Partners in Growth SAUDI ARABIAN GENERAL EDUCATION: THE PRIVATE SECTOR CASE

Partners in Growth

SAUDI ARABIAN GENERAL

EDUCATION:

THE PRIVATE SECTOR CASE

Market Overview

Partners in Growth

Outline “Saudi Education Sector”

Competitive Considerations

Main Players

Market Drivers

22

Market Overview

Partners in Growth33

4

Partners in Growth

Saudi Arabia Has The Largest MarketFor Educational Services In The GCC Region

“Saudi Education Sector”

4.51

0.54 0.42 0.58

0

1

2

3

4

5

KSA (06) UAE (05) Kuwait (05) Oman (05)

Education is considered as the basis of future socio-economic developments and has the continuous support of GCC governments either through developing public schools or encouraging private initiatives

This has led during the past years to an increase in the “Education population”

Based on the latest available Official figures, total number of students in the GCC general education (K-12) are estimated at more than 6 million

Saudi Arabia is estimated to account for circa 75% of total students, compared to UAE and Oman 9% and Kuwait 7%

Saudi Arabia has the largest number of K-12 schools with some 24,881 establishments

Bottom line: Saudi Arabia is an attractive market as it represents the largest education base in the GCC regionmillion

NUMBER OF SCHOOLS* IN THE GCC GENERAL EDUCATION

NUMBER OF STUDENTS* IN THE GCC GENERAL EDUCATION

24.9

0.8 0.9 1.2

0

5

10

15

20

25

30

KSA (06) UAE (05) Kuwait (05) Oman (05)

*Exclude kindergarten

000s

*Exclude kindergartenSources: Local Ministries Of Education, Local Ministries Of Planning, GC Research Sources: Local Ministries Of Education, Local Ministries Of Planning, GC Research

44

Partners in Growth

Outline Of The Education System In Saudi Arabia


Kindergarten

Primary School

General Elementary School Certificate

Intermediate School

Intermediate School Certificate

Age Grade

6-11 1-6

Secondary Education

- General Track

General Secondary

Education Certificate

Secondary Education –

Religious

Religious Institute of Secondary

Education Certificate

Secondary Education

- Technical Track

Diploma

Al Madaaris

Vocational Technical

Training

Secondary vocational

certificate

Postsecondary

teacher

education

(Primary, 4 years)

Baccaloreus

4 years of study

Baccaloreus inEngineering and

Veterinary medicine5 years of study

Baccaloreus inengineering and

veterinary medicine4 years of study

General diploma

in education

1 year

Master degree

2 years

Master degree

3 years

Doctor of Medicine

8 years

Doctorate

3 yearsPropagation

Post-Secondary Education for Men

University level

DoctorateField of

Education only

Masters2 years

Baccaloreus4 years

Post-Secondary

Education

for Women

University level

Higher instituteDiploma

1 year

Post-Secondary

non-University technical

education

Technical college

certificate3 years

Higher institutefor finl and comlsciences, 1 year

Certificate of completion

2-3 years

12-14 7-9

15-17 10-12

18+ 13+

General education

55

Partners in Growth

General Education Has The Largest ShareIn The Sector


BREAKDOWN OF STUDENTS BY EDUCATION LEVEL IN SAUDI ARABIA

Sources: Ministry Of Education, Ministry Of Higher Education, General Organization For Technical Education, GC Research

Kindergarten

Gen

era

l E

du

cati

on

Elementary

Intermediate

Secondary

Technical education

Special education

Adult education

Other education

Higher education

Total

Total Share

97,137 1.8%

2,417,811 45.3%

1,071,747 20.1%

954,141 17.9%

26,814 0.5%

18,958 0.4%

87,978 1.6%

57,481 1.1%

603,767 11.3%

5,335,834 100.0%

Figures for the year 2005

Bottom line: General education in KSA represents a major investment opportunity with 83% of total students

66

7

Partners in Growth

General Education Has Progressed At MixedRates During Past Years


2,308 2,316

2,342

2,386

2,4182,433

2,240

2,2602,280

2,3002,320

2,3402,360

2,3802,400

2,4202,440

2,460

2001 2002 2003 2004 2005 2006

The number of students enrolled in the general education has increased during the last 5 years at an average rate of 1.7%

The elementary level progressed at 1.1% and the secondary level increased at a solid rate of 5.6%, against only 0.1% for the intermediate level

These rates reflect a mixed evolution of enrolled students in the general education

The latter is mainly due to the effort of the government to reach the 100% enrollment rate at the elementary level in particular, which translates in lower growth at the intermediate level; this is also accompanied with relatively high drop outs and repetition rates

Bottom line: Despite the mixed performance, general education has historically registered prolonged growth000s

EVOLUTION OF NUMBER OF STUDENTS IN THE ELEMENTARY, INTERMEDIATE AND SECONDARY EDUCATION

1,084

1,109

1,094

1,078

1,072

1,090

1,050

1,060

1,070

1,080

1,090

1,100

1,110

1,120

2001 2002 2003 2004 2005 2006

000s

756 794842 856

954 991

0

200

400

600

800

1,000

1,200

2001 2002 2003 2004 2005 2006

000sElementary Education Intermediate Education Secondary Education

CAGR1.1%

CAGR0.1%

CAGR5.6%

Sources: Ministry Of Planning, Ministry Of Education, GC Research

77

Partners in Growth

Strong Government Budgets Have Accompanied The Development Of General Education


19.3%

11.4% 11.5%9.5%

15.5%

0%

5%

10%

15%

20%

Saudi France UK Germny Korea

The total government appropriations for education reached for the year 2005 around US$ 17.8 billion, with US$ 13.9 billion or 78% for the general education This education budget represents a share of 19% of the annual governmental expenditures estimated at US$ 92 billion and around 5.7% of the gross domestic product Public budget for education progressed during the past 5 years at an annual rate of 6.9% These size indicators, high by international standards, reflect the priority given by KSA to the education sector However, this is accompanied by a relatively high level of drop outs and repetition at all education grades, which reflects a relatively serious internal inefficiency Bottom line: The constant government attention to education is a clear indicator of its support for future growth

PUBLIC SPENDING ON EDUCATION

Sources: UNDP, Ministry Of Planning, GC Research

Public Expenditures On Education / Total Government Expenditure

5.7% 5.6%5.3%

4.6%4.2%

0%

1%

2%

3%

4%

5%

6%

7%

Saudi France UK Germny Korea

Public Expenditures On Education / Gross Domestic Product

Saudi Public Expenditures On Education By Agency

77.9%

13.5%0.7%8.0%

0%

20%

40%

60%

80%

100%Educationprojects

Ministry ofhigher education

Universities

Ministry ofEducation

88

Partners in Growth

The Public Sector Remains The Major Player In The Education Sector


Out of the 24,881 schools in the general education for the year 2006, the public sector represented 91.6% against 8.4% for the private sector

Similarly, the public sector accounted for the majority of the 4.5 million students in 2006 with a share of 92.1%, against 7.9% for the private sector

However, the government is willing to increase the private sector participation at all level of the general education as indicated in its actual strategic policies and, in particular, as elaborated in its 10-year plan 2004-2014

In fact, the historical evolution of education reflects a rising role of the private sector in delivering educational services

Bottom line: The public sector hegemony should progressively, but in limited amplitude, regress in the favor of private sector

BREAKDOWN OF PUBLIC-PRIVATE SCHOOLS IN GENERAL EDUCATION

92.6% 92.5% 92.4% 92.2% 91.9% 91.6%

7.4% 7.5% 7.6% 7.8% 8.1% 8.4%

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006

Private

Public

BREAKDOWN OF PUBLIC-PRIVATE STUDENTS IN GENERAL EDUCATION

93.7% 93.4% 93.4% 93.2% 92.8% 92.1%

6.3% 6.6% 6.6% 6.8% 7.2% 7.9%

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006

Private

Public

Sources: Ministry Of Planning, Ministry Of Education, GC Research 99

10

10Partners in Growth

10

But The Private Sector Is Expanding At Pronounced Rates


The total number of students in the private sector reached 356,733 at end-2006, rising at a 5-year CAGR of 6.6%

Similarly, the number of private schools reached 2,099 at end-2006 with a 5-year CAGR of 5.1%

At these growth levels, the private sector has outpaced the market averages, which were respectively 1.7% and 2.3%

The highest growth rates in the number of private schools were registered in the secondary grade with a CAGR of 9.0%, followed by the intermediate grade 4.5% and the elementary grade 3.8%

Similarly, the number of students in the secondary grade rose by 15.1%, followed by the elementary 4.0% and the intermediate 3.1%

Bottom line: The private sector witnessed relatively high solid growth rates at all educational grades

Sources: Ministry Of Planning, GC Research

EVOLUTION OF STUDENTS IN THE PRIVATE SECTOR

EVOLUTION OF SCHOOLSIN THE PRIVATE SECTOR

47.0% 45.6% 45.3% 45.0% 44.8%

32.3% 32.2% 31.5% 32.4% 31.5% 31.3%

19.9% 20.8% 22.8% 22.4% 23.5% 23.9%

47.8%

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006

Elementary Intermediate Secondary

1,634 2,099CAGR 5.1%

56.2% 56.1% 56.6% 53.9% 51.8%

21.0% 20.2% 19.2% 19.1% 18.0% 17.9%

20.6% 23.6% 24.6% 24.4% 28.2% 30.3%

58.4%

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006

Elementary Intermediate Secondary

259,676 356,733CAGR 6.6%

Partners in Growth

Pronounced Growth In The Private Sector IsPresent At All Educational Levels



EVOLUTION OF SCHOOLS IN THE PRIVATE SECTOR

810 810 836 893 940

781

0

200

400

600

800

1,000

2001 2002 2003 2004 2005 2006

CAGR 5.1%

Elementary

554 560 598 624 658

528

0100200300400500600700

2001 2002 2003 2004 2005 2006

CAGR 4.5%

Intermediate

358405 413

467 501

325

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006

CAGR 9.0%

Secondary

EVOLUTION OF STUDENTS IN THE PRIVATE SECTOR

156 158 165 173185

152

0

50

100

150

200

2001 2002 2003 2004 2005 2006

CAGR 4.0%

Elementary

56 54 56 5864

55

010203040506070

2001 2002 2003 2004 2005 2006

CAGR 3.1%

Intermediate

66 69 71

90108

53

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006

CAGR 15.1%

Secondary

000s 000s 000s

11

Partners in Growth

Pronounced Growth In The Private Sector IsPresent At The Male And Female Levels


Sources: Ministry Of Planning, Ministry Of Education, GC Research

EVOLUTION OF SCHOOLS IN THE PRIVATE SECTOR

417349

0

100

200

300

400

500

2001 2006

Elementary Male Female

523

432

0

100

200

300

400

500

600

2001 2006

CAGR 3.6%

CAGR 3.9% 360

317

050

100150200250300350400

2001 2006

Intermediate Male Female

298

211

050

100150200250300350

2001 2006

CAGR 2.6%

CAGR 7.1% 272

205

0

50

100

150

200

250

300

2001 2006

Secondary Male Female

229

120

0

50

100

150

200

250

2001 2006

CAGR 5.8%

CAGR 13.8%

112

91

0

20

40

60

80

100

120

2001 2006

Elementary Male Female

72

61

01020304050607080

2001 2006

CAGR 4.3%

CAGR 3.6%

4138

0

10

20

30

40

50

2001 2006

Intermediate Male Female

23

17

0

5

10

15

20

25

2001 2006

CAGR 1.6%

CAGR 6.4% 68

37

01020304050607080

2001 2006

Secondary Male Female

40

16

0

10

20

30

40

50

2001 2006

CAGR 12.9%

CAGR 19.6%

EVOLUTION OF STUDENTS IN THE PRIVATE SECTOR (000s)

