Higher Education in Dubai Coming of Age! - Q2, 2018 - V

 
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Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Higher Education in Dubai
Coming of Age!
Q2, 2018
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Colliers International Education Advisory & Valuation Services team is solely
      focused on education related business (OpCo) and real estate (PropCo), from
      complex business related operational advisory to real estate related advisory.
      Our group has the expertise and knowledge essential to providing forward
      thinking solutions to any challenging education related decisions where
      success is measured in high quality care delivered in a cost effective way.

                                             Nurseries | Kindergartens

                                                          K-12 Day & Boarding Schools

                                                                 Special Needs Schools

                                                                 Medical | Nursing | Pharma Colleges

                                                          Science | Arts | Business | Colleges
                                                          & Universities

                                             Vocational Training Institutes

                    COMMITMENT           PASSION         EXPERIENCE         KNOWLEDGE INTELLIGENCE

         USP

      Market Research | Market Entry & Expansion | Equity & Debt Fund Raising
          Highest & Best Use Study | Market & Financial Feasibility Study
       Operator Search and Selection | Land, Property & Business Valuations

2   Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Introduction
With 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                            John D. Davis
education to over 300,000 students of which 90% are in private                          Chief Executive Officer
schools.                                                                              Middle East & North Africa
                                                                                       john.davis@colliers.com
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:                                                      Ian Albert
>> A growing resident population. The population of Dubai has                             Regional Director
   increased from 2.1 million in 2012 to almost 3 million at the end                     Valuation & Advisory
   of 2017, a CAGR of 7.2% per annum.                                                 Middle East & North Africa
                                                                                       ian.albert@colliers.com
>> 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.
                                                                                           Mansoor Ahmed
>> Similar to healthcare tourism, Dubai has emerged as an                              Director (MENA Region)
   Education Tourism Hub as over one third of enrolled higher                          Development Solutions
   education students in Dubai come from abroad to study in the                      Healthcare, Education & PPP
   city, coming from 167 different countries.                                        mansoor.ahmed@colliers.com

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.

                                          Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates   3
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
‫مقدمة‬
                                                       ‫بلغت إيرادات الرسوم الدراسية في دبي ‪ 6.8‬مليار درهم خالل العام الدراسي‬
                                                       ‫‪ ،2016/2017‬ليظل قطاع التعليم المدرسي الخاص في دبي واحداً من أكثر‬
                  ‫جون دافيس‬                             ‫القطاعات جاذبية وأسرعها نمواً على مستوى العالم‪ .‬خالل العام الدراسي‬
                 ‫رئيس تنفيذي‬                                ‫‪ ،2016/2017‬بلغ إجمالي عدد المدارس في إمارة دبي ‪ 260‬مدرسة تقدم‬
         ‫الشرق األوسط وشمال إفريقيا‬                          ‫الخدمات التعليمية ألكثر من ‪ 300‬ألف طالب‪ 90٪ ،‬منهم ملتحقون‬
            ‫‪john.davis@colliers.com‬‬                                                                        ‫بالمدارس الخاصة‪.‬‬

                                                      ‫ولكن بالمقارنة مع قطاع التعليم المدرسي‪ ،‬ال يزال سوق التعليم العالي في‬
                                                       ‫دبي في مراحله األولى‪ ،‬إذ ال يوجد سوى ‪ 60‬ألف طالب فقط في مؤسسات‬
                                                     ‫التعليم العالي‪ 46 ،‬ألفاً منهم يدرسون في مؤسسات التعليم العالي الخاصة‬
                                                      ‫(أحدث البيانات المتاحة من ‪ ،)2015/2016‬أي بنسبتي ‪ 20٪‬و‪ 15%‬من إجمالي‬
                                                    ‫طالب التعليم المدرسي العام والخاص على التوالي‪ ،‬وال تقدم تلك المؤسسات‬
                                                                                                        ‫إال ‪ 13‬تخصصاً فقط‪.‬‬

                  ‫إيان ألبيرت‬
    ‫مدير قسم االستشارات والتقييم اإلقليمي‬              ‫هذا وقد ارتفعت معدالت االلتحاق بالتعليم العالي في دبي من ‪ 33500‬في‬
‫الشرق األوسط وشمال إفريقياالتقييم واالستشارات‬        ‫العام الدراسي ‪ 2011/2012‬إلى ‪ 46000‬في العام الدراسي ‪ ،2015/16‬بمعدل نمو‬
           ‫‪ian.albert@colliers.com‬‬                                    ‫سنوي مركب يبلغ ‪ .8.4٪‬األسباب الرئيسية للنمو تشمل‪:‬‬

