The demand for high-quality education in the Middle East is rising due to an increasing number of expats and young residents. As a result, the region is developing more private and international schools to meet this demand. It is estimated that the school population in the GCC will reach 15 million by 2020, requiring over 2,000 new private schools. Private education is growing in popularity among locals, and governments are increasingly supporting locals' enrollment in affordable private schools.

1. T
he rising number of expats and young residents
has led to demand for higher academic standards
throughout the Middle East. In response, the region
has increased its development of high-quality private
and international education facilities.
According to Clive Pierrepont, Director of Communications
at education provider, Taaleem, the GCC’s school population
is expected to reach 15 million by 2020. “The number of new
private schools needed to meet this population increase is
2,100,” he explains. “An increase of almost 23%.”
Growth drivers
Pierrepont points out that the key drivers for growth include
an increasing demand from locals for private education (in
contrast expats have little choice but to choose a private school).
“Recently, we have witnessed a desire for governments to
support the education of locals in private education, where
operators can deliver an internationally-benchmarked education
at an affordable price,” he adds.
According to a report titled Middle East Education Market
Analysis & Opportunity Outlook 2021 by Research Nester,
the Middle East’s education market is expected to grow at a
moderate CAGR of 1.6% in 2018. The segment is expected to
garner noteworthy revenue by the end of 2021. The report reveals
that private education is expected to occupy the top position in
the market, with top players being SSAT, Raytheon, VS, GEMS
education, AMIDEAST, SABIS and Kaplan, among others.
Educational reforms
The GCC has seen tremendous advances in both the private and
public-school sectors, says David Allison, CEO at SSAT Middle
East, which specializes in school improvement projects in both
private and government schools. “It has included educational
reforms enabling a more diverse and targeted range of curricula,
as well as capital development in new school buildings to cater
for these initiatives,” he says. SSAT operates with schools in Abu
Dhabi, along with an increasing number of private international
schools in the U.A.E., Qatar and Saudi Arabia.
“The U.A.E. has to some extent led the way with a range of
public, private partnerships in the government sector and high
growth in the need for private schools, which are more bespoke
in supporting the needs of the growing population. Dubai
now has the largest overseas campus of private universities in
Academic City and is projecting further development in the
international school sector also,” he adds.
He further adds that the numbers of international
universities are increasing, including the renowned Birmingham
University from the U.K., which will open admissions in Dubai
in September 2018. British International schools are growing
in numbers, with 79 British Curriculum Schools currently in
Dubai offering over 90,000 places, he says.
Enrolment rate rise
The Alpen Capital GCC Education Industry report, which
provides an outlook of the GCC Education industry until 2020,
BYJAKKAJE808/SHUTTERSTOCK.COM
GUIDE 2018 EDUCATION INVESTMENT
The Middle East’s education market is becoming
one of the strongest in the world thanks to a recent
rise in public and private sector partnerships.
By Hina Navin
Robust Growth
Expected For Middle
East Education
24 FORBES MIDDLE EAST I GUIDE 2018

2. reveals that the total number of students
in the GCC education sector is expected to
reach 15 million in 2020. This represents
a 3.6% CAGR from an estimated 12.6
million in 2015. The study shows the
number of students at private schools to
be growing at 5.1% CAGR from 2015. For
public schools, numbers are anticipated to
rise at an annual average of 2.6%.
Saudi Arabia will continue to head the
GCC’s market in the lead up to 2020, with
the expected annual growth rate in the total
number of its students at 3.5%, reaching 11
million in 2020. Student numbers in Oman,
Qatar and the U.A.E. are also estimated to
grow faster in the coming years than other
member nations.
Demand for schools in the GCC will
grow at 3% CAGR, up from an estimated
43,903 in 2015 to 50,978 in 2020. Over
7,000 additional schools are required over
the next five years, with most of these
needed in Saudi Arabia. Demand for
private schools is expected to be double
that for public schools.
Market challenges
Judith Finnemore, Managing Consultant
at ‎Focal Point Management Consultancy,
believes that the downturn in the economy
of some Middle Eastern countries, such as
Saudi Arabia and Oman, has resulted in
many expat families, whose children would
otherwise be taking up student places,
returning to their home countries.
“Several years ago, there was the
potential for huge profit, but this is
not necessarily the case now,” she says.
“There is the expectation that there will
be a significant reinvestment in schools
from any profits made. Also, there are
huge pressures on staffing. In the case
of India, the Middle East is no longer
such an attractive and lucrative option;
teachers will have to be formally registered
within the next two years. Many schools
cannot attract quality staff without paying
enhanced salaries, and this eats into profit.”
Allison observes that while investment
in schools has been rapid, the economic
downturns in the market can affect future
growth. “We have seen the premium end
of the international school sector start to
readjust fees more in line with the market
as recovery starts to take effect.”
Teacher recruitment has also always
been a challenge in the region. Allison says,
“As more schools open, the pool of capable
new staff members starts to decline.
Generally, over 50% of a school’s budget is
used on human resources, which is the key
to a successful institution.”
“Also, the cost of opening and
maintaining a school has increased in
recent years as the demand for STEM
education, along with a greater range
of arts and physical education capital
resources, has increased. Teachers have
been recruited and trained to offer a range
of additional IT-related subjects such as
coding. We are starting to see specialist
schools emerge that offer a higher level of
content in a specific area, such as science
or technology,” he adds.
Technology in education
Technology has been rapidly adapted and
adopted in the education sector over the
last decade, and this trend will continue
to grow, says Pierrepont. “Schools
are challenged to prepare children
for the rapidly changing job market
with critical skills being adaptability,
innovation, problem-solving and effective
communication. For this, the use of
technology in education is essential. While
teachers become facilitators of learning,
there is an increased focus on STEAM
subjects and innovation.”
Innovation in technology has led to
the expansion of the online and e-learning
market. Pierrepont says, “Various countries
in the Middle East are investing extensively
in modernizing and digitizing schools
and universities. Many consumers choose
online education, as it is affordable and can
be tailored to fit the individual’s needs.”
“The mobile e-learning technology
segment is projected to dominate the
Middle East online education and
e-learning market by the end of 2023
because of the rising sale of smartphones
and tablets. The positive attitude that
students have to e-learning is also likely to
further drive demand.”
Saudi Arabia is again expected to
account for a leading market share in
the online education and e-learning
market, with the U.A.E. also anticipated to
experience significant growth, he adds.
EDITORIALCREDIT:/SHUTTERSTOCK.COM
MENA Students
Taste U.S. Practice
Since Coca-Cola’s MENA
Scholarship Program was
founded in 2012, over
500 university students
have participated, with 108
scholars starting their own
businesses after returning
from the program.
Kathryn Casson, Coca-Cola’s
Director of Public Affairs and
Communications for MENA,
says “The program provides
training and guidance to
help transform economic
and social opportunity.
We hope to equip young
people with the skills
they need to develop
successful businesses in
their home countries. The
curriculum exposes students
to U.S. business practice
and culture and builds
connections, equipping
students to compete in a
hyper-connected world.
”To date, students from
Algeria, Saudi Arabia,
Jordan, Egypt, Morocco,
Tunisia, the Palestinian
Territories, Pakistan
and Afghanistan have
participated in the program.
GUIDE 2018 I FORBES MIDDLE EAST 25