The education sector in the Gulf Cooperation Council (GCC) states is poised for unparalleled and consistent growth propelled by increased private sector participation, rising education needs in the region and government initiatives to improve the education system, according to an Alpen Capital (Middle East) report. Alpen Capital (ME) Limited announced the publication of its GCC Education Report as part of its Industry Research Services on Thursday. Other recent reports from Alpen Capital have covered the GCC Takaful, retail, insurance, healthcare, cement and petrochemical industries. The GCC Education Report focuses on the GCC education segment and factors that drive revenue and earnings for the industry, as well as opportunities and challenges, says Sameena Ahmad, managing director at Alpen Capital. “Through our GCC Education Report we have aimed to cover the primary, secondary and tertiary education segments comprehensively,” she added. All the GCC countries have revised regulations to allow for easier and greater private sector participation, including participation by foreign institutions. The GCC countries' increasing collaboration with foreign universities and institutes to open branches in the GCC region, has also significantly impacted efforts to improve higher education, the report was quoted as saying by Times of Oman. Alpen Capital expects the total number of students in the GCC region to grow at a Compound Annual Growth Rate (CAGR) of 1.8 percent during 2010 to 2020, to reach 11.3 million in 2020 from 9.5 million in 2010. The number of tertiary students is expected to grow at a CAGR of 5.5 percent. The share of tertiary education students is expected to rise from 11 per cent in 2010 to 15 per cent in 2020, while the primary education's share would decline from 46 percent to 43 percent during the same period. Private enrollment's share is also estimated to rise from 16 percent in 2010 to 19 percent in 2020 in the primary and secondary education segment. The increase in the student population is expected to drive demand for more schools in the region. The schools are expected to grow at a CAGR of 1.2 percent during 2010 to 2020. Alpen Capital expects the private schools' growth rate to outpace that of public schools. The number of private schools in the region is estimated to increase at a CAGR of 3.2 percent during 2010 to 2020, while public schools are projected to grow at a significantly lower rate of 0.9 percent during the same period. The report estimates that by 2020, 6,200 additional schools would be required to meet growing demand. The report highlights that the requirement for teachers in the education sector would be around 163,200 by 2020, compared to the 2010 level. As the education participation increases in the region, the awareness of tertiary education will increase from 6 percent in 2010 to 12 percent in 2020. While 74 percent demand is expected to be generated in Saudi Arabia, UAE and Oman each account for 11 percent during the period. Although the education sector is geared for growth, the report throws light on a few challenges that are likely to be faced by the sector. Currently, the private sector participation is low in the education sector. However, as new government policies are implemented to accelerate the private sector's participation and help keep pace with increasing demand in the region, Alpen Capital believes that the GCC education service sector will witness a major transition in the quality of services provided and in competitiveness on a global scale.
