The National Education and Training Company, a leading private education provider in Saudi Arabia, announced a new strategic milestone with the award of a land lease agreement to develop and operate an integrated educational complex in the Khuzam suburb of Riyadh. This project, with a total rental value of SAR 63.9 million, is being undertaken in partnership with Tatweer Buildings Company, the executive arm of the Ministry of Education's projects.
Project background and strategic dimensions
This project falls within the ambitious strategy of “Al Wataniya for Education,” which aims for geographic expansion and increased market share in the growing private education sector. This expansion reflects the company’s commitment to actively contributing to the goals of Saudi Vision 2030, specifically the Human Capital Development Program, which focuses on developing and improving the quality of the education sector and encouraging private sector investment to provide diverse and innovative educational options that meet the growing needs of society, particularly in new residential projects such as Khuzam Suburb.
Contract and Investment Details
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul), the contract extends for 25 years and includes the lease of a 10,988-square-meter plot of land. The annual rent is SAR 2.24 million, with a 10% increase every five years, bringing the total contract value to SAR 63.9 million (excluding VAT). The contract also includes a two-year grace period without any rent, giving the company sufficient flexibility to complete the construction and outfitting of the educational complex before its actual operation.
The importance and expected impact of the project
The establishment of this educational complex is of paramount importance on several levels. Locally, the project will provide modern, high-quality educational infrastructure for the residents of Khuzam suburb, one of the largest new residential areas in Riyadh, thus enhancing its appeal as a fully integrated residential environment. The project will also contribute to creating new job opportunities in the education and administrative sectors.
On the economic front, this contract demonstrates the strength and resilience of the Kingdom's private education sector and its attractiveness for long-term investments. It also reinforces the public-private partnership (PPP) model, where the government-owned Tatweer Buildings Company collaborates with the publicly listed National Education Company to achieve shared development goals. This project is expected to positively impact the company's share performance on Tadawul and bolster investor confidence in its future expansion plans.
