Education Sector in UAE to 2019 — Market Size and Intelligence Report — Indalytics Advisors

EDUCATION SECTOR IN UAE TO 2019 — MARKET SIZE AND INTELLIGENCE REPORT

Indalytics Advisors [email protected] www.indalytics.com

April 2014

Education Sector in UAE to 2019 — Market Size and Intelligence Report

©Indalytics Advisors Pvt. Ltd l www.indalytics.com l 1

TABLE OF CONTENT

Education System in UAE

Market Size of UAE’s Education Sector

Preschool Education in UAE

School education in UAE

Higher Education in UAE

Vocational Education in UAE

Adult and Special Education in UAE

Forecasted Market Size of UAE’s Education Sector

Drivers Impacting UAE’s Education Sector

Driver 1

Driver 2

Driver 3

Driver 4

Driver 5

Trends in UAE’s Education Sector

Trend 1

Trend 2

Trend 3

Trend 4

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Trend 5

Trend 6

Trend 7

Trend 8

Opportunities for Private Players

Setting Up a Private School in UAE

Setting Up a Private Higher Education Institution in UAE

PEST Analysis of UAE

Political Analysis of UAE

Economic Analysis of UAE

Social Analysis of UAE

Technological Analysis of UAE

5-forces Analysis of Education Sector in UAE

Threat of New Competition

Threat of Substitute Products and Services

Bargaining Power of Buyers

Bargaining Power of Suppliers

Intensity of Competitive Rivalry

Promising Opportunities in Education Sector in UAE

Schools Providing Education in International Curricula

Higher Education institutions providing courses on favored courses




Education providers in Islamic Finance

ICT players providing Digital Content

Profiles of Major Players

GEMS Education

SABIS

ALDAR Academies

Taaleem

Emirates National Schools

The Ras Al Khaimah Education Company (EDRAK) PJSC

Addax Education Holding W.L.L.

Academia Management Solutions International (AMSI)

Innoventures Education

IQ Education Consultants

UniAdmission

S.S. Lootah Group

Annexure




LIST OF FIGURES

Figure 1: Education System in UAE

Figure 2: UAE’s Education Sector — Market Size (AED billion / US$ billion)

Figure 3: UAE’s Preschool Education — Government and Private

Enrollment

Figure 4: UAE’s Preschool Education — Male and Female Enrollment

Figure 5: UAE’s School Education — Enrollment by Stages

Figure 6: UAE’s School Education — Government and Private Enrollment

Figure 7: UAE’s School Education — Government and Private Schools

Figure 8: UAE’s School Education — Male and Female Enrollment

Figure 9: UAE’s Higher Education — Government and Private Enrollment

Figure 10: UAE’s Higher Education — Government and Private Institutions

Figure 11: UAE’s Higher Education — Male and Female Enrollment

Figure 12: UAE’s Higher Education — Enrollment by Specialization —

Government Institutions

Figure 13: UAE’s Higher Education — Enrollment by Specialization —

Private Institutions

Figure 14: UAE’s Vocational Education — Government and Private

Enrollment

Figure 15: UAE’s Vocational Education — Male and Female Enrollment

Figure 16: UAE’s Adult Education — Male and Female Enrollment




Figure 17: Forecasted Market Size of UAE’s Education Sector — 2014(E)–

2019(F)

Figure 18: UAE’s Federal Spending on Education Sector

Figure 19: Growth of Total Population and School Students in UAE — 2010–

2012

Figure 20: % of National and Non–National Students in UAE — School and

Higher Education

Figure 21: GDP Growth Rate of UAE, as compared to Other Countries

Figure 22: Internet Subscribers in UAE — June 2012 –December 2013

Figure 23: Active Mobile Subscriptions in UAE — June 2012 –December

2013

Figure 24: % of School Students Enrolled in Vocational and Technical

Education

Figure 25: Student to Teacher Ratio at School and Higher Education Level

Figure 26: Demographic distribution of UAE — 2013 (E)

Figure 27: Five Forces Analysis of UAE’s Education Sector

Figure 28: Number of Teaching Staff in UAE — School and Higher Education

Figure 29: Break–up of UAE’s Schools and Higher Education Market into

Government and Private

Figure 30: Gross Enrollment Ratios in UAE

Figure 31: UAE Population by Age Groups




PUBLICATION DATE

April 2014

NUMBER OF PAGES

85

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ABOUT THE REPORT

The report ‘Education Sector in UAE to 2019 — Market Size and

Intelligence’ discusses the current market size of the UAE’s education

sector. It segregates the market size on the basis of various levels of

education, starting from preschool to higher education.

