higher education in dubai coming of age! · 2018. 5. 16. · higher education enrolments in dubai...

Higher Education in DubaiComing of Age!Q2, 2018

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2 Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates

Ian AlbertRegional Director

Valuation & Advisory Middle East & North Africa

[email protected]

John D. DavisChief Executive Officer

Middle East & North [email protected]

Mansoor AhmedDirector (MENA Region)Development Solutions

Healthcare, Education & PPP [email protected]

IntroductionWith AED 6.8 billion of tuition revenues (academic year 2016/17) Dubai’s private K12 education market remains one of the most attractive and fastest growing markets in the world. During the same academic year Dubai hosted a total of 260 schools providing education to over 300,000 students of which 90% are in private schools.

However, compared to K12 market the higher education market in Dubai is still in infancy with only approximately 60,000 students in higher education institutions out of which 46,000 students are in private higher education institutions (2015/16 latest available) translating to only 20% and 15% of total K-12 private student population, offering just 13 majors.

Higher Education enrolments in Dubai have been steadily increasing from 33,500 in 2011/12 to 46,000 2015/16 a CAGR of 8.4%. The primary reasons for the growth includes:

> A growing resident population. The population of Dubai has increased from 2.1 million in 2012 to almost 3 million at the end of 2017, a CAGR of 7.2% per annum.

> Students from other Emirates choosing to attend universities in Dubai as it offers a greater variety of courses and established brands.

> Similar to K12 education, a growing preference towards international higher education institutes amongst Emirati parents.

> Professionals seeking to complete their education or obtain an alternate degree on a part time basis along with their work commitment.

> Similar to healthcare tourism, Dubai has emerged as an Education Tourism Hub as over one third of enrolled higher education students in Dubai come from abroad to study in the city, coming from 167 different countries.

Poised to become a leading provider of higher education, regionally and internationally, Dubai requires an estimated 68,000 student places of which 50,000 are in private sector by 2025. Colliers International specialist Education Advisory & Valuation Services team in their first comprehensive white paper on Higher Education in Dubai, present key demand / supply analysis, market assessment and identify challenges and opportunities for operators and investors to enter into Dubai’s lucrative higher education sector.

3Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates

إيان ألبيرتمدير قسم الاستشارات والتقييم الإقليمي

الشرق الأوسط وشمال إفريقياالتقييم والاستشارات [email protected]

جون دافيسرئيس تنفيذي

الشرق الأوسط وشمال إفريقيا[email protected]

منصور أحمد مدير منطقة الشرق الأوسط وشمال إفريقيا

حلول التطوير والرعاية الصحية والتعليم وشراكات القطاعين العام والخاص

[email protected]

مقدمةبلغت إيرادات الرسوم الدراسية في دبي 6.8 مليار درهم خلال العام الدراسي 2016/2017، ليظل قطاع التعليم المدرسي الخاص في دبي واحداً من أكثر

القطاعات جاذبية وأسرعها نمواً على مستوى العالم. خلال العام الدراسي 2016/2017، بلغ إجمالي عدد المدارس في إمارة دبي 260 مدرسة تقدم

الخدمات التعليمية لأكثر من 300 ألف طالب، ٪90 منهم ملتحقون بالمدارس الخاصة.

ولكن بالمقارنة مع قطاع التعليم المدرسي، لا يزال سوق التعليم العالي في دبي في مراحله الأولى، إذ لا يوجد سوى 60 ألف طالب فقط في مؤسسات

التعليم العالي، 46 ألفاً منهم يدرسون في مؤسسات التعليم العالي الخاصة )أحدث البيانات المتاحة من 2015/2016(، أي بنسبتي ٪20 و%15 من إجمالي

طلاب التعليم المدرسي العام والخاص على التوالي، ولا تقدم تلك المؤسسات إلا 13 تخصصاً فقط.

هذا وقد ارتفعت معدلات الالتحاق بالتعليم العالي في دبي من 33500 في العام الدراسي 2011/2012 إلى 46000 في العام الدراسي 2015/16، بمعدل نمو

سنوي مركب يبلغ ٪8.4. الأسباب الرئيسية للنمو تشمل:

< ارتفاع عدد المقيمين، حيث ارتفع عدد السكان في دبي من 1.2 مليون نسمة عام 2102 إلى قرابة الـ 3 ملايين في نهاية عام 7102، بمعدل نمو

سنوي مركب يبلغ %2.7.

< الطلاب القادمين من الإمارات الأخرى للالتحاق بالجامعات في دبي لما تتمتع به من علامات عالمية مشهورة وما تقدمه من تخصصات أكثر

تنوعاً.

< تنامي ميل الآباء في الإمارات نحو إلحاق أبنائهم بمؤسسات التعليم العالي العالمية أسوة بما هو سائد في قطاع التعليم المدرسي.

