SAUDI ARABIA - Knight Frank

S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1Saudi Arabia’s total student populationhas increased by 6.2% in the four yearsPRIMARY AND SECONDARYEDUCATION OVERVIEWto 2019 to reach 6.18 million. The publicand foreign school sectors have seen theirrespective student populations grow by5.8% and 37.0% over this period. However,over the same period, the private schoolssector has seen its total student populationMAJOR CHALLENGES1stringent health and safety measures and therefore must either moveto purpose built premises or cease operation due to non-compliancepopulation respectively. The Riyadh,account for 24.2%, 23.2% and 14.3% ofa total of 38,150 schools, up 16.5% fromSaudi Arabia’s total student populationSchools by Sector, 2015-2019Publicrespectively. Whilst the Jawf regionnations and relative to its population,40,000Privaterecorded the highest growth rate of 14.5%Saudi Arabia has a significantly higher35,000Foreign Educationin student numbers across all of Saudinumber of schools. This is largely due to30,000schools being segregated based on gender,25,000increase with over 96,000 more students20,000enrolled in 2019 compared to 2015.2015. In comparison to other developedwhere schools must maintain segregatedpremises from grade one onwards.In the Kingdom’s three major regions,schools were public schools, which5,000Riyadh, Makkah and Eastern Province, weprovide state funded education and are0have seen sharp increases of 34.2%, 19.4%based on a curriculum approved by the20152019and 92.4% respectively, in the total studentSource: Knight Frank Researchnumbers studying foreign curriculums inMoE. Private schools, which accountthe four years to 2019. Whereas, over thefor 12.5% of all schools, are fee-payingschools, which also undertake a MoEStudents by Sector and Nationality, 2015approved curriculum. Saudi nationals6,000,000and Arab expatriates make up thevast majority of the student body at5,000,000such private schools. Foreign schools,4,000,000are schools that offer internationalcurriculums such as American, Britishnumbers fell by 7.1% on average in thesePublicPrivateForeign Education3,000,000or Indian, accounted for 6.2% of schools.2,000,000These fee-paying schools have grown in1,000,000number by 42.1% since 2015.same period private curriculum student0As at 2019, schools in the Riyadh regionSaudi Enrolled StudentsWith the introduction of expatriate levies in 2017, which are setto increase annually for dependants, we have seen some schoolswitness a considerable decline in enrolment numbers as theseHowever, it is important to note that well reputed schools withpurpose built facilities have seen enrolment numbers remain stableor even increase.34AFFORDABILITYThe fee structures in many well-reputed schools is considered tobe unaffordable for many low to mid-income expatriate residents.RECRUITMENT AND REMUNERATIONWith high recruitment costs, from a limited pool, which arefurther inflated due to low retention rates given the transientnature of employment in the region, operating costs for operatorsthree regions. This was mainly on accountcan increase substantially and can lead to disruption in schoolof expatriates leaving the country dueoperations and impact education outcomes. This challenge isto imposition of the expatriate Levy infurther exacerbated by the substantial increases in salary bands for2017 and increasing popularity of foreignSaudi national teachers. This increasing cost base will ultimatelyeducation among Saudi parents.lead to increased tuition fees, which in turn erodes affordability.Non-Saudi Enrolled StudentsSource: Knight Frank ResearchDEMANDSaccounted for 22.8% of all schools inthe Kingdom, followed by the Makkahregion, which accounted for 19.0% of allEXPATRIATE LEVIESexpatriates chose to either send families back or leave all together.Makkah region saw the highest absolute10,000Of the 38,150 schools, 80.3% of these2Arabia’s 13 regions, from 2015 to 2019, the15,000increased requirements relating to schools’ infrastructure, healthof private schools are currently operating in violation of these moreforeign curriculum schools account for82.5%, 11.1% and 5.9% of the total studentIn Saudi Arabia, as at 2019, there wereregulations implemented by the MoE and Civil Defence, whichpurpose built premises. As a result of these changes, in Riyadh, 40%of students studying in public, private andMakkah and Eastern Province regionsOne of the key challenges facing the education sector stems fromand safety standards and prohibited schools from operating in non-decrease by 3.5%. As at 2019, the numberOver the four years to 2019, Saudi Arabia has seen a marked increase in the number ofstudents and schools.INCREASED REGULATIONStudents by Sector and Nationality, 2019GROWING DEMAND FOR INTERNATIONALAFFORDABILITYPublicEDUCATIONWith expatriate levies affecting both employees andPrivateForeign schools are seeing increased levels of demandemployers, incomes have come under increasing pressureForeign Educationfrom Saudi nationals as this segment of the populationover recent years. More so, historically a reasonableschools. The Riyadh (38.9%) and Makkah(29.4%) regions accounted for 68.3% of6,000,000the country’s total foreign schools. This5,000,000is underpinned by the concentration of4,000,000high earning professionals in Riyadh, whoincreasingly realises the benefits of their children obtainingportion of employment contracts included allowances for3,000,000value quality education and can affordinternational education. Anecdotally, the vast majorityschooling, but as the Kingdom’s economy has developed2,000,000of this demand has been for the American and Britishand opened up, we have seen such provisions diminish.1,000,000curricula, with the former being most preferred.As a result, affordability in the education sector is underprivate education. More so, this cohortprefers private education, and primarilythe international curricula or curricula oftheir home country.0Saudi Enrolled StudentsSource: Knight Frank ResearchNon-Saudi Enrolled Studentsincreasing pressure, where demand for affordable educationinstitutions is strongest from the middle-income segment.

