Education sector in saudi arabia to 2018 market size and intelligence report - Indalytics

Education Sector in Saudi Arabia

to 2018 — Market Size and

Intelligence Report November 2013

© Indalytics Advisors [email protected] www.indalytics.com

Education Sector in Saudi Arabia to 2018 — Market Size and Intelligence Report

©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 1

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Education System in Saudi Arabia

Education attainment and enrollment in Saudi Arabia

Current Market Size of Saudi Arabia’s Education Sector

Preschool education in Saudi Arabia

General education in Saudi Arabia

Higher education in Saudi Arabia

Vocational and technical education in Saudi Arabia

Special and adult education in Saudi Arabia

Distance Education and e–learning in Saudi Arabia

Forecasted Market Size of Saudi Arabia’s Education Sector

Drivers Impacting Saudi Arabia’s Education Sector

Driver 1

Driver 2

Driver 3

Driver 4

Driver 5

Driver 6

Trends in Saudi Arabia’s Education Sector

Trend 1

Trend 2

Trend 3

Trend 4

Trend 5

Trend 6



Regulations Pertaining to Education in Saudi Arabia

Regulations Covering School Education

Regulations Covering Higher Education

Regulations Covering Adult Education and Eradication of Illiteracy

Setting up and operating private schools in Saudi Arabia

Setting Up and Operating Foreign Schools in Saudi Arabia

Setting Up and Operating Private Higher Education Institutions in Saudi

Arabia

Private Investments in Education Space

Profiles of Investment Companies in Education

Al Alamiah Company for Education and Training

Al-Hussan Group of Companies

Ataa Educational Company

Kingdom Holding Company

Saad Group of Companies

Tadrees Holding

Tatweer Education Holding Company



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Figure 1: Education System of Saudi Arabia

Figure 2: Saudi Arabia Population by Education Attainment — 2013 (over

15 years)

Figure 3: Gross education Enrollment Ratios in Saudi Arabia — 2011

Figure 4: Saudi Arabia’s Education Sector — Market Size — 2013 (US$

billion)

Figure 5: Saudi Arabia’s Education Sector — Market Size — Public and

Private Education — 2013 (US$ billion)

Figure 6: Enrollment in General Education — Elementary, Intermediate

and Secondary — 2013 (E)

Figure 7: Enrollment in General Education — on Basis of Gender — 2013

(E)

Figure 8: Enrollment in General Education — Segregation on Basis of

Gender in Elementary, Intermediate and Secondary education — 2013 (E)

Figure 9: Government and Private Schools in Saudi Arabia — 2013 (E)

Figure 10: Enrollment in General Education — government and Private

Schools — 2013 (E)

Figure 11: Enrollment in General Education — Government and Private

Schools in Elementary, Intermediate and Secondary Education — 2013 (E)

Figure 12: Enrollment in Higher Education — On Basis on Gender — 2013

(E)

Figure 13: Enrollment in Higher Education — Types of Universities and

Colleges — 2013 (E)

Figure 14: Enrollment in Higher Education — Stages of Studies — 2013 (E)

Figure 15: Breakup of Higher Education Enrollment — Saudis and Non–

Saudis — 2013 (E)

Figure 16: Breakup of Higher Education Enrollment — Fields of Study —

2013 (E)

Figure 17: Enrollment in Vocational and Technical Education — Types of

Colleges — 2013 (E)



Figure 18: Enrollment in Vocational and Technical Education — Training

and Higher Education Institutes — 2013 (E)

Figure 19: Enrollment in Vocational and Technical Education — on basis of

Gender — 20133 (E)

Figure 20: Vocational and Technical Education — Number of Teachers —

2013 (E)

Figure 21: Vocational and Technical Education — Saudi and non–Saudi —

2013 (E)

Figure 22: Government Expenditure on Education — 2011–2013(E) (US$

billion)

Figure 23: Government Expenditure on Education as % of Total

Expenditure — 2013 (E)

Figure 24: Government Expenditure on Education — 2011–2013(E) (SR

billion)

Figure 25: Government Expenditure on Education — % of GDP — 2011–

2013(E) (%)

Figure 26: Population Growth of Saudi Arabia — 2010–2014(F) (million)

Figure 27: Unemployment % in Saudi Arabia — Saudis, Non–Saudis and

Total — 2013(First Quarter)

Figure 28: Population of Saudi Arabia — Saudis and Non–Saudis — 2012

Figure 29: % Change in gross domestic product at constant prices— 2010

– 2013(E) (%)

Figure 30: Per capita GDP of Saudi Arabia — 2009–2012 (US$)

Figure 31: Saudi Students Taking Higher Education in Foreign Countries —

Level of Studies — 2011

Figure 32: Breakup of Enrollment in Private Schools — Nationals and Non-

Nationals— 2013 (E)



PUBLICATION DATE

November 25, 2013

NUMBER OF PAGES

81

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ABOUT THE REPORT

The report ‘Education Sector in Saudi Arabia to 2018 — Market Size and

Intelligence’ discusses the current and forecasted market size of the Saudi

Arabia’s education sector. It segregates the market size on the basis of

various level of education, starting from preschool education to higher and

technical education.

