III. Summary of Market Scan Findings

• IPSOS conducted an in-depth market research on the KSA Education market in December 2021 with the following objectives to develop a sound strategic plan for Effat University (EU):

1. Macroeconomic and Employment Landscape – Economic profile of KSA and its key industries, current and future demand of programs of KSA

2. POV - Employers – Interviewing potential employers within institutions in the target segment to understand the expectations from candidates and programs

3. POV – Students & Parents – Understanding the perceptions and attitudes of the current students and potential students and their parents, towards universities and programs

• To achieve the objective, IPSOS conducted a comprehensive desk research, quantitative survey with 875+ stakeholders (employers (50), current students (154), potential students (61) and parents (112) of the potential students), backed up by qualitative research for deeper insights.

• Here are the key findings from the research:

Macroeconomic and Employment Landscape

• While oil remains the major export product for Saudi Arabia, its dominance of the total export share for the country has declined over the past few years as shown in the graph below:

• 80% of the population is employed by private companies while 20% are in government services.

• 56% of the employed population is at the bachelor’s or equivalent level.

• Human Capital Development Program (HCDP) has set a goal to raise the percentage of higher education graduates in employment within six months of graduation from 4.5% in 2019 to 20% in 2025.

• It is clear from this chart that employers from all sectors would be seeking graduates from the English and Translation Department, especially the education sector (10%). Other sectors might also be seeking students with excellent translation and interpreting skills from the English and Translation Department, like the defense sector, social security and public administration.

• According to the market study, there is a focus on English language programs for professional development with focus on “Technical English” curricula. The English and Translation Department, should continue to offer the Diploma in English Language with its different levels that include English for Specific Purposes. The study also concludes that the Saudi Government will focus on the Saudization of all education jobs at national and international schools over the next three years. This move is expected to create around 28,000 new jobs for Saudi nationals. This implies that there will be an increasing need for English Language teachers.

• Another important observation is the growing travel and tourism industry, accounting for 9% of GDP and is expected to grow at an accelerated rate thanks to $65 Billion earmarked for investment into the sector. The Increasing government focus on the tourism sector is likely to push for more jobs in translation and Interpreting

POV (Point of View) - Employer

The market study shows that most industries have a positive outlook after the pandemic except Hospitality, Retail and F&B. For example, Educational institutions and Health care are two sectors that have a 100% positive outlook. This means that there will always be demand for teachers and mental health workers, two areas the ET and PSY Departments can contribute to.

• Despite a decline in overall population share, female share of total workforce has increased from 11% in 1990 to 16% in 2020.

• Wholesale and retail sector is the largest employer followed by public administration and defense as indicated in the chart below:

This module captures the willingness and likelihood of employers in KSA to hire graduates of Effat University. The findings were as follows:

• Driven by Saudization, employers across sectors noted that entry level hiring is likely to grow more than 5% in the next 3 to 5 years. 6 -10% of the employees are at entry level/fresh graduates. Saudization is expected to bring about 7.6%-12.5% growth in recruiting entry level/fresh graduate candidates.

• 70% of the employers surveyed also stated when it comes to recruiting candidates for entry level jobs, the University the candidate graduated from is the most important parameter.

• The key parameters used by employers to evaluate a university are the ‘Reputation’ of the university, its ‘Partnership with International Universities’, ‘Regional Ranking’ & ‘Past Experience’ with the students from the same university. Below is the snapshot of the universities considered as most reputed among employers:

% of the employers indicated the university name as most reputed (Unaided resoponses)

% of the employers indicated the university name as most reputed (Unaided resoponses)

• Effat University’s reputation stands tall amongst the private universities, with 56% of the employers considering EU as one of the most reputed universities.

• 100% of the employers in Jeddah and Makkah are aware of Effat University, followed by 60% in Riyadh, while the awareness is lower in other regions of KSA.

• 70% of the employers that are aware of EU are inclined to recruit candidates from EU in the coming years. EU is currently ranked as 61 – 70 in QS Arab Regional Ranking 2022, moved up from 101 – 110 ranking in 2019, tracing an upward trajectory.

