Saudi Arabia Higher Education Market

Market Overview:

Saudi Arabia higher education market size reached USD 263.2 Million in 2024. Looking forward, the market is expected to reach USD 1,384.4 Million by 2033, exhibiting a growth rate (CAGR) of 20.26% during ​2025-2033​. The growth of online learning platforms and the adoption of technology in education, which can increase access to higher education, is driving the market.

Higher education refers to advanced learning beyond the secondary level, typically provided by universities, colleges, and institutions of higher learning. It encompasses undergraduate and postgraduate studies, offering specialized knowledge and skills in various fields. Higher education plays a pivotal role in individual intellectual and personal development, preparing students for professional careers and fostering critical thinking. Universities and colleges offer a diverse range of academic disciplines, including humanities, sciences, social sciences, and professional studies. The pursuit of higher education often involves a more focused and in-depth exploration of a chosen field, promoting specialization and expertise. Additionally, higher education institutions contribute to research, innovation, and the advancement of knowledge, serving as hubs for intellectual exploration. Access to higher education has evolved, reflecting societal changes and the recognition of education's transformative power. As societies progress, the demand for higher education has grown, emphasizing its significance in shaping well-rounded individuals and driving progress in various fields.

Saudi Arabia Higher Education Market Trends:

Increased Government Spending on Education

The government of Saudi Arabia is heavily investing in higher education as part of its overall Vision 2030 framework. The national endeavor is focusing on building a knowledge-based economy, and higher education is key to the realization of this aim. Government is continuously spending a significant amount of its budget on education with specific emphasis on increasing the public universities, research capabilities, and infrastructure. By investing in scholarships, research grants, and academic exchange programs, the state is promoting local enrollment and global partnerships. These investments are further improving faculty credentials and raising the global ranking of Saudi institutions. In addition, targeted funding is being used in key fields like science, technology, engineering and mathematics (STEM), health, and digital technologies, aligning university outputs with national labor market needs. Saudi Arabia has advanced further in its educational reform efforts with the successful completion of the International Education Exhibition (EDGEx), which took place from April 13 to 16, 2025. Hosted by the Ministry of Education, the event brought together educational leaders, technology creators, and policymakers globally under the theme “Beyond Readiness.”

Increasing Youth Population and High Demand for Higher Education

Approximately 71 percent of the population in Saudi Arabia was below the age of 35, as stated in the 2024 Saudi Family Statistics Report. At present, Saudi Arabia is undergoing a demographic transition that involves a massive and increasing young population, which is driving the demand for higher education. With a median age of less than 30, the nation is seeing an explosion of high school graduates clamoring for entry into universities and colleges. This population trend is placing stress on traditional institutions to increase capacity and differentiate academic programs. Universities are reacting by upping enrollment quotas, opening new campuses, and providing more options for learning that are flexible. There is also a cultural shift in which higher education is being perceived more and more as a key to socioeconomic mobility, especially among young women who are enrolling in greater numbers. The government is reacting by encouraging inclusive education policies and making investments in online education platforms to deal with increased demand. Consequently, the curricula of higher education institutions are being changed to suit the academic and career ambitions of this young, dynamic portion of society.

Increasing Private Sector Involvement

Private sector operators are becoming involved in the Saudi higher education market, enhancing diversification and competition within the system. Private colleges and universities are being urged to enter the market by the favorable regulatory conditions, tax benefits, and public-private partnerships. This additional involvement is allowing the sector to tap excess demand and implement new academic models. Private institutions are stressing market-responsive programs in business, health care, engineering, and information technology to address industry requirements and student interest. Furthermore, they are investing in quality faculty, modern facilities, and international accreditation to attract students domestically and from abroad. By introducing flexibility in tuition structures and leveraging technology for blended learning models, the private sector is making higher education more accessible and aligned with labor market trends. The growing role of private institutions is contributing to an ecosystem where academic excellence, operational efficiency, and student-centric services are being prioritized. In 2024, the Council of Ministers sanctioned the creation of 10 private colleges in Saudi Arabia.

Saudi Arabia Higher Education Market Growth Drivers:

Focus on Academic Quality and Accreditation Standards

Saudi Arabia is focusing more on enhancing academic quality and making the higher education institutions comply with global accreditation standards. The Education and Training Evaluation Commission (ETEC) is working actively in ensuring that universities fulfil high standards in the areas of faculty credentials, relevance of curriculum, research productivity, and student learning outcomes. This emphasis is creating the standardization of higher education practices and facilitating transparency and accountability in institutional functioning. Universities are enhancing internal quality assurance mechanisms, engaging with international university rankings, and entering into strategic alliances with internationally accredited universities. Programs for continuous improvement are implemented to align the academic programs with both local requirements and best international practices. These improvements in quality are also enhancing the employability of graduates, bringing international students to the country, and encouraging academic excellence. Through focusing on accreditation and quality assurance, Saudi Arabia is establishing a stronger and more credible higher education system.

