Market Trends of Oman Private K-12 Industry
This section covers the major market trends shaping the Oman Private K-12 Market according to our research experts:
Government initiatives - National Education Strategy 2040
The Ministry of Education (MoE) is responsible for pre-primary, primary, and secondary segments and Ministry of Higher Education (MoHE) is responsible for managing the basic and higher education segments in Oman. Each agency receives separate funding to support and guide affiliated educational institutions. The MoE has the authority to approve the increment in fees of private schools depending upon the performance of the schools. In addition to the administrative and regulatory bodies, the Education Council plays an important role in formulating policies and provision of legislative proposals to both the MoE and Ministry of Higher Education. In 2010, the government established the Oman Academic Accreditation Authority (OAAA), an independent entity, to provide quality of higher education at par with international standards. In 2016, the government made mandatory for OAAA accreditation for all higher education institutions.
In 2018, the Oman government allocated OMR 1.6 billion (US$ 4.1 billion), equivalent to 12.6% of the total expenditure towards the education sector. Despite a reduction in the government's allocation to the education sector from 21.0% in 2016, it continues to strongly emphasize on the growth of the sector. The government has developed a national Technological, Vocational Education and Training (TVET) strategy to bridge the gap between the job market and the skills of fresh graduates. Further, it also aims to achieve an enrolment rate of 50% at the higher education level by 2020. Recently, the government launched the 'National Education Strategy 2040' aimed at equipping young Omani鈥檚 with the skills required to be competitive in a knowledge-based economy by offering international standard systems. In order to boost tertiary enrolments, the MoHE had allocated approximately 500 internal scholarships to study educational majors at private universities such as Sharqiyah, Nizwa, Sohar and Dhofar in 2018. These initiatives are likely to remain an important source of encouragement to nationals as well as expatriates to pursue higher education in Oman rather than pursuing international degrees abroad.
Shift towards Private Schools
Oman鈥檚 private school market has the potential to grow to double the current value till 2025.With the rapidly increasing population and the compulsory education till secondary grade rule of government, the enrollments in schools are expected to increase year by year. With only 23 per cent of Oman鈥檚 730,000 students being enrolled in private schools, showcases that the sector has plenty of room for growth. The enrollment in private schools in Oman has grown at a seven per cent CAGR, whereas enrollment in public schools has only grown at a two per cent CAGR. This trend is expected to continue, though at a slightly slower rate. The Omanis are now placing more value on the quality of education than ever before, and the government is engaging with the private sector to increase enrollment in pre-schools. The private K12 school market is highly fragmented, composed mostly of standalone private schools, and there is a need for high-quality private international schools with low- to mid-range fees.
