Webinar: Private Higher Education in MENA - Lesson and Considerations for Operators and Investors

1. Private Higher Education in MENA: Lessons and Considerations for Operators and Investors Ashwin Assomull October 2015

2. 2Parthenon Agenda Introduction to Parthenon Global Higher Education Market Perspectives on MENA Higher Education Market Opportunities for Growth- Dubai Example

3. 3Parthenon Overview and Capabilities • Consumer Growth • Education • Healthcare • Industrials • Information & Media • Private Equity • Change Management and Implementation Support • Competitive Analysis • Corporate and Business Unit Strategy • Cost Improvement • Econometric Forecasting • Innovation • Marketing and Distribution Strategy • Merger and Acquisition Strategy/Due Diligence and Execution • Policy Development and Systems Design • Sales Force Optimization PRACTICES CAPABILITIES OVERVIEW • Founded in 1991 as a strategic advisory firm • More than 270 members in 2014 • Offices in Boston, London, Singapore, Mumbai, Shanghai and San Francisco • Client mix includes Global 1000 corporations, middle- market companies, private equity firms, educational institutions, and healthcare institutions • 29 Partners

4. 4Parthenon Parthenon completes more than 150 education projects per year in over 80 countries worldwide; 1000 projects completed in the last decade Early Years K-12 Transnational Education ELT and Vocational TrainingHigher Education = Education Projects Completed by Parthenon

5. 5Parthenon = Education Projects Completed by Parthenon Our team has deep global experience in the Higher Education sector Minsheng University

6. 6Parthenon Representative MENA On the ground experience Parthenon has completed work in education on-the-ground across the MENA region

8. 8Parthenon Higher Education, Market Revenue by Country, 2014 China, India and Brazil are the largest higher education markets in the developing world. However, Middle East market is growing the fastest >20% 15%–20% 10%–15% <10% Revenue CAGR (3 years) N/A China $12M Malaysia $2,411.2M Dubai $578MSaudi Arabia $536M South Africa $328M Kenya $186M Qatar $150M Abu Dhabi $148M Ethiopia $16M Singapore $1,418M Brazil $9B India* $10B Note: *Market size corresponds to Private Universities only

10. 10Parthenon MENA countries’ tertiary gross enrolment typically trail wealth per capita Note: ^Tertiary Gross enrollment ratio is enrollment in tertiary education regardless of age, expressed as a percentage of the total population of the five-year age group following on from secondary school leaving. Source: UNESCO, World Bank 0 25 50 75 100 105% 0 20,000 40,000 60,000 Qatar Saudi Arabia UAE Singapore South Africa Brazil Spain Iceland AustraliaNew Zealand Slovenia Iran Peru Chile Argentina Italy India China USA Mexico Canada PPP Adjusted Real GDP per Capita $130,000 TertiaryGrossEnrolmentRatio Lebanon Croatia TurkeyBulgaria Romania Tanzania Kenya Zimbabwe UgandaMozambique Costa Rica Egypt Colombia United Kingdom+Northern Ireland Germany France Thailand South Korea Philippines Malaysia Japan Indonesia R2 = 63% Steep increase (~8% CAGR) Moderate increase (~5% CAGR) Stable enrolment growth (~3% CAGR) Tertiary Gross Enrolment Ratio (GER)^ Vs. PPP Adjusted Real GDP Per Capita, 2011 MENA countries typically have lower GER relative to their PPP per capita

11. 11Parthenon Enrollment growth in key markets have been between 9-15% annually 0 5 10 15% Qatar Enrolment CAGR, '10-'13 15% Saudi Arabia 15% United Arab Emirates 9% 12% 43% 49% Tertiary Gross Enrollment Ratio (GER) Annual Enrolment Growth for Higher Education Institutions, by Country, 2010-2013 Source: UNESCO

12. 12Parthenon 0 2 4 6 8% Abu Dhabi Gain in Private Share 7% Qatar 4% Saudi Arabia 1% Dubai 0% Increase in Private Enrollment as % of Total Enrollment, 2010-13 Private sector operators have been gaining share across key MENA markets Source: Parthenon Higher Education primary research

