Middle East & North Africa: The Next Frontier for Private Education?

Analysis

Some analysts have estimated the size of the MENA education market “to be as high as US 75.3 billion.” The demographic position and high income households make MENA an attractive region.

Schools expanding into MENA usually do so with the involvement of a local partner. Any school wishing to expand into MENA needs to strike a balance between maintaining its brand and standards (which would have been built up over decades) and sharing control over the overseas campus with a local partner.

Typically a joint venture is set up in which the risks and rewards are shared. The school has access to better locations, local knowledge and expertise. Upfront investments can be spread amongst the joint venture partners, which may sit better with the school's objectives and budgets. The school has to rely on contractual arrangements to ensure the new campus is built and operated to its desired standard. Whilst the school may still have operational control over the new campus, the funding and profit objectives of a joint venture partner may not be consistent with the school's management, operating standards and charitable objectives.