The GCC’s education sector is bracing for a surge in student enrollment — projected to rise from 14 million to 15.5 million by 2029 — but faces major challenges, including escalating operational costs and a growing teacher shortage, according to a new report by Alpen Capital.
Private school operators are grappling with high expenses tied to teacher retention, real estate, and digital infrastructure. At the same time, competition is intensifying, especially with the expansion of international premium schools demanding top-tier faculty.
“Gaps remain between education outcomes and labor market needs,” said Poonam Bhojani, CEO of Innoventures Education. “Teacher shortages and real estate hurdles are significant roadblocks.”
Governments are responding with policy shifts. Kuwait is recalling retired teachers and considering civil engineers to teach math. The UAE has extended Golden Visas to educators, and Saudi Arabia now allows expatriate dependents to work in the education sector.
Despite challenges, the sector remains attractive to investors. The report forecasts a 2.1% annual growth in enrollments through 2029, with over 2,800 new schools needed. Private schools are expected to lead this growth, especially in Saudi Arabia, Oman, Bahrain, the UAE, and Qatar.
“The long-term outlook is strong,” said Alpen Capital’s Hameed Noor Mohamed. “Investor interest remains high, supported by solid demand fundamentals.”
