June 2012

All segments of the GCC education sector is poised for consistent growth in the future driven by increased private sector participation, growing focus on quality education, and strategic plans of various governments in the region to improve the education system through reform programs. We expect the higher education segment to witness significant private investment in the long-term, which will result in more private institutions opening across the GCC region. This will also have an impact on improving the higher education standards in the region and help meet the ever growing demand for this segment.

Industry outlook

Alpen Capital in its GCC Education industry report expects the total number of students in the GCC region to grow from an estimated 10.2 million in 2011 to 11.6 million in 2016, registering a CAGR of 2.7%. Total number of students in the pre-primary and tertiary segments is expected to outpace the growth rate of schooling (primary and secondary) segment, witnessing a CAGR of 11.2% and 4.8% respectively during the period. The share of students in the pre-primary segment is expected to increase from 5.3% in 2011 to 7.9% in 2016, while the share of tertiary students is expected to rise from 12.0% to 13.4% during the same period. Growth in the total students in the region is primarily attributed to the increasing population in the region.

Higher demand for education will also propel growth in the number of schools in the region. By 2016, the region is likely to have a total of 51,450 schools; out of which 20.6% will be private schools.

Alpen Capital also forsees that the number of higher educational institutes across the GCC region will rise mainly on the back of rising enrolment rates in the GCC member countries.

For more details please click here to access the complete version of the GCC Education Industry Report.