Starting a School in Saudi Arabia: Licensing, Regulations & Business Setup

This article has been researched and written by the Business Development Team at Creation Business Consultants. AI has not been used in generating this article.

The impact of Saudi Arabia’s Vision 2030 has also brought change to the education sector, unrolling privatization in the education sector to be aligned with the Kingdom’s economic diversification goal and human capital empowerment. The boom in private international school is witnessed particularly in Riyadh, Jeddah, and Khobar, stimulated by the growing expatriate population as foreign investment expands and government initiatives.

The Public Investment Fund (PIF) has identified that Saudi Arabia targets a 25% increase in private school enrolment by 2030 reflecting a strong market potential in the education sector. However, international education providers, school operators and investors need to consider the real estate constraints and licensing requirements for a smooth entry. The following blog provides a brief guide to what you need to consider for establishing a school in Saudi Arabia.

SELECT THE SCHOOL MODEL

Selecting the correct school type is important to determine the permit requirements, facility standards and staffing regulations. The table below outlines common educational institution types in Saudi Arabia and the related licensing authority.

Once you decide on your school model, select the appropriate activity that aligns with it. The activities are categorised as based on the school model, type of curriculum (national or international) and target gender (females or males only or mixed).

SELECT THE LEGAL STRUCTURE OF THE SCHOOL

Selecting the appropriate legal structure of the school, this impacts the ownership type, financial liabilities and compliance requirements.

Our team of experts will help you select the right structure while considering the following factors:

• Bank account opening for operational funding.
• Visa eligibility and processing for expatriate teachers and school staff.
• Tax exposure and potential exemptions.
• Staffing and related Saudization requirements.

SECURE EDUCATION LICENSING AND COMPLIANCE

Following the issuance of your investment certificate from the Ministry of Investment Authority and your commercial registration certificate from the Ministry of Commerce, you will still need to obtain approvals from multiple authorities before commencing your school operations, and these include:

• Ministry of Education (MoE): Responsible for licensing both public and private schools; approving and accrediting local and international curriculum; and professional licensing of the academic staff.
• Technical and Vocational Training Corporation (TVTC): Responsible for licensing and supervising technical and vocational training programs and training centres
• National Center for Academic Accreditation (NCAAA): Responsible for licensing, overseeing the quality assurance and accreditation of post-secondary education institutions and programs.
• Municipality & Civil Defense: Ensures educational premises compliance with safety and fire protection guidelines.
• Health & Safety: Oversee the mandatory background checks and health certifications for staff and educational facility.

Our team of experts will walk you through the steps of the post incorporation process and external licensing while you continue to focus on setting your school’s strategic goals and academic calendar.

TEACHER STAFFING, EMPLOYMENT COMPLIANCE & CULTURAL CONSIDERATIONS

When it comes to academic staffing of a school, it is critical to be aware of the regulatory and operational complexities defined by the MoE and the cultural norms. For example, the school principal is required to have:

• A minimum of a university degree from an institution recognized by the Ministry of Education.
• At least three years of teaching experience, with a demonstrated high-performance level in the last two years.
• At least 12 professional development hours in educational leadership or school administration.
• Obtaining the Professional License
• Proficiency in the language of instruction at the school (either the language of the approved curriculum or English in international schools and programs)

Moreover, although Saudi Arabia now permits mixed-gender education in early grades; however, it is important to be aware of the prevailing cultural norms and regulatory frameworks. For example:

• Only female teachers are permitted to work in nurseries and preschools.
• Female teachers are permitted to teach both male and female students from kindergarten up to the sixth grade of elementary school in both private and international schools, in accordance with Ministerial Circular No. 4401154482, dated 28/10/1444 AH.
• Gender-segregated education is mandatory for higher grades, with female teachers required for girls’ schools.
• Schools further must comply with the Saudization quotas, which requires a certain percentage of Saudi national teachers (approx. 30% Saudi teachers depending on school type, size and region).
• Expatriate teachers must hold valid Iqama (residency and work visas) and meet the requirements of the Ministry of Human Resources and Development in terms of legally compliant and authenticated employment contracts, end of service benefits and labor rights and obligations.
• Visa processing for expatriate teachers may take up to minimum two months depending on the applicant’s country of residency and Saudi consulate procedures.

Navigating these requirements is essential to ensure operational compliance, avoid penalties, and maintain school reputation.

TUITION FEE REGULATION AND MOE APPROVAL:

In addition, schools are required to obtain the approval of the MoE for their tuition fees, with fee caps in lower-income areas to ensure accessibility to education. Schools; hence, must register their tuition fees, their effective date, and any subsequent changes with the MoE Tuition Fees Program portal. Tuition fees must be submitted to the portal at least one year before the start of the academic year. Any changes to the fees after that period will not be recognized, and fee increases are strictly prohibited during the academic year. The MoE publishes a list of approved school tuition fees for all schools on its official website.

SCHOOL LOCATION AND PREMISES SETUP

The type of school and its location significantly affect the site planning and building requirements. The locations in Saudi Arabia are categorised into three zones based on their geographical location and educational density, and these are:

• Category A: High-density cities (Riyadh, Dammam, Al-Khobar) which have high demand to educational institutions due to population density, particularly of expatriates’ communities.
• Category B: Special-status cities (Makkah, Madinah, Jeddah), which hold religious and economic importance, and require tailored educational considerations.
• Category C: All other regions of the Kingdom generally categorised by lower population density.

Each type of school has specific building requirements, for example:

Hence, before building or leasing a premises, it is important that you properly identified the type of school you want to operate and determine the location. Leasing an existing facility may seem to be a preferrable choice than building a custom facility when it comes to cost and timeline. However, you must ensure that the premises comply with the MoE and the Municipality & Civil Defense standards.

RECAP

The following table provides investors with a brief of the major risks that they may encounter for not being compliant with MoE’s regulatory framework and cultural norms and how that impacts the approval process and lead to costly and time-consuming delays:

TAKEAWAY

If you are looking to establish your school in Saudi Arabia, reach out to our team of experts for a comprehensive support on corporate structuring, company formation, Ministry approvals, , portal registrations, Saudization compliance, and visa processing to ensure a seamless setup and sustained operational success. Contact us today via email [email protected] or call Saudi Arabia +966 56 865 2329 UAE +971 4 878 6240 today.