Planning for education costs in Saudi Arabia as an expat

Posted on: 15th October 2024 in Education Planning

For expatriates living in Saudi Arabia, one of the key concerns is providing quality education for their children. Unlike in many Western countries where public education is widely available, expats in the Kingdom often opt for private or international schools, which come with significant costs. Understanding the expenses associated with education in Saudi Arabia and planning for your child’s future is crucial for long-term financial security.

In this blog, we’ll explore the cost of education for expats in Saudi Arabia, the available schooling options, and key strategies to help you plan and save for your child’s education.

1. Schooling Options for Expats in Saudi Arabia

Saudi Arabia has a well-established network of international schools, catering primarily to the expatriate community. These schools typically follow various curricula, including British (IGCSE and A-Levels), American (AP or IB programs), French, and Indian systems. While these schools provide high-quality education, they also come with substantial tuition fees that vary depending on the school, curriculum, and grade level.

Popular International Schools:

• British Curriculum: Many British schools offer IGCSE and A-Level programs, known for their rigorous academic standards. Examples include the British International School in Riyadh and Jeddah.
• American Curriculum: Several schools follow the American system, offering Advanced Placement (AP) programs or International Baccalaureate (IB). The American International School in Riyadh is a notable example.
• Indian Curriculum: Indian expats often enroll their children in schools that follow the Central Board of Secondary Education (CBSE). These schools are popular in cities with large Indian communities like Riyadh, Jeddah, and Dammam.

Other Schooling Options:

• Saudi Public Schools: Although public schools are generally not a preferred option for expatriates, some expat families with long-term residency choose to enroll their children in local schools to immerse them in Arabic language and Saudi culture. However, this is a rare choice, and most expats favor international schools.
• Private Schools: Some expats also consider private schools that offer bilingual programs or are more affordable than international schools.

2. The Cost of Education in Saudi Arabia

Education costs for expatriates in Saudi Arabia can be substantial, especially for families with multiple children. Tuition fees can range from SAR 20,000 to over SAR 100,000 per year, depending on the school and the curriculum. In addition to tuition fees, there are other expenses, such as transportation, school uniforms, extracurricular activities, and learning materials.

Tuition Fees:

• International Schools: On average, tuition fees at international schools range between SAR 40,000 to SAR 100,000 annually per child, depending on the grade level and school reputation.
• Preschool and Kindergarten: Early years education tends to be less expensive, with fees ranging from SAR 20,000 to SAR 50,000 annually.
• Additional Costs: Many schools charge extra for extracurricular activities, field trips, and exam fees, adding to the overall cost.

Hidden Costs:

• Transportation: If your child requires bus transportation to and from school, this can cost between SAR 3,000 and SAR 10,000 per year, depending on distance.
• Uniforms and Supplies: School uniforms, books, and learning materials can add several thousand riyals to your annual education budget.

3. Planning Ahead: Financial Strategies for Education Costs

Given the high cost of education in Saudi Arabia, careful financial planning is essential to ensure you can afford the best schooling for your children. Here are several strategies to help you manage education expenses effectively:

Start Early with Education Savings Plans

• One of the best ways to prepare for the high cost of education is to start saving early. Consider opening an education savings plan or investment account that is specifically designed to help you accumulate funds for school fees over time. Many financial institutions offer flexible options for expats in Saudi Arabia, allowing you to save in multiple currencies or invest in a diversified portfolio.

Consider International Education Plans

• Some education savings plans are designed for expat families and allow for tax-efficient saving and investment. These plans can also provide the flexibility to pay for education abroad if your family moves or if your child goes to university in another country. Make sure to consult with a financial advisor who specialises in expatriate financial planning to find the best plan for your needs.

Employer Education Benefits

• Some companies in Saudi Arabia offer education allowances or benefits as part of their expatriate employment packages. If you’re negotiating a new job contract, be sure to inquire about whether your employer provides financial support for schooling. Even partial coverage can make a significant difference in your overall expenses.

Budgeting for Annual Fees and Extra Costs

• In addition to saving for long-term education needs, it’s essential to budget for annual school fees and related expenses. Review your current income and set aside a portion of your monthly salary specifically for school fees, uniforms, and extracurricular activities. Consider setting up a separate savings account dedicated to education costs to keep these funds separate from your general living expenses.

4. University Education and Beyond: Long-Term Planning

While this blog has focused primarily on primary and secondary schooling, it’s also important to consider university education as part of your long-term financial plan. Many expat families send their children abroad for higher education, particularly to countries like the UK, USA, or Australia, where tuition fees can be even higher.

Higher Education Costs:

• International University Fees: Depending on the country and university, international students can expect to pay between $10,000 to $50,000 per year for tuition, not including living expenses.
• Scholarships and Financial Aid: Research scholarships, grants, and financial aid programs that your child may qualify for, as these can significantly reduce the cost of higher education.
• Education Loans: If you need additional financial support, education loans or student loans can be an option, but they should be carefully considered within the context of your long-term financial plan.

What to Do:

• Begin saving early for university education, especially if your child plans to study abroad.
• Consider investing in long-term savings vehicles, such as international education plans, to grow your funds over time.
• Research university scholarship programs and financial aid opportunities well in advance to offset the cost of higher education.

5. Planning for Relocation and Education Continuity

If your expat assignment in Saudi Arabia is temporary, it’s important to factor in potential relocation into your education planning. Ensure that the school curriculum your child is following is recognised internationally, making it easier to transfer to schools abroad. The International Baccalaureate (IB) program, for example, is widely accepted around the world.

What to Consider:

• Research the flexibility and transferability of the curriculum if your family relocates to another country.
• If relocating, ensure that your child’s education records are easily transferable to new schools to avoid disruptions.
• Consider potential differences in tuition fees or living costs in your next destination and how that impacts your overall education budget.

Conclusion

Education is one of the most significant financial considerations for expats living in Saudi Arabia. With international and private schools charging high fees, planning early and saving effectively is critical to ensure your child receives the best possible education without jeopardizing your financial future. By exploring different schooling options, leveraging employer benefits, and making use of education savings plans, you can build a secure foundation for your child’s academic journey.

At Holborn Assets, we specialise in helping expatriates in Saudi Arabia manage their finances and plan for major life events, such as their children’s education. Contact us today to discuss how we can help you prepare for your family’s future.