Dubai’s Education Sector Holds Immense Potential For Investment In Private Schools

In the recent years, Dubai’s education sector has grown significantly to become a major contributor towards Emirate’s economy. With an approximate contribution of 22% towards the GDP, Dubai’s education sector contributes at least four times more than most of its counterparts, including London, Hong Kong and Singapore.

Education Sectors growth Drivers 

The growth could be accounted mainly for the economic transformation of the Emirates along with the growing base of local (2.3 Million) and tourist (10 Million) population in Dubai. This has triggered the demand of private schools in Dubai which is evident from the revenue generated by Dubai’s Private Schools in the year 2013-2014 estimating at AED 4.7 ($1.28) Billion. For the same reason, Dubai’s education sector could be considered as the most important sector in terms of investment.

Increasing Demand of Private Schools in Dubai

As of 2014-15, the number of students enrolled in Private Schools of Dubai is 255,208 with overall private school enrolment expected to rise to 360,000 by 2020, according to Knowledge and Human Development Authority (KHDA). It is anticipated that 110 new schools will be required by the market by 2020 of which 27 new schools are planned to open by the end of 2016, that will bring the total number of private schools in Dubai to 196 from current 169 schools as KHDA seeks to accommodate 104,792 new students. This need is particularly attributed to the increased annual student enrolment in private schools, which is increasing by 7-8% on a y-o-y basis.

The graph below illustrates the y-o-y increase in number of new private schools opened in Dubai and it is evident that there is high demand for investment in Dubai’s Education and K-12 Sector.

Investment Opportunities in Dubai’s Education Sector / K-12

The continuous growth in education sector combined with ever-evolving Dubai’s economy has provided new opportunities for investors in establishing new schools, institutes and day care centers. More precisely, the introduction of K-12 education, which aims to integrate innovation and the use of modern technological tools into the teaching/learning process have been widely embraced by students as it has drastically enhanced the overall learning environment.

Moreover, technology based solutions such as e-text books, e-boards, animations, simulations and digital libraries are increasingly becoming very popular in private schools of Dubai mainly due to access of high speed Internet and smart device penetration in the Emirate, making students feel more comfortable with technologies from an early age.

Given its significance, Dubai’s education sector has definitely transformed into a fertile ground with more investments expected to enter in the coming time. However, the gestation period in education is believed to be higher when compared to other industries such as real estate or technology start up because of which Dubai’s Education Sector holds immense potential and investment opportunities just waiting to be exploited.

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