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The real estate investors are capitalizing on the rapid growth of the education sector in the MENA region. Earlier, their investments remained limited to the conventional sectors like retail, hotels, offices and residences. But now they are pumping massive capital into building schools and student accommodation. What’s driving them to this sector is its relatively low volatility amid the prevailing market fluctuations.
A recent report by JLL reveals that by 2020, Dubai would need 53 new private schools, Abu Dhabi 44, Riyadh 395, Jeddah 194 and Cairo 424. The school-going population is growing by leaps and bounds in the region. So, investing in education makes business sense and is commercially viable too. Realtors are tapping into the galloping demand. According to records, investment in private schools in Abu Dhabi between 2010 and 2015 went up to AED2.3 billion. The exponential growth of the sector reflects in the financial returns. A report by Abu Dhabi Education Council (ADEC), cited by JLL, indicates that in 2015, private schools in Abu Dhabi earned around AED 3billion in profit over the preceding four years.
Cashing in on the expanding lucrative sector is good. However, it has to be done with a lot of responsibility and commitment. ‘For-profit’ operators will lose in the long run, because it is only the committed ones that will earn due respect and credibility over time. A considerable portion of financial surplus that the education sector generates for the realtors and the private schools should be invested back into it to bring in more innovative smart tools of learning and making it more interesting. Today, there are many teaching aids and cutting-edge technological gadgets that are being floated to ensure teaching goes beyond the boundaries of classroom walls. The new technology needs to be tapped to make learning a fun.
Some time back, the Global Education Supplies and Solutions (GESS) and Global Education Forum (GEF) had showcased latest products and solutions emerging in the education market. It highlighted the potential that the education sector holds for the region. GESS is a great platform to display and share the
upcoming trends and techniques in the education landscape. All stakeholders in the education sector must join in its deliberations.
There has to be coordination between bodies like GESS, realtors and educational institutions for development of meaningful and holistic curriculum. The synergy of these stakeholders will go a long way in improving the basic fabric of education and give the sector the right enhancement. Besides this, right accreditation and quality assurance systems should also be put into place and adhered to.
Plans have to be chalked out where the students can be part of the sustainable knowledge economy. All the stakeholders have to commit to making contribution to the education sector in such a way that it brings out the best in the learner. A lot of money must go into research and development (R&D) to find out ways to harness the skills of the students. It will prepare the students to align with the development process.
As the real estate stakeholders look to the education sector to diversify their portfolios, they have to realize that profits come with liability. They should take the onus of being part of a process that not just educates an individual to get a job, but helps him/her in making a positive difference to the society at large.