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Saudi Arabia’s digital lead in education opens up investment opportunities

By supporting innovative edutech solutions, investors play a crucial role in shaping the future of education and providing Saudis with modern, accessible, and personalized learning experiences. (AFP)
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Updated 14 July 2024
Nour El-Shaeri
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Saudi Arabia’s digital lead in education opens up investment opportunities

  • Kingdom’s edutech landscape offers numerous opportunities for both local and foreign investors
Updated 14 July 2024
Nour El-Shaeri

CAIRO: Saudi Arabia is making significant strides in education technology, with substantial investments aimed at transforming and enhancing the sector.

The Kingdom’s government is actively promoting initiatives in this field, also known as edutech, recognizing their potential to revolutionize the schooling system.

According to industry experts, the Kingdom’s edutech landscape offers numerous opportunities for both local and foreign investors.

Venture data platform MAGNiTT has revealed the edutech sector is now one of the top five most-funded fields in the Kingdom.

In 2023, the industry saw a total of $50 million raised by Saudi-based startups, a 6 percent growth from the year before.

Furthermore, the edutech sector in the Kingdom witnessed substantial growth in 2022, surging by 2,069 percent compared to the previous year.

Nasser Al-Shareef, senior adviser of investment and privatization at the Saudi Ministry of Education, reiterated the possibilities for the industry in an article for Arab News earlier this year.

“By investing in education technology, both local and international investors can tap into a rapidly growing market with a high demand for innovative educational solutions. Saudi Arabia’s large youth population, coupled with its strong focus on education and digital transformation, creates a fertile ground for edutech investments,” he said.

“The Saudi government is supporting the growth of the edutech sector through various initiatives, policies, and funding programs. This support includes financial incentives, regulatory reforms, and partnerships with educational institutions. These measures not only attract investment but also provide a conducive environment for edutech startups to flourish,” he added.

Al-Shareef further stated that investing in the Kingdom’s edutech field offers opportunities across various segments of the education ecosystem.

This includes online learning platforms, virtual classrooms, and adaptive learning technologies, as well as educational content development, teachers’ training, and more.

“The potential for scalability and market penetration is significant, considering the increasing adoption of technology in schools, universities, and lifelong learning programs,” he added.

A national vision

Investing in Saudi edutech aligns with the Kingdom’s vision of establishing a knowledge-based economy, according to Al-Shareef.

By supporting innovative edutech solutions, investors play a crucial role in shaping the future of education and providing Saudis with modern, accessible, and personalized learning experiences. 

The edtech industry is likely to make a significant contribution to the Saudi economy, especially after the privatization of the education sector.

Salem Ghanem, CEO of Faheem

The Vision 2030 initiative, which seeks to diversify the economy and reduce reliance on oil, is a significant driver behind the Kingdom’s investment in edutech.

The Saudi government has identified the development of a knowledge-based economy and the improvement of education quality as essential goals. Edutech is considered a key enabler in achieving these objectives.

Various government programs and initiatives have been launched to support the growth of edutech startups and companies in the country, Al-Shareef explained.

“For example, the Ministry of Investment has introduced initiatives to attract foreign investment in the edutech sector. These initiatives include offering incentives and streamlined processes for setting up edutech companies in the Kingdom,” he said.

An entrepreneurial spirit

Private investors have also shown increasing interest in the Saudi edutech sector. Venture capital firms and private equity holders are actively investing in edutech startups, recognizing the sector’s growth potential, Al-Shareef added.

Speaking to Arab News, Salem Ghanem – CEO of Saudi-based edutech startup Faheem – emphasized the critical role of digital tools in supporting the national vision.

“The edtech industry is likely to make a significant contribution to the Saudi economy, especially after the privatization of the education sector following the Kingdom’s Vision 2030,” Ghanem said.

He added: “The impact will be apparent in the created job opportunities and the decreasing unemployment rates, taking into consideration that the tutoring market could create an estimated 45,000 to 60,000 job opportunities.”

