TresVista Financial Services 02 | Page 9

TRESVISTA FINANCIAL SERVICES Growth Drivers The Demographic Dividend GCC countries are currently experiencing a youth bulge, with 60.0% of the regional population under the age of 30 Migrants in the Population The Gulf ’s construction boom and tax-free status has attracted many expatriate workers to the region, which has led to a rise in demand for private education Rising Income Levels Rise in income levels and improved standard of living in the region has influenced the attitude of people towards education Private Education = Quality Education Private education is generally perceived to be better quality due to its emphasis on English and exposure to expat students with diverse cultural backgrounds Outbound Students To be able to compete for jobs, regional students are moving overseas for seeking higher education, prompting governments in the region to encourage foreign universities to open their branches in an attempt to discourage students from going abroad For-Profit Education Market Size We estimate the market size for the for-profit education industry in the GCC to more than double to USD 49.1 billion in 2015, growing 13.5% annually over 2009 2015. Within the industry, the for-profit education market for tertiary education will grow at a pace of 13.8% annually compared to 13.1% annual growth of for-profit primary and secondary education. Tertiary education will represent ~60.0% of the total for-profit education market size over 2009 to 2015. Source: TresVista. October 2011 | INDUSTRY INTELLIGENCE 9