University of Business and Technology: Saudi Spending $57.9bn on Education in 2015

Interview with Dr. Mahmoud Omar Ba-Eissa, Vice Rector for Academic Affairs of University of Business & Technology

Saudi Arabia has set a state budget for 2015 with total revenues projected to reach $190.7 billion (SR715 billion) and total spending valued at $229.3 billion (SR860 billion) which is expected to result in a $38.6 billion (SR145 billion) deficit. The 2015 budget is one of the highest in the history of Saudi Arabia. Saudi Arabia dedicated $57.9 billion (SR217 billion) to education and training, a 3 percent increase from the 2014 allocation. The budget features funding for 164 new projects worth $3.7 billion (SR14 billion) and an additional $1.8 billion (SR6.8 billion) for existing projects. General education received $108 million (SR405 million) for projects to rehabilitate 500 school buildings and 11 sport centers. Higher education was allotted $3.28 billion (SR12.3 billion) which will go towards opening three new universities and finishing projects on several college campuses. An estimated $640 million (SR2.4 billion) has been allocated to build new vocational and technical colleges, complete additions to existing projects, and operate Colleges of Excellence. To support scholarship programs, $6 billion (SR22.5 billion) was earmarked for over 207,000 Saudi students studying abroad and their families, up slightly from $5.9 billion (SR22 billion) earmarked in 2014. Yet in a number of interviews, many people cite that the biggest challenge is education. Can you talk about the sector, the outlook and the challenges?

Education has been the governmental priority for some time now, since the days of the late King Abdullah. A lot of resources have been invested in education. I believe this is the right way for the country to develop. The most important thing in the sector is the type of education the country needs. We certainly need more practical and applied education, rather than theoretical education. Now, we need industries, we need doctors and engineers. We need applied, practical and scientific education.

At the University of Business and Technology, our main concern is providing majors that meet market needs. We want to ensure that when our students graduate, he or she, will find a job.

Our slogan is “Education for Job Opportunities”.

Not all universities apply this philosophy. I hope that all universities realize that it is time for more applied sciences, more applied majors.

There is little dispute that the private sector will have to be the main source of future national employment. Although demographic growth slowed in the 1990s, there still are up to 200,000 graduates entering the Saudi job market each year, and estimates of newly available jobs in the early 2000s were as low as 20,000. Is the market ready to absorb them, are there enough opportunities in the private sector?

The private sector should be able to absorb them. Unfortunately, that is not the case. Most of them need more practical training and experience. Lately, the students move towards the majors that the country requires. I see a move towards engineering and business in UBT. The engineering college is growing very fast. This makes me think the thinking of the students is on the right track.

In your opinion, what are the three most important issues that policy makers must address to transform the education sector?

To support scholarship programs, $6 billion (SR22.5 billion) was earmarked for over 207,000 Saudi students studying abroad and their families, up slightly from $5.9 billion (SR22 billion) earmarked in 2014.

I believe sending students abroad is a good idea, but it needs careful study in terms of the fields of study they are pursuing outside Saudi Arabia.

We need to have universities that offer education that the market requires. Policy makers should be paying more attention to education as a whole, even before students reach the tertiary level of university. Attention should be paid to elementary education, high school education, the intermediate education etc. The early stages of education are very important and development is necessary in this segment.

You mentioned the King Abdullah Scholarship program earlier, which is the program that funds overseas educations. Does it need any changes?

The program itself is great. It caused a revolution in the education sector in Saudi Arabia. However, the program needs more planning and organizing. The main area of reorganization is the majors. Students should be sent abroad to get education the market needs.

Is not the program a main competitor for your university?

There is an overlap. However, there are people who prefer that their sons and daughters stay in Saudi Arabia for their education. The quality of education at the University of Business and Technology is a match for any university abroad.

Family is very important in Saudi Arabia and many students return from abroad. At the UBT the students are asked to rank the quality of education. From our research, the UBT offers high quality education on par with universities abroad.

Can you talk about the history, the background, the original founding idea of the University? Who are the shareholders?

The university was founded in 2000 as an Institute of Management. Two years later the institute morphed into a college, the College of Business, known as the CBA. It was two colleges of business actually, one for men and one for women. Then we established the Engineering College. Then we established the Advertising College, which is unique in the Middle East.

We became a University three years ago. We are now the University of Business and Technology. The University is growing very fast. There is a little over 5000 students, both male and female, including the MBA program. The university offers one of the best MBA programs in Saudi Arabia.

