The Saudi Arabia’s private education market is expected to double in value and experience a higher growth rate in the coming years due to factors like the government’s Vision 2030 education initiative (privatization of the industry), the need for overall improvement in the quality of education, and an increase in population with growing preference for private schools that offer value for money.


New York, May 13, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "KSA PRIVATE K12 EDUCATION MARKET | GROWTH, TRENDS AND FORECAST (2020-2025)" - https://www.reportlinker.com/p05893162/?utm_source=GNW
After the implementation of government’s Vision 2030 education initiatives, the Private Education sector of Saudi Arabia is expected to grow at a CAGR of 11%.

Key Market Trends
Favorable Government Initiatives: Saudi Vision 2030

The education sector is one of the significant pillars of the Kingdom’s ’Vision 2030’, through which the kingdom aims to achieve economic expansion and provide sustainable growth in the kingdom. The Saudi Vision 2030 was formed and implemented in 2016 with the plan to reduce Saudi Arabia’s dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation and tourism. The aim was to increase the share of private education to 25% by 2030 and in order to achieve that the government has also allowed 100% foreign business ownership in 2017, to gradually ease ownership restrictions on foreign firms, which had previously been required to set up a joint venture with a local partner. This will attract global private K-12 providers, while local initiatives will boost the role of private provision in Saudi’s education sector. The increasing demand for a higher quality of education has acted as a catalyst for the government to uplift the education sector. Since 2018 the government has given a higher percentage of budget to Education Sector to facilitate the investment environment for both National and International Investors.

Population Growth leading to Increased Enrollments in Private Schools

The major driver for growth of the education market of Saudi Arabia is that it has the majority percentage of school going population as compared to other countries in GCC Region. But in KSA the source of demand for international K12 is the local population and not the expatriate population. Many GCC markets are dependent on the expat population, but not KSA. The local participation in private international K12 grew exponentially between 2015 and 2018 and as the expat population in the Kingdom continues to grow, families are more likely to enroll their children in quality private schools. This is especially prevalent in the premium international K12 segment. Currently, Saudi students constitute around 40% of the international K12 enrollment and are the driving force for this demand. Although the Enrollment growth in Saudi Arabia is relatively low at kindergarten level, the Saudi Vision 2030 and the Ministry of Education has set up initiatives to improve that.

With the Increasing population and Increased demand for Private Schools offering International Curriculums (American, British), the school fees are also likely to rise faster than inflation as the school offerings become more sophisticated in terms of curriculum, learning resources, teacher qualifications, and extra-curricular and ancillary services.

Competitive Landscape
The market is consolidated by only few private school brands like British International School of Jeddah, GEMS Education, International Schools Group (ISG), Maarif For Education and Training, Kingdom Schools, SABIS Education Services, American International School and Ataa Educational Company. These companies operate school chains in Kingdom of Saudi Arabia but many more such companies are now investing in the Country. In first half of 2019, 9 new foreign education companies including Niagara College Canada, ACCEL, National Geographic Learning, CareTech Foundation, Intuitive Education and Education First among others were awarded investor licenses by SAGIA (Saudi Arabian General Investment Authority), amounting to a total of $141 million of investment deals. There is a higher concentration of public schools in the Kingdom teaching Saudi Curriculum, the foreign investment in the industry is expected to grow under vision 2030 with more private schools being established, providing advanced facilities and international curriculum.

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