Saudi Arabia Education Transformation: Progress, Challenges and Opportunities

Significant Developments, Lingering Challenges:

Saudi Arabia’s education system has seen marked progress, with 100% enrollment at intermediate and secondary levels. New subjects, curriculums, and online courses offer diverse options, while digital tools showcase the Kingdom’s commitment to technology.

Despite progress, K-12 achievement and educational pathways need improvement. Access and equity gaps persist, with areas like wellbeing and community engagement requiring attention. Compared to other GCC countries, private investment lags, presenting an opportunity for U.S. companies. To accelerate investment and transformation of its education sector, Saudi Arabia has earmarked a whopping USD 140 billion research fund, prioritizing health, sustainability, energy, and future economies.

A New Vision for Education:

Recognizing these challenges, Saudi Arabia has outlined a visionary approach for its three education subsectors: Pre-K to 12, Higher Education & University Research, and Technical & Vocational Education and Training. This vision aims for globally competitive, high-quality education that empowers learners for the future.

Opportunities:

The Ministry presents two distinct avenues for investors to contribute to the education ecosystem’s growth and diversification:
•    Commercialization: This involves asset monetization, where public assets are offered to private and third sector for revenue generation through educational and non-educational activities. Assets include land, buildings, vehicles, equipment & furniture, human resources, and intellectual property.

•    Investing Mindset: This involves venture capitalist/private equity where public assets (mainly cash) are invested into private companies to grow and transform certain verticals in the sector (e.g., EdTech). The focus is on supporting education services start-ups and school delivery companies.

The education sector in Saudi Arabia brims with potential, including human capital development, soft skills training, and tech-powered solutions like e-learning and vocational training. U.S. companies are ideally positioned to play a pivotal role and to be at the forefront of this exciting change.
For further information, please contact Shariq Iqbal, Commercial Specialist at Shariq.Iqbal@trade.gov