doha educaton overview

1 Doha, Qatar | Edcation Market Overview | 2015 | Colliers International

Accelerating success.

Doha Education Sector Overview September 2015

For further information contact Mansoor Ahmed ([email protected]) or Shehzad Jamal ([email protected])


Opportunities for Education Service Providers and Investors Seeking to Expand in the Middle East and North Africa

> An established and recognized British educational institution is seeking to setup a school under a management agreement in the UAE. Colliers is looking to identify suitable investors who are considering exposure in UAE’s education sector.

> Colliers is seeking investors to partner with a recognized education operator in the Middle East to establish a school in Dubai as part of an upmarket residential community by way of a Joint Venture or lease of a Built-to-Suit (BTS) property.

The last few years have witnessed a considerable rise in foreign investment in Africa ultimately leading to an increase in demand for master planned residential developments including supporting facilities such as schools. Colliers is seeking to introduce US and UK based education service providers to known investors in East Africa’s education space and is also looking for investors who are interested in the lucrative education sector in East Africa.

Operating and Investment Opportunities in the UAE

Operating and Investment Opportunities in East Africa

Colliers has a number of opportunities in Doha for education service providers. Market entry possible by way of:

> Management Agreement> Joint Venture> Long-term Lease of Land and/

or Property

Operating and Investment Opportunities in Doha, Qatar

Colliers is seeking to introduce American, British and German education service providers to known investors in Egypt, providing opportunities to enter the education market in Cairo and Alexandria. Possible modes of market entry include:

> Management Agreement> Joint Venture> Long-term Lease of Land and/

or Property

Operating and Investment Opportunities in Egypt


Ian AlbertRegional Director (MENA)Valuations and AdvisoryColliers [email protected]

Mansoor AhmedDirector (MENA) | Healthcare, Education & PPPColliers [email protected]

IntroductionDoha’s education sector offers significant opportunities for investors and operators. The following are some of the key contributing factors:

High population growth rate – The population of Qatar reached 2.21 million in 2014 from 1.45 million in 2008, registering a CAGR of 6.3%. As per estimates, the population of Qatar is to reach 3.09 million by 2022 (4% population growth). Some analysts suggest a population growth of 6% during this period which would result in a population of 3.53 million by 2022.

Population of Qatar mainly consists of expatriates – The majority of the population falls between Generation X (1965 – 1980), Generation Y (1981 – 2000) and Generation Z (2001 – present); which translates into a wide base of young parents and school going population.

Transient nature of Qatar’s population – This has resulted in an apparent preference for international curricula, due to their transferrable nature.

Well-run private schools generate healthy margins – Our experience in the GCC suggests that high quality, efficient international schools could achieve net profit margins ranging between 15% and 20% (stabilised operations).

Significant growth has been witnessed within the private education market – Growth has been supported by a preferential shift towards international education generated by the national population and expatriate residents.

International operators are expressing keen interest to establish presence in Qatar – Due to positive demographic and socioeconomic indicators.

Supply of education facilities struggles to keep pace with the burgeoning population – A situation recognised by the government that has introduced a number of initiatives to encourage the private sector to match the shortfall and benefit from this potentially lucrative sector.

Colliers International Doha Education Overview provides a brief snapshot of the key factors impacting the Education Sector and its future outlook in Doha.

Peter BibbyCountry Head | QatarColliers [email protected]

Shehzad JamalSenior Manager | Healthcare, Education & PPPColliers [email protected]


Colliers InternationalHealthcare | Education | PPP

Our team in the MENA region:Feasibility Studies | Due Diligence | Investment Memorandums (IM)

