TMCnet News
Technavio Announces Top Four Emerging Trends Impacting the Vocational Training Market in GCC Through 2020Technavio's latest report on the vocational training market in GCC provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline. Jhansi Mary, a lead analyst from Technavio, specializing in research on K12 and higher education sector, says, "The vocational training market in GCC should grow consistently with major demand coming from Saudi Arabia and the UAE. GCC countries allocate an average of 20% of their national budgets to the education sector. However, the labor force is not equipped in terms of skills to meet the needs of the economy. As a result, the expatriate labor population takes up a lot of job vacancies in GCC, raising the unemployment rate in the region. This has prompted the emergence of private and public vocational training providers, which offer courses that are aligned to industry requirements." The top four emerging trends driving the vocational training market in GCC according to Technavio education research analysts are:
Growing changes in business environment GCC countries are increasingly attracting foreign investments, as economic growth in many other regions remains uncertain. The high GDP growth in GCC economies, low tax burden, and ease in procedures for obtaining construction permits have invited more multinational corporations into the region. This, in turn, will create more employment opportunities for GCC nationals and demand improvement in skills. The fact that GCC countries have won bids to host major global events such as World Expo 2020 indicates that the region has been successful in proving its potential as a region for lucrative investment opportunities. With an increase in globalization and business competitiveness, there has been an increase in demand for skilled professionals, especially in technical fields. However, the formal education system in GCC fails to prepare sudents for the transition from education to employment. Students lack the practical skills and expertise, necessary for participation in the labor market. This has created a demand for vocational training centers as the youth want to equip themselves with the skills required to cater to the expanding economies of GCC countries. Introduction of initiatives to nationalize private sector GCC nationals have to resort to employment in the public sector owing to their lack of skills to be employed in the private sector. As a result, expatriates form around 90% of the private sector workforce in UAE, Saudi Arabia, and Qatar. There has been a rise in the number of government initiatives to include more GCC nationals in the private sector. The nationalization initiatives are strongest in Saudi Arabia and Oman, where the domination by expatriate population is a major human resource issue for employers. With the help of vocational education, nations can prepare young people for employment as there is only a small proportion of nationals enrolled in the private sector. GCC countries have long-term plans for an economic development such as Oman Vision 2020, Qatar Vision 2020, Saudi Arabia Vision 2020, and UAE Vision 2021. They guide the development of policies and regulations to stimulate business growth and encourage the hiring of nationals in the private sector. Diversification of economy With the recent oil price volatility, diversification has become a national priority in GCC countries to ensure the social and economic stability. The boom and bust cycles are reduced when reliance on the oil and gas sector is reduced. Diversification in GCC has involved recycling of oil revenues into new profitable sectors such as construction, telecommunications, transport, and manufacturing. GCC has been investing in non-oil sectors such as healthcare, infrastructure, and education over the years to create a sustainable economy by reducing dependency on oil and promoting the growth of other sectors. In order to propel the diversification of the economy, it is essential that young nationals are provided means to attain the skills and education to sustain themselves in industries of the future. Providing vocational training will balance the drawbacks of the formal education system. Significant advancements in education With government budgets, national level plans, and institutional initiatives, GCC countries have bridged the educational and skills gap to a moderate extent. "Recognizing the existing void, authorities are focused on increasing student enrollment and improving the quality of education across all segments of the GCC education market," says Jhansi. For this purpose, domestic institutions are entering into partnership agreements with reputed universities to impart better quality technical education. Browse Related Reports:
Do you need a report on a market in a specific geographical cluster or country but can't find what you're looking for? Don't worry, Technavio also takes client requests. Please contact [email protected] with your requirements and our analysts will be happy to create a customized report just for you. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies. Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users. If you are interested in more information, please contact our media team at [email protected].
View source version on businesswire.com: http://www.businesswire.com/news/home/20160721005026/en/ |