12

Partners in Growth

Projected Steady Growth In Demand For General Education


The cumulative number of new entrants to the general education during 2006-09 is estimated at 4.5 million students The elementary level will account for around 38.2% of the total, the intermediate 34.2% and the secondary 27.6% New entrants to the general education should progress at an annual rate of 2.2%, during the considered period with the secondary level averaging 2.6% and the elementary and intermediate levels 2.0% These future growth levels remain greater than historical rates which averaged 2.0% for the 1999-2005 period These projections are mainly based (1) on the full application of 100% enrollment rate at the elementary level and 95% at the intermediate, (2) on an enhancement of the success rates (repetition rates at 5% for elementary, 7% intermediate and 8% at secondary), (3) on a reduction of drop outs to 1%, (4) on the population growth rate Bottom line: Growth for the overall sector will remain greater than in the past, suggesting further opportunities for the private sector

EVOLUTION OF THE NUMBER OF NEW ENTRANTS TO THE GENERAL EDUCATION

407 411 421 430 440 447

343 334 360 375 388 392 397

246 284320 304 307 316 328

379

0

300

600

900

1,200

1999 2003 2005 2006f 2007f 2008f 2009f

Elementary Intermediate SecondarySources: Ministry Of Planning, GC Research

000s969 1,025 1,090 1,099 1,125 1,148 1,173CAGR

2.0%

CAGR2.2%

13

Partners in Growth

Market Size Estimates“Saudi Education

Sector” We will approximately assess the market size of private schools in Saudi Arabia by estimating the total collected fees The available industry data assume the average private school fees between SAR 4,500 to SAR 20,000 per student In order to narrow our estimate range, we will (1) assume that the highest fees are charged by the largest schools and (2) calculate accordingly the fees for the smaller schools by a relative approach These estimates do not take into account the fact that many schools in Saudi Arabia do not collect their fees properly Our calculations will take into consideration, for the primary, intermediate and secondary, the following:

- Industry reports estimate that around 70% of schools have an average fee of SAR 7,000-SAR 20,000 per student

- We consider that these 70% of schools correspond to the largest schools and the 30% for the smallest- For the first group we will process to the relative approach with fees of SAR 7,000-

20,000 and for the second group with fees of SAR 4,500-7,000 Based on the above, we estimate the annual private school fees at around US$ 1.4 billion and reaches US$ 1.6 billion when including estimates for transportation fees In order to check the accuracy of such calculations we will proceed with an other calculation:

- Based on the Ministry Of Education budget for the general education, public spending is at circa US$ 13.9 and, taking into consideration private schools have a share of circa 7.9% of total students, we will have by iteration a market size of US$ 1.2 billion It is worth noting that the latter calculation omits the cost difference considerations of operating public and private schools

MARKET SIZE ESTIMATESBased On Fee Calculations

Sources: GC Research

254

408

749

0

500

1,000

1,500Secondary

Intermediate

Elementary

US$ millionUS$ 1.4 billion

MARKET SIZE ESTIMATESBased On Public Spending


0.00.20.40.60.81.01.21.4 US$ billion

US$ 1.2 billion

14

Competitive Considerations


Partners in Growth

4 Main Areas To Assess SaudiPrivate Schools’ Competitiveness “Saudi Education

Sector”

Differentiation is a key competitive advantage in the education market that could explain the actual overall picture of the

public-private and private-private competition

In the following slides, we shall examine the main domains that reflects lacks of private schools, in particular when

compared to public schools

Private education in the Kingdom has evolved, in the past, to provide qualitative services, with many private schools having

developed and renewed their programs to meet student needs via adopting qualitative educational skills as: IT and

enhancing and optimizing the human and financial resources

These developments were mainly driven by the government support and by the intensified competition among private

schools which increased in number and size

However, Saudi private schools present in many cases several dilemmas which are decisive for their sustained competition

in the market

Bottom line: There are 4 main domains to assess the overall attractiveness of the Saudi private schools:

- quality of school infrastructure

- qualitative and quantitative selection of the teaching staff

- school management evaluation

- curriculum and student activities

16

Partners in Growth

Quality Of Saudi Private School Infrastructure: Need To Build New School Infrastructure (1)

“Saudi Education Sector” The quality of school buildings are an essential tool for differentiation as they represent the basic

environment for learning Based on several industry surveys, it is estimated that a large part of private schools in KSA, on average between 55%-65% are not built for education purposes, with some differences across the different regions of the Kingdom Such situation occurred as many private education institutions acquired residential buildings and relatively modified them to meet minimal practical educational requirements These buildings remain below the prerequisites of an ordinary school infrastructure and cause many inconveniences for students, teachers and administrative staff among which we mention: (1) the incapability of principals to control the school as a result of the numerous entries/exits and of the disparate classroom locations, (2) the inconvenient aeration, conditioning, lighting of classrooms Within this context, the Ministry Of Education regularly controls and classifies the schools’ infrastructure and entail the concerned institutions to meet requirements in a given period of time In fact, many school owners can not afford the minimum required enhancements either via maintaining and improving the building quality or via moving to a new building and, in consequence, are left operating without a license In order to facilitate the building of new infrastructure, the Ministry Of Education provides the private schools with different loans covering up to 50% of the total cost with a 2-year grace period from the start of operations Bottom line: The status of the Saudi private schools points to a relatively high proportion of non-school building requiring on a one hand continuous maintenance funding and on the other the building of new infrastructure

Sources: Industry estimates, GC Research

BREAKDOWN OF PRIVATE SCHOOLSBY BUILDING TYPE*

50%72%

45%

70%50%

27%55%

30%0%

20%

40%

60%

80%

100%

Riyadh Jeddah Eastern Total

School building Non-school building

*Above estimated figures are for secondary private schools

BREAKDOWN OF PRIVATE SCHOOLSBY LICENCE AVAILABILITY*

Sources: Industry estimates, GC Research*Above estimated figures are for secondary private schools

6% 8%

87% 94% 100% 92%

0%13%0%

20%

40%

60%

80%

100%

Riyadh Jeddah Eastern Total

No license Existing license

17

Partners in Growth

Quality Of Saudi Private School Infrastructure: Relatively Significant Student Concentration (2)


Availability of space for students are a complementary basic tool to ensure an adequate educative environment The evaluation of student concentration in private schools reflects some major characteristics combining a relatively low number of pupils per classroom and a relatively low availability of classroom and playground spaces per pupil In fact, for the year 2006, the average number of students per classroom in the private sector is estimated at 19 against an average of 23 in the public sector, with 17.9 for the elementary level, 18.4 for the intermediate and 21.7 for the secondary In parallel, the private establishments in KSA reflect lacks in the availability of spaces where estimates point to a majority of schools having less than 2 sqm of classroom spaces per pupil and less than 5 sqm of playgrounds and recreational areas per pupil These low levels of available spaces per student are mainly related to the Ministry Of Education regulations which, instead of linking between the available areas and the number of students, specify the minimum required overall classroom space and the minimum required overall outdoor space Within such a context, a private school should combine between the both absolute and relative availability of space Bottom line: Despite a low number of pupils per classroom, Saudi private schools are widely lacking indoor and outdoor space for students which will need further expansions with the increased competition

Sources: Ministry Of Education, GC Research

NUMBER OF STUDENTS PER CLASSROOM

20.218.4

25.321.7

28.9

17.9

05

1015

20253035

Private Public

ElementaryIntermediateSecondary


PRIVATE SCHOOLS BY CLASSROOM AREA

53%78%

26%

25%

17%2%

19%0%

70%

6%3%2%

0%

20%

40%

60%

80%

100%

120%

Riyadh Jeddah Eastern

< 2 sqm 2 to 4 sqm>4 sqm n.a.

*Above estimated figures are for secondary private schools Sources: Industry estimates, GC Research


PRIVATE SCHOOLS BY OUTDOOR AREA

50% 50%

23%

17% 28%

6%33% 22%

68%

4% 0% 6%

0%

20%

40%

60%

80%

100%

120%


< 5 sqm 5 to 10 sqm>10 sqm n.a.

18

Partners in Growth

Quality Of Saudi Private School Infrastructure: Selected Inefficiencies In The Usage Of Education Equipments And Tools (3)


The qualitative and quantitative usage of educational equipments and tools in private schools are essential as they are considered as a major practical mean for the overall education program

At the level of the KSA, libraries are widely present in private schools with estimates pointing to an average close to 100%

However, some inefficiencies in managing these libraries are present: a number of schools especially in Riyadh have a student age-book mismatch along with a low quality in the library infrastructure and full-time personnel

At the level of the laboratory availability, based on several Industry estimates and on our visits to schools, it is widely agreed that more than 90% of private schools have a laboratory

However, when differentiating between different types of laboratories, the availability of laboratories with adequate equipments vary and an efficient usage of these tools relatively lacks in many cases

In fact, when we consider separately the physics, chemistry and biology laboratories, the overall availability ratio reached on average less than two third of the schools along with some lacks at the level of full-time personnel

Bottom line: Education equipments and tools, which are considered a source of differentiation for any competing private school, present some efficiency and quantitative lacks in a number of private schools


LIBRARY QUALITY IN PRIVATE SCHOOLS


PHYSICS, CHEMISTRY AND BIOLOGY LABORATORIES

64% 70%

14%25%

28%27%11% 2%

59%

0%

20%

40%

60%

80%

100%

120%


Not availableAvailable but not fully equippedAvailable and fully equipped



CIVIL DEFENSEAPPROVAL

70% 60%

70%

30% 40%

30%0%

20%

40%

60%

80%

100%

120%


Approval Non approval

81% 72%

42%

19% 28%6% 0% 0%

49%

0%

20%

40%

60%

80%

100%

120%


Good Medium Not good

19

Partners in Growth

Quality-Quantity Issue Of The Teaching Staff: Existence Of A Relatively Low-Waged Non-Saudi Teacher Base (1)