50+ (US$ 1.9b+) 12 Million ft²+ BUA 60,000+ Students

Land | Property | Business Valuation

20+ (US$ 3.5b+) 5 Million ft²+ BUA 25,000+ Students

Operator Search & Selection | Contract Negotiation

10,000+ Seats 6 Assignments

SERVICES AT A GLANCEStrategic & Business PlanningEconomic Impact StudiesMarket & Competitive Studies Market & Financial Feasibility StudiesFinancial ModellingMarket & Commercial Due DiligenceLand, Property & Business Valuation Mergers & Acquisitions AssistanceBuy Side Advisory / Sell Side AdvisorySale & Lease Back AdvisoryPublic Private Partnership (PPP) & PrivatisationOperator Search & Selection and Contract NegotiationSite Selection & Land / Property AcquisitionAsset & Performance ManagementPerformance Management & Industry Benchmark Surveys

Winner of World Finance 2013 Public Private Partnership Award for Healthcare and Education for Middle East and Africa

Winner of World Finance 2013 Infrastructure Investment Award for Real Estate, Healthcare and Education for Middle East and Africa

Colliers International Middle East is shortlisted as Finalist for following categories1. Best Consultants – to the Private Sector2. Education Infrastructure – Best Education Property Consultants3. Best Financial Advisor

CONDUCTED STUDIES FOR Nurseries KindergartenSchools (Primary and Secondary)

• British Curriculum• American Curriculum• French Curriculum• Indian Curriculum• German Curriculum

Nursing CollegeMedical CollegeBusiness CollegeScience and Art Universities

Feasibility Studies | Investment Memorandums | Due Diligence Financing & Refinancing Merger & Acquisitions

School Valuations for End of Year Audit | Financing & Refinancing Merger & Acquisition

Total Number of Seats 2010 – 2014

Mixed Use Education Parks 2010 – 2014

Mixed Use with Parks 2010 – 2014

Ongoing Projects

Total Number of Seats 2010 – 2014

Total Number of Seats Valued 2010 – 2014

Countries | MarketsAlgeria | Bahrain | Ecuador | Egypt | Iran | Iraq | Jordan | Kenya | KSA

Kurdistan | Kuwait | Morocco | Nigeria | Oman | Pakistan | Qatar South Africa | Sudan | Tanzania | Togo | Tunisia | Turkey | UAE | Zanzibar


Macroeconomic Climate and DemographicsReal growth in the economy and stability translates positively towards sectors such as education and healthcare.


Macroeconomic Climate› Qatar has a small population (approx. 2.21 million), with

almost half the population residing in the capital, Doha.› The majority of the population (71%) is made up of

expatriates who live and work in Qatar.› The labour force comprises a significant proportion of

expatriate workers, representing 94% of the economically active population.

› Much of Qatar’s economic prosperity is dependent upon the hydrocarbon sector, which accounts for over 50% of governmental revenue and over 85% of exports.

› Qatar has planned to invest QAR 746 billion (US$ 204 billion) in infrastructure (excluding projects in the oil and gas sector), in the next five years.

QATAR MACROECONOMIC INDICATORS 2012- 2019(F)

COUNTRY COMPETITIVENESS› Qatar has a competitive economy, ranking 1st in the

MENA region and 13th globally.› The country’s success rests on strong foundations in its

high-quality institutional framework (ranked 4th), a stable macroeconomic environment (ranked 6th) and an efficient goods market (ranked 3rd).

GDP AT CONSTANT PRICES CONTRIBUTION BY ECONOMIC SECTORS

6,1% 6,5% 6,5%

7,7% 7,8%

6,6%

5,7% 5,3%

1,9%

3,1% 3,4% 3,5% 3,7% 3,5% 3,4% 3,3%

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Hamad International AirportTotal Cost US$ 17 billion

Size of the Airport 600,000sqm

Current Capacity

30mPassengers

Phase 2 Capacity:

