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Market value of Saudi Arabia’s K12 sector exceeds $37bn in 2018 - Colliers

Market value of Saudi Arabia’s K12 sector exceeds $37bn in 2018 - Colliers
The kingdom’s K12 sector current market value has been estimated at over $37 billion in 2018

Riyadh – Mubasher: Colliers International, a leading global commercial real estate company, on Monday said that Saudi Arabia has the largest single Kindergarten to 12th grade (K12) education market in the Arabian Gulf Region, by a factor of three.

Schools in Saudi Arabia currently accounts for over 85% of nearly 39,000 schools in the Arabian Gulf, with students making up 68% of total 9.1 million students in the region, director at Colliers International MENA Mansoor Ahmed said.

The kingdom’s K12 sector current market value has been estimated at over $37 billion in 2018, Ahmed added in Colliers’ latest white paper on the K12 market in Saudi Arabia.

Private school penetration rate in the kingdom is low under 20% of all schools as compared to its regional neighbours, with only 6% being internationally branded, which is the lowest rate in the region, he highlighted.

“Based on population estimates, the total minimum requirement for new student places is 1.1 million by 2030, rising to over 2.1 million for more optimistic projections,” he added.

The kingdom’s private schools will require nearly 200,000 to 400,000 new places in the coming 11 years to support its current share in the K12 market, the Colliers International MENA director said.

The paper also provides a market projection of the K12 sector, especially in light with vision 2030, which lists the education sector as one of the main pillars for the Kingdom’s economic and social growth with the largest departmental budget allocation of $51 billion.

The paper also highlighted that Saudi Arabia has allocated $51 billion for the educational sector as one of the kingdom’s key economic and social growth pillars in light with Vision 2030.

“SAGIA is leading the way by enabling access for international companies to establish operations in the Kingdom. Subsequent to the recent lifting of foreign ownership restrictions, we are seeing a significant increase in investment from regional and international operators and investors,” Ahmed noted.