Thursday, 15 Apr 2021
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’.

Oman’s private college marketplace can develop to $1.8bn in subsequent 5 years: BCG study

Only 23 per cent of Oman’s 730,000 students are enrolled in private schools, reduced than the 30 per cent GCC typical, indicating lots of area for development. Enrolment in private schools in Oman has grown at a seven per cent compound annual development price (CAGR), whereas enrolment in public schools has only grown at a two per cent. This trend is anticipated to continue, albeit at a slightly slower price.

According to the report, the private education sector in Oman is fairly immature, with a restrictive regulatory atmosphere. Government scholarships favour public college students, putting private college students at a slight disadvantage if they hope to be chosen 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,” mentioned 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 marketplace is becoming a magnet for investors, and so, it is anticipated to double more than the subsequent 5 years. Despite the truth that robust development has been predicted across the area, investors need to fine-tune their methods to account for the shifting situations just before committing to an investment chance.

The report identified 4 drivers of development in private education, affecting markets across
the GCC: Shift towards private schools, tuition costs, population development, and enrolment development.

At US$11,000 per student per annum, private college spending is greater in the GCC area than in Organisation for Economic Co-operation and Development (OECD) counterparts. Parents across the area are becoming increasingly prepared to spend for private schools that supply differentiated offerings and enhanced outcomes – and this trend will most likely develop now that governments are starting to publish efficiency ratings of all schools.

Across the GCC area, tuition costs for private education will continue to rise from two per cent to 4 per cent per year. However, tuition costs are increasing at a slower price than in current years owing to tighter regulations and an financial atmosphere that limits customer spending. The student-aged population (3 to 17 years) is anticipated to develop at a CAGR of a single per cent to 3 per cent. The expatriate population is anticipated to develop even quicker than national populations, and expatriates attend private schools.

Private college enrolment at the major level and above is higher all through GCC and anticipated to stay steady. Enrolment prices at the pre-college level (ages 3 to six) are developing, most notably in Saudi Arabia, which has the biggest general population in the GCC area and the lowest kindergarten enrolment price.

Information Source: Muscat Daily

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