S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1NUMBER OF SCHOOLS BY PROVINCE AND SECTORNUMBER OF STUDENTS BY PROVINCE AND SECTORA L J A WA F20152019121910915965176400A L J A WA 12121,0695,0226,8584685220070,59276,4660000N O RTH ERN B ORDE RS2015T A B UK20152019TABUK2015201919301091309511,13900H 7826,61925,815173,437178,01200MADINAH2015N O R T H E R N BO R D E R 8,98302208,148EASTERN P RO V I N C 1359520192,278M A DI N A ,0142635M A KKA ,4131,070,2431,161,4760000ASIRE A S T E R N P R O V I N 14,63916,697ASIRRIY 71,012,0651,039,96200000000BAHAHJ I ZA NQ ASSIMN AJIRANBAHAHJIZANQA S S I MN A J I RA 3127,4640000000000000000F o r e i g n E d u c a t ionPri vat ePub l i cRo y al Co mmissio nF o r e i gn E duc a t i o nPr i v a t ePubl i cRo y a l C o mmi ssi o n

S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1TERTIARY EDUCATIONOVERVIEWS A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 124.7% of all students enrolled undertookthis major in 2018. This is despite theBreakdown of Number of Students Currently Enrolled in Universities in the KSA,total number of students enrolled in this2014 – 2018major declining by 12.7% from 2014 to2018. The Natural Sciences, Mathematics1,600,000and Statistics major group recorded aIn the five years to 2018, the total number of students in higher education hasincreased by 8.3% and currently stands at 1.62 million.1,400,00055.9% increase in the total number of1,200,000students enrolled to reach 126,123 studentsas at 2018, accounting for 9.1% of total1,000,000enrolment.800,000600,000In private universities, as at 2018, HealthCURRENT LANDSCAPEand Wellbeing majors accounted for the400,000largest portion of enrolled students, with200,00035.4% of students choosing this major.The tertiary education sector in SaudiThis was closely followed by Business,Arabia encompasses three main verticals,Management and Law majors, whichuniversities, colleges and technical andaccount for 31.9% of all enrolled studentsvocational institutions. In total, Saudiin private universities. Services andArabia has 60 universities, with 70.0% ofArts and Humanities majors recordedthese being public universities. Collegesthe fastest rates of growth of 150.5%and universities in Riyadh, Jeddah,and 82.6% respectively in the four yearsBuraydah and Madinah account forto 2018, although the former has done28.3%, 18.3%, 13.3% and 11.7% of the totalthis from a very low base. Over thenumber of colleges and universities in thesame period, Education, Social Science,Kingdom respectively.Journalism and Media and Information0PublicOtherPrivateSource: Knight Frank ResearchThe proportion of students studying inpublic universities as at 2018 stands at85.5%, compared to 4.8% studying at privateuniversities and 9.6% of students choosing toundertake a technical and vocational course.and Communication Technology majorsThere are a total of 18 private universitieswere the only three to record reductions inin Saudi Arabia, seven of which (38.9%)enrolment levels, where enrolment levelsare located in Riyadh. Of the 42 privatefell by 83.9%, 61.4% and 11.6% respectively.colleges in Saudi Arabia, 10 are located inRiyadh and both Buraydah and Jeddah arehost to seven private colleges each.Universities and Colleges by Region, 2018In the five years to 2018, the total numberof students in higher education has40increased by 8.3% and currently stands at351.62 million. The total number of studentsin higher education has fallen from itspeak in 2017, where there were 1.68 millionstudents, by 3.6%. The proportion ofstudents studying in public universities302520as at 2018 stands at 85.5%, compared to154.8% studying at private universities and109.6% of students choosing to undertake atechnical and vocational course.5all student enrolments, up from 19.8% inPublic Sector Universities2014. Arts and Humanities ranked as theSource: Knight Frank Researchsecond most subscribed to major, wherePrivate Sector UniversitiesPrivate Sector CollegesOtherAl BahaHailAl Ahsaa Onaizah Hafr Al Batin Najran Tabuk Qassim Abha Al KhobarPublic Sector Colleges Al Madinah AlMonawwarahwhere this major accounted for 30.1% of Al Bukayriyah BuraydahDammamincreased by 61% in the four years to 2018,JeddahBusiness Management as a major hasR iyadh0In public universities, the take up of

