TRESVISTA FINANCIAL SERVICES
Challenges
Despite the huge potential of the education sector, there still exist significant challenges to development
of the sector:
Quality of Education
Lack of qualified and skilled teachers
and lower focus on English, Science,
and Math due to high emphasis on
humanities, hampers the quality of
education
Lack of Job Opportunities after
Education
Governments provide employment
to the nationals with minimum
qualifications, tempting youths to
choose government jobs over private
jobs requiring higher education
CHALLENGES
High Fees
High fees charged by private players
are major concern for expatriates, who
usually send their children to private
schools
Capital Intensive Nature of
Investment
A low number of students per school
results in high cost and low revenue
per student. Moreover, the industry
has a high turnaround time, which
acts as a setback for entry of investors
To conclude, though the GCC region offers an excellent mix of demographics, economics,
and environment for the private education space. Its growing young population, increasingly
a part of the globalized world, represents both an urgent challenge and an exceptional
opportunity for countries in the region. Increasing wealth and the resultant quality
consciousness in people is one of the key factors which will drive more and more of the
population towards private education.
While the sector is facing challenges to the realization of its true potential, governments
across the region have taken various initiatives to reform education and improve quality.
Recognizing the changing dynamics of the sector, various governments are also encouraging
private sector participation in the sector. This has created conducive environment for the
for-profit education sector, making it an attractive investment opportunity.
October 2011 | INDUSTRY INTELLIGENCE
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