The University began as an institute, set up by four people. Three of them were businessmen and one was an academic. Then one of them left, the academic. Now three people own this University. They are Dr. Abdullah Dahlan, Dr. Hisham Jamjoom and Dr. Shehab Jamjoom. Dr. Dahlan is a well-known businessman. He was the General Secretary of the Jeddah Chamber of Commerce for a long time. Dr. Shehab Jamjoom and Dr. Hishab Jamjoom are from a very well-known commercial family. With the University expansion they may take on new partners.

What is the relationship between private sector education and public sector education? Do you see the private sector growing as opposed to the public sector?

The private sector is growing. The UBT developed many academic connections with leading universities in Saudi Arabia such as King Abdulaziz University and many other international universities. For instance, when we established the College of Advertising, we consulted with the University of Buckinghamshire in the UK.
Now we are dealing with an American university to develop our College of Engineering. There is an academic relationship between state and private universities.

In terms of future business development where would you like to venture? Would you like to focus on executive education, the MBAs, the Ph.Ds, or would you like to focus on undergraduate studies?

The strategy is to establish a College of Medicine. The preparations for this school have already begun. We have bought land for this college. There is also a big expansion planned for women’s education. We are moving this segment to a very beautiful campus, near the Corniche in Jeddah, a bigger location.

The UBT is adding more majors, both in the College of Business and in the College of Engineering. Recently, a new major in Insurance was added to the College of Business. We are also trying to add a Commercial Law section in the College of Business. The plan is to start a Masters’ degree in Engineering.

What is the total value of investment in the new campus and new programs?

The total value of the investment could reach SAR 600 million for the new expansions.

Traditionally, education in Saudi Arabia has been connected to religion and culture. King Abdullah tried to introduce new reforms, for example KAUST, which is a mixed gender university, so females and males can study in the same classrooms. Do you foresee this happening in the mainstream?

The main issues will not change. We will still have separate campuses for males and females. Society accepts that norm. People believe in gender separation in education. Teaching Islamic subjects like Islamic Culture, will continue to be the same.

KAUST (King Abdullah University of Science and Technology) is a different experience. Most of the students at KAUST are not Saudis, though there are some Saudis. It is a university with an international atmosphere. That is why they have the mixed gender classes. It is still monitored and controlled by the authorities; it is not an open society.

As for our university, we are obliged to have separate campuses. We follow the guidelines set by the state. We have three courses in Islamic Culture that we offer students, these courses are required by the government.

It teaches points of ethics according to Islam with regard to work, dealing with the labor force. They address issues related to the majors that we teach, connected to business.

Your website states that your university is one of the leaders in business education in Saudi Arabia. What makes you the market leader?

The UBT is recognized as one of the leading business schools in Saudi Arabia. The university enjoys a great reputation.

Second, and most important is, that CBA was the first private college to receive accreditation from the NCAAA. The NCAAA is the National Commission for Accreditation and Academic Assessment. It is a Saudi organization for the accreditation of private universities.

That makes us different, doesn’t it? We are seeking international accreditation through the EFMD (European Foundation for Management Development), which is the European organization for the accreditation of business schools. Now the University itself will be accredited as an institution by the NCAAA.

We are also seeking accreditation by AMBA (Association of MBAs), for our MBA program. This is an American accreditation organization.

Because of accreditations, the UBT is one of the leading business schools in Jeddah and the western area of Saudi Arabia.

What are the international connections you seek? What are your international partnerships?

There are many MOUs signed with major universities in America, Europe and the Arab world. We are steadily moving towards internationalization. Currently, we work with the University of Connecticut for the engineering college. We are also with a UK based group to develop the programs in the CBA. We are linking ourselves with international organizations and universities.

Finally, what is your personal vision for the University? What do you hope to have achieved before you step down?

Our target is to have a student population of around 10,000 students, male and female, finish the College of Medicine, expansion of the women section, get international recognition and accreditations from both the US and Europe. The UBT will be fully recognized by the international organizations in a 3 to 5 years.

Which international accreditation would you consider the most valuable?

We are seeking accreditation from EFMD that would give us accreditation among the business schools in Europe. In addition, there is the AACSB (Association to Advance Collegiate Schools of Business), that is the accreditation organization in America.

We are seeking EFMD accreditation first. Locally, the business school and programs are already accredited. We are working to get accreditation for the colleges of Engineering and Advertising. We are also trying for the AMBA accreditation for the MBAs. In five years’ time, I think we will have at least two of these accreditations—I believe we are capable of achieving that.