S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1Breakdown of Students Currently Enrolled in Public Universities in the KSA by Majors, 2014 – 2018100%S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1GOVERNMENTINITIATIVESEDUCATION OUTCOMES90%As part of the Human Capital Development80%Vision Realisation Program the Saudi70%Arabian government aims to ensure60%that education outcomes are in line50%with market requirements. Given thisand expected labour requirements in40%developing sectors such as the tourism30%and industrial and logistics sectors, the20%government plans to expand the technical10%and vocational education sector. To0%achieve this, the government is set to2014Business, Managementand LawArts and Humanities2017Health and Well-being2018Engineering, Manufacturingand Construction ServicesPrograms andGeneral qualificationsAgriculture, forestry,fisheries and veterinaryNatural sciences,Mathematics and StatisticsSocial Sciences,Journalism and MediaServicesEducationInformation andCommunication TechnologyOthersapply a cap of 60% on the number of highschool graduates attending universities,with the remaining 40% of studentsbeing redirected into the technical andPROGRAMIn 2005, the King Abdullah ScholarshipProgram (KASP) was introduced, allowingSaudi nationals to study abroad with thegovernment covering tuition fees, monthlyBreakdown of Students Currently Enrolled in Private Universities in the KSA by Majors, 2014 – 2018living expenses and other living expensessuch as healthcare insurance. On the backof weaker oil prices since 2014, which100%materially affected government revenues90%and spending, the government has begun80%to apply a more stringent eligibility70%LAND REQUIREMENTScriteria for this program. As a result, the60%total number of students enrolled in this50%program decreased from 140,033 in 2014 to40%99,245 in 2018.20%FINANCIALCONSTRAINTS0%2014Health and Well-being2017Arts and Humanities2018ServicesREDUCTION IN FUNDINGThe number of students being accepted topublic universities and who are eligible forBusiness, Managementand LawPrograms andGeneral qualificationsSocial Sciences,Journalism and Mediastate funded education is falling as publicsector higher education spending is woundEngineering, Manufacturingand Construction ServicesEducationInformation andCommunication TechnologyNatural sciences,Mathematics and StatisticsSource: Knight Frank Researchdown.PRIVATISATIONWith the government planning onprivatising public universities, where a twoyear transition period will be granted oncea university is set to be privatised, tuitionfees are likely to be borne by the studentalone, particularly as scholarships forTourismEntertainmentNursingcollege currently stands at 40,000 squareINTERNATIONAL DEMANDmetres, which would be suitable for 1,000With COVID-19 limiting mobility aroundstudents. Furthermore, a university isthe world we have seen many higherrequired to have three colleges with aeducation institutes around the worldminimum number of students of 1,000start to offer online only courses. Despiteper college. This level of infrastructurethe pandemic subsiding, this method ofrequirement is likely to deter privatedelivery may be here for the long run. Thisinvestors.allows Saudi Nationals an opportunity toundertake a range of courses from a varietyBANK GUARANTEESof internationally recognised universities,Investors must provide a bank guaranteeat the expense of local institutions.to the MoE amounting to SAR 5,000 perstudent, which is set aside to cover theDEMANDcost of transferring students in the event aAs at 2018, 89.3% of high school graduatesuniversity ceases operation.attended university in Saudi Arabia, whichequates to an estimated 325,547 students.DEMANDWith the government looking to reducethis rate to 60%, we estimate that by 2030there will be an excess of 69,494 seatsPUBLIC VS PRIVATEwithin Saudi Arabia’s university sector.Private universities are generallyAfter this period of decline, we expectconsidered to be more attractive ingrowth to resume in 2031. However, evencomparison to public universities givenby 2035 the total number of studentstheir greater levels of diversity, both inin universities