30 percent of private schools out of the market

30 percent of private schools operating in the local market have gone out of business because they did not comply with the fees and Saudization process. Some of them were also paying very low salaries to Saudi teachers that reaches only SR5,000.

At the same time, the sector is witnessing a decline in investment in the past two years, which investors, in this sector, are attributing to the increase in operational cost and salaries.

The amount of investment in private education sector is estimated at SR11.5 billion. The percentage of private schools is 11 percent compared to public schools. The number of Saudis working in the private education sector is 59 percent.

Omar Al-Amer, head of the national committee for private education and training at the Council of Saudi Chambers, said that number of private schools that had not committed to the conditions set by the Ministry of Labor and Social Development and were out of the market because they did not pay fees and did not comply with the ceiling of salaries for Saudis.

Al-Amer added the map of redistributing jobs in the private education sector need to be reviewed. He pointed out that there is a huge gap between the number of graduates and the job available in cities and provinces.

He said, “These schools have no other option except comply with Saudization and pay the specified amount of salaries or exit the market. Some cities have Saudi graduates with specialties that are not available in the job market in that city itself. The graduate then is forced to travel to other cities bearing additional cost of living cost, which consume half of the teacher’s salary.”

He added that the Ministry of Education has intensified their branch committees at the departments in provinces to receive all complaints related to school fees. He said, “The ministry warned the private schools from demanding additional cost, such as fees to reserve seats or registration fees, which is charged by some private schools.”

Fahd Al-Ghamdi, investor in private education, said, “The increase in school fees lately has come as a result of the challenges we face in operational costs, salaries, bills and general service fees. Investment in the private education sector is not attractive for new small investors.”

Ali Al-Malki, parent, said, “Private schools are asking for additional cost taking advantage of our needs. We face examination acceptance fee, registration and seat reservation fee, books fees and other fees. All these fees are illegal and aiming at making profit at our expense.”