50mcould be extended to

80mbased on Demand

Cargo Area

55ksqm

1HR

8,700Passengers

Tonnes currentcargo capacity

1.4mQatar Airwaysflies to

Destinations 138

Current Fleet

136Aircrafts

Over

230aircraft on order booksworth more than

$50b

$200bExpected Investment inInfrastructure, Tourism &Sports Projects

3.5mto

3.7mExpected InboundTourists to Qatarby 2022

Key Facts

Number of Hotel Roomsto Increase from

15,000in 2013 to

95,000by 2022

per annum

Qatar Seeks to be Global Hub for Culture & Heritage InternationalCommunity SchoolPrivate Arabic SchoolIndependent(Govt.)School

Types of School -Breakdown

131

35%

25

7%38

10%

178

48%

Other Services 12%

Finance, Insurance & Real Estate 9%

Transport & Communication 9%

Trade, Rest, Hotels 7%

Building & Construction 7%

Electricity & Water 1%

Manufacturing 5%

Oil & Gas 50%

Source: Qatar Statistics Authority, 2010, Colliers International 2013

Source: International Monetary Fund, 2014

QATAR 2013 ECONOMIC STATISTICS

YoY Increase in International

Visitors

9.0%6.5%Total GDP Growth

3.1%Inflation

0.6%Unemployment

Billion QAR

Nominal GDP GDP % Growth Inflation

2012

0 100 200 300 400 500 600

2013

2014 (F)

2015 (F)

2016 (F)

2017 (F)

2018 (F)

2019 (F)

6.1%

6.5%

6.6%

5.7%

5.3%

6.5%

7.7%

7.8%

1.9%

3.1%

3.4%

3.3%

3.4%

3.5%

3.5%

3.7%


› The economy of Qatar is currently heavily reliant on the hydrocarbon sector. However, as per the 2030 plan the country is seeking to reduce its dependence on hydrocarbon revenues by widening its economic base.

› Qatar’s success factors can be tied to its large sovereign wealth fund and its strong regulatory and governmental planning.

› Qatar is evolving towards a knowledge and innovation driven economy.

EASE OF DOING BUSINESSQatar ranked 45th globally in 2014, moving up 3 places since 2013 (48th). Improvement has been seen in all areas other than ‘Getting Electricity’ (-12), ‘Enforcing Contracts (-10) and ‘Resolving Insolvency’ (-10).

Qatar does not levy a consumption tax or an income tax, which places it as 2nd globally in ‘Paying Taxes’.

The country presents itself as a welcoming opportunity for expatriates to live and work in Qatar.

IMPACT ON THE EDUCATION SECTOROverall, Qatar’s economy has been performing well, which translates positively towards the education and healthcare industries. Strong GDP growth forecasts will help to strengthen the market and provide impetus for the sustainable growth of the population in Qatar, resulting in continuous increase in demand for education facilities.

The increase in demand is expected to encourage private sector investment in the education sector, resulting in the establishment of new schools in Doha.

Institutions

Infrastructure

MacroeconomicEnvironment

Health & PrimaryEducation

Higher Education& Training

Goods MarketEfficiency

Labour Market Efficiency

Financial MarketDevelopment

TechnologicalReadiness

Market Size

BusinessSophistication

Innovation

Basic RequirementKey for Factor-DrivenEconomies

Innovation & SophisticationKey for Innovation-DrivenEconomies

Efficiency EnhancersKey for Efficiency-DrivenEconomies

Independent Schools International Schools

Community Schools

Private Arabic Schools

Government funded schools with the ability to define their own educational missions and goals, appoint teachers and staff etc. albeit, under SEC’s umbrella.

A private school that follows the curriculum of a foreign Arab Country.

An embassy sponsored school following the curriculum of the embassy’s country – focused to serve the expatriates of the representative country.

