Increasing Government Investments in Online Learning to Boost MENA Edtech Market Growth During 2022–2028
According to The Insight Partners market study on "MENA Edtech Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Sector and End User," the market is expected to grow from US$ 2,825.52 million in 2023 to US$ 5,487.71 million by 2028; it is estimated to register a CAGR of 14.2% from 2023 to 2028. The report provides trends prevailing in the market along with drivers and restraints.
Since the COVID-19 pandemic, the demand for online learning has increased tremendously. As online education is more accessible, it helps solve the classroom size problem. Due to the increasing adoption of online education, the government in MENA has increased investments in online learning. In February 2023, the Government of UAE partnered with the Emirates Red Crescent to establish the Digital School Fund with US$ 27.22 million (AED100 million) during the World Government Summit 2023. Through this partnership, the government aims to financially support the Digital School’s programs and provide intelligent and flexible distance education to countries affected by disasters and crises. Similarly, in September 2020, the Government of Kuwait announced an investment of US$ 1.14 billion in facilities for e-learning programs and online learning platforms. Also, in June 2020, the Government of Turkey announced that the World Bank had approved a loan of US$ 160 million for the Safe Schooling and Distance Education Project to enhance the capacity of education system by providing e-learning to school-age children. The project consists of three components—emergency connectivity and IT infrastructure for education, digital content for safety and quality, and institutional capacity for education technology resilience. Also, the project will increase the use of online distance education platforms to almost 12 million K-12 students and will provide certified online training to around 900,000 teachers. Thus, the growing investments in online learning by the governments of various countries of MENA are boosting the growth of the edtech market.
MENA Edtech Market Revenue and Forecast to 2028 (US$ Million)
Saudi Arabia is witnessing growth in the education technology industry by helping to transform the young population into an intelligent workforce through online learning. One of the goals of Saudi Vision 2030 is to enhance the education sector by developing a comprehensive framework for flexible learning. The country has seen a considerable rise in tech-focused entrepreneurs establishing businesses in the edtech industry. It has around 122 edtech startups, including AlGooru, Yourself, YNMODATA, Shaguf, iStoria, Acadox, Jo Academy, Wade7, and GAGA. These startups are continuously working on providing innovative solutions to their customers and expanding their market presence. In July 2022, AlGooru raised US$ 1.8 million in seed funding from Saudi venture capital firms RZM Investments, 100 Ventures, RAZ Group, and RAY Investments. Through this funding, the company has widened its offering and expanded its market presence. Thus, the growing number of edtech startups and increasing demand for flexible learning are fueling the edtech market growth in Saudi Arabia.
Udemy, Inc.; Coursera Inc.; Blackboard Inc.; Duolingo; and edX LLC are a few key MENA edtech market players profiled in the research study. The mentioned MENA edtech market players adopt organic growth strategies such as product launches and expansions to sustain their position in the MENA edtech sector.
The MENA edtech market is segmented into sector and end user. Based on sector, the market is segmented into pre-school, K-12, higher education, and others. In terms of end user, the MENA edtech market is segmented into individuals, academic institutions, and others.
According to GSMA, at the start of 2022, there were ~98.29 million cellular mobile connections in Egypt, which increased by 1.9 million from 2021. Thus, the growing adoption of smartphones will simultaneously fuel the growth of the edtech market in the country. Also, the country has around 193 edtech startups continuously working on providing innovative solutions to customers. A few of the edtech startups in the country are Orcas, Sprints, OTO Courses, Tyro, Integreight, and Crafty Workshop. These startups are continuously working on attracting funds to expand their platforms. In November 2021, OTO Courses announced they had secured an investment of US$ 400k from Edventures. Through these funds, the company will work on adding more subject areas to its distance-learning platform and will further expand its user base. Thus, a growing number of smartphone users and funding in the startup companies will propel the growth of the Egypt edtech market during the forecast period.
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