Incorporation of Digital Technologies and E-Learning Platforms

Saudi Arabian higher education institutions are increasingly incorporating digital technologies and e-learning platforms into teaching and administration processes. This digital revolution is being driven by government policies, development of technological infrastructure, and a larger societal transformation towards online engagement. Tertiary institutions are implementing learning management systems, virtual classrooms, and AI-powered learning tools for offering flexible and customized education experiences. These digital technologies are increasing student participation, enhancing learning results, and expanding access to high-quality education for remote or underserved students. Faculty programs are being introduced to make sure teachers are well-versed in leveraging digital tools and presenting content in online settings. In addition, collaborations with global edtech companies are helping institutions remain at the vanguard of digital innovation, thereby increasing the Saudi Arabia higher education market value.

Alignment with Labor Market Requirements and Economic Diversification Objectives

Saudi Arabian higher education institutions are aligning their programs to address the changing requirements of the labor market as the nation continues to diversify its economy away from oil. Vision 2030 is leading the alignment in this direction, focusing on the growth of non-oil sectors such as healthcare, tourism, logistics, information technology, and renewable energy. Universities are cooperating with industry players in the development of curricula that equip students with pragmatic skills and industry certification. Internship schemes, cooperative education, and industry-led research projects are being embedded in scholarly arrangements to prepare graduates for work. Moreover, career guidance services and labor market data analysis are being used to counsel students on academic selection. Through concentration on the development of skills and industry-specific training, institutions of higher learning are aiding national economic change.

Saudi Arabia Higher Education Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on component, deployment mode, course type, learning type, and end user.

Component Insights:

• Solutions
  • Student Information Management System
  • Content Collaboration
  • Data Security and Compliance
  • Campus Management
  • Others
• Services
  • Managed Services
  • Professional Services

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions (student information management system, content collaboration, data security and compliance, campus management, and others) and services (managed services and professional services).

Deployment Mode Insights:

• On-premises
• Cloud-based

A detailed breakup and analysis of the market based on the deployment mode have also been provided in the report. This includes on-premises and cloud-based.

Course Type Insights:

• Arts
• Economics
• Engineering
• Law
• Science
• Others

The report has provided a detailed breakup and analysis of the market based on the course type. This includes arts, economics, engineering, law, science, and others.

Learning Type Insights:

• Online
• Offline

A detailed breakup and analysis of the market based on the learning type have also been provided in the report. This includes online and offline.

End User Insights:

• State Universities
• Community Colleges
• Private Colleges

The report has provided a detailed breakup and analysis of the market based on the end user. This includes state universities, community colleges, and private colleges.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Home Infusion Therapy News:

• May 2025: The Indonesian Ministry of Higher Education, Science, and Technology collaborated with Saudi Arabia in an effort to promote the development of higher education in Indonesia. Among the projects they conducted was the construction of Buildings 1A and 1B of Jakarta State University (UNJ), which was facilitated by collaboration between Indonesia and Saudi Arabia through the Saudi Fund for Development (SFD).
• May 2025: First School Management (FSM), the advisory initiative of schools by GEMS Education, has entered its first intellectual property deal with Spark Education Platform (SEP) to introduce the GEMS brand in some of Saudi Arabia's and Bahrain's schools.
• April 2025: London Business School (LBS) has entered into a Memorandum of Understanding (MoU) with MiSK Foundation to join forces in the shared goal of developing a next-generation of youth leaders through greater access to high-quality education.
• April 2025: The University of New Haven signed a memorandum of understanding yesterday with the Kingdom of Saudi Arabia's Ministry of Education, its Ministry of Investment, and the Royal Commission for Riyadh City to facilitate the University developing a branch campus in Riyadh. The University of New Haven is the first foreign institution to request a higher education license from the Kingdom to establish an international branch campus in Saudi Arabia.
• March 2024: The Northern Consortium of UK universities (NCUK) broke new records in expanding into the Kingdom of Saudi Arabia, marking the first university pathway provider of its sort in the country. Under this agreement, Saudi students can now have the opportunity to study NCUK's International Foundation Year in Riyadh.
• November 2024: UNEC Contracting was chosen to carry out a significant expansion of Alfaisal University’s facilities, aiding academic and research development. The initiative, expected to be finished in 24 months, will greatly improve the university’s amenities.

Saudi Arabia Higher Education Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia higher education market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia higher education market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia higher education industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.