King Abdullah University of Science and Technology (KAUST) has published an economic impact assessment estimating that it generates US$5.6 billion in economic value for Saudi Arabia each year, about SAR 21 billion.

The university announced the KAUST Economic Impact Assessment on 7 October, describing it as independent. KAUST says its activity supports about 28,800 full-time-equivalent jobs across the Kingdom and that its direct contribution to Saudi GDP is about US$2.2 billion. On its impact web page, the university puts the return to the Saudi economy at US$5.20 for every US$1 invested.

How the figure is built

According to KAUST, the assessment applies internationally established approaches to measuring university impact, drawing on methods used by institutions including Oxford and Cambridge. It counts value created through research, graduates, startups and wider university activity, uses conservative assumptions and adjusts for overlaps between these channels to avoid double counting.

The news release and the impact page do not name the firm that prepared the assessment, state the year the figures relate to or give the level of public funding against which the US$5.20 return is calculated. KAUST President Sir Edward Byrne said in the release that the figures show the university’s significant contribution to the Saudi economy.

The assessment is published alongside the KAUST Impact Report, which uses case studies on research, education, innovation and partnerships. One example the university cites is its algal biotechnology work, which is being scaled through a 42,000-square-metre facility to explore high-protein biomass for animal feed.

Startups, graduates and outreach

The impact page lists more than 425 ventures supported through the university’s startup pathway and more than 6,600 jobs generated across the Kingdom by those startups. It reports 3,675 alumni, and says 65% of Saudi graduates stay in the Kingdom and 15% of international graduates are retained. KAUST Academy, the university’s outreach programme, has reached more than 30,000 online learners and delivered more than 10,000 hours of in-person education, according to the same page.

The page does not say how many of the supported ventures are still trading, how much external capital they have raised, or how the graduate retention rates are measured.

What it means

TED analysis:

  • Funding case: Economic impact studies are a familiar tool for UK universities making their case to government. KAUST is applying the same approach to a research university in the Gulf, giving ministries and its board a single jobs and GDP figure to set against public support.
  • Comparability: Until the reference year, the author and the funding base behind the US$5.20 ratio are set out alongside the headline numbers, investors and officials should treat comparisons with UK impact studies with care and read the full assessment first.
  • Talent: A 65% retention rate for Saudi graduates and 15% for international graduates gives other research universities in the Kingdom and the wider Gulf a benchmark for how many advanced graduates stay in the domestic labour market.
  • Startups: The 425-plus ventures and 6,600 startup jobs are the figures most relevant to investors and corporate partners looking for deal flow from the university, but survival rates and capital raised are not disclosed.