Demand for British Schools in Dubai and Abu Dhabi October 2016

Demand for British Schools in Dubai and Abu Dhabi

October 2016

Opportunities for Education Service Providers and Investors Seeking to Expand in the Middle East and North Africa

Operating and Investment Opportunities in Dubai

> An established and recognized British educational institution is seeking to setup a school under a management agreement in the UAE. Colliers is looking to identify suitable investors who are considering exposure in UAE's education sector.

> Colliers is seeking investors to partner with a recognized education operator in the Middle East to establish a school in Dubai as part of an upmarket residential community by way of a Joint Venture or lease of a Built-to-Suit (BTS) property.

Operating and Investment Opportunities in Egypt

Colliers is seeking to introduce American, British and German education service providers to known investors in Egypt, providing opportunities to enter the education market in Cairo and Alexandria. Possible modes of market entry include:

> Management Agreement

> Joint Venture

> Long-term Lease of Land and/ or Property

Operating and Investment Opportunities in the Northern Emirates of UAE

Colliers has a number of opportunities in the Northern Emirates of UAE for education service providers. Market entry possible by way of:

> Management Agreement

> Joint Venture

> Long-term Lease of Land and/ or Property

Operating and Investment Opportunities in East Africa

The last few years have witnessed a considerable rise in foreign investment in Africa ultimately leading to an increase in demand for master planned residential developments including supporting facilities such as schools. Colliers is seeking to introduce US and UK based education service providers to known investors in East Africa's education space and is also looking for investors who are interested in the lucrative education sector in East Africa.

For further information contact Mansoor Ahmed (mansoor.ahmed@) or Shehzad Jamal (shehzad.jamal@)

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Introduction

In September 2016 Kent College Canterbury, advised by Colliers, opened its doors in Dubai completing a process that is the culmination of a significant amount of time and planning for entry into the competitive and profitable private education sector within the United Arab Emirates (UAE). Kent follows other UK private school luminaries like Repton (2007), Brighton (2011) and Cranleigh (2014).

Although British nationals represent roughly 2% to 3% of the student population, the British curriculum remains within the top three curricula offered in the UAE. The popularity of the curriculum is because it is also favored other nationalities such as, Indians, Pakistanis and nationals from Arab and Commonwealth Countries. The demand is further augmented when non-UK nationals are looking to attend higher education in the UK and studying the British curriculum in school is sometimes a prerequisite to entry.

Dubai English Speaking School (DESS) is the oldest British School in Dubai, it started from a room in a villa in 1963 with 10 pupils taught by parents and a British Army Officer. By end of academic year of 2014-15, schools offering the British Curriculum stand at number one in Dubai and number three in Abu Dhabi, the business and Capital Cities of the UAE respectively.

? Dubai - Out of a total of 255,000 private school students the British Curriculum schools represent some 85,000 students (33%) followed by the Indian curriculum (31%) and the US curriculum (18%).

? Abu Dhabi ? Students enrolled at British curriculum schools represent 22% of the private sector student body, some 50,000 out of the total of 223,000 students in private schools in Abu Dhabi, trailing behind the US curriculum (24%) and Ministry of Education (MoE) curriculum (23%).

With a long history, successful market entrants and sustainable demand the British curriculum and the private school sector is underpinned by strong fundamentals. There are opportunities and challenges and this white paper sets out to highlight both the opportunities and potential pitfalls to investors and operators.

This white paper presents the challenges and opportunities for investors / operators who would like expand in this lucrative sector. Clyde & Co., a leading law firm operating in UAE, who have advised a number of British schools which have established or are contemplating to establish or extend their operations in the UAE, have also contributed to this white paper in order to provide an opinion on various legal matters involved in establishing a school in the UAE.

Ian Albert Regional Director (MENA) Valuations and Advisory

Colliers International ian.albert@

Mansoor Ahmed Director | Development Solutions

Colliers International mansoor.ahmed@

Shehzad Jamal Senior Manager | Healthcare,

Education & PPP shehzad.jamal@

Ross Barfoot Partner at Clyde & Co LLP Ross.Barfoot@clydeco.ae

Simon Gamblin Partner at Clyde & Co LLP Simon.Gamblin@clydeco.ae

Demand for British Schools in Dubai and Abu Dhabi | October 2016 | Colliers International 3

Success Story Testimonial

"The expertise which Colliers brought to the due diligence investigations, including financial feasibility studies and sensitivity analysis, and the support given in contract negotiation, including commercial terms and conditions, were all crucial in bringing the investor and the operator together. Colliers continued to assist the investors in assisting negotiations with financial institutions and potential investors to raise equity". "Anticipation of needs, sympathy and sensitivity to all parties, the detail of analytical work, and customer service, are all hallmarks of the quality which Colliers provides to potential operators and investors and I highly recommended any operator or investor who would like to set-up schools in the MENA Region to work with Colliers International Dubai office team to make their project a success story". Dr David J Lamper EdD MA AKC, Executive Head Master, Kent College Canterbury

Demand for British Schools in Dubai and Abu Dhabi | October 2016 | Colliers International 4

Abu Dhabi & Dubai Education Sector Overview and Analysis

Demand for British Schools in Dubai and Abu Dhabi | October 2016 | Colliers International 5

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