(MENAFN- Muscat Daily) Muscat- Oman's private school market has the potential to grow from US$1bn in 2016 to US$1.8bn in 2023 and growth in the private education market will be driven primarily by one factor – enrolment growth, according to a new report by the Boston Consulting Group (BCG). The report is titled, 'Where to Invest Now in the GCC Private Education'.
Only 23 per cent of Oman's 730,000 students are enrolled in private schools, lower than the 30 per cent GCC average, indicating plenty of room for growth. Enrolment in private schools in Oman has grown at a seven per cent compound annual growth rate (CAGR), whereas enrolment in public schools has only grown at a two per cent. This trend is expected to continue, albeit at a slightly slower rate.
According to the report, the private education sector in Oman is relatively immature, with a restrictive regulatory environment. Government scholarships favour public school students, placing private school students at a slight disadvantage if they hope to be selected for scholarships to study abroad.
'The private education market has become increasingly complex and competitive in recent years, particularly in mature markets such as the UAE - and these shifts have implications for investors,' said Maya el Hachem, principal at BCG.
'Omanis place more value on the quality of education than ever before, and the government is engaging with the private sector to increase enrolment in pre-schools. The private school market is highly fragmented, composed mostly of standalone private schools, and there is a need for high-quality private international schools with low- to mid-range fees,' she added.
Across the GCC, private education market is becoming a magnet for investors, and so, it is expected to double over the next five years. Despite the fact that strong growth has been predicted across the region, investors must fine-tune their strategies to account for the shifting circumstances before committing to an investment opportunity.
The report identified four drivers of growth in private education, affecting markets across
the GCC: Shift towards private schools, tuition fees, population growth, and enrolment growth.
At US$11,000 per student per annum, private school spending is higher in the GCC region than in Organisation for Economic Co-operation and Development (OECD) counterparts. Parents across the region are becoming increasingly willing to pay for private schools that provide differentiated offerings and improved outcomes - and this trend will likely grow now that governments are beginning to publish performance ratings of all schools.
Across the GCC region, tuition fees for private education will continue to rise from two per cent to four per cent per year. However, tuition fees are rising at a slower rate than in recent years owing to tighter regulations and an economic environment that limits consumer spending. The student-aged population (three to 17 years) is expected to grow at a CAGR of one per cent to three per cent. The expatriate population is expected to grow even faster than national populations, and expatriates attend private schools.
Private school enrolment at the primary level and above is high throughout GCC and expected to remain steady. Enrolment rates at the pre-school level (ages three to six) are growing, most notably in Saudi Arabia, which has the largest overall population in the GCC region and the lowest kindergarten enrolment rate.
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