May 2016

The GCC education sector is witnessing a robust growth in student enrolments coupled with a steady expansion in related infrastructure. Population growth and rise in disposable income have supported the growth of the private education sector. Further, Government measures to encourage private sector investments alongside an increasing preference for international curricula among residents are also attracting renowned foreign education institutes to the region.

Industry Outlook

According to Alpen Capital, the total number of students in the GCC education sector is projected to reach 15.0 million in 2020, registering a CAGR of 3.6% from an estimated 12.6 million in 2015. An expanding base of school and college age population and increase in the Gross Enrollment Ratio (GER) across the education segments are likely to drive the growth.

According to Alpen Capital, the total number of students in the GCC education sector is projected to reach 15.0 million in 2020, registering a CAGR of 3.6% from an estimated 12.6 million in 2015. An expanding base of school and college age population and increase in the Gross Enrollment Ratio (GER) across the education segments are likely to drive the growth.

The number of students at private schools is projected to grow at a 5.1% CAGR from 2015. Enrolments at public schools are anticipated to increase at an annual average of 2.6%.

During the forecast period, the number of students in pre-primary (annual average of 4.5%) and tertiary segments (annual average of 5.5%) is anticipated to increase faster than that in the other segments. However, students at primary and secondary segments will continue to form over three-fourth of the total students.

Saudi Arabia will continue to dominate the education market in the GCC by 2020. From an estimated 9.2 million in 2015, the total number of students in Saudi Arabia is projected to grow at an annualized rate of 3.5% to 11.0 million in 2020. In terms of annualized 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.

The demand for schools in the GCC region is likely to increase at a 3.0% CAGR from an estimated 43,903 in 2015 to 50,978 in 2020. This signifies requirement of more than 7,000 schools in the next five years, most of which are anticipated in Saudi Arabia. While the demand for public schools in the GCC is expected to increase at an annual average of 2.6%, that for the private schools is anticipated to rise at a faster rate of 5.4% during the forecast period.

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