By Joseph George
Proactive government policies, financial incentives and an increasing demand for private education have fuelled interest and investment in Saudi Arabia’s education sector from both local and international stakeholders. Foreign direct investment (FDI) rose by 12.1% in 2023, while government funding increased to SAR 189 billion
Saudi Arabia is witnessing a notable increase in investments in the education sector. Both regional and international brands are setting shop in the Kingdom, anticipating a rising demand driven by several factors: a growing interest in private education, an expanding focus on early childhood education, a population willing to pay a premium for prestigious schools, and, most importantly, proactive government policies. These policies are introducing significant reforms and allocating additional funds to promote the growth of the education sector in the country.
The Saudi Government’s Vision 2030 framework has been the driving force behind sweeping reforms across various economic, business, and service sectors. Education, in particular, has emerged as a central focus, receiving substantial budget allocations and undergoing significant policy changes.
Historically, Saudi nationals were barred from attending private international schools. However, the reversal of this policy over the years has increased the student demand for international schools, encouraging investment in the sector. From being a provider of education, the government is repositioning itself towards being more of a regulator, opening up opportunities for private investment in the education sector.