The qualitative and quantitative availability of the teaching staff plays an essential role in a private school competitiveness

Based on the 2006 statistics we gathered from the Ministry Of Education, it appears that private schools have in relative terms slightly more teachers than the public sector

The student-to-teacher coverage ratio averaged 10.8 in the private sector compared to 11.2 in the public sector

Furthermore, a breakdown of teachers by nationality show that private schools have on average of 52% non-Saudis compared to only 2.8% in the public sector

In fact, as the private schools are profit-driven, they tend to: - hire more non-Saudis which have relatively lower wage requirements - hire less Saudis because of the higher wage they can have in the public sector

Bottom line: Regarding the quantitative issue, private schools tend to hire relatively more teachers, with emphasis on non-Saudis which have in general relatively lower wage requirements than the Saudis

SUDENT-TO-TEACHER COVERAGE RATIO

BREAKDOWN OF TEACHERS BY NATIONALITY IN PRIVATE SCHOOLS

11.4

9.8 10.3

12.1 12.010.8 11.2

10.4

4

6

8

10

12

14

Private Public

Elementary Intermediate Secondary Total

Sources: Ministry Of Planning, Ministry Of Education, GC Research Sources: Ministry Of Planning, Ministry Of Education, GC Research

54.1% 43.1% 47.7%

52.4% 45.9% 56.9% 52.3%

47.6%

0%

20%

40%

60%

80%

100%

Elementary Intermediate Secondary Total

Saudi Non-Saudi

20

Partners in Growth

Quality-Quantity Issue Of The Teaching Staff: Need For Better Teacher Evaluation And Selection (2)


Regarding the qualitative issue, private schools present a dilemma: (1) the non-Saudis are constantly looking for better prospects elsewhere (2) hiring in return Saudis has its own inconveniences as they have less competencies and tend ultimately to go to the public sector In consequence, this leads to higher teacher turnover and negatively impacts the accumulation of experience and homogeneity within the considered private school with all its spillover effects on output Also, it is worth noting that private schools have flexibility in choosing and hiring teachers and releasing the non performing ones According to estimates, private schools did not profit from this flexibility and have not hired the best teachers In fact, industry surveys do not reflect pronounced difference between teacher performance in private and public schools This is mainly due (1) to the lack of specialized staff, within the school, capable of evaluating the teachers and (2) to the lack of care on the behalf of the school owner Bottom line: The private schools in Saudi Arabia do not relatively hire the better performing teachers, which can negatively affect the overall school competitiveness

TEACHER PERFORMANCE IN PRIVATE AND PUBLIC SCHOOLS Based On Test Results For Teachers (Grades 0 to 100)

70

75

80

85

90

95

Islamicstudies

English Biology Physics Maths Computer Arabic Social Psychology Total

Public Private

Sources: Industry estimates, GC Research 21

Partners in Growth

School Management Evaluation: Selected Conflicts Are Current BetweenPrincipal And School Owners (1)

The principal’s status and the school owner’s status are decisive in the private sector The school principal plays an essential role in the education process and it is crucial to retain him the longest period of time It is widely believed that such permanent status (1) guarantees the stability of the ongoing school educational policy, (2) better assess the pros and cons of the school, (3) better understand the needs of the students, (4) better evaluate the teachers In parallel, it is highly important to assess the relationship between the principal and the school owner, as the former represents the link between the latter and the school management team It is commonly recognized that school owners oppose selected principal recommendations, in particular as these decisions are frequently against the owners’ personal interests For example, despite that school owners do not interfere in the principal’s function, the appointment of teachers by the principal is opposed in 45% of cases because:

- the principal chooses the teachers based on competency, skills and experience- the school owners prefer to hire non resident teachers as they require lower wages

than residents Bottom line: The principal-school owner relationships reflect, in many cases, fundamental conflicts in interest


20%

80%

0%

20%

40%

60%

80%

100%Yes No


SCHOOL OWNERS DO PROVIDEESSENTIAL EQUIPMENTS

47%

53%

0%

20%

40%

60%

80%

100%Yes No

OWNERS OBJECT THE RECOMMENDED TEACHER APPOINTMENTS


30%

70%

0%

20%

40%

60%

80%

100%Yes No


PRINCIPAL DECISIONS IN CONFLICT WITH OWNERS INTERESTS

22

Partners in Growth

School Management Evaluation: Educational Supervision Reflects Some Lacks And Inefficiencies (2)

A pronounced number of private schools in KSA, estimated to a 1/3, are believed to lack a specialized educational supervision team

In fact, regulations do not stipulate the existence of such supervision but the Ministry Of Education, as part of its continuous evaluation and supervision of schools, affects a budget in this respect

In the remaining 2/3 schools, it is widely believed that, in more than 80% of the cases, the available education supervisors (1) meet weekly with the school management, (2) attend teacher courses, (3) present reports on the school operations, (4) supervise the application of their own remarks

However, the supervision efficiency remains mixed with only 60% of the considered schools find that the educational supervisor (1) supplies schools with new educational developments, (2) supplies schools with selected furniture, (3) generalizes the inter-teacher visits in the school, (4) increase the teacher qualifications via conferences and researches, (5) sets criteria for educational supervision

Furthermore, a large number of schools, estimated at a 1/3, consider the educational supervisor visits insufficient to solve the assessed difficulties and to evaluate the available specializations, with some 2/3 of schools recognizing that the visits supply the education establishments with knowledge and know-how

Bottom line: The educational supervision, which is an integral part of assessing and controlling school performance, lacks in a non-negligible number of private schools in KSA and remains inefficient in many cases


EXISTENCE OF AN EDUCATIONALSUPERVISION TEAM

34%

66%

0%

20%

40%

60%

80%

100%Exist No exist


BREAKDOWN OF SUPERVISION TEAM BY STATUS

20%

80%

0%

20%

40%

60%

80%

100%Active Not active


BREAKDOWN OF SUPERVISION TEAM BY EFFICIENCY

40%

60%

0%

20%

40%

60%

80%

100%Efficient Not efficient

Sources: Industry estimates, GC Research 23

Partners in Growth

School Management Evaluation: Teacher Wages Are Key In The Cost- Performance Tradeoff For Private Schools (3)

The level of teacher wages has a crucial impact on the quality of the delivered educational services

In Saudi Arabia, the majority of teachers in private schools are non nationals and have wages relatively low when compared to the public sector

Such situation constrain teachers to considerably resort to private lessons or accept additional jobs

Based on a industry estimates, the majority of principals recognize that teachers consider their wages as insufficient and clearly appear unsatisfied by the situation

Therefore, it is believed these low revenues highly impact the teacher performances

Bottom line: The teacher wages in Saudi private schools are in most cases relatively low which impacts negatively the school overall output and competitiveness


TEACHERS HAVE LOW AGES(Principals View)

25%

75%

0%

20%

40%

60%

80%

100%Yes No

15%

85%

0%

20%

40%

60%

80%

100%Yes No

20%

80%

0%

20%

40%

60%

80%

100%Yes No


TEACHERS ARE UNSATISFIED(Principals View)

WAGES AFFECT PERFORMANCE(Principals View)

Sources: Industry estimates, GC Research Sources: Industry estimates, GC Research 24

Partners in Growth

School Management Evaluation: Lack Of Selected Student Discipline (4)

Private schools in Saudi Arabia present a lack of student discipline in particular at the secondary level when compared to the public sector

In fact, it is considered that on average 45% of secondary schools present a problem with (1) irregular presence at school, (2) high student disturbance, which (3) affect the teacher performance

Such situations are present despite that the majority of the principals (1) do not accept repeating exams, (2) seek to ensure equal student opportunities, (3) go through parent complaints

Furthermore, secondary education in private schools reflect some lenience in exams and tests

In fact, despite the availability of competent staff for supervising tests, more than 50% of considered schools have cases where teachers overlook cheatings and deliberately give additional grades

Also, it is worth mentioning that, in general, students tend to remain in the same school for the longer possible period of time

Bottom line: As the reputation of any private school goes along with its own discipline, it is essential to consider enhancements at this level


LACK OF STUDENT DISCIPLINE(Principals View)

70% 80%

40% 30% 20%

60%

0%

20%

40%

60%

80%

100%

Irregularpresence inclassrooms

Studentdisturbance

Disturbanceaffectingteaching

Yes No


PRINCIPAL SEVERITY (Principals View)

TEACHERS SEVERITY IN EXAMS(Principals View)

Sources: Industry estimates, GC Research Sources: Industry estimates, GC Research

95%80%

20%5%

20%

80%

0%

20%

40%

60%

80%

100%

Do not repeatexams

Ensure equalopportunities

Considerparent

complaints

Yes No

50%80%

45% 50%20%

55%

0%

20%

40%

60%

80%

100%

Leniency insupervising

tests

Deliberatlygive more

grades

Existence ofcompetentsupervisor

Yes No

25

Partners in Growth

Curriculum And Students Activities: A Needed Differentiation For Private Schools

The private schools have historically been considered as the duplicates of the public schools as they delivered the same core curriculum

This has been a main obstacle for the attractiveness of private schools, especially that they impose fees for supplying the same services than the public sector

However, private schools used to differentiate by providing some additional services for students as sportive activities, arts, scouts, theatre, science and some supplementary courses

These services are in many cases inefficiently provided and are a burden on the student’s already intense curriculum courses

But, if private schools aim to further compete with the public sector, more improvements must be made at the level of the curriculum taught

In fact, the Ministry of Education has allowed, during the past 2-3 years, private schools to adopt the international curriculum and began, in this respect, to grant the related licenses

This initiative is expected to trigger investments in the private education as the quality of delivered services will be enhanced

Bottom line: The Ministry of Education licenses for international curriculum should build on actual competitive advantages to further the private education role


MAIN QUALITY DRIVERS FOR FUTURE PRIVATE EDUCATION ATTRACTIVENESS

Better quality-feeratio

Internationalcurriculum

Special caregiven to students

Better educationlevel in many schools

Additional servicesand activities

Some betterteaching staff

Bigger potentialin delivering education

Availability and betterhiring of teachers

26

Partners in Growth

Main Considerations For Evaluating A Private School “Saudi Education

Sector”

Available space tonumber of students

School building

Available classroomspaces

Available security tools

Aeration, conditioning, lighting

Available rooms for supervisory, teaching

and admin. staff

Toilets

Indoor and outdoorspaces

Available space forlaboratories, libraries,

sports, various act.

