It is not usually thought of as big business, but with a global market size of $2.5 trillion (Dh9.18 trillion), the fact is that more is spent on education than any other sector apart from health care.
The GCC states are certainly doing their bit to boost outlays, having increased the public funds available for training and education over the past few years.
While developed economies such as the United States spent 16 per cent of their 2010 annual budget on education, Saudi Arabia allocated a massive 25 per cent this year, a 13 per cent increase over the previous year's allocation. The counterpart ratio for the UAE is the region's second largest, in terms of percentage of total budget, with 22.5 per cent, followed by Qatar (20.5 per cent).
But the public sector is not the only player; private sector participation has grown significantly in recent years. For instance, in the secondary education sector, the proportion of private enrolment rose from 45 per cent in 2000 to 67 per cent in 2007 in the UAE (the highest rate in the GCC).
A recent study by Alpen Capital (ME) Ltd titled GCC Education Report provides a comprehensive review of the progress of GCC governments as well as the challenges, while at the same time showing potential for greater involvement from the private sector.
There is a noticeably wide range of private sector participation across the Gulf states, illustrating differing attitudes. While Saudi Arabia restricts access to participation by international private schools, the UAE government is actively encouraging public-private partnership as a means to enhance the standard of education.
Increase in demand
Driving education demand in the GCC at the most basic level is the rising population, coupled with a growing expatriate population and significant economic growth and high per capita income.
The region's rate of population growth has averaged 3 per cent during the period 2004-09, compared to a world population growth rate of only 1 per cent.
Also bolstering the demand for higher education standards is the increasing number of expatriates in the region. In the UAE, for example, they are projected to constitute 84.5 per cent of the population in 2030, compared to 79.7 per cent in 2010, according to Euromonitor International.
Alpen Capital expects the total number of students in the GCC region to grow at a compound annual growth rate (CAGR) of 1.8 per cent in the next decade to reach 11.3 million in 2020 from 9.5 million in 2010. The number of tertiary students is expected to grow at a higher CAGR of 5.5 per cent.
An effective system
With one of the youngest populations in the world and the future development of the region depending on retaining a skilled workforce, a broad-based and effective education system would seem an essential characteristic of the social and economic landscape.
The range of government initiatives is on the increase. Most GCC states offer free and compulsory education to their nationals, while making efforts to develop and implement comprehensive sector reform programmes. Besides allocating funds, governments have formed authorities and entities to assess and regulate the system, such as Dubai School Councils.
Special areas
Other schemes are aimed at raising standards, developing particular areas such as Information and Communication Technology (ICT) and vocational training. One example of this is Sharjah Institute of Technology, the first vocational institute to meet the market needs of a wide range of industries. It is run under the supervision of Sharjah Electricity and Water Authority.
The UAE set up the Abu Dhabi and Dubai Education Councils in 2005 to raise primary and secondary education standards. The public-private partnership model has also been implemented in the country to establish uniform curriculum standards and boost educational attainment.
GCC countries are also focusing on teachers' training. Schools in Abu Dhabi plan to boost standards through collaboration with teacher-training institutes in Singapore, widely recognised as a world leader in this area.
GCC countries are also committed to providing equal educational opportunities to children with special needs as well as children with disabilities.
Global best practices
Moreover, the emergence of the private sector has led to the implementation of global best practices. Agencies regularly check the education practices in the schools and monitor curricula to ensure they are in line with international benchmarks. Moreover, the Dubai Schools Inspection Bureau (DSIB), a unit within the Knowledge and Human Development Authority (KHDA), performs an annual comprehensive survey on the standard of education in Dubai schools, to improve planning at school and policy level.
In the higher education sector, governments are encouraging foreign universities to set up branches in the region.
Collaboration with well-established foreign universities is intended to facilitate transfer of knowledge and skills to the GCC nations and create important networks of information and human and financial capital.
Many foreign schools and universities have set up their campuses in the Gulf, including Paris-Sorbonne University, which opened in Abu Dhabi in 2007.
In addition, the UAE has some of the best global institutes offering MBA programmes, such as London Business School and INSEAD. New York University Abu Dhabi is due to open this year, while the UK's Imperial College London is to open a campus in Qatar or Abu Dhabi.
Way forward
Though much has been achieved in a relatively short period, a basic requirement still to meet is to match education to the growing skills requirement. A majority of the higher education institutes in the region have traditionally focused on humanities subjects, rather than science and mathematics. A greater focus on information technology and the management skills necessary for the modern work environment, along with vocational and technical training, is still needed.
With the willingness, not to forget the finances, to fund a world-class education system, as well as the desire to adopt global best practices, the Gulf countries present themselves as lands of opportunity in more sense than one.
