DOHA: Qatar and the UAE are emerging as education hubs in the Middle East with the two states being some of the highly preferred destinations of overseas students for providing quality education.
This is happening due to various factors, including simple visa procedures and the presence of international education institutes of repute, according to GCC Education Industry Report by Alpen Capital.
Students in the region are increasingly turning to Dubai and Doha, instead of the UK, to obtain quality international-level education. According to the Unesco, Dubai has become the third most popular destination, following France and the US, among students from the Middle East.
Alpen Capital yesterday announced the publication of the report which presents the growth prospects of the GCC education sector, based on the current developments within the sector, key market dynamics, and the existing investment opportunities in the region.
The scope of the report encompasses the pre-primary, primary, secondary, tertiary, and vocational training segments across all GCC nations. Further, the report profiles the six GCC countries as well as some noteworthy private educational institutions in the sector.
“The growth of the GCC education sector is driven by factors such as population growth, increasing number of expatriates, the rising importance of high-quality education in the society, and a growing spending propensity. The sector is gaining additional momentum from governments across the GCC that are acknowledging the need for an education system capable of producing industry-ready graduates. Thus, with increased focus on improving the quality and reach of education in the region, the sector presents an interesting investment opportunity”, said Sameena Ahmad, Managing Director, Alpen Capital.
“The Education sector in the region is growing at a fast pace and presents opportunities for private investors. Private players, both local and international, are attracted to segments such as the K-12 and higher education, which are the largest within the sector. Further, the new and promising industry-specific, niche sectors such as vocational training, finishing schools, child-skill enhancement, and e-learning are also receiving investor attention due to their growing demand”, said Mahboob Murshed, Managing Director, Alpen Capital
According to Alpen Capital, the total number of students in the GCC region is expected to grow at a three percent compound annual growth (CAGR) between 2013 and 2020 to reach 13.7 million.
The total number of schools is expected to rise at a 2.4 percent CAGR from 2013 to 2020, concurrent with the increasing number of students in the GCC.
Enrolment increase at private schools is expected at a 6.7 percent CAGR between 2013 and 2020, due to the quality of education they offer and the favorable demographics in the region.
Although the sector is geared to grow and presents excellent opportunities to investors, it still faces some challenges.
According to the report, there needs to be a better alignment between the courses offered at education institutions to the industry requirements. This leads to increased demand in skill intensive areas such as engineering as most students across the GCC prefer subjects such as the social sciences and arts.
Increased attention also needs to be given towards research and innovation at education institutions. The preliminary education segments across the GCC are still struggling to become the robust foundation that can prepare students for higher education.
The Peninsula