• Majority of the employers state that they consider the candidates are technically sound, with very good communication skills, in addition to holding a recognized internationally accredited degree. The table below depicts the key skills preferred by the employers in order to hire candidates:

% of the employers indicated the university name as most reputed (Unaided resoponses)

• The graph above shows that 58% of employers seek graduates from the Liberal Arts. Effat University programs have 42 credits of General Education, which is a program rooted in the Liberal Arts. Psychology and English and Translation are fundamental programs in the Liberal Arts framework, which means that employers will be looking for their graduates in the coming years.

• The combined share of business, administration and law; health and welfare course enrollments among total higher education enrollments in Saudi Arabia increased from 45% in 2013 to 51% in 2019.

• The English and Translation international and national academic partners. The ET Department partnered with Western Sydney University and Alyamaha University. It established many agreements throughout the years including an agreement with The Emirates Literature Foundation, Ratl Aalkalimat, Al-Fanar Media, Al-Bilad Newspaper, and Uzbek State University of World Languages.

POV (Point of View)– Students & Parents

• While the employers (~10) that are likely to recruit from Effat in the coming years are content with the positive reputation of the university, technical skills of the students, positive relationship with EU, etc., they have suggested that the candidates from EU would have a scope to work on their confidence level and interpersonal/presentation skills.

• 75% of the employers would like to receive direct communication from EU about their updated curriculum to the industry needs and newsletters about their students’ achievements which will increase their likelihood of hiring from the university.

• Graduates the English and Translation Department show great technical knowledge, communication skills, interpersonal skills, problem-solving skills and an awareness on world matters, which are amongst the most important characteristics employers are looking for.

• The ET program require the completion of internships (180 hrs). 62% of employers consider this an important skill in new employees.

• It is worth noting that students’ enrollment in the Ambassador Program and their participation in campus-wide activities and clubs, in addition to volunteering in events give them the practical exposure 70% of employers are looking for and the extra-curricular activities 56% of employers are looking for.

• Other programs/subjects suggested by employers that are likely to be in demand in the coming years are as follows:

• A student’s journey to choosing a university is described as follows: Current Student

• Location, preferred subjects and reputation are the key parameters for evaluating among the universities.

• Even though the EU placement test (English & Math) are considered as moderately difficult, overall admission process at EU was seen as smooth.

• The Market study shows that there is moderate demand for Literature and the Master of Science in Translation and Interpreting and Translation. The demand from the market is likely to come from the following sectors: Education & Research, Healthcare, Hospitality and Entrepreneurship. There will also be high demand for continuous courses especially, English language and test preparation.

• Both Translation and Literature make 8% of students’ interests, while the Master of Science in Translation and Interpreting is at 2%

• Before deciding on EU, current students planned on visiting the university’s official website, seek advice from their families and visiting the university’s campus as shown in the table below:

• According to current students, marketing, business administration and psychology are the graduation streams of choice for higher or further education as shown below:

• According to current students, offering scholarships, the availability of preferred programs and the quality of education are the reasons behind choosing EU as shown in the table below:

After considering the overall experience as a student at EU, 6 in 10 students are satisfied with the institution. This is depicted by the table below:

2 in 10 students are highly likely to continue their higher education with EU. According to current students, law program is the top program EU could consider. Increasing the number of teaching staff is the top improvement area according to current students as depicted by the chart below:

Potential UG Students

Quality of education, reputation of the university and the career opportunities are the top reasons high school students consider Effat University. When comparing results with the overall universities, availability of dorms, international affiliations and ties with foreign universities are significantly higher for Effat University as shown in the chart below:

Internet and social media are the types of media most viewed by high school student. Instagram, Twitter and Facebook are the social media platforms accessed regularly as shown in the charts below:

Internet and social media as well as the television are the types of media most viewed by potential postgraduates. Instagram and Twitter are the social media platforms accessed regularly as depicted in the charts below:

Internet / Social media 99%

58%

14%

14%

12%