In an interview with Arab News, Mohamed Zohair, CEO and founder of Saudi-based YaSchools, emphasized the significant rise of the Kingdom’s edutech sector.

“The Saudi market, in general, is an excellent market, and the current period is more mature than before, especially with the unprecedented support in digital transformation, financial services, and accompanying legislation and regulations,” Zohair said.

Al-Shareef further emphasized Zohair’s point, stating that Saudi Arabia has witnessed a surge in venture capital investments in edutech startups, with three of the top 10 most-funded startups in the Middle East and North Africa region originating from the Kingdom.

“The increase in venture capital investments has had a significant impact on the sector in Saudi Arabia. It has provided a boost to the growth and development of edutech startups by injecting much-needed funding and resources into the sector,” Al-Shareef explained.

“With greater access to capital, these startups have been able to innovate, expand their operations, and enhance their technological solutions,” he added.

According to Al-Shareef, the influx of venture capital has drawn attention from both local and international investors, creating a favorable investment climate for the edutech sector in Saudi Arabia.

This increased investor interest has provided financial support and brought valuable expertise, mentorship, and networking opportunities to startups.

Furthermore, the availability of venture capital has enabled startups to attract and retain top talent by offering competitive salaries, benefits, and career growth opportunities.

This has helped build a skilled workforce in the edutech sector and drive innovation.

Overall, the rise in venture capital investments has fueled the growth and transformation of the edutech industry in Saudi Arabia, positioning it as a key player in the regional digital schooling landscape and contributing to the advancement of education and learning technologies in the Kingdom. 

Topics: startups Saudi Education

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Riyadh to host 5th Annual Future Banks Summit & Awards KSA 

Updated 5 sec ago
MOHAMMED AL-KINANI
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Riyadh to host 5th Annual Future Banks Summit & Awards KSA 

Updated 5 sec ago
MOHAMMED AL-KINANI

JEDDAH: Top technology and business leaders will explore the impact of artificial intelligence, data analytics, cybersecurity, and digital payments at the 5th Annual Future Banks Summit & Awards KSA.

Taking place on Sept. 24-25 at the InterContinental Hotel in Riyadh, the event will bring together over 200 local and regional leaders from banks and financial institutions.

The summit is designed to drive innovation, foster collaboration, and shape the future of Saudi Arabia’s financial industry. It will address key topics such as intelligent automation and cloud migration, preparing the Saudi banking sector for future challenges.

This initiative supports Saudi Vision 2030, which aims to modernize the banking sector, diversify the economy, attract foreign investment, and enhance regulatory frameworks, with the ultimate goal of establishing the Kingdom as a global leader in banking.

Sonny Supriyadi, chief data analytics officer at Maybank, emphasized the importance of discussing current issues to support the banking industry and drive economic growth in Saudi Arabia.  

“Conferences provide a platform for industry experts to share insights, discuss emerging trends, and learn from best practices. This exchange of knowledge is crucial for banks to remain competitive and adapt to changing market conditions,” said Supriyadi, who will be among the event’s key speakers. 

He added that fostering dialogue among industry leaders, regulators, and policymakers at conferences can help develop effective policies that support the banking industry and stimulate economic growth.   

“Saudi Arabia should be able to maintain a stable and conducive regulatory environment that fosters innovation, competition, and customer protection,” Supriyadi concluded. 

At the event, experts will tackle several critical topics, including the influence of Saudi Vision 2030 on the banking sector and the evolution of core banking systems to address future demands.

The summit will also delve into emerging trends such as open banking, super apps, and hyper-personalization. Discussions will explore how these innovations are transforming customer expectations and elevating the overall banking experience.

Topics: Finance

Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba

Updated 4 min 28 sec ago
Nirmal Narayanan
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Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba

Updated 4 min 28 sec ago
Nirmal Narayanan

RIYADH: Saudi Arabian Mining Co. has signed an agreement to acquire Saudi Basic Industries Corp.’s 20.62 percent shareholding in Aluminium Bahrain, or Alba, as it continues to pursue regional growth opportunities. 

