Dubai: With GCC governments will spend more than $90 billion on education-related construction projects by the end of 2014; Bahrain has allocated $2.2 billion on improving the education standrads during the fiscal years 2013-2014, according to The Big 5 report by Ventures Middle East.
It makes the education sector one of the biggest for contractors and suppliers with the population in the GCC forecast to increase from 50.6 million in 2014 to 55.8million by 2018.
Saudi Arabia is the biggest investor in education with expected spend of $56billion. It will construct 465 new schools and refurbish 1,500, alongside 1,544 existing school construction projects. It is also building eight new colleges and new vocational and technical facilities.
Ventures prepared its education sector report in advance of The Big 5 construction exhibition in Dubai in November, where opportunities for developers to meet the region’s demands for schools will be highlighted.
“There are huge business opportunities for suppliers who understand the education sector,” Andy White, event director for The Big 5, said.
“The GCC has a young demographic and governments are investing heavily in education.”
White said The Big 5 would offer a unique insight into the education sector through its free-to-attend conference and workshop programme.
“The Big 5 workshops during the show will examine the huge refurbishment market in the region and look at the technology expected in 21st century school buildings.”
“Governments of each GCC nation are investing significantly in construction of new schools and refurbishment of existing schools which is expected to drive the construction opportunities in the education sector in the region.”
The total number of students in the GCC region is expected to grow from 11.1million in 2014 to 11.6million by 2016.
GDP per capita income in the GCC is estimated to grow from $45,184 in 2011 to $51,286 in 2016 and that will benefit education.
“The increase in income will have a positive effect on the willingness to spend on education, especially for private sector education.”
In the UAE, $2.6billion (21% of its 2014 budget) is being spent on schools and all new buildings meet the country’s green construction Estidama rating. Qatar has allocated $7.2billion to education, which is 7.3% up on the previous year. Oman is initiating a process to provide free basic education to all its nationals spending $6.8billion, which is 18.6% of the total public expenditure. Kuwait will spend 14.2% of its annual budget for the year (2013-2014) which is $10.5 billion.