13. 13Parthenon Source: Parthenon Higher Education primary research 0 20 40 60 80 100% Dubai Rochester Insti of Tech Murdoch Al Dar Uni College Al Ghurair British Uni in Dubai Uni of Dubai Emirates AviationUni Dubai Medical ClgFor Girls LBS SP Jain Emirates Academy of Hosp Mgmt Amity BITS Pilani Manchester Buss School Canadian Uni of Dubai American Uni in Emirates Heriot-Watt American Uni in Dubai Uni of Wollongong in Dubai Islamic & Arabic Studies Clg Uni of Modern Scncs Manipal Hult Intl Buss School Middlesex Uni of Jazeera Uni of Saint JosephSaint-PetersburgExeter ESMODDubai ClgOfDental MedicineEuropean UniClg Dubai Sch OfGovtDubai PoliceAcademyCambridge ClgIntlMichigan StateUniSynergyIHC Jumeira Uni SAEInsti Imam Malik ClgFor Islamic Sharia &Law IMT Hamdan BinMohammed S.Uni Cass Buss School Islamic Azad Uni Royal Clgof Surgeons IrelandUni ofBradfordEmirates ClgFor Mgmt & IT Dubai Pharmacy Clg American Clgof Dubai SZABIST $578M Saudi Arabia Alfaisal Uni Al Yamamah Uni Uni of Business and Technology Dar Al-Hekma College Riyadh College of Denstistry Dar Al Uloom Uni Prince Sultan Uni College of Business Administration Ibn Sina National College for Medical Sciences Effat Uni Albaha Private College of Science Others Batterjee Medical College Soliman Fakeeh College for Science and Nursing Prince Fahad Bin Sultan Uni Prince Mohammad Bin Fahd Uni Qassim Private College MohammadAl ManiCollege forMedical Sciences $536M Qatar Georgetown Uni Northwestern Uni Carnegie Mellon Uni HEC Paris Stenden Uni Hamad bin Khalifa Uni Virginia CommonwealthUni Uni of Calgary Syscoms Institute Texas A+M Uni Uni College London $150M Abu Dhabi Al Ain Uni of Science and Technology Al Khawarizmi International College Al Hosn Uni Abu Dhabi Uni Emirates College of Technology New York Institute of Technology EUROPEANINTERNATIONALCOLLEGE ABUDHABISCHOOLOF MANAGEMENT EMIRATESINSTITUTEFORBANKINGANDFINANCIALSTUDIES Uni of Strathclyde Business School SYSCOMSCOLLEGE $148M 1 44 12 11No of Institutes 41K 32K 8K 14KEnrolment 2015 10% 16% 19% 12% Enrolment CAGR, '12-'15 Total = $1,413M Annual Revenue, Private Higher Education, By Country/Emirate, 2015 The largest and private higher education market is Dubai, sized at $578M 5 Largest Universities in the Country

14. 14Parthenon Growth of higher education is driven by increased expat and local demand, government investment, and a need for employment-related courses Increasing Expat Demand Increasing Local Demand Government Investment Need for Higher Education as a Means to Employment • Increase in expat population • Supply of foreign branch universities recognized by home campuses • MENA as an increasingly attractive work destination for expats • Increase in post- secondary age group • More enrollment per post-secondary age group • Need for education of local population to drive future growth • Need for diversification of economy towards knowledge-based industries • Increasingly competitive labour market for both locals and expats • Degrees at world-class institutions a valued resource 1 2 3 4

15. 15Parthenon 0 20 40 60 80 100% Dubai % Expatriates 85% Qatar 84% Abu Dhbai 80% Rest of the Emirates 78% Saudi Arabia 31% % Expatriates of Population, by Country, 2015E Expatriates form ~80% of UAE’s and Qatar’s population while Saudi Arabia has ~30% expats Source: Newspaper Articles Increasing Expat Demand 1

16. 16Parthenon To cater to expats, there is a wide range of university foreign branch campus offerings in MENA British American Australian Indian Other Dubai Increasing Expat Demand 1 Dubai Dubai Dubai Dubai Qatar Qatar Abu Dhabi Abu Dhabi Abu Dhabi Qatar