A private school that follows the curriculum of a foreign country or a general international curriculum. Qatar’s

EducationSectorSchool Types

Key statistics | 2006 to 2013

121416181

101121141

comprise

of the total schoolsoperating in thecountry

48%fastestgrowingsegmentAs of academic year2013 comprise

35%of the schoolsin Qatar

2006

154,000Students

2013

217,960Students

2006

278Schools

2013

360Schools

Parameter Rank

Quality of the Education System 4

Quality of Primary Education 11

Extent of Staff Training 5

Quality of Management of School 8

Availability of Research and Training 17

Year

GDP CAB CPI

Real GDP (Growth %)

Nominal GDP (Qar Billions)

Current Account Balance (Qar Bilions)

% Of Current GDP

Inflation, Consumer Prices (%)

2012 6.1% 340.9 226.8 32.6% 1.9%

2013 6.5% 363.1 227.9 30.9% 3.1%

2014 (F) 6.5% 386.8 298.9 27.1% 3.4%

2015 (F) 7.7% 416.6 191.5 23.2% 3.5%

2016 (F) 7.8% 449.1 161.3 18.1% 3.7%

2017 (F) 6.6% 478.9 138.7 14.6% 3.5%

2018 (F) 5.7% 506.3 117.9 11.6% 3.4%

2019 (F) 5.3% 533.2 103.2 9.6% 3.3%


Y-o-Y Change Rank 2013

Rank2014 Change

Overall Rank 48 45 3Starting a Business 112 92 20About Construction Permits 23 22 1Getting Electricity 27 39 -12Registering Property 43 37 6Getting Credit 130 125 5Protecting Investors 128 118 10Paying Taxes 2 1 1Trading Across Borders 67 66 1Enforcing Contracts 93 103 -10Resolving Insolvency 36 46 -10

Source: The World Bank, 2014

INNOVATION & SOPHISTICATIONKey for Innovation-Driven Economies

BASIC REQUIREMENTKey for Factor-Driven Economies

EFFICIENCY ENHANCERSKey for Efficiency-Driven Economies



Population and Demographics

QATAR POPULATION GROWTH 2003 - 2014As per the latest available data published, the population of Qatar was approximately 2.21 million in 2014. Of this, approximately half the residents live in the capital city of Doha (as per the population consensus of 2010).

Qatar’s population witnessed a double digit growth rate during 2004 to 2009 before slowing down mainly as a result of the effects of the global financial downturn. However, the average population growth during 2012 to 2014 was approximately 9% as a result of its economy bouncing back and considerable infrastructure development by the government, after being awarded the 2022 FIFA World Cup.

DEMOGRAPHICS The population of Qatar is heavily skewed towards males, which is mainly due to the large proportion of blue collar workers present in the capital city. The breakdown of males to females is roughly 74% and 26% respectively.

Qatar’s workforce constitutes a large proportion of the population, thus explaining the large concentration of individuals between the active ages of 25 and 65.

10 8 6 4 2 0 2 4 6 8 10 12 14

0-4 5-9

10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79

80*

Age

Rang

e

Male % Female %

Baby Boomers 4.1%

Gen X 31.7%

Silent Generation 0.6%

Gen Y 44.7%

Gen Z 18.9%

0,80 0,91 1,04

1,22 1,45

1,72 1,73 1,83 2,00

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

2,21

2013

Gro

wth

Rat

e

Popu

latio

n (M

illion

s)

Population Growth

0,71

1,64 1,64

10 8 6 4 2 0 2 4 6 8 10 12 14

0-4 5-9

10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79

80*

Age

Rang

e

Male % Female %

Baby Boomers 4.1%

Gen X 31.7%

Silent Generation 0.6%

Gen Y 44.7%

Gen Z 18.9%

2003 2004 2005 2006 2007 2008

20%

15%

10%

5%

0%

2009 2010 2011 2012 2013 2014

Gro

wth

Rat

e

Popu

latio

n (M

illion

s)

Population Growth

3.0

2.5

2.0

1.5

1.0

0.5

0

1,64

Source: Qatar Information Exchange 2014Source: Qatar Information Exchange 2014


Qatar is working on its profile seeking to promote itself as a desirable destination to work, live and visit (regionally and globally).

The government is looking to invest in infrastructure which stimulates the economy and results in job opportunities. This in turn results in population growth (as human capital is sourced from abroad).