                                                        ‫> ارتفاع عدد المقيمين‪ ،‬حيث ارتفع عدد السكان في دبي من ‪ 1.2‬مليون‬
                                                       ‫نسمة عام ‪ 2102‬إلى قرابة الـ ‪ 3‬ماليين في نهاية عام ‪ ،7102‬بمعدل نمو‬
                                                                                                  ‫سنوي مركب يبلغ ‪.%2.7‬‬

                                                      ‫> الطالب القادمين من اإلمارات األخرى لاللتحاق بالجامعات في دبي لما‬
                                                       ‫تتمتع به من عالمات عالمية مشهورة وما تقدمه من تخصصات أكثر‬
                                                                                                                 ‫تنوعاً‪.‬‬
                ‫منصور أحمد‬
  ‫مدير منطقة الشرق األوسط وشمال إفريقيا‬
‫حلول التطوير والرعاية الصحية والتعليم وشراكات‬           ‫> تنامي ميل اآلباء في اإلمارات نحو إلحاق أبنائهم بمؤسسات التعليم‬
           ‫القطاعين العام والخاص‬                            ‫العالي العالمية أسوة بما هو سائد في قطاع التعليم المدرسي‪.‬‬
       ‫‪mansoor.ahmed@colliers.com‬‬
                                                     ‫> على غرار قطاع السياحة الصحية‪ ،‬برزت دبي كمركز للسياحة التعليمية‬
                                                      ‫حيث أن أكثر من ثلث الطالب الملتحقين بمؤسسات التعليم العالي‬
                                                                     ‫في اإلمارة قد أتوا من ‪ 761‬دولة مختلفة للدراسة فيها‪.‬‬

                                                       ‫تسعى دبي الحتالل الريادة في مجال التعليم العالي على الصعيدين‬
                                                      ‫اإلقليمي والدولي‪ ،‬إال أنها بحاجة لتوفير األماكن لما يقرب من ‪ 68‬ألف‬
                                                         ‫طالب‪ 50 ،‬ألفاً منهم في القطاع الخاص‪ ،‬بحلول عام ‪ .2025‬في أول‬
                                                       ‫تقرير شامل له حول قطاع التعليم العالي في دبي‪ ،‬قدم فريق كوليرز‬
                                                       ‫إنترناشيونال المتخصص في التعليم واالستشارات والتقييم تحليال ً‬
                                                          ‫مهماً للعرض والطلب وتقييماً للسوق‪ ،‬كما قام برصد التحديات‬
                                                        ‫والفرص المتاحة أمام المشغلين والمستثمرين للدخول إلى قطاع‬
                                                                                    ‫التعليم العالي مرتفع الربحية في دبي‪.‬‬

 ‫‪4‬‬      ‫‪Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates‬‬
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Higher Education
                       in UAE

                                             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 Dubai; Coming of Age | Q2 2018 | United Arab Emirates   5
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Higher Education Sector
in the UAE
The Regulatory Framework & Relevant Authorities
The Education sector of the United Arab Emirates (UAE) is                               The Ministry of Higher Education and Scientific Research
governed by the Ministry of Education (MoE), this regulates and                         oversees higher education and scientific research in UAE.
oversees several subsidiary educational authorities and implements
                                                                                        Regulation and development of the education sector in Dubai is
the federal mandate as highlighted in the adjacent chart.
                                                                                        overseen by the Knowledge and Human Development Authority
Under the MoE are several other national level regulators                               (“KHDA”).
including; the Ministry of Higher Education and Scientific                              KHDA’s role is to ensure that private educational institutes in
Research and Commission for Academic Accreditation. These                               Dubai are established and operate according to the highest quality
two bodies are primarily responsible for the higher education of                        standards and is responsible for the growth, direction and quality
the country.                                                                            of private education and learning in Dubai.

Education Authorities /
Councils in UAE                                                         S
                                                              T   OR                                                             Abu Dhabi
                                                           LA                                                                    Education
                                                      U
                                                G                                                                                 Council
                                                                       Commission for
                                 E

                                                                                              Ac
                               R
                          AL

                                                                                               ad
                        ON

                                                                                                  em
                               M

                                                                                                     ic A
                                 in
                      N AT I

                                    istry of Higher E

                                                                                                          ccreditation

                                                                  MINISTRY OF
                                                                                                                                  Knowledge
                                                                  EDUCATION                                                        & Human
                                                                                                                                 Development
                                                                                                                                   Authority
                                           uc         d