< على غرار قطاع السياحة الصحية، برزت دبي كمركز للسياحة التعليمية حيث أن أكثر من ثلث الطلاب الملتحقين بمؤسسات التعليم العالي

في الإمارة قد أتوا من 761 دولة مختلفة للدراسة فيها.

تسعى دبي لاحتلال الريادة في مجال التعليم العالي على الصعيدين الإقليمي والدولي، إلا أنها بحاجة لتوفير الأماكن لما يقرب من 68 ألف

طالب، 50 ألفاً منهم في القطاع الخاص، بحلول عام 2025. في أول تقرير شامل له حول قطاع التعليم العالي في دبي، قدم فريق كوليرز إنترناشيونال المتخصص في التعليم والاستشارات والتقييم تحليلاً

مهماً للعرض والطلب وتقييماً للسوق، كما قام برصد التحديات والفرص المتاحة أمام المشغلين والمستثمرين للدخول إلى قطاع

التعليم العالي مرتفع الربحية في دبي.


The overall education

sector of the United

Arab Emirates

(UAE) is governed

by the Ministry of

Education (MoE),

which regulates and

oversees several

subsidiary educational

authorities, as well

as implements the

federal mandate.

Higher Education in UAE



Higher Education Sector in the UAE

The Education sector of the United Arab Emirates (UAE) is governed by the Ministry of Education (MoE), this regulates and oversees several subsidiary educational authorities and implements the federal mandate as highlighted in the adjacent chart.

Under the MoE are several other national level regulators including; the Ministry of Higher Education and Scientific Research and Commission for Academic Accreditation. These two bodies are primarily responsible for the higher education of the country.

The Ministry of Higher Education and Scientific Research oversees higher education and scientific research in UAE.

Regulation and development of the education sector in Dubai is overseen by the Knowledge and Human Development Authority (“KHDA”).

KHDA’s role is to ensure that private educational institutes in Dubai are established and operate according to the highest quality standards and is responsible for the growth, direction and quality of private education and learning in Dubai.

The Regulatory Framework & Relevant Authorities

Education Authorities / Councils in UAE

Ministry of Higher Education & Scientif c Research

Commission for Academic Accreditation

MINISTRY OF EDUCATION

Fujairah Education

Zone

Ras Al Khaimah Education

Zone

Ajman Education

Zone

Sharjah Education

Zone

Knowledge & Human

Development Authority

Abu Dhabi Education Council

NA

TI O

NA

L R E G U L AT O R S


UAE Vision 2021 National Agenda

The UAE Vision 2021, a national charter drawn up in 2010 by H.H. Sheikh Mohammad bin Rashid Al Maktoum, calls for the overall development of the UAE. Comprising of four pillars: responsibility, destiny, knowledge, and prosperity. the Vision aims to make the UAE among the best countries in the world in time for the Golden Jubilee of the Country in 2021.

The knowledge pillar of the charter emphasizes on the development of a first-rate education system; requiring a complete transformation of the current education system and teaching methods. It aims to equip all schools, universities and students with smart systems and devices as a basis for all teaching methods, projects and research.

Ultimately, the UAE will focus on developing human capital aspects of innovation, research, science, and technology. To achieve this, a shift in the teaching-learning process is necessary to equip students with high-order thinking.

The growth of technology and creativity based industries and lifestyles has, as it has around the world, changed the preference and emphasis for UAE based students higher education. This top down and bottom up demand has seen the introduction of new courses from the University sector.

UAE Vision 2021 National Agenda Impact on Higher Education

Key sectors that will be impacted by the UAE Vision 2021 National Agenda include the following:

Technology

Renewable Energy

The technology sector is one of the pivotal sectors required to activate the country’s diversification policy away from the hydrocarbon base.

As a critical base sector for the foundations of the knowledge economy the aim is to incorporate technology into society through the establishment of technology and innovation focused higher education institutes. Key public funding initiatives include The Masdar Institute of Science and Technology and Khalifa University’s various scientific programs.

Colliers research identifies the private universities are responding to shifting market conditions by offering new programs focusing on technology such as Artificial Intelligence and 3-D Animation.

Focus on renewable energy is also inline with Vision 2021 and various initiatives have taken across the UAE including establishment of the City of Masdar and renewable energy solutions alogside nuclear power electricity generation.

The UAE’s renewable energy goals require a highly skilled workforce. As a result the country is undertaking numerous efforts in order to ensure its human capital base is well equipped.

Public Sector Growth at CAGR 6.5% (2009/10 – 2013/14)

Private Sector Growth at CAGR 8.5% (2009/10 – 2013/14)

225 000

200 000

175 000

150 000

125 000

100 000

75 000

50 000

25 000

0

100 000

75 000

50 000

25 000

0

2009/10 2015/16 2020/21 2025/26

2009/10 2015/16 2020/21 2025/26

over 38,000

new seats will be required

by 2025

over 105,000


by 2025

The UAE higher education sector is largely dominated by private sector operators with 71 institutions making it amongst the most privatized education systems in the world. The public sector comprises only 9 institutes, as depicted in the adjacent exhibits. However, in terms of total number of students the public sector share is 36% compared to private sector share of over 64%.

