4th Sunrise Sector: EdTech Companies
At a time when the COVID-19 pandemic has disrupted the world, the chances of survival, or even a bounce back, is reserved only for the business sectors that have already embraced digital transformation. Edtech, healthcare, and E-commerce are some of the sectors in the UAE that have shown resilience while combating the economic downturn precipitated by the global pandemic. The role played by Edtech in helping the education sector in tackling the COVID-19 crisis has earned praises across the world.
According to UNESCO, the COVID-19 pandemic has impacted the education of around 77.6 million school children across the world due to school closures. However, due to a robust Edtech infrastructure, the UAE has been able to save the education sector from disruption. The schools in the UAE have switched to e-learning, where the teachers conduct classes in the virtual model.
The virtual classrooms have stopped the spread of infection among the students and teachers by letting them attend classes while staying at home. Since the WHO has already stated that the COVID-19 crisis is unlikely to subside in the near future, e-learning will be the new norm. In this background, the UAE Edtech sector is likely to attract more investments, which means setting up a business in Dubai especially in this sector is likely to be profitable in the days ahead.
Why the UAE is Perfect Launchpad to Establish Edtech Startups?
Edtech companies across the world are viewing the UAE as a launchpad to establish their business. The UAE government has always been proactive towards promoting distance learning and e-learning in the country. The Edtech has already begun to spread its wings in the UAE, but the fast spread of the novel COVID-19 virus has accelerated its growth prospects. The following are some of the reasons why the UAE is a fertile ground for Edtech startups.
1. A Global Education Market
The UAE’s school market holds the reputation of being one of the biggest in the world in terms of school fees. The school fee in the UAE is estimated to grow to around USD 7 Billion in 2023. This factor makes the UAE an ideal ground for the Edtech companies to test their products and also conduct research and development. With the professional assistance of experienced business set-up consultants, Edtech entrepreneurs can easily start their company in the UAE.
2. Diverse Curriculum
The UAE is an ideal launchpad for Edtech entrepreneurs to set up their businesses due to the diversity of education in the country. A variety of schools from different countries have established their businesses in the UAE. This has given rise to a commendable diversity in the school curriculums. The UAE has become a global hub for education due to different curriculum such as the US, UK, and Indian curriculums. Considering this factor, Edtech companies can easily find a global client base in the UAE.
3. Readiness to Embrace Future Technologies
The UAE government’s proactive policies towards building future technologies have helped the country in adopting alternative methods to combat the COVID-9 crisis. Many schools in the UAE have already adopted digital technologies which helped them to conduct the classes even when the traditional model of learning was disrupted by the fast spread of the virus. Technology is the future of every business as social distancing and lockdowns will be the new normal for a long time. The demand for Edtech services is increasing and the sector is attracting more investments.
Why this is the Best Time to Invest in Edtech Startups?
The UAE has been among the few countries that readily responded to the crisis by switching to virtual learning. The country had been aware of the capabilities of the Edtech solutions and has been providing a favourable business environment for such companies. However, if the COVID-19 crisis had not occurred, the centralization of the e-learning platforms would have taken more time.
Also read: Startups Need to Watch Out the Changing Business Environment in the UAE
The global Edtech market has been showing promise for some time but the COVID-19 situation has only accelerated the demand for the sector suddenly. A report by the Dubai Future Foundation says the size of the global Edtech market will touch USD 341 billion by 2025. As more schools and universities would require adopting newer technologies, the demand for the Edtech sector is surging in the UAE due to the pandemic.
The Abu Dhabi University recently invested AED 55 million in Edtech to make sure that the students are having flawless interaction during the closures. The funding has been allocated for robust Edtech tools, and to secure large cloud storage. The money has been also earmarked for preventing potential hackers from disrupting the e-learning classes.
Many Edtech solutions providers have reported a surge in enquiries from schools during the COVID-19 crisis. The Edtech companies in the UAE are expecting more enquiries from schools and universities that desire to upgrade their IT hardware and software infrastructure to enable flawless e-learning activities.
Why Choose Jitendra Business Consultants?
The current demand for Edtech solutions in the UAE is on an urgent basis as the schools found it necessary to quickly adopt e-learning solutions. However, since the COVID-19 crisis is likely to persist, the schools would need to update their e-learning software infrastructure soon. When the virtual learning mode becomes the accepted standard, the schools would be forced to make more investments in Edtech. This would pave the way for more Edtech startups to establish their businesses in the UAE. However, starting a company in Dubai, UAE means the entrepreneurs need to make a slew of strategic decisions including the selection of the right jurisdiction (mainland or free zone). In such a situation, the companies would require the professional guidance of an experienced business setup consultant like Jitendra Business Consultants (JBC). The JBC is composed of highly qualified business setup consultants who are well-versed in all the local laws and regulations to ensure a seamless incorporation of companies. JBC’s efficient company formation experts would assist the Edtech startups in selecting the right business jurisdiction and registering the company with the relevant licensing authorities. Being a one-stop solution, JBC would also assist the investors to comply with all the regulatory requirements and let the entrepreneurs achieve their business goals by turning the crisis into an opportunity.