According to a press statement, the sale proceeds are expected to be within a range of SR3.62 billion ($960 million) and SR3.97 billion. 

The decision to acquire SABIC’s share comes just a day after the mining firm, also known as Ma’aden, signed a non-binding agreement with Alba to potentially create a global aluminum producer.

The deal outlines plans to merge the Saudi firm’s aluminum operations with Alba’s.

In the statement, the Ma’aden added that the transaction is indicative of its ambitions to expand tenfold by 2040, with its aluminum business a core contributing factor to that strategy.

“As we continue in our growth journey, the acquisition of shares in a highly experienced, well-developed regional and global aluminum player firmly supports our ambitions,” said Bob Wilt, CEO of Ma’aden. 

He added: “This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy.” 

In the statement, SABIC further said that the transaction will enable the company to optimize its portfolio, focus on its core business, and further strengthen its growth in the chemicals industry. 

“We value our fruitful partnership with Alba over the years, which has contributed significantly to SABIC’s growth,” said Abdulrahman Al-Fageeh, CEO of SABIC. 

He added: “Once this transaction is finalized, we will be better positioned to reinforce our strategy to become the preferred world leader in chemicals and support the successful realization of Saudi Vision 2030.” 

The chemical manufacturing company added that the transaction will also contribute to improved returns and the reallocation of capital to opportunities with higher margins.

SABIC further said that the completion of this transaction is conditional upon obtaining all regulatory approvals from relevant authorities in Saudi Arabia and Bahrain. 

Topics: Mining Saudi Arabian Mining Co. (Ma’aden) Saudi Basic Industries Corp. (SABIC) Aluminium Bahrain

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Halo Space unveils Saudi localization plans, confirms upcoming test flight

Updated 19 min 22 sec ago
Rashid Hassan
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Halo Space unveils Saudi localization plans, confirms upcoming test flight

Updated 19 min 22 sec ago
Rashid Hassan

RIYADH: Saudi Arabia is set to host the next test flight of Halo Space, a leading company in near-space tourism, later this month.

On Tuesday, Halo Space announced the establishment of final assembly and testing facilities in the Kingdom. This development, revealed during a media event in Riyadh, represents a major advancement in Halo Space’s strategic partnership with Saudi Arabia and its ongoing efforts to lead in the burgeoning space tourism industry.

Carlos Mira, CEO of Halo Space, made the announcement, confirming that the test flight will take place at the end of September in Saudi Arabia.

“We in this industry work with launch windows. We open the launch window, on different days we are ready to fly depending on weather. It will be on Sept. 27, then we have the window open for 10-12 days. The reason is that we will fly on the day when we have the best weather conditions. If the best weather conditions are not on day one, we will wait until day two or three,” Mira told Arab News.

The upcoming test flight is scheduled to take place in the desert, approximately 350 km southeast of Riyadh, near Layla.

Mira underscored the significance of this new facility in Halo’s long-term strategy to position Saudi Arabia as a leading global hub for near-space activities.

The top executive said: “The decision to localize industrial capabilities, like the space capsule final assembly and testing facilities, a space port and an immersive experience dome recreating the Halo Stratospheric flights in Saudi Arabia, is a reflection of the Kingdom’s favorable business environment and ideal conditions for near-space activities. We believe that Saudi Arabia is uniquely positioned to take a leadership role in the near-space sector, and we are excited to continue building this partnership as we move forward with our mission.”

Mira highlighted that Halo Space has previously completed five successful test flights: the first in Hyderabad, India, in December 2022, followed by four consecutive tests in the Mojave Desert, California, in September 2023.

The latest announcement precedes the company’s next test flight, scheduled for late September, which will involve rigorous testing of its full-size prototype capsule, Aurora, at an altitude of 30 km. This unmanned flight aims to validate the functionality of the capsule’s critical systems, which have been developed over the past three years, as part of Halo’s commitment to safety and innovation.

