Saudi Arabia Opens Education Sector to Private and Non-Profit Investment

Ministry of Education building in Riyadh (SPA)
Ministry of Education building in Riyadh (SPA)
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Saudi Arabia Opens Education Sector to Private and Non-Profit Investment

Ministry of Education building in Riyadh (SPA)
Ministry of Education building in Riyadh (SPA)

Saudi Arabia is moving to reshape the public education market by creating greater scope for participation by the private and non-profit sectors under a new system that establishes a clearer regulatory framework for sector governance and service delivery. The move is expected to expand investment opportunities and improve the efficiency of the education system.

The system comes as Saudi Arabia’s education sector gradually expands its investor and listed-company base, alongside growing interest in commercial opportunities in education, training and support services, in line with the objectives of Vision 2030.

A royal decree approving the General Education System was issued last month. The system aims to strengthen the governance framework for public education, provide the necessary enablers to achieve its objectives, improve the quality of the educational environment and its outcomes, and regulate the role of the private and non-profit sectors in line with the goals of Vision 2030.

The system defines the roles of the Ministry of Education, the General Education Affairs Council and relevant entities, supporting the alignment of education policies, plans and programmes, improving decision-making efficiency, and enabling the ministry to develop regulatory, monitoring and supervisory tools for the public education sector.

It also seeks to support investment in education by regulating the participation of the private and non-profit sectors in providing educational services and enhancing the attractiveness of investment and partnerships under clear rules. The aim is to improve service quality, expand educational options and support the sustainable development of public and private educational institutions.

Experts say the significance of the system extends beyond increasing investment volumes, arguing that it could change the nature of the market itself by clarifying regulatory roles, expanding public-private partnership models and strengthening governance. These factors could help reduce risks for both domestic and foreign investors.

In this context, Dr Abdullah Al-Salloum, professor of finance and investment at Imam Muhammad ibn Saud Islamic University, said Saudi Arabia’s public budgets have traditionally placed education among the government’s largest expenditure items. He noted that around 200 billion riyals ($53.3 billion) was allocated to education in the latest budget, representing roughly 18 percent of total government spending.

He added that education spending is estimated at between 5 and 7 percent of gross domestic product, a level that puts Saudi Arabia above the global average for education spending and among the highest in the G20.

Foreign Investment Expands

On investment, Al-Salloum said foreign direct investment stocks in the education sector reached 3.43 billion riyals ($914.7 million) at the end of 2024, more than 13 times their level a decade earlier.

He said the figure remains limited compared with some other economic sectors, but the compound annual growth rate of foreign direct investment, according to the data he cited, was close to 130 percent. This reflects a significant increase in the sector’s attractiveness to foreign investors over the past decade.

From this perspective, Al-Salloum expects the new system to help strengthen this trend by expanding investment options and providing a clearer and more flexible regulatory framework for private-sector and foreign-investor participation.

He noted that the scale of the impact will remain dependent on the effectiveness of implementing regulations and the extent to which investors respond to the opportunities.

8 Listed Companies

Al-Salloum also pointed to the recent listing of education companies on the Saudi market, saying the trend has become increasingly notable. He said the Saudi stock market currently has eight listed companies operating in education and training.

According to Al-Salloum, these companies generated revenues of about 3.4 billion riyals ($906.7 million) in 2025, representing annual growth of around 12 percent.

He said the figures show that the sector is not only one of the largest in terms of government spending, but also has a gradually expanding investment and commercial base. This could support continued growth in the coming years as the new regulatory framework is completed.

Sharing Roles and Improving Market Efficiency

Al-Salloum does not expect the system’s impact to be limited to increasing investment volumes. Rather, he sees its more important effect as changing the nature of the market. Clear regulations, expanded public-private partnership models and stronger governance could all contribute to reducing investment risks.

He stressed that reducing investment risk is “the most important factor for both domestic and foreign investors when deciding to enter any market.”

The system also affirms the protection of human rights in education and the rights of students and teachers, while providing a safe and stimulating educational environment to support the quality of the education process and improve the experience of male and female students. It also reinforces the role of families in supporting students’ educational journeys.

It supports the quality of care and education in early childhood, reflecting the importance of the early years in developing children’s personalities and skills. It also contributes to providing educational and support services better suited to the needs of students with disabilities within educational institutions, while supporting the care and development of gifted students.

During the next phase, the Ministry of Education, in coordination with relevant entities, will complete the implementing and regulatory provisions to ensure that the system is applied through a clear methodology and supports the objectives of developing public education and improving its outcomes.

The General Education System includes a number of provisions governing education stages, the General Education Affairs Council, educational institutions, education pathways, e-learning, continuing education, the educational environment, and the rights of students and teachers.



Qatar Launches Wealth Fund Division for Domestic Investments

Qatari flag flutters in Doha - AAWSAT/File
Qatari flag flutters in Doha - AAWSAT/File
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Qatar Launches Wealth Fund Division for Domestic Investments

Qatari flag flutters in Doha - AAWSAT/File
Qatari flag flutters in Doha - AAWSAT/File

Qatar's prime minister announced on Sunday the creation of a new division of the Qatar Investment Authority dedicated to developing domestic investments.