Some of the key medium term infrastructure projects have been listed ahead to provide a perspective on the growth potential. It is estimated that Qatar would be spending north of US$ 90 billion in the medium term. Some of the projects include:

› 2022 FIFA World Cup stadiums – US$ 4 billion› Doha Rail & Metro System – US$ 34 billion› Lusail City – US$ 45 billion › Ongoing expansion of Hamad International Airport which will

increase passenger capacity to 50 million from the existing passenger capacity of 30 million.

› Development of a new sea port at an estimated cost of US$ 5.2bn

› Railroad infrastructure to the country by introducing metro, tram lines and the Gulf Railway, which will connect the entire GCC.

US$4b US$34b US$45bWorld Cup Stadiums Rail & Metro System Lusail City

Key Major Growth Impetus

Doha Education Sector10 Doha, Qatar | Edcation Market Overview | 2015 | Colliers International


Doha Education Sector - IntroductionTo achieve international standards in the education sector, the Government of Qatar is continuously initiating reforms for the education sector. The most significant initiative was the implementation of “Independent Schools / Decentralized System” in 2002. As per this reform, all government schools are now managed and run by an independent board specific to each school. However, the schools are financed by the government and must comply with the standards, policies and systems of the Supreme Education Council (SEC).

These initiatives have resulted in significant improvements to the education sector which have resulted in growth in the education sector, as presented below:

Source: The Global Competiveness Report 2013/14 Note: The ranking is given from a group of 148 countries

As can be seen from the illustration above, The Global Competitiveness Report 2013/14 has ranked the overall quality of the education system in Qatar 4th out of 148 countries surveyed. Considering all education parameters, Qatar ranks amongst the top 20 nations.

4thQuality of the

Education System

5thExtent of Staff

Training

8thQuality of

Management of Schools

11thQuality of Primary

Education

17thAvailability of Research and

Training

QATAR GLOBAL RANKING – QUALITY OF EDUCATION


Securing Qualified Teaching StaffThe success of a school is profoundly dependent on the quality of teaching staff available on campus. However, similar to other countries in the GCC, attracting and retaining quality staff is a major challenge in Qatar.

Affiliation with International School OperatorsDue to the large expatriate population,

presence of an established international brand would heavily contribute to the

success of any new school in Qatar, as it would appeal to the targeted demographic

profile, in addition to providing students with a curriculum that is transferrable on a global scale compared to a locally branded facility.

Offering Diverse Facilities & ServicesHosting a unique variety of extracurricular activities in addition to committing to high construction quality and provision of school facilities that would appeal to the target demographic profile. However, this may lead to substantial increases in set-up cost. Therefore, striking a balance between the two parameters is key.

Creating a Gateway to Top Tier Universities

Existing and new schools can benefit from establishing links with leading universities. This would expose students to worthwhile

opportunities to pursue higher education and would also facilitate a smooth transition to

reputed higher education institutions.

Demographic LandscapeQatar has a young population, in addition to a growing expatriate population, which presents a prime opportunity for growth within the education sector across the country.

Maintaining a Proactive Relationship with the

Supreme Education Council (SEC)Maintaining good relations and close

coordination with the SEC could benefit schools operating in Doha. This may also act in favour of these schools in matters such as seeking approval for increases in tuition fees

or seeking approval of future expansion plans, etc.

Critical Success Factors for the Education Sector in Doha


Doha Education Sector – Types of SchoolsThere are four broad categories of schools operating in Qatar i.e. independent, international, community and private Arabic schools. Key information on these schools is presented below.

Independent Schools (Government Schools) comprise 48% of the total schools operating in the country. However, the fastest growing segment is International Schools which as of the academic year 2013 constituted 35% of the total number of schools in Qatar.

Independent Schools

• Independent Schools • International Schools • Community Schools • Private Arabic Schools

International Schools

Community Schools

Private Arabic Schools

Types of Schools - Breakdown

Government funded schools with the ability to define their own educational missions and goals, appoint teachers and staff etc. albeit, under SEC’s umbrella.

