Time: May 08, 2018
The significance of schooling system has been well realized globally. Schools are those institutions which not only lay the foundation of education in any country but also promote holistic development of a nation by ameliorating the literacy rates.
In Saudi Arabia, the number of K-12 schools in the country has been witnessing a decent growth year after year. This growth is present regardless of whether the schools are operated by the government or by the private players in the local and global education industry. However, around 2012, Saudi nationals were not permitted to enroll themselves into international schools that offered advanced curriculums and as a result, it affected the growth of such schools at that time. But all thanks to the latest government initiatives, the gross enrollment rate among all education levels have risen. As a result, the education industry in the Kingdom of Saudi Arabia surged to $5,766.0 million during 2013 recording a robust CAGR of 20.7%.
Since then, the gross enrolment rates for primary and secondary levels of education have been high as the government has ordered a mandatory elementary education for children between 6 -11 years of age. One of the major reasons that has bolstered the growth of schooling in Saudi Arabia is the initiative taken by the country to give scholarships to the most deserving students. These scholarships have not only resulted in expansion of revenues of the market players but have also led to more dedication in the students enrolled to achieve exceptional grades.
Ken Research in its latest study titled “Saudi Arabia Education Industry by K-12 Education, Higher Education, Vocational Education, Teacher Training, Test Preparation, E-learning – Outlook to 2021” highlighted that education industry in the country has observed a persistent increase during 2016, recording a CAGR of about 13.3%. Simultaneously, the revenues have also augmented, leading to an overall growth at a CAGR of more than 16%. The concern about the quality of education has led the government to allocate a substantial budget for education and training so that the literacy rates rise. This has further led to the expansion of existing players in the market while many new players have entered the market to satiate the requirements of growing number of students, thereby adding to the revenues of the industry as the years roll by.
The education industry in Saudi Arabia has been long dominated by universities and colleges while the primary schools have superseded the industry in terms of number of students, accounting for majority of the overall students in the country. The implementation of English as a second language to be taught in primary schools coupled with rising population; has amplified the comprehensive number of students in schools; thus, offering a strong base for further studies.
However, increasing demand for better quality education in Saudi Arabia has led to an overall increase in the school fee charged and majority of schools have hiked their tuition fee by around 5.0% for the academic year after attaining the approval from the Ministry of Education. This increase in school fee has been largely due to a 25% hike in operation costs which involved salaries of male and female teachers, general and administrational expenses and a profit margin of the authorities.
Ken Research says that the trend of “Emergence of Vocational and Technical Training” in the schooling systems has managed to inculcate the significance of learning with better quality services in the country. The augmenting expenditure of the government on such trainings has resulted in a considerable growth of the industry. Also, continuous initiatives have been there to ameliorate and extend the education sector further leading to increased partnerships among government and private entities so that the students are well equipped in various fields of study, ultimately contributing towards economic development.
Saudi Arabia’s education industry is expected to augment to about $15,039.7 million by 2021, registering a decent CAGR of 12.3% by 2021. The support of expanding “Colleges of Excellence” in the country by offering around 100 colleges the vocational training programs by 2020 is projected to be a major driver of the overall revenues because of multiplying demands for training and technical courses in the Kingdom.
Moreover, the industry is all set to relish success in the coming years, owing to increasing adoption of learning management systems by the developing corporate and education sector and the rising application of modern technology as a part of e-learning sector. Even, the country has been lately offering free education to its citizens among all the government education institutions and this is further anticipated to improve the education levels of the country.