"We aim to expand the role of the private sector in driving Qatar's economic growth," Sheikh Mohammed bin Abdulrahman Al Thani said as he announced the new division, Doha Investment, at a special edition of the Qatar Economic Forum in New York.

The annual gathering was cancelled in May, following weeks of Iranian missile and drone attacks on Gulf states, including Qatar, according to Reuters.

"It will support our strongest companies, help emerging businesses grow, deepen capital markets and attract international capital and expertise to contribute to this effort," he added.

The new division will operate as the dedicated manager of QIA's local portfolio, initially overseeing 45 state-owned enterprises that represent roughly one-third of the wealth fund's total assets, according to Sheikh Faisal bin Thani Al Thani, Qatar's minister of commerce and industry. He will serve as managing director and vice-chairman of Doha Investment.

Sheikh Faisal described the division not as a new creation but a consolidation, adding that the step has been under consideration for more than a decade.


PIF Launches Tawrid to Provide Supply-Chain Financing Products in Saudi Arabia

PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)
PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)
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PIF Launches Tawrid to Provide Supply-Chain Financing Products in Saudi Arabia

PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)
PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)

The Public Investment Fund (PIF) on Sunday announced the launch of Tawrid Company for Financing Solutions, an innovative digital platform providing supply-chain financing products to companies in the Saudi Arabian market. Tawrid has obtained the Saudi Central Bank (SAMA) permit to operate under the regulatory Sandbox environment.

The financial services industry is a strategic enabler of the six ecosystems that PIF announced recently as part of its 2026-2030 strategy.

Supply-chain financing products help companies to fund their broader activities. Tawrid’s digital offering will further strengthen the Saudi private sector, particularly small and medium-sized enterprises, SPA reported.

Tawrid will play a significant role in connecting buyers, suppliers, and funders through its digital platform. It will offer products such as early settlement options against approved invoices, enabling businesses to expand their operations, enhance their working capital efficiency, and improve their liquidity management.

The launch of Tawrid is in line with PIF’s strategy to increase the Saudi private sector’s contribution to PIF’s projects and portfolio companies and to grow the private sector’s share of the local economy. Its platform will enable local banks registered on its network to engage with registered suppliers, strengthening supply chains and further supporting the diversification of financial services and the digitalization of trade in Saudi Arabia.

PIF’s investment in supply-chain financing is a natural evolution that builds on its efforts to advance the growth, resilience, and robustness of supply chains in the Saudi market. PIF has expanded opportunities for local suppliers and stimulated them to develop their capabilities in line with PIF’s strategic objectives to engage the private sector and enable it to contribute to a more diversified economy with deep, local, tech-enabled supply chains.

Head of Financial Institutions in MENA Investments at PIF Sultan Alsheikh said: “Tawrid will make Saudi supply chains stronger and more resilient by further enabling companies to access financing and improve their liquidity management. Its supply-chain financing products will enable businesses to operate with greater agility and efficiency, creating opportunities for the Saudi private sector in particular.”

Tawrid has started operations and has already signed binding agreements with local banks and companies, including Gulf International Bank (GIB), Saudi National Bank (SNB), Banque Saudi Fransi (BSF), ROSHN Group and Nesma & Partners.
PIF is one of the world’s most impactful investors, with a long-term investment strategy to further drive the economic transformation of Saudi Arabia and deliver sustainable financial returns.


IFAD President to Asharq Al-Awsat: Sanctions Are the Biggest Challenge for Remittance Channels

Alvaro Lario, President of the International Fund for Agricultural Development (IFAD) (Asharq Al-Awsat)
Alvaro Lario, President of the International Fund for Agricultural Development (IFAD) (Asharq Al-Awsat)
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IFAD President to Asharq Al-Awsat: Sanctions Are the Biggest Challenge for Remittance Channels

Alvaro Lario, President of the International Fund for Agricultural Development (IFAD) (Asharq Al-Awsat)
Alvaro Lario, President of the International Fund for Agricultural Development (IFAD) (Asharq Al-Awsat)

Money sent by migrants to their families is no longer simply a means of covering living expenses. In many low- and middle-income countries, these flows have become a financial safety net for households during crises, a source of savings and investment, and a channel whose effects extend to rural economies and local markets.

Remittances to low- and middle-income countries reached $728.6 billion in 2025, an increase of 94 percent since 2016, making them larger than foreign direct investment in these countries and more than four times the amount of global official development assistance in the same year, according to the latest report by the International Fund for Agricultural Development (IFAD).

But the scale of these flows does not necessarily mean that households can access them more easily. As sanctions and financial compliance requirements have tightened in some markets, remittance channels face a dual challenge: maintaining the integrity of the financial system on the one hand, while ensuring that legitimate funds continue to reach households at the lowest possible cost on the other.