will still be 27,638 belowterms of culture and nationalities, and2018 levels. Whilst this indicates that thetheir broader course offerings.case for expansion in this sector remainsunviable, there is demand for replacementGEOGRAPHIC DISPERSIONof existing facilities, which are no longerAlmost 72% of colleges and universitiesfit for purpose due to new regulations.are concentrated in the central or westernparts of the Kingdom. As regional citiesdevelop, we expect demand to strengthenin the North, North-West and the South ofthe country.30%10% The minimum land requirement for avocational education sector.KING ABDULLAH SCHOLARSHIPSource: Knight Frank Researchprivate universities become less commonSTUDENT SATISFACTIONProviding student accommodation incolleges and universities would helpimprove student satisfaction and is likelyto drive both domestic and internationaldemandCURRICULUM DEVELOPMENTAs new economic sectors begin to come tothe forefront of Saudi Arabia’s economy, itseducation sector will have to ensure thatits higher education provides appropriatehigher education courses to ensure labourmarket supply matches demand.Specialisations in demand include: Project ManagementIndustrial Engineering

S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1S A U D I A R A B I A E D U C AT I O N R E P O R T 2 0 2 1In both, the country as a whole andRiyadh, the two largest sectors by theTECHNICAL AND VOCATIONALTRAINING SECTOR OVERVIEWnumber of facilities are Technical Collegesand Secondary Industrial Institutes,which provide technical and industrialvocational education and are operated bythe local government authorities.Whereas both International TechnicalWith the government aiming to attract 30% of high school graduates to the TVT sector, we estimatethat in the 10 years to 2030 a total of 123,378 additional TVT seats will be required.Colleges and Strategic PartnershipsInstitutes are managed by the Collegesof Excellence (CoE). The CoE facilitates anetwork of technical colleges and enactsPPP models between the TVTC andinternational operators. The CoE identifiesCURRENT LANDSCAPEand collaborates with internationalvocational training providers, through pre-TVT Facilities in KSA by Sector, 2012 - 2017qualifications, procurement and tenderingThe Technical and Vocational Training(TVT) sector is the corner stone of Saudiprocesses, and employers to meet the1200requirements of the labour market.Arabia’s economic diversification plan,which is aiming to create five million1000jobs are expected to be vocational andtechnical in nature, ensuring an efficientand effective TVT sector will be crucialgoing forward.Across Saudi Arabia, as at 2017, there area total of 1,120 TVT facilities, with theREGULATORY BODYIn order for the TVT sector to be betterrecognised and to support the aimsof Vision 2030, the Saudi ArabianGovernment has initiated a regulatorybody called the Colleges of Excellence(CoE). The CoE aims to facilitatepartnerships and collaborations withforeign operators in order to bringinternationally recognised expertise to thecountry. Whilst the CoE runs the tenderprocess for these foreign operators, itdoes not decide which specialisationswill be sought; the wider Saudi Arabiangovernment decides the requiredspecialisations. Whilst the government'saim is to invite investors to develop800600Public TVT Facilities in the KSA byprovide infrastructure to operators andType, 2017allowing the operator to invest in theAs part of the scheme, operators are15%400eligible for favourable financing terms.29%200HIGH SCHOOL GRADUATES080.1% and 19.9% of facilities respectively.PublicIn the five years to 2017, public sector TVT2013/142014/152015/162016/1729%government targeting to increase this14%Source: Knight Frank Researchto 40% by 2030. One of the primarymechanisms that will be used to achievePublic TVT Facilities in Riyadh bythis target will be to reduce the num

REPORT 2021 Opportunities in the Sector. Lorem Ipsum is simply dummy . UK Pre-Primary (FS1-FS2) Pre-Kindergarten Primary 1-6 Elementary 1-6 Secondary 7-11 Secondary 7-11 Post-Secondary USA Post-Secondary KSA KSA's Key Regulators . Note: Data as at 2018, *China data represents Beijing, Shanghai, Jiangsu and Zhejiang and not all of mainland .