The education technology sector has become an “attractive and promising new market” for venture capital investors, especially in the Mena region, as the Covid-19 pandemic accelerates shift to digital education, according to a new study.
Globally, EdTech companies received a massive $8.3 billion in the first three quarters of 2020 alone, Dubai-based venture capital firm Global ventures said in its inaugural EdTech research report.
“The EdTech sector started the last decade with $500 million of venture capital investments in 2010 and finished 14 times higher at $7bn in 2019,” according to the report.
The EdTech industry has played an integral role in ensuring continuity of education at a time when physical schools had to close to contain the spread of the coronavirus pandemic.
Emerging markets attracted the lion’s share of investments last year, with India surpassing the US in capital allocated. Although only $30m was invested in EdTech companies in the Mena region in 2020, investment is set to increase steadily from a low base, according to Global Ventures.
“EdTech is set to grow consistently in the next decade,” Noor Sweid, founder and general partner at Global Ventures, said. “From early childhood to lifelong learning, opportunities to improve access, quality and affordability of education and redefine them, are many and immensely exciting.”
The next decade will be critical for EdTech businesses in emerging markets. Supportive government policies and technology may even mean emerging markets potentially "leapfrog the developed world”, she added.
In the Mena EdTech landscape, start-ups are focused mostly at the K-12 level and specifically, in the online learning space. The tutoring market is also rich, with 69 per cent of Egypt’s state school students relying on private tutoring, underlining the growing culture of supplemental learning. Early and higher education segments, however, remain underexplored in the Mena region, according to the report.
“As the rest of the world moves toward personalised and adaptive learning, and focuses on learning outcomes, start-ups in the region are simply scratching the surface in terms of addressing the quality gap in education,” the report said.
“In regions like the GCC, the digitisation of business and industry is set to continue into the near and far future, translating into a growing need for upskilling, reskilling and frequent professional development. Yet, the continuous learning market is still in its infancy.”
The global expenditure on education and training was valued at $7 trillion last year. Since 2010, the industry has grown by 70 per cent and is projected to be worth $10tn, contributing to about 6 per cent of the worldwide gross domestic product.
However, the industry took a hit last year as Covid-19 pandemic forced school closures, affecting nearly 1.6 billion pupils in more than 190 countries, underling the need for imparting quality education through online platforms and hybrid model of education.
The pandemic has already accelerated investment in EdTech start-ups. Investments the education sector ventures amounted to 5 per cent of all deals in the Mena region in 2020, accounting for 3 per cent of total $1bn invested by VC firms, the report cited data from start-up portal Magnitt.
"While the number is relatively small, it is growing rapidly … in the Covid aftermath, EdTech’s funding share in Mena is poised for accelerated growth,” it said.
EdTech initiatives could also receive a boost from the changing dynamics in the job market.
Globally, about 75 million jobs are expected to be displaced in the coming years, with digitisation forecast to create 133 million unique jobs. It is anticipated that 65 per cent of today’s primary school children will ultimately work in jobs that don’t yet exist.
Due to the evolving nature of the modern economy, a university graduate in the 21st century university changes careers five times in their first 10 years of employment.
“Not only is this presenting an urgent need for K-12 and higher education institutions to revamp curricula, it is also feeding a worldwide upskilling and reskilling imperative,” the report said.
“The way we see it, EdTech will continue to grow … at Global Ventures, we are optimistic about the possibilities in this space.”
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UAE currency: the story behind the money in your pockets
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
The view from The National
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
More from Rashmee Roshan Lall
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Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Rashid & Rajab
Director: Mohammed Saeed Harib
Stars: Shadi Alfons, Marwan Abdullah, Doaa Mostafa Ragab
Two stars out of five
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
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Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
What is an FTO Designation?
FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes.
It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.
Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.
Except as authorised by the Secretary of the Treasury, any US financial institution that becomes aware that it has possession of or control over funds in which an FTO or its agent has an interest must retain possession of or control over the funds and report the funds to the Treasury Department.
Source: US Department of State
Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test Thursday-Monday at Colombo
- 3rd Test August 12-16 at Pallekele
