Investing in Oman’s Education Sector: A Growing Opportunity

Oman’s education sector is evolving rapidly, presenting investment opportunities for foreign investors and local entrepreneurs. With an ambitious vision for growth and transformation, education in Oman is expected to play an increasingly significant role in the country’s economic development. The education sector’s contribution to Oman’s GDP is projected to grow from its current share of 4.9 percent to 6.2 percent by the end of 2025, underlining its growing importance in the nation’s long-term economic strategy.

Education sector landscape

As of 2023, Oman boasts a well-established educational infrastructure, with 2,133 schools recording the enrollment of 898,073 students and employing 72,845 teachers. The higher education landscape includes over 40 institutes, including 27 private universities and colleges and a state university. This vibrant education ecosystem provides a solid foundation for investment, particularly in the private primary and secondary education markets, which were expected to be valued at US$1.7 billion in 2023.

Currently, 23 percent of Omani students are enrolled in private schools, slightly below the GCC (Gulf Cooperation Council) average of 30 percent. This indicates significant room for expansion in the private education sector, especially in light of the Omani government’s efforts to create a conducive environment for foreign investment. In fact, Oman’s legislation allows 100 percent foreign ownership in educational institutions, which provides foreign investors with an attractive entry point into the market.

Oman’s recent School Education Law (Royal Decree 31/2023) ensures the right to basic education for all children, alongside maintaining high educational standards. The law mandates that children must be enrolled in the first grade at age six and complete education by age 17. It introduces strict penalties for non-compliance, including fines and imprisonment. The law also emphasizes equal educational opportunities for all students, including non-Omanis, and bans discrimination based on race or religion. It seeks to foster accountability and support quality education across the Sultanate.

Strategic focus on skills development

Oman’s education system is undergoing a transformation in response to the demands of the Fourth Industrial Revolution and the country’s Vision 2040 goals. There is a strong emphasis on equipping students with digital skills, vocational training, and lifelong learning to ensure that they are prepared for the evolving job market. Key areas of focus include:

• Automation and digitization: The government is committed to driving the growth of digital skills and reskilling programs to meet the needs of a digitally evolving workplace.
• Remote learning: Leveraging artificial intelligence (AI), machine learning technologies, and video-assisted remote learning to create more personalized and accessible educational experiences.
• Experiential learning: A shift towards hyper-personalized and blended learning, combining traditional classroom experiences with real-world applications to foster deeper learning.
• Vocational and workplace training: An increased focus on vocational training, internships, and work-based learning programs is designed to better align educational outcomes with labor market needs.

Investment opportunities in Oman’s education sector

The Ministry of Education’s efforts to promote investment in education were recently demonstrated at the Private Schools Investment Forum in Suhar, where key stakeholders discussed investment mechanisms in private schools and outlined the significant opportunities in North Batinah, a region with 212 private schools slated for the 2024/2025 academic year. The forum highlighted the importance of investing in special education, vocational training, and other niche areas within the education sector. It also showcased successful investment models in private schools, emphasizing the importance of strong facilities, administration, technical support, and financial planning.

Investing in Oman’s education sector aligns with the country’s Vision 2040, which aims to diversify the economy and promote sustainable development. As Oman continues to focus on developing human capital, there is ample opportunity for investment in both the traditional education sector and new, innovative fields such as online learning platforms, specialized education programs, and vocational training institutes.

Conclusion

Oman’s education sector is positioned for significant growth, driven by the government’s commitment to improving educational outcomes, fostering innovation, and preparing the workforce for future challenges. With favorable investment laws, scope for an expanding private education market, and a focus on skills development and digital transformation, Oman offers an attractive environment for foreign investors looking to capitalize on emerging opportunities in education. Whether in primary, secondary, or higher education, or through innovative solutions like online and vocational training, investing in Oman’s education sector can be a profitable venture and also serve as a key contribution to the country’s long-term vision of sustainable development and economic diversification.

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