Higher education enrolments are growing faster than the population with growth similar to K12, higher education student enrolments increasing at almost 8% against a background population growth of 6.0%.

Total student enrolments in the UAE have gradually increased for both private and public sectors, however, increase in private sector enrolments was CAGR of 8.5% during 2009/10- 2013/14 compared to 6.5% for the public sector.

Higher Education in the UAENumber of HEPs and Students in the UAE (Public vs Private)

Public & Private University Students by Field of Study

Public & Private University Students by Major

Foundation Diploma Bachelor’s Masters

— Doctorate (0%)

Public Sector Students

Public Sector

Inst. Private Sector Institutes

Private Sector Students

Private Sector

45,385

35,4%

9 71

82,894

64,6%

72.3

5.314.18.4

30.5

31.8

19.02

4.16.7

Business

Other

Engineering

Media & Design

IT

Education


Driven by a commitment from Dubai’s leadership, who consider education as the

key driver to building a knowledge economy, in the last 30 years the number of

universities in Dubai has grown from just three to sixty-two. This includes thirty-

three international universities from twelve countries including; Australia, India,

the United Kingdom, and the United States the majority offering a wide range of

programmes at undergraduate and postgraduate levels.

Higher Education in Dubai


Dubai has constantly encouraged the establishment of international university branches (Higher Education Providers - HEP Branches) to provide high quality international degrees to its citizens and expatriate residents.

HEP (Higher Education Providers) Branches can be located in or outside a Free Zone area. The three main types of HEPs are:

Dubai Creative Cluster Authority (DCCA) enjoys the advantage of allowing part-time student employment at any companies registered within any of the DCCA Free Zone Clusters. This has been implemented Under Order No (1) (Feb 2016) of 2016 which authorizes students to work part-time. This offers students a valuable opportunity to get essential experience and exposure to industries that will form the backbone of the knowledge based economy of Dubai and also help entities to absorb local talent. Furthermore, this may assist students in sustaining the cost of living and pursuing higher education in Dubai.

A university, college, academy, or institute located in a Dubai Free Zone, which acts for, on behalf of, and in the name of a HEP headquartered outside a Free Zone (usually another country).

A university, college, academy, or institute which provides academic programs leading to the awarding of the higher education qualifications. HEP Locals can be either funded privately or by the Dubai Government. These institutions are licensed by the Ministry of Education (MoE) with programme accreditation by the Commission for Academic Accreditation (CAA). These institutions may also obtain international accreditation.

A University or college which provides academic programmes leading to the awarding of higher education qualifications. HEP Federals are established by federal decree.

Types of HEPs Operating In Dubai

HEP Branch

HEP Local (Private/

Government)

HEP Federal

HEPs in Dubai – Free Zones vs Main Land

Mainland

Free zones

Distribution of HEPs Across Various Free Zones

37,1%

62,9%

33DCCA

DSO: 1DHCC: 2DIFC: 2DMCC: 1


A majority of the Higher Education Providers “HEPs” in Dubai are based in Free Zones most of these located in

Dubai Creative Clusters Authority (DCCA).

DCCA consists of 10 Free Zone clusters, each established with a specifc purpose and industry focus. Clusters under

DCCA include Dubai Academic City, Dubai Knowledge Park, Dubai Media City, Dubai Studio City, Dubai Industrial Park, Dubai

Science Park, Dubai Production City, Dubai Internet City, Dubai Outsource City and Dubai Design District.

HEP Branch Total:

24HEP

Local Total:

14


AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DCCADIAC106

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DACCDubai South10

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DSODSO01

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DCCAD301

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DIFCDIFC20

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DHCCDHCC01

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DCCADIC10

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DMCCDMCC20

AUTHORITYFREE ZONE

HEP BRANCHHEP LOCAL

DCCADKP83

DACC

DMCC

DCCA

DKP

D3

DIFC

DHCC

DSO DIAC

Tuition FeesBased on capacity utilization, majority (>80%) of the students attend HEPs with a fee range between AED 25,000 and AED 65,000 – indicating the affordable tuition fee bracket.

Where else, 70% of HEPs offering postgraduate programs have tuition fees ranging from AED 50,000 up to 110,000.

