Higher Education in Dubai Coming of Age! - Q2, 2018 - V
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Higher Education in Dubai Coming of Age! Q2, 2018
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
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
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 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 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
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 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
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
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 EmiratesHEP
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 11Average 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 EmiratesDubai 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 13Projected 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 EmiratesConclusions
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 15Operating 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
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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