Demand for higher education in Saudi Arabia likely to hit 2.75M seats by 2030: Colliers

Riyadh city

Colliers International expected the total demand for higher education in Saudi Arabia to rise to 2.75 million seats by 2030, compared to approximately 1.97 million seats in 2022, requiring more than 800,000 new seats by 2030 to meet demand in the Kingdom.

Its latest report on the educational landscape in the Kingdom, the research company pointed to the significant reliance on the public sector for higher education.

This trend is expected to witness gradual changes, as the Saudi government is keen on activating the role of private educational institutions. This is in a bid to upgrade them from being just service providers to being an organized, facilitating body, providing new opportunities for the private sector in the Saudi market.

Colliers indicated that there is a continuing decline in the number of Saudi students studying abroad, reflecting the increased demand for higher education in the Kingdom. Thus, private-sector universities have an unparalleled opportunity to expand their presence in the Kingdom.

The private sector, akin to the UAE and Egypt, should consider opening branches of international universities in the Kingdom, especially for universities with the largest number of Saudi students, the report added.

Demand is expected to shift from traditional specialties to the like of artificial intelligence (AI), robotics, nuclear energy, sustainable energy, renewable energy, and solar energy. This is given the economic transformation and diversification programs being introduced under the Saudi Vision 2030 and the trend towards Saudization, which shall stimulate demand for higher education, it further stated.

Colliers sees a shift in demand towards evidence-based research and development majors, instead of traditional fields of study, to overcome the mismatch between individuals’ certificates and competencies and labor market requirements.

Regulatory authorities must maintain a balance between the public and private sectors, to ensure providing the best educational opportunities for all. This is besides considering income disparities in order to enable access to education to the largest number of households not able to afford private education.

Colliers stressed the necessity of a transparent and stable regulatory environment to encourage private investments in the education sector.