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Investors in private schools exiting market
Published in The Saudi Gazette on 13 - 11 - 2013


Saudi Gazette report


JEDDAH — A number of investors said private schools are witnessing reluctance from investors to invest in the sector, Al-Madinah newspaper reported.
This reluctance is due to the many problems and obstacles facing private government schools with concerned government bodies.
These obstacles have resulted in the closure of many private schools and caused new investors to reconsider their investments.
Nadyah Fathi, a private school owner, said there are cumulative problems that led to this situation.
She stressed that new regulations and conditions for private schools are sometimes enacted late, which does not allow schools to apply them.
Civil Defense safety regulations, she added, apply to newly established schools and cannot be fully applied to old schools.
Such schools then find it difficult as they have to go through a process of renovations and amendments in their buildings.
She pointed out that the students' safety is critical, no doubt, but some regulations should be reconsidered for private schools.
Fathi also believes that a 100 percent Saudization of private schools is not feasible as it will affect the quality of education offered in schools and that at least 20 percent of teachers should be expatriates.
Expatriates can be utilized as teachers, training, and for reference, attributes which Saudis lack.She believes that the government subsidy to private schools is very nominal, and has no effect at all.
Abdullah Surooji, a private school owner, said the closure of many private schools was due to new enacted regulations which are a burden on investors. In addition, he questioned the media propaganda against private schools, which, he said, was for unknown reasons.
He believes the private schools sector needs greater attention from concerned bodies to assure its continued development.
Mesfirah Al-Ghamdi, a private school owner, said the correction period has resulted in an increase in expatriate workers and drivers' wages.
These expatriates have been in schools without transferring their sponsorship and this has been the case for a long time.
She added that it is very difficult to find Saudis to replace these workers and drivers, and that the government should have allowed schools to issue letters indicating that residency status correction is currently under processing due to the limited time granted.
Sabah Batarji, a private school owner, said the increase in private schools fees was to recover the additional costs imposed on private schools and not to provide for a better quality education.
She believes teachers in private schools should be issued work permits only, instead of transferring their sponsorship.
Head of the Private and International Girls Schools Committee at Jeddah Chamber of Commerce and Industry (JCCI), Faridah Farsi, said a number of private schools have entered the market to cover deficiencies in government schools.
"Some parents could not find seats for their children in nearby government schools, and are assigned schools that are far away from their residence," she added, "Such parents prefer to enroll their children in nearby private schools instead."
She pointed out that there are no graduates from Saudi universities who can teach the English school curriculum, and this is required in private schools.
She believes the absence of clear classification by the Ministry of Education of private schools has resulted in fee variations.
Farsi said the government subsidy for private schools should be increased to encourage investors enter in this sector. In addition, private schools should be allowed to offer seasonal contracts with teachers to reduce their costs during long school vacations.


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