Simple and adequatedesign of the buildings

Availability of communication tools

School seats and age/quality

requirements

Classrooms, librariesand laboratories

Basic teaching tools in classrooms

Adequate laboratories

at education levels

Rooms for variousactivities

Other infrastructure

Theatre

Rooms for different teaching and

technical activities

Available stocks for teaching tools

Cafeterias and health

requirements

Sport infrastructure with adequate

equipments

Available health infrastructure

Parking for buses and cars

Adequate laboratory tools and equipments

Safety tools in labs

Basic books in libraries

Absorptivelibrary capacity

IT equipments

Efficiency in using the school infrastructure as buildings,

laboratories, libraries and others

Schoolmanagement

Info on school ownership

Info on school BODor management team

Management-staffinteraction

School ownerfunctions and roles

Responsibility and function sharing system

Supervisor availability,qualifications and rolePrincipal’s nationality,

competency and experience

Staff’s nationality,competency and

experience

Performance reports onthe administrative staff

Quantitative and qualitative aspect of

admin. staff

Overall wage and remuneration status

Teachingstaff

Absolute and relative number

of teachers

Overall course burden

per teacher

Nationality, experience,

qualifications of teachers

Teachers’ activitiesbeside teaching

Performance ofteachers

Remuneration ofteachers

Availability of laboratory, library and IT specialists

Qualification, experience

and performance ofthese specialists

Students

Number of studentsand school absorptive

capacity

Student concentration

indoor and outdoor

Repetition andsuccess rates

Average years ofstudents in school

Overall performanceof the school students

Scholarships

Student treatmentand progress reports

Bottom line: In the majority of the below items, private schools do not offer relatively better services to clearly boost a migration from public to private sector

Overall performanceof students

relative to other schools

27

Main Players


Partners in Growth

Organizational Summary Of EducationIn Saudi Arabia “Saudi Education

Sector”

Ministry of EducationMinistry of Higher EducationGeneral Establishment of Technical Education and Vocational TrainingMinistry of Civil ServiceMinistry of Health and Saudi Commission for Health SpecialtiesMinistry of Defense and AviationMinistry of InteriorRoyal Commission for Jubail and Yanbu

Education Bodies

General educationsupervises

Day schools with the 3 educational levels: Primary, intermediate and secondaryNight schoolsQuran memorization schoolsArabic language education schools for non-Arabic speakersEnglish language schools and institutesCalligraphy institutes

Type Of Private Schools Supported by The Ministry

1,93359

107

Generaleducation 333,109

9,39814,226

Schools Students

ManagementSchool principalSchool deputyClerkTypist

Administrative cadre

Technical cadreTeachersStudent advisorEducational supervisor

LibrarianLaboratory technicians

Principals for 2,099 schools33,146 teachers

4,047 administrative staff29

Partners in Growth

Overview Of Private School Statistics In General Education “Saudi Education

Sector”

Numberof schools

Numberof classrooms

Numberof students

Numberof teachers

Numberof administrative

staff

Primary education, male 417 5,927 112,339 9,739 645Primary education, female 523 4,381 72,480 7,981 1,654Total primary 940 10,308 184,819 17,720 2,299Intermediate education, male 360 2,138 41,220 3,844 325Intermediate education, female 298 1,332 22,557 2,650 427Total intermediate 658 3,470 63,777 6,494 752Secondary education, male 272 2,989 68,120 5,087 388Secondary education, female 229 1,986 40,017 3,845 608Total secondary 501 4,975 108,137 8,932 996

Total male 1,049 11,054 221,679 18,670 1,358Total female 1,050 7,699 135,054 14,476 2,689Total 2,099 18,753 356,733 33,146 4,047

Classroomsper

school

Studentsper

school

Teachersper

school

Admin.per

school

Studentsper

classroom

Teachersper

classroom

Studentsper

teacher

Studentsper

admin

Primary education, male 14.2 269.4 23.4 1.5 19.0 1.6 11.5 -Primary education, female 8.4 138.6 15.3 3.2 16.5 1.8 9.1 -Total primary 11.0 196.6 18.9 2.4 17.9 1.7 10.4 80.4Intermediate education, male 5.9 114.5 10.7 0.9 19.3 1.8 10.7 -Intermediate education, female 4.5 75.7 8.9 1.4 16.9 2.0 8.5 -Total intermediate 5.3 96.9 9.9 1.1 18.4 1.9 9.8 84.8Secondary education, male 11.0 250.4 18.7 1.4 22.8 1.7 13.4 -Secondary education, female 8.7 174.7 16.8 2.7 20.1 1.9 10.4 -Total secondary 9.9 215.8 17.8 2.0 21.7 1.8 12.1 108.6

Total male 10.5 211.3 17.8 1.3 20.1 1.7 11.9 -Total female 7.3 128.6 13.8 2.6 17.5 1.9 9.3 -Total 8.9 170.0 15.8 1.9 19.0 1.8 10.8 88.1

Education Aggregates2006 figures

Education Ratios2006 figures

30

Partners in Growth

The Geographic Concentration Of Private Schools Is In Big Regions


At the mirror image of the overall population, the private schools and students are relatively concentrated in the highest populated regions

The regions of Riyadh, Makkah, Eastern Province and Madinah account for 87.2% and 90.4% of private schools and students respectively, compared to a population concentration of 71%

This suggests that some regions are highly supplied with educational services relatively to other low populated regions

Furthermore, we estimate the number of schools per 100,000 inhabitants in KSA is at around 6.0 with the largest 4 regions averaging 10.3

Bottom line: The degree of student and school concentration is in line with our perception that peripheral regions aren’t attractive for private investments given the low level of population


PRIVATE SCHOOL AND POPULATION DISTRIBUTION

RiyadhMakkahEasternMadinah

TabukQassimAsseerHailJoufNorthern

36.7%30.3%15.5%

4.8%

2.1%4.1%3.0%0.9%1.3%0.5%

JizanNajranBaha

0.3%0.4%0.1%

24.1%25.6%14.8%

6.7%3.0%4.5%7.4%2.3%1.6%1.2%5.2%1.8%1.7%

Populationdistribution

Private school distribution

12.6%4.8%0.7%

-1.9%-1.0%-0.3%-4.4%-1.4%-0.3%-0.7%-4.9%-1.5%-1.6%

Difference

NUMBER OF PRIVATE SCHOOLSPER 100,000 INHABITANTS

14.1

11.0

9.78.6

7.76.6 6.4

3.9 3.7 3.6

1.9

0.5 0.5

0

2

4

6

8

10

12

14

16

Riyadh Makkah Eastern Qassim Jouf Madinah Tabuk Northern Asseer Hael Najran Baha Jizan


Average 6.0 schools per 100,000 inhabitants

31

Partners in Growth

Degree Of Market Concentration And Fragmentation In The General Education (1)


In order to assess the degree of concentration/fragmentation of the general education market, we will proceed to:

- a calculation of the top schools’ market shares in the corresponding segments

- a calculation of the “Herfindahl-Hirschman Index” which sums (1) the sum of the squared differential between the

individual school market shares and the average school market share (2) the average market share of the schools

In fact, the latter indicator takes into consideration the absolute and relative size of schools to determine the degree of

concentration of the market with:

- a ratio of 100% for the monopoly status

- a ratio of 0% for the infinite competition status

The explanation of the above indicators is:

- the higher value of the largest schools’ market shares is an indicator of higher concentration of students in top schools

- the higher value of the HH index is an indicator of the lower degree of fragmentation of the general education market

Bottom line: The combination of the concentration and the fragmentation indicators will reflect the potential of

consolidation in the Saudi general education market via school merging and/or school expansions

32

Partners in Growth

Degree Of Market Concentration And Fragmentation In The Private General Education (2) “Saudi Education

Sector”

ConclusionsNumber

of students

Number of

schools

Students per

school

Share of largest 30%of schools

"HH"index

Day schoolsPrimary male day 104,720 378 277 59.0% 0.45%Intermediate male day 39,005 323 121 60.5% 0.56%Secondary male day 60,322 236 256 52.4% 0.58%Primary female day 67,359 483 139 64.2% 0.42%Intermediate female day 21,850 287 76 59.2% 0.62%Secondary female day 39,839 225 177 54.1% 0.65%

Quran memorizationPrimary male memorization 7,619 39 195 60.8% 4.11%Intermediate male memorization 601 13 46 4.3% 8.15%Secondary male memorization - - - -Primary female memorization 5,121 40 128 63.7% 4.63%Intermediate female memorization 707 11 64 59.4% 16.56%Secondary female memorization 178 4 45 53.4% 38.11%

Night schoolsIntermediate male night 1,614 24 67 10.7% 4.81%Secondary male night 7,784 35 222 58.1% 4.19%Intermediate female night - - - - -Secondary female night - - - - -

OthersIlliteracy eradication 14 1 14 - -

Total 356,733 2,099 170 - -

- Fragmentation is very high

- Student concentration in top schools is high

- Low grades are the most fragmented- Male schools are the most fragmented

Day schools

- Concentration is higher in female schools

Quran memorization schools- Relatively low fragmentation, in particular in female schools- High concentration at different levels, except intermediate maleNight schools

- Low fragmentation compared to day schools- Mixed concentration rates

Bottom line: Day schools represent a potential for consolidation as indicators show a relatively high number of schools with low market shares

33

Partners in Growth

Major Male Day SchoolsAt The Primary Level “Saudi Education

Sector”School City Students% share

studentsClass-rooms

Teach. Admin.

Al Namouzajiya Riyadh 1,725 1.6% 82 132 -Al Majd Riyadh 1,414 1.4% 68 112 11Al Rawad Riyadh 1,275 1.2% 52 85 7Al Aqsa Jeddah 1,274 1.2% 56 86 1Al Andalus Jeddah 1,146 1.1% 57 98 7Najd Riyadh 1,089 1.0% 42 87 6Manarat Riyadh 1,007 1.0% 40 56 -Najd Riyadh 991 0.9% 41 82 3Khaleej Riyadh 921 0.9% 35 54 10Dar Al Oloom Riyadh 914 0.9% 43 61 1Al Orqom Riyadh 898 0.9% 40 63 4Al Abeer Riyadh 827 0.8% 37 55 -Badr Riyadh 787 0.8% 36 60 -Al Khandaq Madina 773 0.7% 33 60 6Sahma Hael 771 0.7% 34 63 1Al Iqha' Jeddah 768 0.7% 35 70 -Al Ta'awon Jeddah 765 0.7% 37 61 1Al Nobala' Riyadh 764 0.7% 37 49 7Al Saleheen Riyadh 744 0.7% 33 43 7Manar Al Sabil Hafr Baten-East 730 0.7% 31 47 1Othman Bin Affan Tabuk 691 0.7% 34 53 1Al Tarbiya Al Ahlia Khobar 680 0.6% 31 49 3Al Islam Al Ahlia Damma 680 0.6% 30 57 4Al Jeel Riyadh 642 0.6% 32 48 4Al Ansar Damma 615 0.6% 26 43 6Al Falah Jeddah 607 0.6% 24 37 6Al Falah Mekka 606 0.6% 24 44 8Dar Al Thakafa Jeddah 587 0.6% 27 45 1Al Faysaliya Riyadh 584 0.6% 24 44 -Noor Al Islam Damma 578 0.6% 27 46 3King Abdul Azziz Tabuk 577 0.6% 28 50 4Manara Jeddah 575 0.5% 29 52 7Pvt university schools Zahran 563 0.5% 25 20 1Al Tahzib Sihat - East 551 0.5% 25 44 -Jeel Al faysal Jeddah 543 0.5% 25 43 6

School City Students% sharestudents

Class-rooms

Teach.Admin.