17. 17Parthenon Saudi Arabia has growing population of age for higher education as well as an increasing tendency in enroll in higher education 0.0 1.0 2.0 3.0M 2004 Population of Age for Higher Education 2.1M 2005 2.1M 2006 2.1M 2007 2.3M 2008 2.4M 2009 2.4M 2010 2.4M 2011 2.4M 2012 2.4M 2013 2.4M 28% 58%29% 30% 30% 30% 31% 37% 43% 51%Tertiary GER Population of Age for Higher Education in Saudi Arabia, 2004-2013 Source: UNESCO Increasing Local Demand 2

18. 18Parthenon Countries in Middle East spend a higher proportion of their budget on education than the rest of the world 0 10 20 30% Saudi Arabia 25% UAE 24% Qatar 11% Singapore 17% Brazil 15% UK 13% US 13% India 13% France 10% Government Spend on Education as % of Total Spend, by Country, 2013E Source: UNESCO Government Investment 3 Middle East Rest of the World

19. 19Parthenon NYUAD KAUST Qatar Education City Location Abu Dhabi, UAE Thuwal, Saudi Arabia Doha, Qatar Enrolment (2015 est) ~800 ~1,200 ~2000 Local Sponsorship / Support Significant budgetary support from Abu Dhabi Government Public university with a $20 billion endowment fund Backing of the Qatar Foundation Budget More than $200M ~$700M n/a Long-Term View on Profitability Non-profit Public University Non-profit Strong Focus on Research Several multi-disciplinary research initiatives in line with home campus In 2013 it was announced that KAUST had one of the fastest growing research and citations record in the world The education city has a dedicated research centre in the complex Reputation (QS/FT Ranking) Rank: 247 N/A Multiple highly ranked institutions including UCL, Cornell and Northwestern have a presence in the Education City Profile of Landmark Higher Education Institutions in MENA Source: Parthenon Research MENA governments have invested heavily into building world-class research institutions Government Investment 3

20. 20Parthenon 0 25 50 75 100 125 Employment Opportunities Weighted Mentions Weighted Mentions =101 Quality of Infrastructure Weighted Mentions =58 Total Fee Weighted Mentions =46 Study Abroad Programs Weighted Mentions =33 Quality of Academics Weighted Mentions =32 Proportion of Expatriate Teachers Weighted Mentions =17 Partnerships with Foreign Universities Weighted Mentions =14 Quality of English Instruction Weighted Mentions =5 Q: What were your top selection criteria while enrolling in your current university? Source: Emirati and Other Arab Student Survey (n=51) Employment opportunities after graduation is the top selection criteria for Emirati and other Arab students when enrolling in a university Need for Higher Education as a Means to Employment 4

21. 21Parthenon Employment-related courses (Business, Engineering, and IT) account for ~80% of enrolment in foreign branch campuses and only <50% in local universities Source: Parthenon Higher Education Survey; KHDA; MOHESR; UAE National Bureau of Statistics Private University Enrolment, By Type of University and Discipline, Dubai, 2013/14 Employment related courses0 20 40 60 80 100% Foreign Branch IT Engineering Business Law Others Comm & Marketing Art & Social Sciences 18K Local Medicine Law IT Business Engineering English Language Others Comm & Marketing Islamic Art & Social Sciences 23K 82% 46% % Employment Related 26 24No. of Institutes Need for Higher Education as a Means to Employment 4

22. 22Parthenon Private universities have more Western faculty than public universities resulting in higher standards of English language-based tuition Need for Higher Education as a Means to Employment 4 Commentary • “English as the language of instruction has gained popularity with both students and employers. Private universities have a higher percent of expatriate teachers, which ensures students get exposure to English. This has been one of the key success factors for private universities here” • “Compared to Saudi nationals, expatriate teachers perform better. Hence a number of private universities employ expatriate teachers – Former Provost and Acting President, Saudi Arabian Private University Percentage of Western Faculty in Private and Public Universities, 2010 0 20 40 60 80 100% Private Average Western Faculty 36% Public Average 5%

