UAE 2nd in GCC in terms of total students: report

The GCC education sector is on a growth trajectory, and the industry is poised for unparalleled and consistent growth propelled by increased private sector participation, rising education needs in the region as well as government initiatives to improve the education system, according to a report by Alpen Capital, Dubai.

The report titled ‘GCC Education Industry’ said the total students in the region are expected to grow from 9.5 million in 2010 to 11.3 million in 2020 at a CAGR of 1.8 per cent.

The number of tertiary students is expected to witness the highest growth during this period, as education awareness grows and participation in private sector jobs also rises. Number of tertiary students is expected to grow at a highest CAGR of 5.5 per cent, the report said.

The share of tertiary education students is expected to rise from 11% in 2010 to 15 per cent in 2020, while primary education share would decline from 46 per cent to 43 per cent during the same period.

Considering Saudi Arabia’s huge population base, it has the highest share of 75 per cent in terms of total students in the GCC education sector. Saudi Arabia is followed by UAE (8 per cent) in the region.

Going forward, in 2020, Saudi Arabia is expected to command 74 per cent share, followed by 8 per cent share of UAE and Oman each, 6 per cent share of Kuwait and 2 per cent share of Bahrain and Qatar each, it added.

Increase in student population is expected to drive demand for more schools in the region. Total schools are expected to grow at a CAGR of 1.2 per cent during 2010 to 2020. Due to its huge student population, over 80 per cent of total schools are estimated to be located in Saudi Arabia.

Private schools growth rate is expected to outpace that of public schools. The number of private schools in the region is estimated to increase at a CAGR of 3.2 per cent during 2010 to 2020, while public schools are projected to grow at a significantly lower rate of 0.9 per cent during the same period.

The report added that the GCC education sector is poised for a strong growth along with fundamental and structural changes. However, efficient regulatory and monitoring agencies are required to raise the education standard in the sector.

Governments should promote technical and vocational education to make the workforce skilled for private sector as well. The governments in the region are taking necessary steps to implement key changes required to raise the standards of education in the region. However since these gaps lead to additional requirement in number of schools, significant opportunities for private sector exist. The GCC education service sector will witness a major transition in the quality of services provided and in competitiveness on the global basis, it said.
 

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