Al Mustaqbal Riyadh 534 0.5% 26 43 3Al Ghad Riyadh 531 0.5% 24 30 1Al Saudia Riyadh 528 0.5% 26 45 2Al Saad Khobar 524 0.5% 25 59 9Al Inaya Riyadh 523 0.5% 28 51 -Al Shams Riyadh 520 0.5% 26 49 1Al Amjad 2 Jeddah 519 0.5% 27 39 4Al Hadara Riyadh 518 0.5% 26 42 1Al Khalil Bin Ahmad Taef 517 0.5% 26 47 1Al Falah Riyadh 512 0.5% 27 47 4Al Saleheen Tabuk 510 0.5% 22 31 1Al Shafi'i Riyadh 509 0.5% 25 35 4Al Ibda'a Mekka 501 0.5% 22 34 1Kartaba Jeddah 501 0.5% 27 52 4Tabuk Schools Tabuk 499 0.5% 23 41 -Al Olya Riyadh 499 0.5% 25 43 4Shuaa AL Ma'rifa Mekka 490 0.5% 22 37 5Al Tadamoon Riyadh 489 0.5% 22 35 4Al Manhal Riyadh 484 0.5% 21 34 4Al Takwa Riyadh 482 0.5% 26 39 -Al Forsan Riyadh 479 0.5% 20 40 8Al Zahran Zahran 475 0.5% 23 39 5Al Shifa Riyadh 475 0.5% 23 28 -Al Amjad Riyadh 469 0.4% 26 35 -Al Kateef Al Kateef - East 462 0.4% 22 34 4Dar Al Salam Riyadh 454 0.4% 22 40 3AL Bouchra Mekka 450 0.4% 20 39 2AL Hijaz Riyadh 448 0.4% 19 20 2Al Wasat Riyadh 447 0.4% 23 2 1Dar Al Zikra Jeddah 442 0.4% 20 33 5Al Namouzajiya Damma 442 0.4% 22 36 2Ibn Salah Mekka 441 0.4% 22 39 2Al Anjal Al Hoffouf - East 441 0.4% 19 40 5Top 68 schools - 44,777 42.8% 2,057 3,357 219Total category - 104,720 100.0% 5,518 9,072 587

34


Class-rooms

Teach. Admin.

Majd Riyadh 615 8.1% 32 51 5Dar Al Faizeen Makka 550 7.2% 18 29 -Al Arqam Riyadh 505 6.6% 25 40 4Badr Riyadh 452 5.9% 23 38 1Al Rowad Riyadh 386 5.1% 17 14 3Al Soltiyah Makka 383 5.0% 15 27 -Al Saddeeq Jeddah 354 4.6% 19 29 4Al Wassat Riyadh 304 4.0% 17 49 7Al Shafee'i Riyadh 301 4.0% 16 28 4Al Forsan Riyadh 301 4.0% 14 15 1Jeel Al Quran Jeddah 261 3.4% 13 24 1Zayd Bin Thabet Madina 220 2.9% 12 15 6Al Nobala' Riyadh 217 2.8% 11 19 1Al Roshd Riyadh 193 2.5% 10 11 -Rayat Al Forqan Riyadh 193 2.5% 10 9 -Al Saddeeq Makka 187 2.5% 10 22 -Tahffez Al Quran Taef 187 2.5% 10 17 1Al Saddeeq 3 Jeddah 171 2.2% 10 14 5Tahffez Al Quran Abha 161 2.1% 10 14 1Atyaab Riyadh 158 2.1% 10 15 -


Class-rooms

Teach.

Partners in Growth

Male Quran MemorizationSchools At The Primary Level “Saudi Education

Sector”

Al Fadeela schools Hael 156 2.0% 8 17 -Al Saddeeq 1 Jeddah 154 2.0% 10 14 -Al Najba' Riyadh 140 1.8% 8 17 1Mohd Al Fateh Dammam 131 1.7% 7 31 2Riyad Al Islam Dammam 127 1.7% 6 8 2Al Manhal Jeddah 119 1.6% 6 11 -Al Muntaqa Riyadh 114 1.5% 9 17 1Al Inaya Riyadh 90 1.2% 6 5 1Al Fadl Makka 70 0.9% 6 7 3Al Amjad Riyadh 69 0.9% 6 4 -Al Tawheed Riyadh 61 0.8% 5 11 -Thursday Manahel Al Kamees 60 0.8% 7 13 -Iqra' Makka 50 0.7% 7 12 1Al Farooq Jeddah 47 0.6% 6 9 2Al Raqi Riyadh 46 0.6% 3 1 -Noor Al Quran Madina 33 0.4% 3 6 1Al Arwan Riyadh 28 0.4% 2 1 -Al Bayareq Riyadh 17 0.2% 1 2 -Qartaba Riyadh 8 0.1% 1 1 -Total - 7,619 100.0% 409 667 58

35

36


Class-rooms

Teach.

Al Namouzajiya Riyadh 791 2.0% 33 51 10Al Rawad Riyadh 693 1.8% 28 49 -Al Andalus Jeddah 622 1.6% 33 61 8Majd Riyadh 503 1.3% 24 39 3Sahma Hael 496 1.3% 21 42 1Al Aqsa Jeddah 476 1.2% 20 36 5Riyad Najd Riyadh 464 1.2% 20 34 2Najd Riyadh 455 1.2% 20 36 3Al Arqam Riyadh 412 1.1% 18 12 5Al Khaleej Riyadh 402 1.0% 13 24 -Manarat Riyadh 395 1.0% 17 36 2Dar Al Oloo, Riyadh 374 1.0% 18 33 5Al Oloom Al Shariya Madina 366 0.9% 11 16 -Al Falah Jeddah 359 0.9% 14 18 4Al Falah Makka 354 0.9% 14 29 8AL Riyadh Al Ahlia Riyadh 329 0.8% 15 37 7Al Jeel Riyadh 317 0.8% 15 24 4Badr Riyadh 304 0.8% 13 27 4Al Nobala' Riyadh 303 0.8% 12 18 3Riyad Al Islam Dammam 299 0.8% 14 31 2Al Faisaliya Riyadh 297 0.8% 12 20 2Al Saad Khobar 279 0.7% 12 31 6Pvt university schools Zahran 277 0.7% 12 28 -Al Khandaq Madina 268 0.7% 12 24 2Al Abeer Riyadh 267 0.7% 11 17 2Al Tahzeeb Sihat 263 0.7% 11 27 -Al Saudia Riyadh 260 0.7% 12 20 2Al Inaya Riyadh 259 0.7% 12 20 1Riyad Al Saliheen Riyadh 254 0.7% 12 13 -Al Zahran Zahran 247 0.6% 11 21 4Manara Al Sharqiya Khobar 247 0.6% 11 21 -King Abdul Aziz Tabuk 245 0.6% 11 23 1Al Amjad Riyadh 243 0.6% 12 20 1Manara Jeddah 241 0.6% 13 26 5Al Ta'awon Jeddah 237 0.6% 10 14 2


Class-rooms

Teach.

Partners in Growth

Major Male Day SchoolsAt The Intermediate Level “Saudi Education

Sector”

Al Taqwa Riyadh 237 0.6% 12 14 -Jeel Al Faysal Jeddah 235 0.6% 12 20 2Dar Al Thaqafa Jeddah 235 0.6% 11 23 -Al Tawheed Riyadh 233 0.6% 12 21 -Al Namouzajiya Dammam 232 0.6% 11 22 3Al Tarbiya Khobar 226 0.6% 10 16 1Al Shams Riyadh 222 0.6% 11 19 5Al Forsan Riyadh 221 0.6% 9 0 -Dar Al Salam Riyadh 220 0.6% 11 16 1Door Al Oloom Al Hafoof 217 0.6% 9 23 2Al Olya Riyadh 217 0.6% 9 16 2Al Amjad Jeddah 214 0.5% 11 18 2Al Bochra Makka 212 0.5% 10 16 2Al Sho'la Jeddah 212 0.5% 8 16 2Al Hadara Riyadh 212 0.5% 11 20 -Al Ansar Dammam 208 0.5% 9 17 3Al Mustaqbal Riyadh 207 0.5% 11 19 3Al Rissala Riyadh 207 0.5% 11 20 2Al Mohafaza Hafr Baten-East 206 0.5% 10 12 -Al Qateef Al Qateef 201 0.5% 9 16 -Al Manhal Riyadh 201 0.5% 9 0 1Al Shafee'i Riyadh 201 0.5% 11 23 1King Faysal Riyadh 198 0.5% 10 15 -Noor AL Islam Dammam 197 0.5% 10 24 2Al Nasr Jeddah 195 0.5% 8 16 -Al Shorooq Al Hafoof 189 0.5% 8 16 2Al Khalil Bin Ahmad Taef 184 0.5% 10 22 -Bin Al Salah Makka 180 0.5% 10 19 2Othman Bin Affan Tabuk 180 0.5% 12 21 1Manar Al Sabeel Hafr Baten-East 179 0.5% 7 13 1Al Shifa Riyadh 179 0.5% 10 10 2Al Safwa Jeddah 178 0.5% 9 19 -Kartaba Jeddah 177 0.5% 10 17 3Top 68 schools - 19,410 49.8% 878 1537 149Total category - 39,005 100.0% 2028 3745 323

36


Class-rooms

Teach.

Al Abeer Riyadh 166 10.3% 3 - -Al Mohafaza Hafr Bateen 119 7.4% 4 - -Um Al Qura Riyadh 113 7.0% 3 - -Khaled bin Waleed Tabuk 110 6.8% 3 - -Al Amjad Riyadh 109 6.8% 3 - -Wahat Al Ma'rifa Ar'ar 99 6.1% 3 - -Al Minhaj Riyadh 99 6.1% 3 - -Al Sharq Riyadh 81 5.0% 3 - -Manar Al Sabeel Hafr Bateen 79 4.9% 3 - -Al Mawaheb Riyadh 78 4.8% 3 - -Namouzajiya Khobar 70 4.3% 3 - -Al Ma'rifa Makka 66 4.1% 3 - -Ma'had Al Thakafa Damma 66 4.1% 3 - -


Class-rooms

Teach.