A private school that follows the curriculum of a foreign country or a general international curriculum.

An embassy sponsored school following the curriculum of the embassy’s country – focused to serve the expatriates of the representative country.

A private school that follows the curriculum of a foreign Arab Country.

17848% 131

35%

3810%

257%

Source: SEC, Colliers International


80 000

60 000

40 000

20 000

-

Doha Education Sector – Tuition FeeTuition fees charged by private schools in Qatar vary significantly in terms of curricula, type and quality of facilities offered and staffing standards. Fees can vary from approximately QAR 9,000 per annum (Approx. US$ 2,500) to QAR 70,000 (Approx. US$ 19,000) for a 12th Grade student studying in an Indian and an American Curriculum School, respectively.

American schools command the highest range of tuition fees across private schools in Qatar, with annual fees ranging between QAR 38,000 per annum (Approx. US$ 10,500) to QAR 70,000 per annum (Approx. US$ 19,000) followed by International Baccalaureate (IB) and British curriculum schools.

Indian school fees are the lowest amongst rest of the curricula, as can be seen in the adjacent chart, ranging from approximately QAR 4,000 (Approx. US$ 1,100) to QAR 9,000 (Approx. US$ 2,500) per annum between Nursery to Grade 12.

Average Tuition Fee Range Across Qatar Private Schools by Curriculum

OtherCurricula

Indian Curriculum

IB British Curriculum

American Curriculum

QAR



Doha Education Sector - Student PopulationAs per the SEC there are a total of 219,552 students enrolled in schools, representing 84% of school-aged population i.e. persons between the age of 5 years and 19 years in 2012/13.

The school going population has witnessed an increase of 6% CAGR over the period 2006/7 to 2012/13 primarily on account of population growth.

Analysis of the student population shows the following:

• International Schools witnessed the highest studentgrowth (11% CAGR), against Private Arabic schoolswhich have remained almost constant.

• Growth in international schools is primarily attributed to:• Increasing number of expatriate families• Preference of parents, both Nationals and

Nonnationals, towards diverse international curricula,considering the quality of education being offered atsuch schools, even though relatively expensive.

• Government incentives – provision of purpose builtschool properties

• Qatar is attracting an increasing number of youngexpatriate families. This has resulted in increaseddemand for pre-primary and primary school seats. Thechart below shows that almost 70% of the total studentpopulation is enrolled in pre-primary and primary grades.

Student Population by School Type

Students in Private Schools - By Stage / Cycle

60,000

40,000

20,000

-

International and Community SchoolPrivate Arabic SchoolIndependent (Govt.) School

Pre-Primary Primary Preparatory Secondary

2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13



250k

200k

150k

100k

50k

-

2012/13

2011/12

2010/11

2009/10

2008/9

2007/8

2006/7

6% C

AGR


Doha Education Sector - Student Population • Research indicates two trends amongst the student

population in Qatar:• Students return to their home countries for

secondary education primarily due to considerationsof cost, quality and eligibility to enroll into preferreduniversities.

• However it is anticipated that this trend will diminishsince the average length of stay for expatriate familiesin Qatar is gradually increasing. This is due to longerterm infrastructure projects taking place, providingpeople longer employment periods.

• Independent Schools enrollment is predominantly QatariNationals – approximately 70%.

• Qatari Nationals account for approximately 20% of thetotal student population enrolled in Private Schools.

• Enrollment in schools teaching international curricula hasgrown at a CAGR of 10% between 2010/11 & 2012/13.

• Gender balance is split evenly for both Qatari Nationals and expatriates in Independent Schools. Similar trend can be seen for expatriates in Private Schools. However, of the total Qatari population studying in Private Schools, 60% are males and 40% are females.