Looking ahead, Halo plans its first manned test flight for 2025, a crucial milestone in preparing for commercial operations. The company intends to commence commercial flights in 2026, offering passengers an extraordinary space tourism experience.

By 2030, Halo aims to operate from four strategic locations—Saudi Arabia, Spain, Australia, and the US—providing near-space experiences to over 10,000 passengers.

Thomas Kuruvilla, managing partner at Arthur D. Little, emphasized the significant potential of the near-space sector for Saudi Arabia, noting its alignment with the country’s Vision 2030 objectives.

Kuruvilla said: “Halo Space’s presence in Saudi Arabia presents significant opportunities for the local economy, particularly in the tourism and space sectors. This initiative aligns perfectly with Vision 2030, which seeks to diversify the economy and position the Kingdom as a leader in the new space economy. We believe that Halo’s investment here will accelerate the development of a thriving ecosystem around near-space tourism, bringing high-value jobs and new business opportunities.”
Halo Space’s new facilities will enhance its flagship operational base in Saudi Arabia, supporting the Kingdom’s ambition to become a global leader in technological innovation and economic diversification.

Founded in 2021, Halo Space is revolutionizing space travel with its zero-emission flights that reach the edge of space. Their stratospheric balloon flights elevate passengers up to 35 km above Earth, providing a unique opportunity to view the planet’s curvature and the expanse of space.

Each journey, lasting up to six hours, offers a serene and spectacular experience, featuring unobstructed 360° views from the comfort of the spacecraft.

Topics: main

Closing Bell: TASI ends in green; CMA approves ETF tracking Hong Kong equities 

Updated 43 min 37 sec ago
Nirmal Narayanan
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Closing Bell: TASI ends in green; CMA approves ETF tracking Hong Kong equities 

Updated 43 min 37 sec ago
Nirmal Narayanan

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Tuesday, gaining 18.29 points or 0.15 percent, to close at 11,885.66.  

The total trading turnover of the benchmark index was SR5.71 billion ($1.52 billion), as 131 stocks advanced, while 97 retreated.  

Nomu, the Kingdom’s parallel market, shed 117.01 points to close at 25,616.92, while the MSCI Tadawul Index gained 3.47 points to 1,480.13. 

The best-performing stock on the main index was Naseej International Trading Co., as its share price soared by 9.57 percent to SR71.  

The share price of Saudi Arabian Mining Co., also known as Ma’aden, surged by 6.61 percent to SR41.95, backed by the company’s signing of a non-binding agreement on Sept.16 with Aluminium Bahrain B.S.C., or Alba, to potentially create a global aluminum producer. 

The worst performer was Al-Baha Investment and Development Co. The company’s share price dropped by 5.56 percent to SR0.17.  

Al-Modawat Specialized Medical Co. led the gains on the Kingdom’s parallel market, with its share price jumping 9.89 percent to SR16. 

Molan Steel Co. and Academy of Learning Co. were also among the top performers on Nomu, with their shares rising 5.79 percent and 3.69 percent, respectively. 

Saudi Arabia’s Capital Market Authority approved its first exchange-traded fund tracking Hong Kong equities on Sept. 16, marking a step forward in strengthening ties between Beijing and Riyadh. 

In a statement, the CMA announced it had approved asset manager AlBilad Investment Co.’s request to list the “Albilad CSOP MSCI Hong Kong China Equity ETF” on the Saudi Stock Exchange. 

This development follows Hong Kong’s launch of an ETF in November 2023 that tracks the performance of the Saudi index.  

In May, Michael Wong, Hong Kong’s deputy financial secretary, announced that the province was collaborating with Saudi Arabia to develop an ETF tracking Hong Kong’s local stock indices. 

The Saudi Investment Bank announced plans to establish a US dollar-denominated Tier I sukuk program, capped at $1.5 billion. 

In a bourse filing, SAIB noted that the issuance aims to meet the bank’s financial and strategic objectives, subject to regulatory approval and in accordance with relevant laws and regulations.