Partners in Growth

Male Night SchoolsAt The Intermediate Level “Saudi Education

Sector”

Mo'assassa Al Ilmiya Jeddah 58 3.6% 3 - -Ma'had Al Thakafa Khobar 57 3.5% 3 - -Al Ghad Namouzajiya Bareeda 47 2.9% 3 - -Al Ahlia Damma 45 2.8% 3 - -Rayat AL forqan Riyadh 37 2.3% 3 - -AL Maqaheb Al Hawiya 29 1.8% 3 - -Riyad Al Qasseem Bareeda 24 1.5% 3 - -Dar Al Hojra Madina 24 1.5% 3 - -Anjal Bareeda 19 1.2% 3 - -Manarat Bareeda 17 1.1% 3 - -Tala'e' Al Fiqr Makka 2 0.1% 2 - -Total 1,614 100.0% 72 - -

37


Class-rooms

Teach. Admin.

Al Rawad Riyadh 130 21.6% 6 22 -Al Sadeeq 2 Jeddah 84 14.0% 5 12 -Al Solatiya Makka 58 9.7% 3 3 -Al Arqam Riyadh 55 9.2% 4 13 -Badr Riyadh 53 8.8% 3 - -Al Imam Shafi'i Riyadh 52 8.7% 3 7 1Forsan Riyadh 50 8.3% 3 25 -


Class-rooms

Teach.

Partners in Growth

Male Quran MemorizationSchools At The Intermediate Level “Saudi Education

Sector”

Manahel Abha 31 5.2% 3 10 -Sadeeq Makka 22 3.7% 2 - -Wassat Riyadh 21 3.5% 2 1 1Nobala' Riyadh 18 3.0% 2 - -Sadeeq 1 Jeddah 14 2.3% 1 5 -Manahel Thakafi Jeddah 13 2.2% 1 1 -Total - 601 100.0% 38 99 2

38

39


Class-rooms

Teach. Admin.

Namouzajiya Riyadh 917 1.5% 34 56 2Al Faisaliya Riyadh 911 1.5% 34 65 4Al Manhal Riyadh 710 1.2% 29 34 6Al Foorqan Makka 685 1.1% 34 58 2Al Manahej Riyadh 683 1.1% 26 45 7Al Rawad Riyadh 676 1.1% 29 45 -Al Andalus Jeddah 672 1.1% 36 59 6Al Ma'rifa Makka 653 1.1% 26 47 2Al Kifah Hofoof 622 1.0% 26 36 -Al Manhal Thakafi Jeddah 579 1.0% 15 25 2Al Rissala Riyadh 573 0.9% 23 28 3Al Aqsa Jeddah 566 0.9% 24 40 -Al Sho'la Jeddah 565 0.9% 19 33 1Al Shorooq Hofoof 558 0.9% 25 32 2Al Amjad Riyadh 557 0.9% 25 44 -Al Tahwheed Riyadh 534 0.9% 21 34 2Al Bayareq Riyadh 500 0.8% 23 37 4AL Sarh Riyadh 499 0.8% 24 48 1Oloom Al Riyadh Riyadh 498 0.8% 16 24 4AL Riyadh Al Ahlia Riyadh 494 0.8% 23 49 1Al Mohafaza Hafr Bateen 479 0.8% 20 31 5Al Anjal Hofoof 466 0.8% 17 25 2Al Khaleej Riyadh 466 0.8% 16 23 1Al Fadl Makka 464 0.8% 22 34 -Al Arqam Riyadh 463 0.8% 22 35 -Dar Al Oloom Riyadh 460 0.8% 22 30 1Namouzajiya Khobar 460 0.8% 18 27 4Riyad Al Qasseem Bareeda 445 0.7% 14 34 2Al forqan Makka 441 0.7% 25 41 -Al Hadara Riyadh 440 0.7% 20 35 1Al Jeel Riyadh 429 0.7% 18 10 8Al Tatweer Dammam 426 0.7% 19 33 -Dar al rai Tabuk 420 0.7% 19 30 7Riyad najd Riyadh 410 0.7% 18 39 11Al Qaswa'a Madina 408 0.7% 14 23 5


Class-rooms

Teach.

Partners in Growth

Major Male Day SchoolsAt The Secondary Level “Saudi Education

Sector”

Sahma Hael 405 0.7% 18 41 -Jeel Al Faysal Jeddah 399 0.7% 18 31 2Al Ihsan Jeddah 399 0.7% 16 23 3Dar Al Ma'rifa Riyadh 392 0.6% 20 31 1Al Falah Jeddah 390 0.6% 16 26 1Al Fahd Taef 380 0.6% 16 33 3Al Majd Riyadh 378 0.6% 19 41 4Al Falah Makka 377 0.6% 15 36 6Tabuk pvt schools Tabuk 376 0.6% 16 29 -forsan al Jazeera Kharj 373 0.6% 17 30 1Al Taqwa Riyadh 371 0.6% 17 29 -Al Shafi'i Riyadh 370 0.6% 17 31 1Nobala' Riyadh 366 0.6% 15 22 2Manarat Riyadh 360 0.6% 17 28 2Al Abeer Riyadh 360 0.6% 16 26 -Al Khaleej Jeddah 344 0.6% 15 28 1Ahd Riyadh 342 0.6% 15 28 6Al Inaya Riyadh 340 0.6% 16 19 3Al Soomoow Riyadh 340 0.6% 16 30 4Riyadh Al Qaran Jeddah 338 0.6% 12 23 -Al Orwa Riyadh 338 0.6% 15 19 3Al Ibtikariya Riyadh 338 0.6% 14 31 3Dar Al Hana Tabuk 333 0.6% 13 24 2Manara Jeddah 326 0.5% 15 30 3Um Al Quara Riyadh 326 0.5% 16 16 -Manahel Qasseem Bareeda 323 0.5% 11 19 -Al Dawha Namuzajiya Khobar 322 0.5% 15 26 2Al Mawaheb Riyadh 321 0.5% 14 26 3Al Ghad Namouzajiya Bareeda 318 0.5% 13 32 3Al Nizamiya Riyadh 314 0.5% 12 19 3Namouzajiya Dammam 314 0.5% 15 36 -Manar Al Sabeel Hafr Bateen 312 0.5% 10 15 4Namouzajiya Hael 310 0.5% 14 32 1Top 68 schools - 30,724 50.9% 1,300 2,199 163Total - 60,322 100.0% 2,774 5,087 388

39


Class-rooms

Teach. Admin.

Riyad Al Ma'rifa Khobar 654 8.4% 15 - -Al Abeer Riyadh 500 6.4% 6 - -Al Mohafaza Hafr Bateen 474 6.1% 10 - -Namouzajiya Khobar 469 6.0% 12 - -Al Amjad Riyadh 422 5.4% 9 - -Al Ma'rifa Makka 414 5.3% 12 - -Um Qura Riyadh 388 5.0% 10 - -Al Thakafa Dammam 345 4.4% 9 - -Al Thakafa Khobar 305 3.9% 9 - -Al Khat Qateef 276 3.5% 8 - -Al Shamal Tabuk 274 3.5% 5 - -Manahel Al Jazeerah Zahran 257 3.3% 8 - -Al Mawaheb Riyadh 252 3.2% 5 - -Al Nahda Dammam 237 3.0% 9 - -Al Manahej Riyadh 233 3.0% 6 - -Shuaa Ma'rifa Makka 215 2.8% 6 - -Mo'assass Ilmiya Jeddah 192 2.5% 5 - -Sharq Namuzajiya Riyadh 182 2.3% 3 - -


Class-rooms

Teach.

Partners in Growth

Male Night SchoolsAt The Secondary Level “Saudi Education

Sector”

Mawaheb Rawiya 172 2.2% 6 - -Qima Ras Tanoura 168 2.2% 5 - -Al Ahlia Al Layliya Hael 152 2.0% 3 - -Tala'e' Al Fiqr Makka 144 1.8% 7 - -Al Andalus Riyadh 127 1.6% 3 - -Al Thakafa Jubail 124 1.6% 5 - -Al Ghad Namouzajiya Bareeda 114 1.5% 3 - -Manarat Bareeda 109 1.4% 5 - -Manarat Makka 96 1.2% 3 - -Al Sharq Khafji 94 1.2% 4 - -Riyad Al Qasseem Bareeda 67 0.9% 3 - -Al Maaref Namouzajiya Najran 66 0.8% 3 - -Al Manhal Jeddah 66 0.8% 5 - -Anjal Bareeda 63 0.8% 3 - -Rayat Forqan Riyadh 63 0.8% 3 - -Dar Al Hojra Madina 36 0.5% 1 - -Al Andalus Ras 34 0.4% 3 - -Total - 7,784 100.0% 212 - -

40

41


Class-rooms

Teach. Admin.

Al Bayan namouzajiya Jeddah 1,005 1.5% 51 100 1Tarbiya Namouzajiya Riyadh 990 1.5% 45 84 2Najd Riyadh 928 1.4% 38 77 -Rahma Makka 894 1.3% 18 27 10Zat Nitakayn Makka 863 1.3% 21 24 1Riyad Najd Riyadh 800 1.2% 36 46 1Manarat Riyadh 653 1.0% 27 43 1Fahd Riyadh 635 0.9% 26 44 1Rawad Riyadh 622 0.9% 23 56 1Tarbiya Ahlia Khobar 546 0.8% 26 52 2Um Mo'minin Makka 527 0.8% 12 19 2Majd Riyadh 526 0.8% 28 49 2Jeel Riyadh 521 0.8% 23 40 2Dar Al Oloom Riyadh 518 0.8% 27 45 3Madaress Riyadh Riyadh 502 0.7% 26 87 2Forsan Riyadh 481 0.7% 24 48 20Taqwa Jeddah 452 0.7% 24 36 7Tarbiya islamiya Riyadh 451 0.7% 22 39 6Rawdat Al Ma'rifa Jeddah 441 0.7% 25 46 8Bara'em Al Watan Jeddah 440 0.7% 21 46 11Al Hissan Namouzajiya Dammam 429 0.6% 21 39 6Fatat Makka 417 0.6% 20 34 5Ajiyal Riyadh 416 0.6% 21 35 6Badr Riyadh 403 0.6% 20 35 1Maymouna bint hareth Makka 398 0.6% 12 18 4University schools Zahran 391 0.6% 18 42 7Khansa' Makka 382 0.6% 12 16 10Fatimat Al Zahra' Makka 379 0.6% 10 18 4Al Zakar Jeddah 375 0.6% 19 49 12Um Salamt Makka 372 0.6% 13 15 5Kingdom schools Riyadh 370 0.5% 22 92 3Al Ghad Riyadh 364 0.5% 17 28 2Al Aqeeq Jeddah 361 0.5% 18 32 3Al Hadara Riyadh 358 0.5% 19 30 6Dar tarbiya Islamiya Jeddah 346 0.5% 19 38 18


Class-rooms

Teach.

