Saudi Arabia Education Sector Market

Major Saudi Arabia Education Sector Market Drivers

The Saudi Arabia education sector market is expected to rise due to growing awareness about technical and skilled courses, an increase in government investment in the education sector, and the establishment of new educational institutions. The expenditure of the Saudi Arabian government on education is presently maximum as compared to other Gulf Cooperation Council countries. In the present period, the government has been cutting back its investment in education as part of its broader objective to decrease public spending. This trend is projected to continue as the government establishes new bodies to oversee privatization efforts and transfers public entities to private ownership which leads to present different market growth opportunities for market players to expand its market presence. 

While the education market opens to enable 100% foreign ownership local partnerships remain significant. For instance, collaborating with local entities can facilitate navigating regulations and procedures related to establishment, recruitment, and operations. An example of this is GEMS Education’s acquisition of Saudi Arabia’s largest private sector operator, Ma’arif, in 2019, accomplished through a joint venture with Hassana Investment. GEMS Education is a substantial chain boasting nearly 100 schools globally, with 47 schools located in the MENA region Hassana Investment, as an investment arm of the Saudi Arabian government, partners with GEMS Education. Their collaborative initiative involves investing USD 800 million over the next decade to build upon their educational endeavors. Therefore, the Saudi Arabia education sector market is expected to grow in the forecast period.

In addition, in 2017, government universities in the Kingdom of Saudi Arabia witnessed the highest enrolment numbers. Leading the pack were institutions including King Abdulaziz University, King Faisal University, Umm AI Qura University, and Imam Muhammad Bin Saud Islamic University, attracting a significant number of students pursuing different levels of education, including post-graduation, diploma courses, and bachelor’s degree. In Saudi, private universities offer different courses and subjects to students looking for higher education opportunities across the country raising the Saudi Arabia education sector market size. 

As the population ratio across Saudi increases, more individuals are registering in educational institutions, resulting in the expansion of education sector market. By 2030, the Saudi population is expected to grow by 11.5 million as compared to 33.4 million, resulting in an increase in demand for 1.1 to 2.1 million learner registrations. Across Dubai, the private schools’ demand is on the rise, suggesting demand for 370k private school seats in 2030, compared to 290k during 2021. The Saudi Arabian General Investment Authority stated that an annual population growth rate of 2.5% is projected, leading to a population of around 45 million in 2030. By 2030, as per conservative demographic forecasts from the World Bank and BMI, the global population is projected to reach approx. 40 billion.

With the population growth rate of 2.5% annually projected by SAGIA, the total number of K12 students demanding registration in Saudi Arabia with rise to 8.3 million in 2030 from 6.1 million in 2018. This increase in demand will require an additional 2.1 million seats across the KSA. While the overall demand for K-12 enrollments is anticipated to increase to 7.2 million in 2030 from 6.1 million in 2018, based on the World Bank’s estimated population growth of 1.37% annually, there will be an additional demand for 1.1 million new seats in the KSA by that year. These factors are expected to lead Saudi Arabia education sector market growth in the forecast period.