Average Annual Fees Undergraduate (AED)

Average Annual Fees Postgraduate (AED)

Key field of StudiesBased on the latest data available, business related courses remain the most popular with the highest number of enrolments. They account for more than a 50% share increasing at a CAGR of 14.2% per annum. This compares to 12.5% in Information Technology, while foundation programs witnessed a decline of 8.0% in student enrolment during the period 2010/11-2015/16

Over the last five years student enrolment in Engineering and Architecture remains the highest compared to other fields, growing at a CAGR of 22.3% and 35.8% respectively. The market research conducted by Colliers indicates that these fields are preferred by Emirati students who prefer courses containing science and math.

The foundation programs, which usually consist of an intensive year of English Language courses, decline indicates that Dubai K12 schools are fulfilling this component by offering better English language skills amongst students.

Student enrolment in other fields of study such as Law, Health and Medicine and Education have witness a decline at a CAGR -14.5% during the same period.

30.5

31.8

19.02

4.16.7

Business

Other

Engineering

Media & Design

IT

Foundation

Law


2 5 3 5 4 5 5 5 6 5 7 5 8 5

AED

AED

30 50 70 90 1 10 130 150

Dubai Education Tourism – A top destination for higher education

Similar to healthcare tourism, Dubai has emerged as an Education Tourism Hub, with over one third of enrolled higher education students coming from abroad to study in the city.

A Global Student Accommodation (GSA) Group survey conducted on students attending higher education in Dubai revealed that over 50% of the respondents had only ever considered studying in Dubai, the city being their first choice for study destination. Other key reasons for enrollment included universities offering cultural diversity, quality of international institutions, better lifestyle experience and centrally global location.

The HEPs in Dubai are mandated to take significant precautionary measures to ensure students safety and security on campus.

Dubai is globally positioned with one third of the world’s population living

within a four-hour flight from Dubai, and two-thirds are within an eight-hour flight.

Home travel connectivity also serves as an attractor and importantly ease of

getting a tourist and student visa

International diversity of HEPs

The current HEP Branches operating in the Dubai Free Zones are from 12 different countries. Figure 6 shows the international diversity of the different HEPs in the Free Zones.

Student population diversity

Students enrolled in HEPs

The students in Dubai comes from 167 countries, with 30% from the MENA region (including UAE), 56% from Asia, 5.5% Europe, 5.1% Africa and remaining from other countries. The key source markets are

Students in Dubai lead a comfortable life wherein they

are free to choose from the wide range

of opportunities provided across

social, cultural and sporting experiences

designed to enrich their overall university

experience.

Dubai offers all the living and educational experiences with an aim to keep up

with the globally-oriented, and technologically advanced world.

Cultural Diversity

Safety & Security

Student Life

Technology Driven

Ease of Travel

3086

6545

India

Egypt

Pakistan

Nigeria

Jordan


% 30

25

20

15

10

5

0

UK

Aust

ralia

Indi

a

US

Russ

ia

Aust

ria

Leba

non

Paki

stan Iran

Fran

ce

Cana

da

Irela

nd

Other

Projected Growth in Higher Education

in DubaiDuring the academic year 2015-2016, the latest published data, just over 60,000 students were enrolled in 56 HEPs in Dubai, including full-time and part-time students, out of which 76% or 46,000 were in private institutions.

Overall HEP Growth at CAGR 7.9% (2009/10 – 2015/16)

Private HEP Growth at CAGR 7.6% (2009/10 – 2015/16)

120 000

100 000

80 000

60 000

40 000

20 000

0

100 000

80 000

60 000

40 000

20 000

0

2009/10 2015/16 2020/21 2025/26

2009/10 2015/16 2020/21 2025/26

over 68,000


by 2025 in Dubai

over 50,000


by 2025 in Dubai


Conclusions


Similar to K12 market, the higher education market in Dubai is coming of age and Dubai is expected to become a leading player regionally and continue its drive internationally with opening of more campuses of international higher education institutions in Dubai.

Based on Colliers projections, Dubai will require an additional 50,000 places in private higher education sector by 2025 brining it to a total demand of 68,000.

Colliers International’s Education Valuation and Advisory Services acted as trusted advisor to many investors and operators to start and expand their operation in the Middle East Region and in Dubai by providing market assessment, feasibility studies, entry strategies, business planning and assisting in debt and equity raising and most importantly find the right partner.

If you are looking to expand into the region or in Dubai please contact our Regional Director Mansoor Ahmed for any assistance.

Copyright © 2018 Colliers International.

The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International Middle East

Colliers International is a global leader in commercial real estate services, with over 15,400 professionals operating in 69 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.

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For further information, please contact:

John D. DavisChief Executive OfficerMiddle East & North [email protected]

Ian AlbertRegional DirectorValuation & [email protected]

Mansoor AhmedDirector Middle East and North AfricaDevelopment Solutions, Healthcare, Education & [email protected]

Colliers International | MENA Region

Dubai | United Arab Emirates+971 4 453 7400

higher education in dubai coming of age! · 2018. 5. 16. · higher education enrolments in dubai...

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