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Emaar to expand into education business

The latest initiative will involve the establishment of international schools in the MENA region and India which will offer premium quality education and an integrated curriculum for students ranging from kindergarten to tertiary levels.

To achieve this, Emaar has already forged strategic partnerships with internationally reputable education specialists as well as finalised the acquisition of existing institutions.

The decision to expand into the education business, which comes just two months after the launch of Emaar’s Afaq1 programme, is well aligned to the fast-growing demand for and emphasis on premium quality education around the world.

According to Mohamed Ali Alabbar, Chairman of Emaar: “After a thorough assessment of the education landscape in the MENA region, we found that there is a huge and growing demand for premium quality education in this region. As such, we have identified and evaluated the various growth opportunities within the sector and have decided to expand into the education business in order to leverage on this growth.”

He added: “We strongly believe that our move into the education business is timely, strategic and is expected to make significant contributions to Emaar’s profitability and growth.”

Indeed, education is one of the largest businesses in the world today. Increasingly, people, especially in the MENA region and India, are increasingly starting to recognise the importance of having good education, hence driving up demand for service providers in this sector.

Statistics from the Institute of International Education in the USA also show that the number of Arab student enrolments in the USA has declined significantly post 9/11. On the other hand, the enrolment rate in universities in the Arab world has increased simultaneously, and is believed to be a continuing trend.

A study conducted by Incite, an independent market research agency, found based on availability of existing education institution options that between 2006 and 2010, demand for premium primary, secondary and higher education, especially in Egypt and the UAE, will exceed supply.

Furthermore, various reports suggest that one of the biggest challenges facing the MENA region is the need to develop 100 million jobs by 2020. Other research also suggests that several of these countries have been unable to convert national wealth into extended opportunities for basic education.

Mr Alabbar said: “Our business proposition hits the nail on the head by directly addressing the growing demand for premium quality education in the MENA region and India. As per our studies, there is a gap in the availability of quality education and the type of jobs that are on offer in the region. Our plan aims to close this gap.” Emaar is today the world’s number one property developer. For the year ended December 31, 2005, Emaar reported net profits of Dh4.731 billion.