The UAE and GCC's education sector holds bright
prospects for teachers and the other general administration staff as demand
will grow in coming years in line with the surge
in population across the region.
The shortage of teachers in the region is also
the second highest in the world as the profession is of less interest to the
locals who prefer to work in highly paid public-sector jobs. Although the
region has a lower pupil-teacher ratio of 17 compared to the world average, the
countries face challenges in recruiting highly qualified teachers. Growing
demand for teachers at international schools in the UAE of at least 14,000 over
the next five years and in Saudi Arabia of 183,600 by 2030 will pose further
problems, Marmore Mena Intelligence said in its report.
MR Raghu, managing director of Marmore Mena
Intelligence, says a shortage of
qualified staff is still a challenge faced by many institutions in the UAE.
Private players need to offer salaries above the global average to attract
quality staff. Over the period of next 3 years, about 10,000 staff are expected
to be recruited.
The influx of private institutions is expected
in the coming years to meet the growing demand.
Favourable demographics, rising disposable
income, government initiatives and the willingness of parents to spend on
education are expected to be key growth drivers for the education sector.
The average spending for education in the UAE
is nearly twice that of the global average and the average tuition fee for
private institutions in the UAE has grown at a compound annual growth rate of
five percent since 2011.
According to Mahboob Murshed, managing director
of Alpen Capital, the total number of students in the UAE is projected to grow
at an annualised rate of 4.1 percent,
from an estimated 1.1 million in 2015 to 1.4 million in 2020; there are around
220 schools forecasted to be set up in the UAE by 2020. Irteza Ahmed, director
of Investments at Amanat Holdings, which holds stakes in educational
institutions including Madaares, says there are
considerable planning and visibility regarding new schools opening in 2018 -
and along with existing supply, these new schools will help address demand in
the market. With respect to teachers, the UAE remains an attractive destination
for teachers trained locally and across the globe.
Ahmed sees overall tuition fees to remain
stabilised in the UAE due in part to constructive initiatives by regulatory
bodies such as the KHDA and ADEK.
According to Mahboob Murshed, the population in
the GCC is projected to reach close to 60 million in 2020, 40 percent of whom are below 25 years of age. The
total number of students in the GCC education is projected to grow at a CAGR of
3.6 percent from an estimated 12.6
million in 2015 to reach 15 million in 2020.
"Saudi Arabia will lead the way with
almost 7,000 schools expected to come up in the kingdom in the next five years
to meet the growing requirements and manage the current shortfall. On the other
hand, the number of educational institutions in Dubai is heading for a potential oversupply and this may further
intensify competition in the sector," Murshed said.
The demand for schools in the GCC region is
likely to increase at a three percent
CAGR from an estimated 43,903 in 2015 to 50,978 in 2020. Saudi Arabia will
continue to dominate the education market in the GCC. In terms of annualised
growth during 2015 to 2020, the number of students in Oman, Qatar and the UAE
are projected to grow faster than the other member nations, he added.
From an estimated 9.2 million in 2015, the
total number of students in Saudi Arabia is projected to grow at an annualised
rate of 3.5 percent to 11 million in 2020
signifying a requirement for more than
7,000 schools in the next five years in the kingdom. Saudi Arabia also aims to
build 1,500 nurseries by 2020, he added.
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