The UAE’s education sector is witnessing a robust growth with an influx of investors as demand burgeons aided by a rise in employment opportunities. The UAE’s private K-12 education market is expected to grow to $7.1 billion by 2023 from $4.4 billion in 2017, says a report.
The Boston Consulting Group (BCG), in its latest report entitled ‘Where to invest now in the GCC private education’, said the private education market in the region is becoming a magnet for investors and is expected to double over the next five years from $13 billion to $26 billion by 2023.
Despite the fact that strong growth has been predicted across the region, the report said investors must fine-tune their strategies to account for the shifting circumstances before committing to an investment opportunity in the GCC.
The BCG report identified four drivers of growth in the private education sector. This includes shift towards private schools, higher tuition fees, population growth and increase in enrollment. It said tuition fees for the private education sector will continue to rise from 2 per cent to 4 per cent on average per year.
“Given the UAE’s agenda for a knowledge economy (e.g., the UAE vision 2021), there is the need to strengthen the overall education system so that it can rival the best globally,” Raghu said.
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