Partners in Growth

Major Female Day SchoolsAt The Primary Level “Saudi Education

Sector”

Manara Jeddah Al Arabi Jeddah 345 0.5% 18 32 3Ikha' Islamiya Jeddah 345 0.5% 17 23 13Al Faisaliya ilsmiya Khobar 345 0.5% 15 25 21Zahran schools Zahran 337 0.5% 14 67 12Abeer Riyadh 327 0.5% 16 25 6Zainab bint mhd Makka 322 0.5% 6 6 6Qalam Jeddah 322 0.5% 17 29 10Oliya Riyadh 320 0.5% 17 30 7Inaya Riyadh 320 0.5% 18 34 7Dar Salam Riyadh 317 0.5% 17 30 6bawadi Jeddah 315 0.5% 17 36 14Abrar Madina 314 0.5% 18 30 7Asma' Bint Baqr Makka 313 0.5% 10 14 10Hadiqa atfal Jeddah 298 0.4% 17 28 4Bassam Dammam 298 0.4% 17 32 8Nobala' Riyadh 294 0.4% 14 28 17Hijaz Riyadh 284 0.4% 12 19 4Sho'la Jeddah 283 0.4% 16 28 5Arwa Makka 272 0.4% 11 17 7Bint hayi Makka 270 0.4% 11 16 6Nassiba bint Ka'eb Makka 269 0.4% 8 10 5Asr Tabuk 268 0.4% 13 23 2Anwar Shuaa Jeddah 266 0.4% 15 28 -Anjal Makka 265 0.4% 13 22 5Al Saad Khobar 263 0.4% 13 20 3Amjad Riyadh 261 0.4% 13 26 3Bochra Makka 260 0.4% 14 26 5Ferdows Jeddah 259 0.4% 17 34 14Tarbiyat Ahliya Dammam 255 0.4% 14 30 9Andalus Special schools Jeddah 249 0.4% 12 29 12Shibh Jazeera Riyadh 248 0.4% 13 21 23Rawdat Taef 247 0.4% 13 22 3Mustaqbal Riyadh 247 0.4% 12 22 13Top 68 schools - 28,154 41.8% 1,272 2,391 445Total category - 67,359 100.0% 4,069 7,420 1,512

41


Class-rooms

Teach.

Dar Zakar Riyadh 576 11.2% 31 58 -Ashraq Dammam 353 6.9% 18 43 -falaq Jeddah 346 6.8% 16 36 10Badr Riyadh 299 5.8% 17 27 8Riyad Islam Dammam 281 5.5% 15 29 5Noor Jeddah 243 4.7% 11 22 2Arqam Riyadh 227 4.4% 12 14 5Rawad Riyadh 220 4.3% 10 0 3Kholood Jeddah 187 3.7% 11 26 2Riyad Huda Jubail 185 3.6% 10 24 5Bara'em Dammam 174 3.4% 10 18 3Jeel Al Ofoq Jeddah 171 3.3% 10 17 1Wassat Riyadh 165 3.2% 11 19 -Jeel Ibda' Riyadh 154 3.0% 10 16 3Ahli Awwali Taef 121 2.4% 8 18 -Tahfeez 1 Jeddah 115 2.2% 6 16 -Dar Quran Jeddah 111 2.2% 7 13 2Um Qora Jeddah 108 2.1% 8 19 2Tahfeez Madina 107 2.1% 7 13 2Atyab Riyadh 103 2.0% 9 17 -Tahfeez 2 Jeddah 98 1.9% 6 12 17


Class-rooms

Teach.

Partners in Growth

Female Quran MemorizationSchools At The Primary Level “Saudi Education

Sector”

Arkan Riyadh 96 1.9% 6 7 4Raya Forqan Riyadh 95 1.9% 7 10 1Zat Nitaqayn Jeddah 83 1.6% 6 9 -Riyad Saleheen Sakaka 80 1.6% 5 0 1Bara'em Madina 60 1.2% 6 9 4Najba' Riyadh 50 1.0% 4 9 1Montaka Riyadh 50 1.0% 4 2 3Jeel Baraka Jeddah 45 0.9% 6 12 2Assala Riyadh 40 0.8% 4 5 3Emaar Riyadh 28 0.5% 2 6 2Sarh Jeddah 26 0.5% 2 2 4Majd Jeddah 24 0.5% 4 11 4Manahel Abha 22 0.4% 3 1 2Tahfeez Asr Tabuk 17 0.3% 1 1 15Tahfeez Onayza 15 0.3% 3 2 13Riyad Zakar Riyadh 15 0.3% 1 5 5Tanweer Khobar 13 0.3% 1 2 1Massateen Taef 10 0.2% 2 7 1Mohayni Dammam 8 0.2% 2 4 6Total - 5,121 100.0% 312 561 142

42

43


Class-rooms

Teach. Admin.

Namouzajiya Riyadh 460 2.1% 21 39 8Bayan Jeddah 397 1.8% 17 35 9Najd Riyadh 374 1.7% 16 33 13Riadh Najd Riyadh 371 1.7% 16 26 6Rawad Riyadh 370 1.7% 14 30 5Fahd Riyadh 363 1.7% 15 17 5Manarat Riyadh 283 1.3% 12 23 3Tarbiya Islamiya Riyadh 270 1.2% 12 20 4Riyadh schools Riyadh 244 1.1% 11 33 5Jeel Riyadh 236 1.1% 11 19 6Hissan namouzajiya Dammam 209 1.0% 10 20 4Dar Oloom Riyadh 208 1.0% 10 20 4Majd Riyadh 204 0.9% 11 18 4Faisaliya islamiya Khobar 198 0.9% 9 17 5Badr Riyadh 194 0.9% 9 17 3Jami'a Khobar 192 0.9% 9 24 5Forsan Riyadh 182 0.8% 8 18 3Dar Tarbiya Haditha Jeddah 175 0.8% 9 20 3Rawda Bawadi Jeddah 175 0.8% 9 21 3Ajiyal Riyadh 172 0.8% 8 12 8Hadiqa Atfal Jeddah 166 0.8% 8 13 1Zakar Jeddah 164 0.8% 9 27 3Akik Jeddah 164 0.8% 9 20 3Tarbiya Ahlia Riyadh 163 0.7% 8 8 2Kingdom schools Riyadh 163 0.7% 9 24 5Dar Salam Riyadh 156 0.7% 8 19 5Manara Jeddah 155 0.7% 8 12 1Furdows namouzajiya Jeddah 150 0.7% 9 18 2Boshra Makka 148 0.7% 6 13 4Zahran Zahran 148 0.7% 7 14 2Tarbiya ahlia Khobar 148 0.7% 7 28 -Madaress taqwa Jeddah 146 0.7% 7 14 1Sho'la Jeddah 145 0.7% 7 17 3Oliya Riyadh 137 0.6% 8 7 1ghad Riyadh 135 0.6% 6 13 1


Class-rooms

Teach.

Partners in Growth

Major Female Day SchoolsAt The Intermediate Level “Saudi Education

Sector”

Dar hoda Raegh 134 0.6% 9 20 1Amjad Riyadh 134 0.6% 6 19 2Abrar Maddina 132 0.6% 8 15 4Tarbiya ahlia Dammam 132 0.6% 7 19 -Akha' Jeddah 130 0.6% 8 19 3Hadara Riyadh 127 0.6% 7 12 1Bayti Saghir Jeddah 126 0.6% 8 14 -Shibh Jazeera Riyadh 125 0.6% 6 6 2Dar Hoda Jeddah 124 0.6% 7 15 1Bara'em watan Jeddah 122 0.6% 7 16 2Salihiya Jeddah 120 0.5% 6 16 3Ta'awon namouzajiya Riyadh 120 0.5% 6 12 -Andalus Jeddah 117 0.5% 6 12 3Abeer Riyadh 117 0.5% 6 15 2Inaya Riyadh 115 0.5% 6 11 2Saad Khobar 115 0.5% 6 15 7Amira Jawhara Ras 114 0.5% 6 12 9Riyad saleheen Riyadh 110 0.5% 6 10 7Wassat Riyadh 109 0.5% 6 11 3Ibda' Jeddah 108 0.5% 6 12 1Mustaqbal Riyadh 108 0.5% 6 16 3Falah Riyadh 107 0.5% 6 12 3Haramayn Riyadh 105 0.5% 6 15 6Khalidiya Hofoof 104 0.5% 4 10 1Zahra' Riyadh 104 0.5% 4 4 1Al Khaleej Riyadh 104 0.5% 6 9 1Manhal Riyadh 101 0.5% 6 12 2Manara Maddina 100 0.5% 6 10 1Shams Riyadh 100 0.5% 6 10 1Imtiyaz Riyadh 99 0.5% 6 11 6Azizia Khobar 97 0.4% 6 9 -Namouzajiya Hael 96 0.4% 6 17 -Yamama Riyadh 95 0.4% 5 8 3Top 68 schools - 11,316 51.8% 559 1,133 221Total - 21,850 100.0% 1,287 2,558 408

43


Class-rooms

Teach. Admin.

Dar Zakar Riyadh 230 32.5% 12 24 11Ishraq Dammam 97 13.7% 5 11 1Riyadh Islam Dammam 93 13.2% 6 16 2Rawad Riyadh 67 9.5% 3 0 1Tahfeez 2 Jeddah 44 6.2% 3 9 -Jeel Ofoq Jeddah 36 5.1% 3 9 2


Class-rooms

Teach.

Partners in Growth

Female Quran Memorization DaySchools At The Intermediate Level “Saudi Education

Sector”

Tahfeez Jeddah 32 4.5% 3 6 -Zat nitaqayn Jeddah 31 4.4% 3 7 -Riyadh Hoda Jubail 31 4.4% 3 5 -Tahfeez Wassat Riyadh 29 4.1% 2 3 -Bara'em Aqsa Dammam 17 2.4% 2 2 2Total - 707 100.0% 45 92 19

44

45


Class-rooms

Teach. Admin.