24. 24Parthenon Dubai Abu Dhabi Complexity of Regulations Time Required to Obtain Approvals ~1 year ~3 years Foreign Ownership Approval Body Ease of Entry Private Enrollment 2015 41K 14K Dubai is an example of an economy that has been successful in attracting a wide range of options due to its favourable regulatory environment Attractive Unattractive Source: Parthenon Research

25. 25Parthenon Students are increasingly mobile; transnational education takes ~2.5M students every year to global hubs Canada 100KStudents =$3B Revenue UK 400KStudents Australia 300KStudents USA 600K Students Singapore ~30KStudents =$0.5B Revenue Dubai ~6KStudents =$0.1B Revenue

26. 26Parthenon Dubai’s Value Proposition Employability-Related Courses Student Satisfaction Attractive Location Dubai’s value proposition for higher education students is driven by three key assets

27. 27Parthenon 0 20 40 60 80 100% Western Foreign Branch % Business 79% Local offering Foreign Curriculum % Business 62% Eastern Foreign Branch Curriculum % Business 54% Local offering Local Curriculum % Business 49% ('11-'14) 9% % Business Enrolments, By Type of University, Dubai, 2014 Source: Parthenon Higher Education Survey; KHDA; MOHESR; UAE National Bureau of Statistics Employment related courses are driving growth across the different university segments, particularly in the Western foreign branches

28. 28Parthenon Satisfaction with the Dubai experience is high among both current students and recent graduates 0 100 200 300 0 = Extremely Poor 1 2 3 4 5 6 7 = Extremely Good # of Quality Institutions 290 Job Placement Record 209 Prefered Course Quality 112 Local Infra- structure Quality 61 Campus Facilities Quality 60 Course Quality 57 Recognition of Degree Globally 26 Accom- adation Quality 19 Other 60 Current Student Satisfaction Recent Graduate Satisfaction Q. Which of the following factors did you consider when selecting a country/city for higher education? Q. How does Dubai rate on the top 3 factors? Source: Dubai Current Students and Recent Graduates Survey, n=149 (current students=99; recent graduates=50)

29. 29Parthenon Why is Dubai an attractive destination for students? Source: Parthenon Analysis Close to the World • Ideally located to attract European, African, East, Southeast Asian, South Asian, GCC, and CIS students 1 English Speaking • Students can use and improve their English, and the degree is well perceived internationally 3 Safe • Safe environment for students, an important factor for both students and families 2 Strong Economy • A fast-growing economy in need of graduates in a variety of industries 4 Quality of Life • Diverse, culturally active city • Expo 2020 host city will attract global attention 5

30. 30Parthenon How can Dubai increase international students? Develop “Education Dubai” Brand Identify Key Source Countries Develop Strategic Marketing Plan • Develop regional/local messaging and product Build Relationships with Agents • Prioritize markets based on growth rates and external factors • Target the identified source markets through relevant language and channels • Develop relationships with agents or agent aggregators in the identified markets 1 2 3 4 0 20 40 60 80 100% Malaysia Private Higher Education* Other South Korea Other Indian Sub-continent Pakistan Bangladesh China Other SE Asia Indonesia Other Middle East Yemen Iran Other Africa Sudan Libya Nigeria 62.7K APU Other Indian Sub-Continent India Maldives China Other SE Asia Indonesia Central Asia Other Middle East Yemen Oman Iran Other Africa Tanzania 4.8K Taylor's South Korea Other Indian Sub-continent Pakistan Maldives China Other SE Asia Indonesia Kazakhstan Other Middle East Iran Other Africa Tanzania Mauritius 2.5K Other East Asia Other CentralAsian Kazakhstan Others East Asia Other Other East Asia Other Central Asia 55% 60% 22% % Students from Africa, Middle East and CentralAsia

Webinar: Private Higher Education in MENA - Lesson and Considerations for Operators and Investors

Estás leyendo una previsualización.

Eche un vistazo a continuación

Webinar: Private Higher Education in MENA - Lesson and Considerations for Operators and Investors

Más Contenido Relacionado

Presentaciones para usted (20)

A los espectadores también les gustó (9)

Similares a Webinar: Private Higher Education in MENA - Lesson and Considerations for Operators and Investors (20)

Más de Ali Zeeshan (20)

Más reciente (20)