                                                          io
                                              at

                                                             n   &S
                                                                      cient              ch
                                                                              ific Resear

     Fujairah                                                                                                             Sharjah
    Education                                                                                                            Education
      Zone                                                                                                                 Zone

                                   Ras Al                                                 Ajman
                                  Khaimah                                                Education
                                  Education                                                Zone
                                    Zone

6      Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
UAE Vision 2021
                                                                    National Agenda
The UAE Vision 2021, a national charter drawn up                    UAE Vision 2021 National Agenda
in 2010 by H.H. Sheikh Mohammad bin Rashid Al
Maktoum, calls for the overall development of the
                                                                    Impact on Higher Education
UAE. Comprising of four pillars: responsibility, destiny,
knowledge, and prosperity. the Vision aims to make                  Key sectors that will be impacted by the UAE Vision 2021
the UAE among the best countries in the world in time               National Agenda include the following:
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
                                                                                  Technology
education system and teaching methods. It aims
to equip all schools, universities and students with                The technology sector is one of the pivotal sectors required
smart systems and devices as a basis for all teaching               to activate the country’s diversification policy away from the
methods, projects and research.                                     hydrocarbon base.
Ultimately, the UAE will focus on developing human                  As a critical base sector for the foundations of the
capital aspects of innovation, research, science, and               knowledge economy the aim is to incorporate technology
technology. To achieve this, a shift in the teaching-               into society through the establishment of technology and
learning process is necessary to equip students with                innovation focused higher education institutes. Key public
high-order thinking.                                                funding initiatives include The Masdar Institute of Science
                                                                    and Technology and Khalifa University’s various scientific
The growth of technology and creativity based
                                                                    programs.
industries and lifestyles has, as it has around the
world, changed the preference and emphasis for UAE                  Colliers research identifies the private universities are
based students higher education. This top down and                  responding to shifting market conditions by offering new
bottom up demand has seen the introduction of new                   programs focusing on technology such as Artificial Intelligence
courses from the University sector.                                 and 3-D Animation.

                                                                                   Renewable Energy
                                                                    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.

                                                 Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates            7
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Higher Education in the UAE
   Number of HEPs and Students in the                             The UAE higher education sector is largely dominated by private sector operators
   UAE (Public vs Private)                                        with 71 institutions making it amongst the most privatized education systems
   Public Sector
                                                                  in the world. The public sector comprises only 9 institutes, as depicted in the
                                                Private Sector
                                                                  adjacent exhibits. However, in terms of total number of students the public sector

    9
   Inst.
                                 71
                         Private Sector Institutes
                                                                  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.
       35,4%                          64,6%
    Public Sector Students       Private Sector Students

   45,385                                        82,894                                                           over
                                                                  Public Sector                               38,000
                                                                  Growth at CAGR 6.5%                            new seats
                                                                  (2009/10 – 2013/14)                         will be required
                                                                                                                  by 2025
                                                                     100 000

   Public & Private University Students                               75 000
   by Field of Study
                                                                      50 000
                                      8.4 14.1
                                                                      25 000
                                                 5.3
        Foundation                                                          0
        Diploma                                                                 2009/10            2015/16             2020/21            2025/26
        Bachelor’s
        Masters
      — Doctorate (0%)
                                 72.3

                                                                  Private Sector Growth at CAGR 8.5% (2009/10 – 2013/14)
                                                                     225 000
   Public & Private University Students                              200 000
   by Major                                                                                 over
                                                                     175 000          105,000
                                                                                          new seats
 Engineering                                           Business      150 000           will be required
                                                                                           by 2025
                                                                     125 000

   Media                     19.0                                    100 000
& Design                                    30.5
                         2
                         6.7                                          75 000
       IT
                          4.1
                                     31.8                             50 000
Education
                                                                      25 000

                                                       Other                0
                                                                                2009/10            2015/16            2020/21             2025/26

  8         Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Higher Education
                                           in Dubai
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; Coming of Age | Q2 2018 | United Arab Emirates   9
Higher Education in Dubai Coming of Age! - Q2, 2018 - V
Types of HEPs
                                                                        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

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

                                                                         A university, college, academy, or institute
     HEPs in Dubai
                                                                         located in a Dubai Free Zone, which acts
     – Free Zones vs Main Land
                                                HEP Branch               for, on behalf of, and in the name of a HEP
                                                                         headquartered outside a Free Zone (usually
                                                                         another country).
             37,1%     Mainland

                                                                         A university, college, academy, or institute
         62,9%         Free zones                                        which provides academic programs leading
                                                                         to the awarding of the higher education
                                                 HEP Local               qualifications. HEP Locals can be either
                                                  (Private/              funded privately or by the Dubai Government.
                                                                         These institutions are licensed by the
                                               Government)               Ministry of Education (MoE) with programme
     Distribution of HEPs                                                accreditation by the Commission for Academic
     Across Various Free Zones                                           Accreditation (CAA). These institutions may
                                                                         also obtain international accreditation.

