sector and enhance its participation in economic development for the Kingdom, where the center achieved many impressive results by the end of the second quarter of this year, where more than 300 reform measures were identified and 62% of those reform measures were implemented.
Saudi Arabia education statistics
+6.4 million students at all levels of education.
+1,5 million total talented Saudis from 3- 30 years old.
26,377 public schools.
4,377 private schools.
+29 public universities
+38 private universities and colleges
Faculties and research centers
4 government academies
4 governmental technical colleges
87 medium technical colleges for male and female students
106 technical and scientific research institutions and centers.
the education market in The Kingdom of Saudi Arabia
The Kingdom of Saudi Arabia ranked first in the Arab world, and ranked No. 37 globally, in terms of the quality of the education system in 2016, in terms of the quality of its educational systems based on 3 main criteria: the quality of universities, the level of development of the general educational system, the willingness of students to receive their university education in the country.
There are other indications that the Kingdom of Saudi Arabia is on the right path, and provides the best means for the advancement of the educational process in all its stages. The most prominent of these is the stability of three Saudi universities among the best (500) universities worldwide according to the QS International classification for classification The universities in 2016 are King Fahd University of Petroleum and Minerals ranked (199), King Saud University ranked (237), and King Abdulaziz University ranked No. (303).
The previous three universities occupy the first, third, and fourth ranks among the top 100 universities in the Arab world, and among the top 50 Arab universities, 10 Saudi universities are located in advanced centers, which indicates that the efforts made by successive Kingdom governments to improve At the educational level, it started to pay off.
Higher education in the Kingdom
According to experts in education affairs, the huge budget allocated for higher education in the Kingdom compared to the budgets of some Arab countries, in addition to the Kingdom’s ability to attract international scientific competencies that are known for experience, and the Kingdom has concluded partnership agreements with highly respected international universities in more than one vital and important field, Has contributed a lot to the tremendous qualitative leap that the Kingdom has achieved in the field of university education in particular.
the education system in Saudi Arabia
The remarkable progress achieved by the Kingdom in its general educational system has never been a cause for slowdown in continuing interest in this vital and important sector in the destiny of society and the Saudi state,
in contrast to this contemplating, working and planning the Saudi leadership that put a full axis of education in Vision 2030, believing in it as much The great contribution that education contributes to advancing the economy, and for this reason the Kingdom seeks to bridge the gap between higher education outcomes and the requirements of the labor market,
develop general education and guide students towards appropriate career and career options, and provide an opportunity to rehabilitate them and the flexibility to move between different For educational paths, and for this purpose, the Kingdom launched the national portal for work “energies”,
and established professional councils for each development sector concerned with defining what it needs of skills and knowledge, and expanding vocational training to advance economic development, while focusing scholarship opportunities on areas that serve the national economy In specific disciplines in prestigious international universities, the focus is on innovation in advanced technologies and in entrepreneurship.
And because the Kingdom realizes that education is the locomotive of development, it has set its mind in Vision 2030:
At least five Saudi universities become one of the best (200) international universities by 2030.
– That the Kingdom’s students be able to achieve advanced results compared to the average international results
Obtaining an advanced ranking in the global indicators of educational attainment.
– Preparing advanced educational curricula focusing on basic skills in addition to developing talents and building personality, enhancing the role of the teacher and raising his qualification, monitoring the level of progress in this aspect, and publishing the results of indicators that measure the level of education outputs annually.
– Working with specialists to ensure the alignment of higher education outcomes with the requirements of the labor market, and forging partnerships with entities that provide training opportunities for graduates locally and internationally, establishing platforms that address human resources in different sectors in order to enhance training and qualification opportunities.
– Working to develop job standards for each educational path.
– Create a comprehensive database to monitor the student’s educational progress, from early education to advanced levels.
– Every Saudi child, wherever he is, gets good education opportunities according to a variety of options, and the greatest focus will be on early education stages, on qualifying teachers and educational leaders, training them and developing curricula.
Organizing and preparing the “Independent Schools” project, as one of the most important initiatives of the National Transformation Program, as through this initiative, 2000 government schools in all educational levels will be transformed into administrative and financial independent schools by the year 2020, with education remaining free for all male and female students in addition to providing them With high quality, taking into consideration granting the schools more powers, such as achieving flexibility in the school curricula and educational activities, applying enrichment and supportive curricula to the educational process, and the ability to provide professional development for teachers and teachers according to their job needs.
This type of school will enable the school to improve its educational performance through administrative and financial powers that help operators and school leaders in making the appropriate decision for the school, and that contributes to raising the quality of educational work and improving its outputs,
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