The report discusses the forecasted market size and year–wise growth of

the sector till 2019, along with the various drivers, which will lead to this

growth. It further discusses the various trends that are shaping the

education sector.

Various regulations pertaining to entering UAE’s education market are also

mentioned in the report, along with the profile of key players that are

active in private education space.




EXECUTIVE SUMMARY

UAE has one of the highest literacy rates (90%) among the developing

countries — with an enrollment ratio of approximately 107% for primary

education, and approximately 67% for higher education. The country

caters to approximately 33% of its population across various levels of

education, and spends approximately 21% of its total government

expenditure on education.

More than half of the UAE’s education sector is dominated by the general

school education, followed by higher education and preschool education.

The sector has benefitted from high government spending of

approximately one–fifth of the total federal expenditure on education, and

improvement in quality of education at public schools. However many

students are now opting for private schools — which teach in English, and

as per international curricula.

Demand for private education is coming from both locals, as well as

expatriates staying in UAE. The country is witnessing an increase in number

of private players, especially in higher education, which are catering to

growing number of youth. These players are collaborating among

themselves, raising financing, and investing in various levels across the

sector. UAE is also witnessing increased use of technology, as the

government is advocating digital education through its programs.




Growth of UAE’s education sector will be driven by various factors, such as

increased government and private spending on education, demand from

expatriates representing 81% of the population, and increased use of

technology.

RESEARCH METHODOLOGY

This report has been prepared through the following comprehensive

methodology:

The market definitions used in the reports are the standard definitions

recognized by the industry. In this report, the market size of the education

sector is defined as the sum total of core expenditure on teaching

students. It includes the fees paid by students in private schools and higher

education institutions, as well as the government expenditure per student

in case of public schools and higher education institutions.

Bases of all the figures are taken from the statistics provided by the

government, ministries, as well as prominent organizations such as the

World Bank, International Monetary Funds, UNESCO Institute of Statistics,

World Factbook — CIA etc. The data is further validated through credible

analyst reports, white papers by industry organizations, questioners and

expert interviews.




LIST OF ORGANIZATIONS MENTIONED IN THE

REPORT

Academia Management Solutions

International

Addax Bank

Addax Education Holding LLC

Al Jalila Foundation

ALDAR Academies

ALDAR Properties PJSC

Autism Trust Foundation

Cranleigh

DM Healthcare

Dubai Medical College

Dubai Pharmacy College

EduStaff

Elaph Investments LLC

Emaar Properties

Emirates Integrated

Telecommunications Company

Emirates National Schools

Emirates Telecommunications

Corporation

Etihad Airways

Etisalat

Fujairah College

GEMS Education

Gulf Medical College

Hamdan Bin Mohammed e-University

Heriot–Watt University

Higher Colleges of Technology

Horouf Publishing Group

INJAZ UAE

Innoventures Education

International Monetary Fund

IQ Education Consultants

Islamic School for Training and

Education

Jaleel Holdings

Jordan Investment Trust PLC

Kalimat Publishing Group

London Business School




MAHSA University

MasterCard

Microsoft

Nalapad Group Overseas

New York University

Pearson PLC

Rabdan Academy

Raffles Schools

S.S. Lootah Group

SABIS Educational Services S.A.L.

Samsung

SeekTeachers

Sorbonne

Taaleem

The Ras Al Khaimah Education

Company

The Technical Institute

UAE University

UniAdmission

University of Wollongong in Dubai

Zayed University




REPORT SAMPLE

EDUCATION SYSTEM IN UAE

Education is one of the major sectors in UAE, which attracts 21% of the

government’s budget. While the school education is governed by the

Ministry of Education, Postsecondary or higher education comes under the

purview of Ministry of Higher Education.

The government provides free education in public schools and higher

education institutions to UAE nationals or children of Emirati mothers.

Expatriate students in UAE can also attend the public schools, but for a fee.

The medium of instruction in public schools is Arabic, with English being

offered as a second language.

School education sector in UAE is divided into four stages, spanning across

14 years of education. The first stage consists of preschool or kindergarten

education that starts at three years of age, and lasts two years.

Kindergarten education is free and voluntary.

The core K–12 schooling starts after kindergarten, and is spread across 12

grades, divided into three cycles. Cycle 1, or the elementary stage, spans

across grade 1 to 5, and is aimed at providing basic elementary education

to children.