                        DSO: 1
       DCCA             DHCC: 2                                          A University or college which provides
                                                                         academic programmes leading to the awarding
        33              DIFC: 2
                        DMCC: 1
                                                HEP Federal              of higher education qualifications. HEP
                                                                         Federals are established by federal decree.

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.

10     Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates
HEP
                         Branch Total:

                           24                                                                         AUTHORITY
                                                                                                      FREE ZONE
                                                                                                                  DHCC
                                                                                                                  DHCC
                                                                                                                  DHCC
          HEP                                                                                        HEP BRANCH   0
       Local Total:                                                                                   HEP LOCAL   1

          14                                                                           AUTHORITY
                                                                                       FREE ZONE
                                                                                      HEP BRANCH
                                                                                                   DIFC
                                                                                                   DIFC
                                                                                                   DIFC
                                                                                                   2
                                                                                       HEP LOCAL   0

                                                                                       D3
                                                                         AUTHORITY   DCCA
                                                                         FREE ZONE   D3
                                                                        HEP BRANCH   0
                                                                         HEP LOCAL   1

                                                                DKP
                                                  AUTHORITY   DCCA
                                                  FREE ZONE   DKP
                                                 HEP BRANCH   8
                                                  HEP LOCAL   3

                                               DCCA                                                  DSO                       DIAC
                                   AUTHORITY   DCCA                                      AUTHORITY   DSO           AUTHORITY   DCCA
                                   FREE ZONE   DIC                                       FREE ZONE   DSO           FREE ZONE   DIAC
                                  HEP BRANCH   1                                        HEP BRANCH   0            HEP BRANCH   10
                                   HEP LOCAL   0                                         HEP LOCAL   1             HEP LOCAL   6

                                 DMCC
                     AUTHORITY   DMCC
                     FREE ZONE   DMCC
                    HEP BRANCH   2
                     HEP LOCAL   0

           DACC
 AUTHORITY DACC
 FREE ZONE Dubai South
HEP BRANCH 1                                                          A majority of the Higher Education Providers “HEPs” in
 HEP LOCAL 0
                                                                      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 specific 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.

                                               Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates              11
Average Annual Fees Undergraduate (AED)

                                                                  Tuition Fees
                                                                  Based on capacity utilization, majority (>80%) of
                                                    AED
                                                                  the students attend HEPs with a fee range between
                                                                  AED 25,000 and AED 65,000 – indicating the
                                                                  affordable tuition fee bracket.
         25   35    45    55     65     75    85                  Where else, 70% of HEPs offering postgraduate
                                                                  programs have tuition fees ranging from
                                                                  AED 50,000 up to 110,000.
  Average Annual Fees Postgraduate (AED)

                                                                 Key field
                                                                 of Studies
                                                                 Based on the latest data available, business related courses
                                                                 remain the most popular with the highest number of enrolments.
                                                    AED          They account for more than a 50% share increasing at a CAGR
                                                                 of 14.2% per annum. This compares to 12.5% in Information
         30   50    70   90     110     130   150                Technology, while foundation programs witnessed a decline of
                                                                 8.0% in student enrolment during the period 2010/11-2015/16

                                  Other                          Over the last five years student enrolment in Engineering and
       Foundation                                                Architecture remains the highest compared to other fields,
                                                                 growing at a CAGR of 22.3% and 35.8% respectively. The market
        Law                                                      research conducted by Colliers indicates that these fields are
                                                                 preferred by Emirati students who prefer courses containing
                         19.0                                    science and math.
        IT                            30.5
                      2                                          The foundation programs, which usually consist of an intensive
   Media             6.7                                         year of English Language courses, decline indicates that Dubai
& Design                4.1                                      K12 schools are fulfilling this component by offering better English
                                 31.8                Business    language skills amongst students.