The report discusses the forecasted market size and year–wise growth of

the sector till 2018, along with the various drivers, which will lead to this

growth. It also discusses the various trends that are shaping the education

sector.

Various regulations pertaining to education in Saudi Arabia are also

mentioned in the report, along with the processes and guidelines of setting

up and operating private schools and colleges. The report concludes with

the profiles of major investment companies, which have invested in Saudi

Arabia’s education sector.

EXECUTIVE SUMMARY

Saudi Arabia has emerged to be one of the major education markets in the

GCC region. The country — which spends approximately 25% of its total

fiscal spending, and 7.6% of its GDP on education — caters to

approximately 8.5 million people, across various levels of education. With

an enrollment ratio of approximately 106% for k–12 education, and

approximately 41% for higher education, Saudi Arabia has a high literacy

rate — with only 5.6% of the people above 15 years being illiterate.

Besides high government spending, other factors that are driving the

growth of Saudi Arabia’s education sector are the increase in population

and income levels. Further, increasing number of expatriates, and

government’s efforts to reduce unemployment are also resulting in

expansion of the sector.



All the above–mentioned drivers are expected to help Saudi Arabia’s

education sector grow at a compound annual growth rate (CAGR) of 1.58%

till 2018. The sector is also witnessing increasing enrollment and

investments in the private education space. This, along with technological

initiatives, and Kingdom’s collaboration with other countries is expected

to make the sector more lucrative for private investors.

RESEARCH METHODOLOGY

This report has been prepared through the following comprehensive

methodology:

The market definitions used in the reports are the standard definitions

recognized by the industry. In this report, the market size of the education

sector is defined as the sum total of core expenditure of teaching students.

It includes the fees paid by students in private schools and higher

education institutions, as well as the government expenditure per student

in case of public schools and higher education institutions.

Bases of all the figures are taken from the statistics provided by the

government, ministries, as well as prominent organizations such as the

World Bank, International Monetary Funds, UNESCO Institute of Statistics,

World Factbook — CIA etc. The data is further validated through credible

analyst reports, white papers by industry organizations, questioners and

expert interviews.



DATES AND EXCHANGE RATES

Following conversion tables have been used to convert dates from Hijri

calendar to Gregorian calendar, and currency amount from Saudi Riyal (SR)

to the United State Dollar (US$).

Hijri calendar 1430 1431 1432 1433 1434

Gregorian calendar 2009 2010 2011 2012 2013

2009 2010 2011 2012 January —

October 2013

SR 1 1 1 1 1

US$ 0.2664 0.2662 0.2665 0.2666 0.2666



LIST OF ORGANIZATIONS MENTIONED IN THE

REPORT

Al Alamiah Company for

Education and Training

Al Baraka Banking Group

Al Hussan International

Schools

Al Hussan Training

Centers

Al–Alamiah Institute for

Computer Technology

Al-Faisal University

Al-Hussan group of

Companies

Al–Imam Muhammad

ibn Saud Islamic

University

Al-Rowad for Private

Education and Training

Company

Al-Tarbiyah Al Fikriyah

Institute

Amal Institute

Arab Open University

Ataa Educational

Company

Bahamdan Group

Box Hill Institute

D3 Consultants

GEMS Education

Imam Mohammad Bin

Saud Islamic university

Itqan Capital

King Abdulaziz University

King Abdullah University

for Science and

Technology

King Fahd University of

Petroleum and Minerals

King Saud University

Kingdom Holding

Company

Kingdom Schools

Company

Lockheed Martin

McGraw-Hill Education

Pearson Education

Princess Nora University

Promethean Plc

Quranic Secondary

School



Saad College of Nursing

and Allied Health

Sciences

Saad Group of

Companies

Saad National School

Saudi Aramco

Saudi Electronic

University

SMART Technologies Inc.