Alvaro Lario, President of the International Fund for Agricultural Development, told Asharq Al-Awsat that, from the perspective of remittances and financial inclusion, the main challenge posed by US economic sanctions is maintaining safe, low-cost and transparent channels for legitimate family remittances, while complying with sanctions and requirements to combat money laundering and terrorist financing.

He added that access to regulated financial channels becomes increasingly important in fragile and conflict-affected countries, where many families depend on money sent by relatives living abroad.

Sanctions and De-risking

Lario explained that the impact of sanctions on remittance flows varies depending on the country, the nature of the sanctions and the financial channels being used. The concern, he noted, is not limited to sanctions themselves, but also extends to how financial institutions respond to regulatory, compliance and reputational risks.

He said that even in cases where personal remittances are permitted, financial institutions may impose stricter measures when processing transactions connected to certain countries. Restrictions on correspondent banking relationships may also make it difficult for money transfer companies to maintain banking services.

This broader phenomenon is known as de-risking. It can reduce the number of formal channels available and increase remittance costs and waiting times, making it more difficult for households to access their money.

Lario warned of another possible consequence: making formal channels excessively difficult, costly or unavailable could push some transactions into informal channels, reducing rather than strengthening transparency and consumer protection.

Remittances have become a vital source of household resilience in many countries affected by conflict and economic crises (IFAD).

A Safety Net During Conflict

The importance of these channels is particularly evident in the Middle East, where some countries are experiencing protracted conflicts and economic crises.

Lario said that in many countries affected by conflict and economic crises, remittances have become a vital source of household resilience. Family members living abroad are often among the first to provide support when employment opportunities, public services, social protection networks and local economies are disrupted.

The importance of remittances lies not only in the regularity of their flow, but also in their ability to respond quickly to changing circumstances. Migrants may increase the frequency or adjust the amount of their transfers according to their families' needs, making this money, according to Lario, a first line of defense against shocks.

The funds are primarily used to cover basic needs such as food, housing, healthcare and education. But they can also give families an opportunity to build savings, obtain insurance and credit, and invest.

In Syria, a World Bank analysis found that receiving international remittances was associated with a 12-percentage-point reduction in the extreme poverty rate and an 8-percentage-point reduction in the overall poverty rate, according to Lario. In Lebanon, remittances have likewise become an increasingly important economic safety valve for households amid the prolonged crisis.

But the ability to send money is not enough. Families need financial infrastructure capable of receiving and using those funds. This becomes more complicated during conflicts, when financial infrastructure is damaged, liquidity and cash become scarce, displacement increases, people's ability to move around declines, payment systems are disrupted, or financial service providers withdraw.

1.1 Billion People Connected to Remittances

IFAD figures reveal the scale of the social economy behind these flows. The report estimates that 220 million migrants and members of the diaspora support around 1.1 billion relatives, meaning that roughly one in every six people worldwide is connected to remittances.

Since 2016, flows have increased by 94 percent, outpacing population growth and migration from low- and middle-income countries.

This money does not go only to cities. Roughly one out of every three dollars migrants send home, or about $233 billion, reaches rural areas, which often suffer from limited formal employment opportunities, financial services and infrastructure.

IFAD estimates that households receiving remittances invest around $22 billion each year in rural agrifood systems, supporting agricultural production, rural enterprises and employment opportunities.

Lario said that the impact of this money extends beyond recipient households to local businesses, jobs and food systems. For millions of rural households, he added, remittances can represent the starting point for building savings, obtaining insurance and accessing suitable credit.

Remittances Enter the Digital Age

The shape of the remittance market is changing alongside the growth in its value. IFAD estimates that more than half of remittances now originate through a digital channel, a shift that has helped reduce sending costs and made the process faster and easier.

But the digital transition is not yet complete. Only 35 percent of the services measured in 2025 were fully digital on both the sending and receiving sides, while cash remains widely used across many remittance corridors.

The report argues that the next step is not simply digitization, but also the ability of households to use the financial system more broadly. It therefore calls on governments, regulators, financial institutions and development partners to reduce remittance costs, increase transparency, improve services in rural areas, strengthen financial and digital capabilities, and expand access to savings, insurance, credit and investment.

Asia Leads as Africa Accelerates

Asia and the Pacific remain the global center of the remittance economy, receiving $384.9 billion, or 53 percent of the total flows covered by the report over the past decade.

Latin America and the Caribbean recorded the fastest growth over the decade, with remittances rising 132 percent to $168.6 billion, while flows to Africa increased 86 percent to $124.2 billion.

These figures reflect significant differences in how heavily economies depend on money from their diasporas. In 23 countries, remittances account for more than 10 percent of GDP, while in nine countries their value exceeds total exports of goods and services.

For IFAD, maximizing the impact of these flows does not mean turning them into a substitute for public investment, social protection or climate finance. Rather, it means building a financial environment that allows households to use the money they receive more safely and efficiently, and to transform part of it from a tool for meeting urgent needs into a means of saving, investing and building resilience.