Independent SchoolsNationality and Gender

Qatari



Qatari

Male

Male

2010/2011

2010/2011

2012/2013

2012/2013

Female

Female

Total

Total

Male

Male

Female

Female

Total

Total

Non-Qatari

Non-Qatari

60,000

40,000

20,000

-

120,000

80,000

40,000

-

Private SchoolsNationality and Gender


Doha Education Sector - Teachers ProfileDuring the period 2010/11 to 2012/13 student teacher ratio (STR) gradually increased from 10.9:1 to 11.5:1. Although this ratio has increased, it remains significantly lower than the global average of 24.2:1 and MENA average of 20.6:1. An analysis of the period 2010/11 to 2012/13 shows:

• Independent schools witnessed a reduced STR from 10.7:1in 2010/11 to 9.7:1 in 2012/13 due to a shift in preferenceamongst the parents towards alternative curricula.

• Private Schools have witnessed an increase in STR from12.8:1 in 2010/2011 to 13.3:1 in 2012/2013. This can beattributed to:• difficulty in attracting qualified teachers• increasing preference of local parents to educate their

children in international schools• a growing expatriate population.

• A total of 8,800 teachers are employed in private schools of which 74% are female. Qatari Nationals have very low representation in the workforce

• Reflective of the student profile, 51% of the teachers areengaged in teaching primary students.

2010/11 2011/12 2012/13

18

16

14

12

10

8

6

4

2

-

2,500

2,000

1,500

1,000

500

-

Student Teacher Ratio

Teachers by Gender, Nationality and Stage

Independent

Qatar

Private

Arab Counrties

International

Other



MaleMaleMaleMale

Pre-Primary Primary Preparatory Secondary

FemaleFemaleFemaleFemale

Stud

ent T

each

er R

atio

Num

ber

of T

each

ers


Demand & Supply Analysis1. Based on the trends in the education sector, growing population, favourable demographics and foreseeable supply of schools

the chart below presents the demand (i.e. students requiring education) and supply (i.e. the number of student seatsavailable based on school supply).

2. As the chart below Illustrates, by 2022, assuming a 4% population growth, Qatar will require approximately 82,000new seats (an average of nearly 11,000 new seats per year).

3. Whereas, by 2022, assuming a 6% population growth, Qatar will require approximately 131,000 new school seats,(an average of 17,400 new seats per year). It should be noted that between 2007/08 and 2013/14, approximately 71,000new seats were added, an average of 16,000 per year. If the Qatar education sector maintains the current supply level of16,000 seats per annum ,another 112,000 new seats will be added, compared to a demand of 131,000 new seats, reflecting ashortage of approximately 19,000 seats by year 2022.

4. Currently, the number of students enrolled per school in Qatar averages around 576 students. However, new schools havecapacities typically ranging between 1,500 and 2,000 students per school. Keeping this in view, it is estimated that Qatarmay require between 8 to 12 new schools per annum.

2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 E 2015/16 F 2016/17 F 2017/18 F 2018/19 F 2019/20 F 2020/21 F 2021/22 F

450 000

400 000

350 000

300 000

250 000

200 000

150 000

100 000

50 000

-

30 000

25 000

20 000

15 000

10 000

5 000

-

Slide 8

450 000

400 000

350 000

300 000

250 000

200 000

150 000

100 000

50 000

4 % POP Growth Rate 6 % POP Growth RateNo of New Seats 4% No of New Seats 6%

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

E

2015

/16

F

2016

/17

F

2017

/18

F

2018

/19

F

2019

/20

F

2020

/21

F

2021

/22

F

Demand and Supply Analysis

4% Pop Growth Rate

Popu

latio

n

New

sea

ts

6% Pop Growth Rate No of New Seats (4%) No of new Seats (6%)



Key Insights & Conclusions


The private education market continues to grow in Qatar, primarily due to demand from an increasing expatriate base and the resultant preference towards international curricula, which consequently impacts the market trends and the forthcoming supply. The key insights are summarised below:

High Population Growth RateColliers International estimates that the population of Qatar is expected to exceed 3.53 million by 2022, subject to maintaining a growth pattern of 6% CAGR. However, should the projected growth rate increase to 8%, due to economic activities leading towards the 2022 FIFA World Cup, the expected population could reach 4.02 million in 2022.