Tadrees Holding

Tatweer Education

Transportation Company

Tatweer Educational

Services Company

Tatweer Holding

Company

Texas Instruments

TQ Education and

Training

UK Open University

University of Auckland

University of Ulster



REPORT SAMPLE

EDUCATION SYSTEM IN SAUDI ARABIA

Education in Saudi Arabia is governed by the Ministry of Education, along

with the Ministry of Higher Education that supervises the post–secondary

education, and the General Organization for Technical Education and

Vocational Training that supervises vocational and technical education.

There are also several specific government bodies such as the Ministry of

Defense and Aviation, and the Presidency of the National Guard — which

provide education and training for specific jobs.

The education starts at approximately four years of age, when a child

enrolls for preschool education for two years. Preschool education in Saudi

Arabia is not mandatory, and is also not considered as a part of official

education by the Ministry of Education. However, several private schools

provide preschool education, post which, a child is automatically enrolled

for elementary education in that school.

The main K–12 education starts after preschool education, and spans

across 12 years. The first six years of education are known as elementary

or primary education. A child enters elementary education at

approximately six years of age at Grade 1, and studies till Grade 6 — post

which she attains the Elementary Education Certificate. All the elementary

schools in Saudi Arabia are day schools and are not co–educational.

Major subjects that a student studies at elementary level include Arabic,

religious studies, home economics (for girls), physical education (for boys),

art education, geography, history, mathematics, national education and

science.

Post elementary education, a child is enrolled for intermediate education,

which lasts for three years — from Grade 7 till Grade 9. Intermediate

education is also not co–educational, and includes subjects such as Arabic,

religious studies, home economics (for girls), physical education (for boys),



art education, English, geography, history, mathematics, national

education and science. After successful completion of intermediate

education, a student is awarded an Intermediate School Certificate.

The third phase of K–12 education is secondary education, which again

lasts for three years — from Grade 10 till Grade 12. Secondary education

students have an option to either opt for general education, or specialized

secondary education. While the general education imparted is not co–

educational and is imparted separately to both boys and girls, the

specialized secondary education comprising of vocational and religious

education is only for boys.

In general secondary education, the students study general curriculum

during the first year, and can opt from shariah and Arabic studies;

administration and social sciences; and natural sciences — during the

remaining two years. After successful completion, the students receive

Secondary School Certificate.

Under specialized secondary education, while the girls can opt for

teachers’ training; the boys have option to choose either the religious

education under schools such as Imam Mohammad Bin Saud Islamic

University and the Quranic Secondary Schools, or vocational and technical

education, supervised by the General Organization for Technical Education

and Vocational Training. The vocational and technical education colleges

spread across the kingdom, impart education in the fields of industry

commerce and agriculture.

Post–secondary or higher education in Saudi Arabia is supervised by the

Ministry of Higher Education, and ranges from four years in case of

humanities and social sciences, and five to six years for courses in

medicine, engineering and pharmacy. Higher education institutions in the

kingdom consists of 24 public universities, as well as private universities

and community colleges, and other institutes of higher education.

Several other institute overlap with higher education. Besides the normal

university education, students can also pursue 2–3 year courses in

technical and vocational education, public administration, or nursing



education. They can also opt for a 3–4 year diploma in military education,

or courses in teacher training — ranging from one to four years.

FIGURE 1: EDUCATION SYSTEM OF SAUDI ARABIA

Source: Indalytics Advisors



FIGURE 2: SAUDI ARABIA POPULATION BY EDUCATION ATTAINMENT — 2013 (OVER 15 YEARS)


Illiterate

Read & Write

Primary

Intermediate

Secondary

Equivalent

Pre-University

Diploma University

Masters

Ph. D



FIGURE 3: SAUDI ARABIA’S EDUCATION SECTOR — MARKET SIZE — 2013 (US$ BILLION)


Preschool Education

General K–12

Education

Higher Education

Vocational and

Technical Education

Adult Education

Special Education



FIGURE 4: SAUDI ARABIA’S EDUCATION SECTOR — MARKET SIZE — PUBLIC AND PRIVATE EDUCATION — 2013 (US$

BILLION)


Public Education

Private Education



FIGURE 5: ENROLLMENT IN GENERAL EDUCATION — ELEMENTARY, INTERMEDIATE AND SECONDARY — 2013 (E)


Elementary

Intermediate

Secondary



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without the prior permission of the publisher, Indalytics Advisors Private Limited.

The information contained in this report is of a general nature and is not intended to

address any particular individual or entity’s circumstances. Although proper care has been

taken to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate

in the future. The publisher should not be held liable for any discrepancy in the

information. No one should act upon such information without appropriate professional

advice after a thorough examination of the particular situation.

Publication Volume: GCI-13-GL–01

Publication Date – November 2013

© 2013 Indalytics Advisors Private Limited

For further information, please contact

[email protected]



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