Khalidiya Hofoof 781 2.0% 21 39 4Waha Jafr bateen 643 1.6% 18 11 -Jeel Riyadh 621 1.6% 25 42 8Fahd Riyadh 604 1.5% 24 28 10Ajiyal Riyadh 574 1.4% 22 38 9Asr Tabuk 549 1.4% 23 24 -Namouzajiya Riyadh 532 1.3% 23 49 6Manahej Riyadh 530 1.3% 20 33 9Madaress Jazan 458 1.1% 12 0 -Abeer Riyadh 426 1.1% 20 23 8Tarbiya Ahlia Riyadh 420 1.1% 18 34 3Rawad Riyadh 416 1.0% 17 40 14Riyadh Najd Riyadh 411 1.0% 18 22 3Bayan Jeddah 382 1.0% 16 41 8Tarbiya islamiya Hael 365 0.9% 12 24 1Zahra' Riyadh 359 0.9% 12 18 5Ajiyal Jafr bateen 354 0.9% 13 22 1Tarbiya wa Ta'lim Dammam 351 0.9% 16 13 2Diwan Riyadh 336 0.8% 13 19 5Madaress Riyadh Riyadh 334 0.8% 17 54 24Dar Maaref Riyadh 322 0.8% 16 26 4Mayarek Riyadh 322 0.8% 16 21 9Najd Riyadh 321 0.8% 16 37 11Ghad Bareeda 314 0.8% 13 11 4Amjad Riyadh 313 0.8% 15 19 2Kifah Hofoof 306 0.8% 12 23 2Rayan Madina 300 0.8% 14 0 -Haramayn Riyadh 287 0.7% 13 16 2Nabe' oloom Riyadh 280 0.7% 14 22 9Qasseem Bareeda 278 0.7% 10 17 1Yamama Riyadh 276 0.7% 11 23 5Ihsan Riyadh 272 0.7% 11 18 3Tarbiya islamiya Riyadh 270 0.7% 13 26 8Anwar fayha' Madina 269 0.7% 11 16 3Abrar Madina 266 0.7% 16 39 6


Class-rooms

Teach.

Partners in Growth

Major Female Day SchoolsAt The Secondary Level “Saudi Education

Sector”

Hissan namouzajiya Dammam 266 0.7% 12 23 2Dar salam Riyadh 265 0.7% 13 17 7Manhal Riyadh 264 0.7% 15 24 8Manahel Madina 262 0.7% 13 14 5Manarat Riyadh 259 0.7% 12 22 3Imtiyaz Riyadh 259 0.7% 12 17 2Talae' Bareeda 252 0.6% 8 7 -Namouzajiya Hael 249 0.6% 10 25 3Dar oloom Riyadh 247 0.6% 15 32 7Majd Riyadh 245 0.6% 12 29 8Awael Riyadh 245 0.6% 11 9 2Dar oloom Hofoof 242 0.6% 9 15 3Dar Tarbiya Haditha Jeddah 240 0.6% 12 27 6Taawon namouzajiya Riyadh 238 0.6% 11 23 5Oliya Riyadh 235 0.6% 12 24 4Hadiqa atfal Jeddah 233 0.6% 12 22 -Anjal Makka 232 0.6% 11 15 3Amira Jawhara Ras 231 0.6% 12 18 3Salihiya Jeddah 225 0.6% 10 20 2Safwa Madina 225 0.6% 10 14 -Namouzajiya Khobar 219 0.5% 11 19 3Riyadh saliheen Tabuk 217 0.5% 10 15 7Wosta Riyadh 217 0.5% 9 16 -Mo'taz Billah Madina 216 0.5% 13 28 2Mashael Riyadh 216 0.5% 9 16 -Elem wa Iman Riyadh 215 0.5% 11 19 8Ferdows Jeddah 214 0.5% 9 24 -Hadara Riyadh 213 0.5% 11 23 2Rissala Riyadh 213 0.5% 11 17 3Jazeera Olool Jeddah 212 0.5% 12 23 6Badr Riyadh 212 0.5% 11 21 1Shibh Jazeera Riyadh 209 0.5% 9 12 5Rawda bawadi Jeddah 207 0.5% 9 20 2Top 68 schools - 21,536 54.1% 928 1,538 301Total - 39,839 100.0% 1,974 3,812 594

45


Class-rooms

Teach.

Partners in Growth

Female Quran Memorization DaySchools At The Secondary Level “Saudi Education

Sector”

Dar Zakar Riyadh 95 53.4% 6 14 8Tahfeez Jeddah 50 28.1% 3 7 4Riyadh Islam Dammam 18 10.1% 1 8 2Riyadh Hoda Jubail 15 8.4% 2 4 -Total - 178 100.0% 12 33 14

46

47

Partners in Growth


Valuation For Regional And Global CompaniesIn The Education Sector

Market Equity EV/ P/ B P/ E EBITDA NetCompany Country cap. Val. Growth Val. Growth (FY) ROE EBITDA last trailing margin income

(mn) (mn) (mn) (mn) trailing avail. margin

Middle East RegionAl-Ittihad Schools Company Jordan $42 $4 -20% -$0.3 - $15 - 39.1 2.7 - 23% -Nibras Holding K.S.C. Kuwait $82 $13 53% $4 20% $17 11% 23.9 2.6 17.2 - 34%Eyas for Technical & Higher Educ Kuwait $106 $22 33% $11 61% $53 22% 8.7 2.0 10.1 38% 50%Educational Holding Group Co Kuwait $230 $22 -59% $18 -46% $167 13% 26.4 1.5 29.6 86% 80%Institute for Private Education Kuwait $26 $21 7% $3 -0.3% $20 16% 5.2 1.1 8.3 25% 15%

Global Primary and Secondary SchoolsA.B.C. Learning Centres Limited Australia $2,304 $469 157% $64 86% $1,457 6% 16.0 1.5 23.9 28% 14%Nord Anglia Education PLC UK $239 $197 -3% -$8 - $100 - 26.0 2.1 - 5% -Nobel Learning Communities, Inc. USA $144 $168 3% $4 113% $46 10% 9.0 2.8 29.1 8% 2%Creative Education Corporation plc UK $4 $16 30% -$7 - $10 - - 0.4 - - -Oriental Century Limited China $81 $9 12% $4 3% $23 30% 11.5 3.6 16.3 60% 51%

Other Educational Services CompaniesEmerging markets (29 stocks) - $7,595 $1,878 20% $173 14% $1,832 13% 15.0 3.5 22.5 27% 16%Developed markets (47 stocks) - $32,758 $14,772 18% $1,038 -5% $7,080 6% 9.5 2.7 35.1 16% 9%

Revenues (FY) Net income (FY)

Sources: Reuters, GC Research

47

Market Drivers


Partners in Growth

Demand Drivers:Population Growth

DEMOGRAPHIC STATISTICS

Demographics, via changes in population volume and structure, are a major determinant of demand for education

Saudi population will be growing during the coming 10 years at an average rate of around 2.5% and over the next 30 years at an average of circa 2.1%

In absolute terms, the age segment of 5-19 will be growing at 2.0% and 1.5% over the next 10 and 30 years respectively

In relative terms, the share of the 5-19 year-segment in total population will decline from an actual 35.4% to 33.7% in 2010 and 29.6% in 2035

Bottom line: Demographics reflect a sustained growth opportunities for the private sector as there will be more demand for education and in particular for the most skilled and productive labor areas30-y Population Forecasted Growth

Forecasted CAGR Of Young Population (5-15 years)

Dependency Ratios(5-15y/0-5 and 15+)

0.8%1.0%

1.2%

0.7%

2.1%

1.7%

1.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

KSA Oman KWT Bahrn UAE Qtr World

Sources: World bank, GC Research

2.0% 2.0%

1.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

10-y 20-y 30-y

Sources: World bank, GC Research Sources: World bank, GC Research


33.7%

31.9%

29.6%

27.0%

28.0%

29.0%

30.0%

31.0%

32.0%

33.0%

34.0%

35.0%

10-y 20-y 30-y

49

Partners in Growth

Demand Drivers:Income Levels

GDP AND INCOME STATISTICS

4.8%4.6%

7.7%

5.3%

6.6%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2003 2004 2005 2006 4y avg

Sources: IMF, GC Research

Saudi citizens are present in a burgeoning economy, with strong growth and increased wealth

Everything being equal, such trend results in an increased demand for education in quantity and quality

During the last 4 years, the Saudi economy averaged a real GDP growth rate of 6.0% and a cumulative nominal GDP

growth rate of 85%

As a result, the average GDP per capita in Saudi Arabia have grown at a 4-y CAGR of 13.8%

Bottom line: Saudi citizens can increasingly spend on education and afford more costly and qualitative services,

which translate in a prolonged demand for private sector

Sources: IMF, GC Research Sources: IMF, GC Research

Real GDP Growth Rates Nominal GDP Per Capita Growth RatesNominal GDP Cumulative

Growth Rates


90.2%84.6%

12.5%

39.1%

62.2%

0%10%

20%30%40%50%

60%70%80%

90%100%

1y 2y 3y 4y 5y

13.8%

9.7%11.1%

13.3%

21.3%

0%

5%

10%

15%

20%

25%

2003 2004 2005 2006 4y avg

50

Partners in Growth

Supply Drivers:Internal Efficiency

GOVERNMENT TARGETS IN SUCCESS RATES


The Saudi general education reflects an internal inefficiency marked by an inadequacy between the inputs and the outputs

At the level of inputs, as reflected in a previous slide, the government has a relatively high budget for education, in particular

when compared to developing and developed countries

Such inputs are not met with satisfactory outputs which reflect high drop out rates and repetition in the schools along with a

relative weakness of graduates’ academic standards

Bottom line: The need for more efficiency can benefit from the private sector capability to ensure the most

qualitative services in an optimized way


Reducingdrop out to

1% at all stages

Eighth Development Plan Targets (2004-2009)

Reducingrepetition rate to

5% at the elementary stage


7% at the intermediate stage


8% at the intermediate stage

51

Partners in Growth

Supply Drivers:External Efficiency

The Saudi general education reflects an external inefficiency marked by an inadequacy

between its outputs and the needs of

the economy and the society for various skills

At the level of the society, an effective education system should prepare students to create

and achieve comprehensive social

development for the community via forming highly skilled workforce

At the level of the economy, the Kingdom actually requires a considerable number of skills

and scientific specializations

This entails proper preparation of students in the different fields of maths, sciences,

languages and information technology

Bottom line: The private sector can play an increased role in delivering the best

services with the most developed

techniques to meet the economy and, ultimately, labor market needs


52

Partners in Growth

Supply Drivers:Government Vision

Sources: Ministry of Education 10-year plan, GC Research


The Ministry Of Education has developed a 10-year plan for the period 2004-2014 with clear goals and objectives aiming at

enhancing the education with the most practical and scientific means

In particular, it has set a list 16 goals which we break down below by the number of objectives affected for each goal: 4-6 children aged preparation

Age category accomodation

Student' preparation

Evolution of girls' technical education

Students with special needs' education evolution

Development and growth of educational training

Improving educational system sufficiency system

Syllabuses development

Teachers' quality competence improving

Developing educational environment

Developing information infrastructure

Developing male and female adults education and illiteracy eradication

The ministry comprehensive administrative development

Expansion of society participation

Establishing accountability integral system

53

Partners in Growth

Documents

Partners in Growth SAUDI ARABIAN GENERAL EDUCATION: THE PRIVATE SECTOR CASE