Cycle 2 caters to children in the grades 6 to 9, with a minimum age of 10.

Cycle 2 is followed by Cycle 3, or secondary education stage. This cycle also

consists of three grades, from grades 10 to 12. The cycle contains

specialization courses in Grade 10 such as Islamic Education, Arabic,

English, Mathematics, Biology, Chemistry, Physics, Geology, History,

Geography and ICT — where students choose their specialization. Post

Grate 10, students can either opt for Science Stream, or Literature Stream

in Grades 11 and 12. On completion of Cycle 3, students are awarded

school leaving certificates, also known as Shahadat Al-Thanawiya Al-

Amma.

During Cycle 3, students also have an option to take vocational education

and training. There are eight secondary technical schools in UAE, which

offer vocational education and training programs in grades 10 to 12. The

schools provide courses in various subjects, such as mechanical, electrical,

and civil industrial technology, agriculture, business management,

computer applications and accounting.

Besides the government schools, there are other private schools in the

country, which provide education as per international curricula. These

schools do not come under the ministry, and charge fees.




After completing secondary education, students apply for admission to a

postsecondary or higher education institution. Higher education is

governed by the Ministry of Higher Education and Scientific Research, and

citizens of UAE, or children of Emirati mothers are entitled for free

education at the government institutions. Besides, they can also join

private institutions, having accreditation to international universities.

The undergraduate degree programs are generally of four years, followed

by master’s degree of two years and doctoral degree of three years. There

are also some undergraduate diploma certificates and courses of one to

two years, which students can pursue after secondary education.

Students can also take vocational education courses after completing

secondary education. An Applied Bachelor degree in vocational education

is of four years, while a diploma is of two years. Only UAE citizens and

children of Emirati mothers can study in government–sponsored Federal

higher education institutions — only exception being United Arab Emirates

University (UAEU) and Zayed University (ZU). In order to take admission in

the federal higher education institutions, all the students are required to

take a test, called Common Educational Proficiency Assessment (CEPA) —

which evaluates their competency in English and Mathematics. For

expatriate students, there are several private higher education

institutions.




The Ministry of Education, under the Federal Law No. 29/2006, provides

state–sponsored education to children with special needs. Based on their

needs, students are either taught in regular classrooms, with assistance

from teachers and community providers, or in specialized class room or

their homes. All the schools are also required to provide assistance to

students, in form of special education teachers, psychologists and other

learning aids.

The ministry also provides adult and continuing education to people, who

have not completed their basic education, and have crossed the age–limit

of enrolling in schools. Adult education is provided, both in form of normal

basic education, as well as vocational education and training.




FIGURE 1: EDUCATION SYSTEM IN UAE

Source: Indalytics Advisors




FIGURE 2: UAE’S EDUCATION SECTOR — MARKET SIZE (AED BILLION / US$ BILLION)


FIGURE 3: UAE’S SCHOOL EDUCATION — ENROLLMENT BY STAGES

Source: Ministry of Education; Indalytics Advisors

Preschool Education

K–12 School Education

Higher Education

Vocational Education

Special Education

Adult Education

Year = 2013 (E) Total Market Size: AEDXXX billion US$XXX billion

Cycle 1

Cycle 2

Cycle 3

Year = 2013 (E) Total Market Size: AEDXXX billion US$XXX billion




FIGURE 4: DEMOGRAPHIC DISTRIBUTION OF UAE — 2013 (E)

2013 Total Population (E)

2013 Population – National Citizens (E)

2013 Population – National Citizens (E) 2013 Population – International Citizens (E)

Source: International Monetary Fund; National Bureau of Statistics, UAE; Indalytics Advisors

National International

Abu Dhabi

Dubai

Sharjah

Ajman

Umm Al-Quwain

Ras Al Khaimah

Fujairah

Males Females Males Females




FIGURE 5: FIVE FORCES ANALYSIS OF UAE’S EDUCATION SECTOR


Threat of newcompetition

Threat of substituteproducts and services

Bargaining power ofbuyers

Bargaining power ofsuppliers

Intensity of competitiverivalry

Government Institutions Private Institutions

Low

High




DISCLAIMER

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Indalytics Advisors Private Limited.

The information contained in this report is of a general nature and is not intended to address any particular individual or entity’s circumstances. Although proper care has been taken to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The publisher should not be held liable for any discrepancy in the information. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Publication Volume: GCI-14-GL–02

Publication Date – April 2014

© 2014 Indalytics Advisors Private Limited

For further information, please contact [email protected]


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NOTES
