Pestel Analysis for Educaional Institutes in Dubai

1. Executive Summary

Education market of Dubai is predominantly dominated by private education. There are many players operating in Dubai education market who vary in size, curriculum offered etc.The increasing popularity of private education creates demand for investors and school operators. The demand for private education is driven by mainly three factors: demographics focus on quality of education and greater willingness on the part of parents to pay for education. Dubai education sphere is dominated by expat population and majority of them seek private education. Furthermore the parents have a high estimation on private education due to the perceived quality considerations. As a result they are willing to pay more on private education. Despite the fragmented nature of the private education market the government has taken action to improve the standard of private education through continuous monitoring and assessments. In order to harness the opportunities in Dubai market a potential investor has to face several challenges. Shortage of qualified teachers, problematic access to land, lack of scale and professional management, difficult financing environment, lack of public information and opaque regulations would pose challenges that need to be overcome to succeed in the industry. 

2.Dubai Education Market

2.1. Overview

Education market of Dubai is predominantly dominated by private education. When compared to other UAE countries Dubai and Abu Dhabi stand out with their developed education system.

According to Statistical Year Book of Dubai 2010 nearly 90% of the student population in Dubai are studying in private and international schools and the majority of the student population is comprised of the non Emirates

In line with the increasing student population the number of expat population has increased