What is the Current State of Saudi Arabia Education Industry?
The education system in the Kingdom is as per the Education Policy Document, which was issued by the Saudi Council of Ministers in 1969. Several organizations of the government also function together to regulate and enforce the laws pertaining to the education system in the country. The three major organizations that oversee the operations of education industry in Saudi Arabia are the Ministry of Education, the Ministry of Higher Education, and the Technical and Vocational Training Corporation (TVTC). Education industry in Saudi Arabia witnessed a continuous increase to USD ~ million during 2017 from USD ~ million during 2011, registering a CAGR of ~% between 2011 and 2017.
The growing concern for quality education by the education sector in the Kingdom encouraged the government to allocate USD ~ billion for education and training during its 2016 budget. This led to the expansion of the existing players and the entrance of new players to cater the growing number of students, thereby adding to the revenues of the industry during the review period.
The revenues were also affected in a positive manner due to the rising expenditure of the government on technical and vocational training by ~ to USD ~ billion between 2010 and 2014. The growing need to reduce unemployment rate resulted in more number of teachers and students getting enrolled to vocational institutes, thereby driving the overall industry revenues.
How has Saudi Arabia K-12 Education Industry Performed?
Market Size: The Ministry of Education played a significant role in augmenting the industry revenues during the review period by providing students an access to international curriculum along with laying emphasis on traditional subjects. The initiative exposed students to new areas of learning, thus helping K-12 schools to witness an increase in enrollments. K-12 education industry in the Kingdom of Saudi Arabia increased to USD ~ million during 2017 from USD ~ million during 2011, registering a CAGR of ~% between 2011 and 2017.
Market Segmentation: The overall K-12 education industry in the Kingdom of Saudi Arabia has been majorly captured by the public schools operating in the country. Continuous efforts of the government to improve the quality of education have led to the establishment of new K-12 schools during the period 2013– 2017. Modern curriculum to equip the students with practical learning rather than keeping them bounded with religious issues including ‘history’ and ‘Arabic language’, has made the Government to encourage establishment of new private schools in the Kingdom. Augmenting demand for global education players in the Kingdom by both immigrants and the local population has been the major reason behind the surging number of international schools during 2013 – 2017.
Future Outlook: The revenues generated by the players in Saudi Arabia K-12 education industry are projected to augment to USD ~ million by 2022 from USD ~ million during 2017, registering a robust CAGR of ~% during the same period. The emphasis to introduce English language in the schooling system is estimated to raise the industry revenues, due to more number of people focusing on the need to learn English, rather than merely getting restricted to the subjects taught in Arabic language. For instance, physics, chemistry and biology use English as the basic language that directs approach, methodology and analysis. Therefore, the rising numbers of subjects in English language are expected to augment the number of enrollments, thus leading to generation of higher revenues by the industry.
How has Saudi Arabia Higher Education Industry Performed?
Market Size: Higher education industry in the Kingdom of Saudi Arabia increased to USD ~ million during 2017 from USD ~ million during 2011, registering a CAGR of ~% between 2011 and 2017. The higher education industry of Saudi Arabia has also been driven due to the focus of the government to hire foreign academicians for educating the students. This has improved the quality of education, thus making more people to continue studying after completing their schooling.
Market Segmentation: Government universities in the Kingdom of Saudi Arabia witnessed the maximum number of enrollments during 2015. ~% of the people enrolled to government universities for higher education during the same year. The share of this segment to the total enrollments surged from ~ enrollments during 2012 to ~ in 2017. Private universities in Saudi Arabia offered almost similar number of courses and subjects to the students pursuing higher education in the country. Such universities charged much higher fee as compared to government universities. The total enrollments to private universities inclined from ~ in 2012 to ~ for the academic session of 2017. Other higher educational universities contributed a share of ~ enrollments during the same year.
Future Outlook: The revenues generated by the players operating in Saudi Arabia higher education industry are projected to augment to USD ~ million by 2022 from USD ~ million during 2017, registering a robust CAGR of ~ during 2017-2022. The increased demand for higher education in the Kingdom is anticipated to boost the fee over the long term, thus making people pay more for higher education services in the country. The increased expenditure of the people is expected to surge the revenues of various colleges and universities operating in the space. Strategic tie-ups of the Ministry of Higher Education with private entities to fund and expand the colleges in the Kingdom are expected to offer long term monetary benefits to the industry by increasing their student intake. The 2030 vision of the government for thriving economy is expected to support the development of universities and colleges.
How has Saudi Arabia Vocational and Technical Training Industry Performed?
Market Size: Vocational and technical training industry in Saudi Arabia increased to USD ~ million during 2017 from USD ~ million during 2011, registering a robust CAGR of ~ between 2011 and 2017. The rising expenditure of the government on technical and vocational training by ~ to USD ~billion between 2010 and 2014 was the major reason behind the significant growth of the industry during the period 2011-2017. Initiatives to improve and expand the education sector of the Kingdom led to increasing collaborations of the government with private entities to equip the students in various fields of study.
Market Segmentation: Maximum teachers that were enrolled to various training institutes in the Kingdom were Saudi Nationals. Teachers were given training in various fields other than the traditional Arabic language. Both technical and non-technical courses were offered to Saudi teachers which can equip them with better knowledge that is to be provided to the students. Training institutes were the most preferred for various courses to be taken up by the teachers during 2016. The percentage of teachers enrolling to private education and training centers constituted a dominant share of ~ in the overall enrollments to various training institutes of the Kingdom in 2016.
