Investment opportunities in GCC private education

The value of investment opportunities available in the private K-12 education sector in the GCC could potentially reach $3.5 billion (Dh12.8 billion) in 2012, according to a study done by The Parthenon Group, the leading strategic advisor to the global education industry.

Meanwhile, the potential for investments in the higher education segment in 2012 is estimated to be worth $1.2 billion.

Entitled 'GCC Insight Report: Investment Opportunities in K-12 and Higher Education in the UAE and Saudi Arabia'; the report is based on an in-depth survey of over 1,100 schools and universities. The report will arm potential investors with a data driven insight into the investment potential in the education sector, with a particular focus on the two countries.

Karan Khemka, Partner and Head of the Emerging Markets Practice, at The Parthenon Group said: “Although the macro environment may suggest strong investment potential for education in the region as a whole, investors should choose their markets carefully; as the different education sectors have different drivers.

We identified several segments of the market that see exponential growth, while other segments might already run at full capacity. There is a clear trend towards private education and a preference for international and mixed curriculum schools because students choose education in English at both secondary and tertiary levels.

For example, the private higher education segment in Saudi Arabia - albeit still small in size - is growing at an annual rate above 35 per cent compared to the public sector which is growing at only 10 per cent. This shows that students and their families increasingly choose the private sector where a larger proportion of teaching is done in English."