3. Modern Skills Institute - Value for Feasibility Studies and Business Solutions

Rationale for choosing the project

The local and international labor market’s need for trained cadres: The labor market in Saudi Arabia and neighboring countries is facing a shortage of trained personnel in multiple fields. The institute is an ideal platform to qualify youth and provide them with the necessary skills that meet the needs of companies in various sectors.
Realizing the Kingdom’s Vision 2030: The institute aims to support the Kingdom’s Vision 2030 by providing youth with technical and professional skills, enhancing the capacity of the local workforce, reducing unemployment, and contributing to economic diversification by meeting the needs of the local and international market.
Developing the national workforce: The Saudi labor market is witnessing rapid changes in the fields of technology, industry and innovation, and it has become necessary to provide specialized training programs to ensure that young people are ready for these challenges. The institute contributes to upgrading the skills of young people and enhancing their ability to compete in the labor market.
Supporting companies and institutions: The institute will contribute to providing skilled human cadres to companies and institutions in various sectors, enhancing productivity and contributing to raising the quality of performance in the labor market. The institute will serve as an integrated center for the training and development of potential employees from companies.
The growth of the vocational education and training market: With the growing interest in vocational education and training in the Kingdom, there is an urgent need to provide vocational and technical training programs that meet the needs of the changing market. The institute will contribute to providing innovative solutions to equip youth with the skills required in the future.
Partnership opportunities with the public and private sectors: The institute has partnership opportunities with government entities and major corporations, allowing it to receive government support and ongoing funding to expand its programs and provide innovative training in line with global standards.
Fostering innovation and creativity: By utilizing the latest training methods and relying on modern education technologies such as e-learning and virtual reality, the institute will contribute to fostering innovation and creativity among Saudi youth, which will positively reflect on the development of various economic sectors in the Kingdom.

Investment advantages

Meeting the growing labor market needs: With the growing demand for trained and professional cadres in various fields, the project provides a strong investment opportunity to meet the market’s needs for skilled labor, ensuring long-term sustainability and profitability.
Supporting the Kingdom’s Vision 2030: The project is in line with the objectives of the Kingdom’s Vision 2030, which aims to improve education and training outcomes and raise the level of skills among youth, which enhances opportunities for government support and partnerships with government and private entities.
Expanding VET market: The vocational education and training sector in the Kingdom is witnessing significant growth, which means that the institute will be in a promising investment position. The growing demand for training in multiple fields provides an opportunity for continuous growth and expansion in offering new and diverse programs.
Potential for local and regional expansion: The institute can expand to several regions within the Kingdom or even to other countries in the Gulf region, opening up opportunities to expand its scope of work and increase financial returns by offering its services to a larger group of students.
Partnership opportunities with major corporations: The institute can enter into strategic partnerships with local and international companies that may need customized training programs for their employees. This contributes to providing a stable and sustainable income for the institute through corporate training contracts.
Diversify revenue streams: The institute can diversify its sources of income by offering a variety of training programs, whether short or long-term programs, specialized training courses, educational programs accredited by local and international entities, as well as training consultancy services.
Government support and tax benefits: Due to the Saudi government’s tendency to support educational and training projects, the project may receive government incentives, such as tax exemptions or financial support, which contributes to reducing costs and enhancing investment returns.
Reputation as a prestigious brand: By offering high-quality training programs and collaborating with experts in different fields, the institute can build a strong reputation as a prestigious brand in the education and training sector, increasing market demand for its services and enhancing its competitive position.
Sustainable growth and profitability: By innovating in the delivery of training programs and continuously expanding into new areas, such as digital and technical training, the institute can sustain its growth and profitability in the long term.
Positive impact on society: By empowering youth and preparing them for the labor market, the institute creates an opportunity for a positive social impact by enhancing community stability, providing job opportunities, and creating an attractive investment environment.

