Market Trends of KSA Private K12 Education Industry
The Introduction of Vision 2030- Education in Saudi Arabia is Driving the Market
British independent schools are becoming in demand in Saudi Arabia. According to the OECD, "Saudi Arabia has started a historic reform initiative known as Vision 2030 to build a vibrant, diverse, and sustainable economy." Saudi Arabia must cultivate a highly trained population to satisfy the demands of a knowledge-based labor market in the twenty-first century, placing education in Vision 2030.
Education received the largest allocation from the Saudi government in 2022, at the equivalent of USD 37.5 billion. Saudi Arabia enrolls fewer students in private K-12 institutions than its neighboring nations while having the highest student population in the GCC (about 7 million students). Despite this, the market value of the education sector is anticipated to climb from $4 billion in 2017 to $15 billion by 2030 as a result of the nation's growing population, growth in the number of students attending private schools, and rising tuition costs. With the National Centre for Privatisation seeking to privatize 60 schools in 2021 and increase private enrolment to 25% by 2030, government incentives for international schools are helping the shift to higher-quality private education.
Population Growth Leading to Increased Enrollments in Schools
By 2030, Saudi Arabia's population is projected to increase from 33.4 million to 44.9 million, and the country will require between 1.1 and 2.1 million more student seats. Dubai alone will require 370k private schools by 2030, up from 290k in 2021. The Saudi Arabian General Investment Authority (SAGIA) projects that the population of the Kingdom will increase by 2.5% per year, or 44.9 million, by 2030.
By 2030, according to conservative demographic forecasts from the World Bank and BMI, there will be 39.3 million people worldwide. According to the SAGIA population growth rate of 2.5% annually, the total number of K12 students in need of enrolment will increase to 8.3 million in 2030 from 6.1 million in 2018, creating a need for 2.1 million more seats throughout the Kingdom. Although the entire demand for K-12 enrolments will increase to 7.2 million in 2030 from 6.1 million in 2018, according to the World Bank's estimated population growth of 1.37 percent annually, there will be an additional need for 1.1 million new seats in the Kingdom by that year.
Back in 2017, Saudi Arabia completely abolished its restrictions on foreign ownership, allowing foreign investors to own all K-12 institutions fully. The strategy worked because "many regional, international investors and operators are actively preparing or entering the K12 market, making the education industry one of Saudi Arabia's major investment areas.
