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Saudi Arabia’s private, international K-12 segment could be at an inflexion point, according to a global consultancy firm, LEK Consulting.
“Saudi Arabia has a large and growing school age population that is expected to reach 7.6 million by 2030. However, it also has the lowest private sector education penetration compared to its Gulf neighbors. This can only mean that there is a lot of headroom for growth to address the huge gap in private education, fueled in part by the projected student population boom,” said Ashwin Assomull, Partner, LEK Consulting.
“Saudi Arabia’s economy is expected to recover in the next five to seven years, which could lead to, among others, increased state investment and key initiatives in the education sector as a whole,” he added.
As part of the Vision 2030 program, the government wants to increase the number of students enrolled in private schools from 15 percent to 25 percent.
“Another interesting development that is being seriously considered in the Kingdom is the granting of 100 percent ownership to private schools, which could lead to a possible increase in activity in education investment amongst private and international school owners,” he said.
According to the consultancy, Saudi Arabia’s international K-12 segment is currently estimated to be worth $1 billion, compared to $2.7 billion in the UAE, and $700 million in Kuwait which highlights the massive potential for growth in the Kingdom’s private, international education sector.
However, Assomull cautioned future investors about the complex regulatory landscape that they need to navigate once they decide to enter Saudi Arabia.
“This and the challenging human capital requirements are major considerations that need to be addressed; but once overcome, the rewards can be manifold,” he noted.
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