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

  12     Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates
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                                                          Dubai offers all the living and educational experiences
  (GSA) Group survey conducted                                                                                              with an aim to keep up
  on students attending higher                                                                                      with the globally-oriented, and
  education in Dubai revealed                                                 Technology                          technologically advanced world.
  that over 50% of the
  respondents had only ever
                                           Cultural                             Driven
  considered studying in Dubai,            Diversity                                                                             Students in Dubai lead a
                                                                                                                            comfortable life wherein they
  the city being their first choice
  for study destination. Other                                                                                                         are free to choose
                                                                                                                                     from the wide range
  key reasons for enrollment
  included universities offering
                                                                                                           Student                        of opportunities
  cultural diversity, quality of                                                                             Life                         provided across
                                                                                                                                       social, cultural and
  international institutions, better
  lifestyle experience and                                                                                                          sporting experiences
  centrally global location.                                                                                                                   designed to

                                  Safety &                                                                                  enrich their overall university
                                                                                                                                               experience.
  The HEPs in Dubai               Security
  are mandated to                                                                                             Dubai is globally positioned with one
  take significant                                                            Ease of                          third of the world’s population living
  precautionary
  measures to ensure students safety
                                                                               Travel                     within a four-hour flight from Dubai, and
                                                                                                         two-thirds are within an eight-hour flight.
  and security on campus.                                                                                     Home travel connectivity also serves
                                                                                                           as an attractor and importantly ease of
                                                                                                                   getting a tourist and student visa

                                                                                                                                                                   India
Student population diversity                                                                                              30
                                                                                                                                         8                         Egypt
Students enrolled in HEPs
                                                                                                                                             6                     Pakistan
The students in Dubai comes from 167 countries, with 30% from the                                                                        6
MENA region (including UAE), 56% from Asia, 5.5% Europe, 5.1% Africa                        Other       45                                                         Nigeria
                                                                                                                                     5
and remaining from other countries. The key source markets are
                                                                                                                                                                   Jordan

                                                    % 30
                                                           UK

                                                                 Australia

                                                                             India

                                                                                     US

                                                                                             Russia

                                                                                                      Austria

                                                                                                                Lebanon

                                                                                                                          Pakistan

                                                                                                                                         Iran

                                                                                                                                                 France

                                                                                                                                                          Canada

                                                                                                                                                                      Ireland

                                                      25

                                                      20
International diversity of HEPs
                                                      15

The current HEP Branches operating
                                                      10
in the Dubai Free Zones are from 12
different countries. Figure 6 shows the
                                                       5
international diversity of the different
HEPs in the Free Zones.                                0

                                                  Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates                                                13
Projected Growth
                                                       in Higher Education
                                                                   in Dubai
                                                         During 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)

120 000                       over
                          68,000
100 000                      new seats
                          will be required
                              by 2025
 80 000
                              in Dubai

 60 000

 40 000

 20 000

     0
                   2009/10                   2015/16                 2020/21        2025/26

Private HEP Growth at CAGR 7.6% (2009/10 – 2015/16)
                              over
100 000
                          50,000
                             new seats
 80 000
                          will be required
                              by 2025
 60 000                       in Dubai

 40 000

 20 000

     0
                   2009/10                   2015/16                 2020/21        2025/26

14   Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates
Conclusions
         Similar to K12 market,               Based on Colliers                    Colliers International’s
         the higher education                 projections, Dubai will              Education Valuation
         market in Dubai is                   require an additional                and Advisory Services
         coming of age and                    50,000 places in                     acted as trusted advisor
         Dubai is expected to                 private higher education             to many investors
         become a leading player              sector by 2025 brining               and operators to start
         regionally and continue              it to a total demand of              and expand their
         its drive internationally            68,000.                              operation in the Middle
         with opening of                                                           East Region and in
         more campuses of                                                          Dubai by providing
         international higher                                                      market assessment,
         education institutions in                                                 feasibility studies, entry
         Dubai.                                                                    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.

                                          Higher Education in Dubai; Coming of Age | Q2 2018 | United Arab Emirates   15
Operating from
                                                                                                           For further information,
                                                                                                           please contact:

69 countries                                                                                               John D. Davis
                                                                                                           Chief Executive Officer
                                                                                                           Middle East & North Africa

on                                                                                                         john.davis@colliers.com

6 continents
                                                                                                           Ian Albert
                                                                                                           Regional Director
                                                                                                           Valuation & Advisory
                                                                                                           ian.albert@colliers.com

                                                                                                           Mansoor Ahmed
$2.7 billion                                                                                               Director
                                                                                                           Middle East and North Africa
in annual revenue
                                                                                                           Development Solutions, Healthcare,
                                                                                                           Education & PPP
2 billion                                                                                                  mansoor.ahmed@colliers.com

square feet under management
                                                                                                           Colliers International | MENA Region
15,400                                                                                                     Dubai | United Arab Emirates
professionals and staff                                                                                    +971 4 453 7400

Colliers International Middle East
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