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Rafid initiative drives innovation in Saudi industry via academic partnerships

Updated 17 September 2024
MOHAMMED AL-KINANI
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Rafid initiative drives innovation in Saudi industry via academic partnerships

Updated 17 September 2024
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s industrial sector is poised for significant growth through the Rafid program, a strategic initiative that collaborates with academic institutions to spearhead innovation and research in manufacturing.

Led by the Ministry of Industry and Mineral Resources, this comprehensive effort aims to enhance the Kingdom’s advanced national industry by engaging local universities and technical colleges to align with the National Industrial Strategy.

Anchored in the principles of the Fourth Industrial Revolution, the Rafid program focuses on advancing digital manufacturing capabilities. It leverages cutting-edge technologies such as 3D printing, design and engineering analysis, and simulation to drive progress.

Saudi Arabia envisions expanding its factory count to 36,000 by 2035, with 4,000 of these being fully automated, thereby transforming the production landscape. The incorporation of advanced technologies—including artificial intelligence, 3D printing, and robotics—positions the Kingdom’s industries to emerge as global leaders in this industrial revolution.

“We have launched the Rafid program, aiming to establish strategic partnerships with leading Saudi universities and set up innovative factories on their campuses,” Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef wrote in a post on his X account.

The minister highlighted that the Rafid program is dedicated to leveraging research outcomes and innovations, particularly in key sectors outlined in the country’s national industrial strategy. The program will support various initiatives and accelerated adoption of Fourth Industrial Revolution technologies. This includes the Future Factories Program, which aims to establish a robust technology ecosystem and modernize the manufacturing sector.

The launch event was attended by prominent figures from the industrial and mining sectors, university presidents, and representatives from private sector companies.

In his address at the official launch, Alkhorayef underscored the critical role of advancing the national industry in achieving Vision 2030 and fostering a diverse and sustainable economy. He stressed the need for technological progress, innovation, and the development of human resources, emphasizing that Rafid is a strategic solution to meet these challenges.

During the event, several pivotal agreements and memorandums of understanding were signed under the Rafid program. Among these was a partnership between Princess Nourah bint Abdulrahman University and Autonomous Technologies, aimed at advancing drone manufacturing capabilities. King Abdulaziz University also forged a deal with Haven Scientific to establish an advanced medical products factory. Meanwhile, Qassim University entered into a memorandum of understanding with United Defense to develop an advanced drone systems manufacturing facility. Additionally, Umm Al-Qura University, represented by Wadi Makkah Technology, signed an agreement with Abdullah Abuljadayel Company to set up a food production plant.

The agreements outlined the creation of four innovative factories at these local universities. Specifically, Princess Nourah bint Abdulrahman University will host a drone manufacturing plant, Qassim University will develop an advanced drone systems facility, King Abdulaziz University will establish a medical products factory, and Umm Al-Qura University will set up a food production plant.

The event also announced the allocation of significant industrial lands. King Faisal University was granted 1.4 million sq. meters for food and environmental industries, while Umm Al-Qura University received 1.5 million sq. meters for industries related to pilgrimage.

The launch of the Rafid program was attended by an array of distinguished guests, including Mohammed Al Hayaza, President of Al-Faisal University; Khalid Al-Mudaifer, Deputy Minister of Industry and Mineral Resources for Mining Affairs; Abdullah bin Ali Al-Ahmari, Assistant Minister of Industry and Mineral Resources for Planning and Development; Inas Al-Issa, president of Princess Nourah bint Abdulrahman University; Bassam bin Abdullah Al-Bassam, secretary-general of the Council of University Affairs; Majed Rafed Al-Argoubi, CEO of the Saudi Authority for Industrial Cities and Technology Zones; and Muhammad bin Fahd Al-Sharikh, president of Qassim University.

Officials from the signing entities were also present, underscoring the collaborative effort driving the Rafid program forward.

Topics: main

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