Opportunities aplenty for investors

“Education is the most powerful weapon, which you can use to change the world,” said Nelson Mandela. The need to focus on education is not “sometime in the future”, but right now. The costs associated with inaction are as devastating as the return on investment is impressive. 
While students in the UAE are keen to benefit from studying in a world-class environment at the best international institutions, investors seek to capitalise on the long-term prospects of entering a high-potential market with an expat-driven population that is, according to all trends and indicators, poised for outstanding growth.
Globally universities are reacting with determination and creativity to the new challenges they face. Budget deficits have mushroomed following sudden decline in the oil price, thus reflecting cuts in education funding and limits on tuition increases. Additionally, the competitive regional job market mandates new programmes and training in order for students to earn gainful employment after graduation. 
The UAE is home to more than 200 different nationalities. As per Colliers, higher education enrolments in Dubai have been steadily increasing from 33,500 in 2011-12 to 46,000 in 2015-16 at a CAGR of 8.4 per cent. One of the primary reasons is a growing resident population. The UAE was ranked the most preferred emerging higher education hub of choice, ahead of Singapore, Switzerland and China, according to a 2017 Dubai International Academic City-BMI Media study.
Providing a vital boost to the education sector, the UAE’s new visa regulations granting investors and talented professionals as well as outstanding students residence visas of up to ten years are set to significantly increase the influx of both students and investors. These favourable changes will facilitate the UAE in retaining its competitive edge and building the strong talent pool necessary to meet the demands of Industry 4.0.   
Ultimately, investors must be patient when they invest in the education sector. They need to consider their foray into the higher education space with a medium- to long-term investment perspective because educational institutions take time to develop, and putting pressure on their resources will only do more harm than good. 
For example, the largest for-profit college company on the planet raised $490 million (Dh1.79 billion) in its public debut in February 2017. 
Laureate Education, backed by big-name investors such as Henry Kravis and Steve Cohen and that counts Bill Clinton as its former honorary chancellor, listed its stock on the Nasdaq and has continued to perform admirably. The World Bank’s investment arm, the International Finance Corporation, made a $150-million investment in the company in 2013. 
An investment portfolio that includes higher education is likely to be a far more solid and dependable asset and translate into rich long-term dividends, when compared to traditional sectors such as oil and gas, particularly for savvy investors who do their homework. 
- The writer is Chief Executive Officer at Foundation Holdings, a global investment firm with interests in healthcare, education and consumer sectors in India and the GCC