Saudi Education Sector Set to Expand to $12bn Market by 2023

Saudi Education Sector Set to Expand to $12bn Market by 2023

Saudi Arabia’s Ministry of Education launched progressive strategy to raise the quality of education, transform youth mindsets and strengthen the economy.

According to new research, their private K-12 education market valued at $5 billion in 2017 and is expected to grow at $12 billion by 2023.

The Boston Consulting Group (BCG) said that across the GCC, the private education market is becoming a magnet for investors as it is expected to double over the next five years.

The number of students in Saudi private schools is estimated to increase from 18 percent in 2017 to 30 percent by 2023.
Saudi nationals are now allowed to enroll in private international schools and the country is allowing 100 percent foreign ownership of companies in the education sector.

The enrollment growth in Saudi Arabia is around 20 percent at kindergarten level, which is low when compared to the rest of the region.

Private school fees are rising faster and they are offering more sophisticated curriculum, learning resources, teacher qualifications and extra-curricular and additional services.

There’s a shortage of qualified teachers due to strict Saudi laws. Public schools offer favourable salaries, benefits and hours compared to private schools.

There are few international schools, limited exposure to international curricula and limited experience with international investors.

Principal at BCG, Maya El Hachem said, “The shortage of private schools in Saudi Arabia, coupled with government intervention that positively affects the private education market will increase the bullish growth expected in the sector.”

The tuition fees for private education will continue to rise 2-4 percent per year, a slower rate than in recent years.