Saudi Arabia is reshaping its public education sector by creating greater scope for participation by the private and non-profit sectors. Accordingly, it is launching a new system that establishes a clear regulatory framework for sector governance and service delivery. The move is expected to expand investment opportunities and improve the efficiency of the education system.
Royal Decree Approving General Education System Recently Issued
The new system comes as Saudi education sector gradually expands its investor and listed-company base in line with Saudi Vision 2030. A royal decree approving the General Education System was recently issued. It defines the roles of the Saudi Arabia Ministry of Education, the General Education Affairs Council and other relevant entities. As a result, it will support the alignment of education policies, plans and programmes while improving decision-making efficiency. In addition, it also seeks to support investment in education by regulating the participation of the private and non-profit sectors. Accordingly, it will provide clear rules, improve service quality, expand educational options and support sustainable development of public/private educational institutions.
Saudi Education Sector Spending Among Highest In Public Budget
The Kingdom`s public budgets have traditionally placed the Saudi education sector among the government’s largest expenditure items. Consequently, SAR 200 billion (USD 53.3 billion) was allocated to education in the latest budget, representing 18% of government spending. Education spending is between 5 – 7% of gross domestic product, putting the Kingdom above the global average and among the highest in the G20.
Foreign direct investment stocks in Saudi education sector reached SAR 3.43 billion (USD 914.7 million) at the end of 2024. Accordingly, the compound annual growth rate of foreign direct investment was close to 130%. This reflects a significant increase in the sector’s attractiveness to foreign investors over the past decade. The Saudi Stock Exchange currently has eight listed companies operating in education and training. These companies generated revenues of about SAR 3.4 billion (USD 907 million) in 2025 – annual growth of around 12%.
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