Last year, Saudi Arabia’s finance ministry announced that the Kingdom’s budget allocation for 2022 will see the education sector taking the biggest share of the pie – saying that SR185 billion out of SR955 billion will go to education.
Investing in the Future of Learning for a Human-Centric Recovery, investing in future skills through education will add $266 billion to the Middle East economy.World Economic Forum report, Catalyzing Education 4.0:
There is currently a private education sector growth in Saudi Arabia due to the move toward a knowledge-based economy, of which education is a key mainstay, with Vision 2030 being the blueprint to accomplishing this. The Kingdom is actively seeking private sector partners to increase investment in education, and the formation of new government bodies drives this to manage privatization initiatives.
Several positive macro factors paint a favorable picture for the country’s education sector. Demographic trends show a large addressable market, and growing household incomes indicate greater consumer affordability for private education. The country continues to be attractive to investors in the education sector as an increasing number of families now choose to spend more on education than they have historically.
Based on the National Transition Program 2020, per the directives of the Minister of Education to expedite the work of achieving the objectives of the national transformation program, a number of initiatives have been put in place to activate the partnership with the private sector on a large scale. These include leasing part of the Ministry’s stock of unused land to investors in private education and finding innovative and accessible solutions that serve the education sector and society.
The Ministry’s strategy is to increase the percentage of private education to 25%, improves the environment for private education, and increase the involvement of the privet sector process in the overall education process.
The government established the National Centre for Privatization (NCP) in 2016 to promote privatization initiatives across sectors, and education represents one of ten target sectors. The aim of the Kingdom’s privatization drive in education is to enhance learning outcomes. Core public-private partnerships in education include the construction and maintenance of new public schools by private partners and the transfer of operational and financial responsibility of some public schools to private companies. Furthermore, tenders to the private sector are expected in other segments, including early childhood education and higher and technical and vocational education.
However, even as the market opens to allow increased foreign ownership in education, local partnerships continue to be relevant as they play the role of assisting with navigating regulations and processes on establishment, operations, and recruitment. This is where you can rely on Proven as a professional partner with relevant local knowledge. We are fully behind the government’s plans to attract foreign investors by offering them growth opportunities.
We will help you understand the many options for market entry available to investors to set up in Saudi Arabia, as it suits your individual needs. We can also help you understand and apply the most common forms of entities formed by foreign investors wishing to do business in the country, such as Limited Liability Company (LLC), Limited Liability One-person Company, Joint Stock Company, and Foreign Company Branch.
Due diligence is done during our consultation and planning phase on the best business type, paid-up capital, additional approvals from local authorities, and licensing requirements. We will also help you draft legal documents such as Article of Association, Board Partner resolution, and Power of Attorney and follow this up with obtaining the investment license from MISA and the Operating Certificate or Registration from MOCI and then register your company with the Chamber of Commerce.
To help your business have a fully functional office, we will help you register with The Ministry of Labor, GOSI, and GAZT, complete other required portal registrations, and help with opening a business bank account for your new company.
If you plan to incorporate your organizational setup in Saudi Arabia and need strategic thinking and legal compliance assistance, Proven will support you as a local expert with a global approach. We provide business support solutions that enable our clients to access ME markets, grow their business, and succeed in finding efficiencies. With a decade of expertise in the industry and trusted by clients worldwide, our solutions are bespoke, professional, and tailored for each business and guide you through new company incorporation hassle-free.