The current and projected demographic landscape in Qatar supports the steady development of the private education sector, as the broader economy continues to grow over the upcoming period.

Population by 2022

4%GROWTH RATE =

3.09MILLION

6%GROWTH RATE =

3.53MILLION

8%GROWTH RATE =

4.02MILLION


Number of Private Sector Student Seats in Qatar

Student Population in Qatar

New Seats by 2022Considering market dynamics, the number of student seats required per curriculum by 2022 is as under.

Key Message

2009/10

2014/15

2021/22

“During the period

2014/15 to 2021/22, assuming a population

growth rate ranging between 4% to 6% per annum, Qatar’s

education sector would require an addition of approximately 8 to 12

new schools per annum.”

180,000

International Community Private & Arabic

Independent

260,000

342,000 (@4%) | 390,000 (@6%)

At

4%Pop Rate

32k&

6%, 51K

Seats

At

4%Pop Rate

10k&

6%, 16kSeats

At

4%Pop Rate

2.5k&

6%, 4kSeats

At

4%Pop Rate

37k &

6%, 59k

Seats


Doha Education Sector - ChallengesChallenges faced by the education sector in Qatar are similar to those faced by the rest of the GCC. These challenges can be attributed to the rapid growth of the country’s education sector, increasing competition and the stringent and continuously evolving regulatory framework.

Summarized below are key challenges faced by the education sector.

Private education is the only option available for expatriate

workers based in Qatar. Due to high tuition fee levels, especially in the

secondary stage of education, parents tend to relocate

their children to their home country, limiting demand for secondary education

in the country.

International schools and private schools have to go through a challenging process of hiring teaching staff. Once hired, retaining this skilled staff proves to be even more difficult.

Post government initiatives such as imposing

minimum standards and facilities, setting up of a private school has become very capital

intensive with initial development costs ranging between

US$ 50 million and US$ 100 million.

Private schools are required to obtain approval for increase in tuition fee from the SEC. This is an initiative to protect / safeguard parents. However, historically it has not been easy to get approval for increasing tuition fee. This may act as a deterrent for schools to sustain and expand operations.

SEC’s Control overTuition Fee

Private Education is Expensive

Shortage of Skilled Teachers

Capital Intensive


Colliers International Service Lines

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> Residential Valuations

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> Healthcare & Education

> Development Solutions

> Retail Advisory

> Retail Leasing

> Corporate Solutions

> Property Management

> Sales and Leasing

Airport Cities & City Centres

Healthcare & Life

Sciences

Leisure, Tourism & Culture

Development

Industrial &Special

Economic Zones

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Education & HumanCapital

Mixed UseDevelopments

Ports & Waterfront

Development

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Infrastructure & Public Private

Partnership

Hospitality

502 offices in67 countries on6 continents

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16,300Professionals and staff

About Colliers InternationalColliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices in 67 countries. 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 and insightful research. The latest annual survey by the LipseyCompany ranked Colliers International as the second-most recognized commercial real estate firm in the world. In MENA Colliers International has provided leading advisory services through its regional offices since 1996. Colliers International currently has four corporate offices inthe region located in Dubai, Abu Dhabi, Riyadh and Jeddah

www.colliers.com/uae

DisclaimerThe information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | MENA RegionDubai | United Arab Emirates

Main: +971 4 453 7400

For further information, please contact:

Ian AlbertRegional Director (MENA)Valuations and [email protected]

Mansoor AhmedDirector (MENA) | Healthcare, Education & [email protected]

Peter BibbyCountry Head | [email protected]

Shehzad JamalSenior Manager | Healthcare, Education & [email protected]


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