KSA Private K12 Education Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

KSA Private K12 Education Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Saudi Arabian private education market is expected to double, in terms of value, and experience a higher growth rate over the coming years, due to factors, like the government’s Vision 2030 educational initiative (privatization of the industry), the need for overall improvement in the quality of education, and an increase in the number of people who prefer private schools that offer value for money. After the implementation of the government’s Vision 2030 educational initiative, the private education sector of Saudi Arabia is expected to register a CAGR of 11%.

Key Market TrendsFavorable Government Initiatives: Saudi Vision 2030

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

Population Growth Leading to Increased Enrollments in Private Schools

The major driver for the growth of the education market in Saudi Arabia is that it has the majority of the percentage of school-going population, as compared to other countries in the GCC region. But in the Kingdom of Saudi Arabia, 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 that is not the case in the Kingdom of Ssudi Arabia. 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 high-quality private schools. This is especially prevalent in the premium international K12 segment. Currently, Saudi students constitute around 40% of the international K12 enrollments and are the driving force for this demand. Although the increase in enrollment in Saudi Arabia is relatively low at the kindergarten level, the Saudi Vision 2030 and the Ministry of Education has set up initiatives to improve the situation.

With the increasing population and a rising demand for private schools offering international curricula (American and British), the school fees are also likely to increase quicker than the inflation rates, as the school offerings become more sophisticated in terms of curricula, learning resources, teachers' qualifications, and extra-curricular and ancillary services.

Competitive Landscape

The market is consolidated by only a 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 the Kingdom of Saudi Arabia, and many more such companies are now investing in the country. In first half of 2019, nine new foreign educational companies, including Niagara College Canada, ACCEL, National Geographic Learning, CareTech Foundation, Intuitive Education, and Education First, among others, were awarded investor licenses by the SAGIA (Saudi Arabian General Investment Authority), amounting to a total of USD 141 million. There is a higher concentration of public schools in the Kingdom, teaching Saudi curriculum. Foreign investment in the industry is expected to grow under Vision 2030, with more private schools being established, providing advanced facilities and international curriculum.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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Companies Mentioned
 
Boston Scientific Corporation
Cook Medical
Bayer AG
Sanofi
B. Braun Melsungen AG
C. R. Bard, Inc
Olympus Corporation
Teleflex Incorporated
Merit Medical Systems, Inc
Argon Medical Devices, Inc

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