Demand analysis

Demand for professional and technical skills: The Saudi and international labor market is witnessing a marked increase in the demand for trained personnel in technical and professional fields. With the digital revolution and technological shifts, companies in all sectors, such as industry, technology, energy, and health, are in need of employees with high technical and technical skills. The demand for training programs that focus on developing technical skills is on the rise.
The growth of the education and training sector in the Kingdom: As the Kingdom moves towards achieving the goals of Vision 2030, there is a growing interest in developing vocational education and training to meet the needs of a diversified economy. This aims to reduce unemployment and achieve full employment of national labor by equipping them with the necessary skills to work in vital sectors. The Saudi government is investing heavily in training and development programs, which contributes to the demand for specialized training institutes.
Corporate trends in employee training: Businesses today are challenged to find employees with advanced skills that suit the needs of the market. Therefore, ongoing training and professional development programs for employees are becoming increasingly important. Requests from companies to train their employees in new skills or update old ones to keep up with technological advancements are expected to increase.
Growing number of young Saudis: With a large number of young Saudis of working age, the demand for vocational education and training is on the rise. The institute can cater to the needs of young people seeking specialized training that prepares them to enter the job market quickly and effectively. The government also supports and encourages young people to enroll in quality training institutions.
The private sector and employment in major projects: With the implementation of megaprojects in the Kingdom such as NEOM and massive infrastructure projects, new jobs are being created that require specialized skills. Thus, there is an urgent need to train and qualify the Kingdom’s youth for these job opportunities through specialized training institutes.
Demand for distance education and digital training: In the current circumstances and technological developments, the demand for digital training and distance education programs is increasing. The Modern Skills Institute can achieve a competitive advantage by offering flexible online training programs that meet the needs of working youth who seek to develop their skills in parallel with work.
Moving towards new specializations: With the development of sectors such as technology, artificial intelligence, renewable energy, and innovation, there is a growing demand for training programs that focus on these disciplines. The institute will be able to meet this demand by offering specialized training programs in these areas.
Government demand for skills development: The Saudi government prioritizes vocational training programs and allocates huge budgets for national skills development. Collaboration projects with training institutes will be an opportunity to attract students seeking certifications recognized by government agencies and major corporations.

Financial indicators

For basic costs:
Operating costs: These include the costs of trained staff, instructional materials, and facility maintenance. As programs expand, these costs may rise, but are expected to be more manageable thanks to the use of new technologies.
Fixed costs: These include costs related to renting or owning buildings, infrastructure, and technical equipment.
Variable costs: These will include the costs of marketing programs, special offers, and training materials.
Return on Investment (ROI):
The expected return: The return on investment is expected to range from 15% to 20% in the long term. This ROI depends on the institute’s ability to attract enough students and companies interested in customized training.
Expected Time to Realization: The institute is expected to start generating good financial returns after 3 to 5 years of operation, depending largely on the quality of the training programs and the extent to which they meet the needs of the market.
Compound Annual Growth Rate (CAGR):
Expected growth: CAGR is expected to be between 10% and 15% per year in the first five years, allowing the institute to expand its training programs and target market.
Funding and additional costs:
The project may require initial funding to cover the costs of building infrastructure, licenses, and investment in new technologies such as e-learning platforms.
The project is expected to be funded through a combination of self-funding, loans, or partnerships with strategic investors.

Features of the project

Meeting the needs of a growing market:
The project offers practical solutions to fill the gaps in the labor market by qualifying youth and honing their skills to meet the requirements of growing companies and industries in Saudi Arabia and the region. As the demand for technical and professional skills increases, the institute becomes a vital training center for trained cadres.
Keeping pace with modern educational trends:
The institute relies on modern education methods such as e-learning and distance education, providing students with the opportunity for flexible and convenient learning while maintaining the quality of training. The institute can also use virtual reality and artificial intelligence technologies in training programs to improve the educational experience.
Support from the Kingdom’s Vision 2030:
The institute is aligned with the goals of Saudi Vision 2030, which focuses on the development of vocational and technical education, providing it with great opportunities to obtain government support and additional incentives, which contributes to accelerating the project’s growth and further expansion.
Diversity of training programs:
The institute offers a wide range of training programs in multiple fields such as technology, health, management, engineering, and technical professions, allowing it to meet the needs of a wide range of students and companies in various industries.
Public-private partnership opportunities:
The institute can establish strategic partnerships with major corporations and institutions to offer customized training programs for their employees. It can also collaborate with government agencies and other educational institutions in the Kingdom to improve and expand training programs.
Supporting and empowering Saudi youth:
The institute contributes to supporting Saudi youth by providing them with the necessary skills that help them engage in the labor market more effectively, which contributes to reducing the unemployment rate and increasing employment.
Contribution to digital transformation in education:
The institute offers technical training in areas such as coding, cybersecurity, and data analytics, which promotes digital transformation in Saudi society. It also provides digital platforms for distance learning, enhancing the ability to deliver education to students in different regions.
Sustainable growth:
With the growing need to train individuals in renewable and labor market-ready fields, the institute is a sustainable investment that can grow in the long term. It can expand to offer new programs or expand into new regions to keep pace with changing market needs.
Achieving positive social impact:
The institute contributes to the development of Saudi society by enhancing the skills of individuals and preparing them for the labor market, leading to improved economic and social status. It also contributes to fostering a culture of continuous training and lifelong learning.
Strong market reputation:
By providing high-quality training programs that meet the latest international standards, the institute can become one of the most prominent names in the training and vocational education sector in the Kingdom, contributing to strengthening its brand and increasing demand for its services.

Modern Skills Institute

Opportunity Content

Rationale for choosing the project

Investment advantages

Demand analysis

Financial indicators

Features of the project

Request a Consultation

Book an Appointment

Authentication: 0000028001

Commercial: 1010895886

Tax Number: 311394787300003

+966536609222

info@value-consulting.sa

Al-Ruman Street, Al-Morouj District, Riyadh 12282.