The enrollments to training institutes constituted a dominant share of ~ in the overall enrollments to various vocational and technical centers operating in the country during 2016. Male students accounted for ~ share in the total enrollments to various training institutes during 2016. The existence of more number of courses offered by the highly qualified academicians in both Arabic and English language made the students enroll themselves to training centers owned by private entities. With a dominant share of ~ during 2016, private training institutes witnessed the maximum number of enrollments.
Future Outlook: The revenues generated by vocational and technical training institutes in Saudi Arabia are projected to augment to USD ~ million by 2022 from USD ~ million during 2017, registering a CAGR of ~% during the period 2017-2022.
How has Saudi Arabia E-Learning Industry Performed?
Market Size: E-learning industry in Saudi Arabia increased to USD ~ million during 2017 from USD ~ million during 2011, registering a CAGR of ~ between 2011 and 2017. The shift of people towards better quality education was among the major reasons for the growth of e-learning industry in the Kingdom. More number of students and professionals were exposed to the use of internet for education and training purposes through the implementation of e-learning systems in various schools, universities, corporations and governmental bodies.
Market Segmentation: Adoption of e-learning in higher education colleges contributed ~% to the overall industry revenues in 2017. E-learning was also adopted and implemented with a view to make students learn about the growing use of internet along with helping the teachers to connect with the parents through online facilities offered by the school. K-12 schools held the share of ~% in the revenues generated by the industry through various end-customers during 2017. The increased demand for e-learning systems by corporate & government bodies added a share of ~% to the overall e-learning industry revenues in Saudi Arabia during 2017.
Content services contributed a dominant share of ~% to the overall revenues generated by e-learning industry in the Kingdom during 2017. Content services were majorly demanded by the users in educational sector, wherein improvised and advanced instructional content was offered to uplift the public sector education in the country. Technology services constituted ~% in the overall revenues generated by the players operating in e-learning industry in Saudi Arabia.
Future Outlook: The revenues generated by E-learning industry in Saudi Arabia are projected to augment to USD ~ million by 2022 from USD ~ million during 2017, registering a CAGR of ~% during the period 2017-2022 due to increasing use of smart classes in K-12 schools, rising governmental initiatives to improve the country’s quality of education by adopting various e-learning, continuous growth in the corporate sector and Rising awareness about the distance learning programs of various international universities through online based technology.
How has Saudi Arabia Test Preparation Industry Performed?
Market Size: There has been a continuous increase in the number of people preferring to study in the Western countries due to unemployment in the Kingdom. This has made more students enroll to test preparation institutes, thereby driving the industry in a positive manner. Test preparation industry in Saudi Arabia increased to USD ~ million during 2017 from USD ~ million during 2011, registering a CAGR of ~ between 2011 and 2017.
Market Segmentation: Revenues generated by the market players who offer test preparation services for TOEFL were observed to be highest, when compared with other types of tests. The segment dominated Saudi Arabia test preparation market with a revenue share of ~% in the year 2017. The test preparation industry noticed a contribution of USD ~ million to the overall revenues from IELTS preparation classes in 2017. IELTS is the most popular course in Saudi Arabia, as of 2017. The Graduate Management Admission Test (GMAT) applicants captured third position in Saudi Arabia test preparation industry with a revenue share of ~%, thus evaluated at USD ~ million in the year 2017.
Unlike TOEFL, IELTS and GMAT test types, the Graduate Record Examination (GRE) test witnessed limited number of students applying for the test. This was due to wider acceptance of TOEFL and IELTS over GRE in the foreign universities as the assessment for both the tests is almost similar. The least of the revenues to various competitive tests in the Kingdom were contributed by the Scholastic Assessment Test (SAT) applicants, therefore evaluated at USD ~ million in 2017.
Future Outlook: The revenues generated by test preparation industry in Saudi Arabia are projected to augment to USD ~ million by 2022 from USD ~ million during 2017, registering a CAGR of ~ during the period 2017-2022. The augmentation in the fee of the institutes is also expected to drive the overall growth in a positive manner. Hike in fee is estimated due to the increased operational expenses of the test preparation centers to offer coaching across various fields of study that are included in the tests.
What is the Expected Future Outlook for the Overall Education Industry in Saudi Arabia?
The Saudi Arabian education industry is projected to augment to USD ~ million by 2022 from USD ~ million during 2017, registering a CAGR of ~ during the period 2017-2022. The allocation of USD ~ billion to education sector of the country in the 2017 annual budget is expected to assist in the development of education industry during the outlook period, thus leading to the growth of all sectors.
The expansion of the Colleges of Excellence (CoE) by way of offering 100 colleges by 2020 for vocational training programs is projected to drive the overall industry revenues due to rising demand for training and technical courses in the Kingdom. The industry is also expected to drive positively due to increasing adoption of learning management systems by the growing corporate and education sector. The increasing use of modern technology as a part of e-learning sector is projected to benefit the education industry during the long term.
Increasing number of organizations offering scholarships to students who wish to study abroad are projected to fuel the enrollments and revenues of the test preparation education sector, thus having a positive impact on the overall industry revenues.
More number of educational institutes and corporate houses adopting e-learning platforms are estimated to grow, as they get exposure not only to local entities, but also to global players offering knowledge across various areas of study. This is expected to be a significant factor leading to the growth of the industry during 2017-2022. Continuous emphasis of the government and private authorities to enhance vocational skills in Saudi nationals is anticipated to expand the training and technical institutions, thereby resulting in a positive growth of the industry. Private players entering the space with more numbers of tie-ups between the government universities and global players are further anticipated to boost the industry.
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