{"id":615475,"date":"2024-02-19T00:00:00","date_gmt":"2024-02-19T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/blackboards\/what-do-foreign-universities-see-in-the-egyptian-market-and-what-challenges-are-they-facing\/"},"modified":"2024-02-19T00:00:00","modified_gmt":"2024-02-19T00:00:00","slug":"what-do-foreign-universities-see-in-the-egyptian-market-and-what-challenges-are-they-facing","status":"publish","type":"blackboard","link":"https:\/\/enterpriseam.com\/egypt\/blackboards\/what-do-foreign-universities-see-in-the-egyptian-market-and-what-challenges-are-they-facing\/","title":{"rendered":"What do foreign universities see in the Egyptian market and what challenges are they facing?"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Egypt\u2019s transnational higher ed sector is picking up steam:<\/strong> The government andprivate sector have been increasingly partnering up with foreign universities in recent years in a bid to improve the quality of the country\u2019s higher education sector, meet international standards, and <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/08518848-9ea0-4598-9cea-6bd2b2c264e3\" style=\"\" rel=\"noopener\">turn the country into a hub for international education<\/a>. The result is what the British Council calls a \u201crelatively mature\u201d transnational education (TNE) market brimming with a wide range of models, according to a <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/2\/1676.pdf\" style=\"\" rel=\"noopener\">report (pdf)<\/a> it released in September. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>There are at least 102 foreign higher education institutions operating <\/strong>in Egypt through anumber of models \u2014 international branch campuses (IBCs), joint and dual degrees, franchises, and other partnerships.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember:<\/strong> Regulations issued by the Higher Education Ministry around six years ago requirelocal universities to <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/bb0f7821-fd9e-4896-81a7-c2ac98230537\" style=\"\" rel=\"noopener\">form academic partnerships<\/a> with well-established foreign universities ahead of receiving or renewing their licenses to operate.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A snapshot of our current IBC landscape:<\/strong> Seven IBCs \u2014 government\u2019s preferred TNE model \u2014 have popped up in the country following the introduction of the <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/Legislations\/posts\/%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%B1%D9%82%D9%85-162-%D9%84%D8%B3%D9%86%D8%A9-2018-%D8%A8%D8%B4%D8%A3%D9%86-%D8%A5%D9%86%D8%B4%D8%A7%D8%A1-%D9%88%D8%AA%D9%86%D8%B8%D9%8A%D9%85-%D9%81%D8%B1%D9%88%D8%B9-%D9%84%D9%84%D8%AC%D8%A7%D9%85%D8%B9%D8%A7%D8%AA-%D8%A7%D9%84%D8%A3%D8%AC%D9%86%D8%A8%D9%8A%D8%A9-%D8%AF%D8%A7%D8%AE%D9%84-%D8%AC%D9%85%D9%87%D9%88%D8%B1%D9%8A%D8%A9-%D9%85%D8%B5\/1853764298026129\/\" style=\"\" rel=\"noopener\">International Branch Campus Act<\/a> in 2018, according to the British Council report. The universities have set up their branches in four university hubs in the new capital:<\/p>\n<ul>\n<li><strong><a target=\"_blank\" href=\"https:\/\/uofcanada.edu.eg\/\" style=\"\" rel=\"noopener\">Universities of Canada in Egypt<\/a><\/strong> hosts two Canadian universities \u2014 Prince Edward Island University and Toronto Metropolitan University;<\/li>\n<\/ul>\n<ul>\n<li><strong><a target=\"_blank\" href=\"https:\/\/www.gaf.edu.eg\/get-in-touch?utm_source=google&utm_medium=cpc&utm_campaign=General&utm_term=international%20foundation%20year&gad_source=1&gclid=CjwKCAiA8sauBhB3EiwAruTRJphPFXJiNKQFdBz0OcAwqIJmA5W-xdW-Nwo2xYaLc3Qr5E2fTjdjGhoCqCYQAvD_BwE\" style=\"\" rel=\"noopener\">The Global Foundation<\/a><\/strong> hosts the UK\u2019s University of Hertfordshire;<\/li>\n<li><strong><a target=\"_blank\" href=\"https:\/\/eue.edu.eg\/\" style=\"\" rel=\"noopener\">European Universities in Egypt<\/a><\/strong> hosts the UK\u2019s University of London and University of Central Lancashire;<\/li>\n<li><strong><a target=\"_blank\" href=\"https:\/\/tkh.edu.eg\/\" style=\"\" rel=\"noopener\">The Knowledge Hub<\/a><\/strong><strong>(TKH) <\/strong>is home to the UK\u2019s Coventry University and Portugal\u2019s Nova University. <\/li>\n<\/ul>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>** Enterprise sat down with the vice chairman of TKH\u2019s board of trustees Ihab Salama<\/strong> for a chat about Nova University\u2019s branch campus in Egypt back in August. You can read the full story <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/dfe97e43-e760-4795-950d-9a76c52cd5be\" style=\"\" rel=\"noopener\">here<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember:<\/strong> The IBC Act \u2014 ratified back in 2018 \u2014 <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/1e13621c-5bf8-4d05-9815-c8c235fca068\" style=\"\" rel=\"noopener\">sets forth the regulations<\/a> by whichinternational universities can set up branches in Egypt, which they can do by building their own campuses or partnering up with Egyptian universities. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>There\u2019s plenty more where that came from: <\/strong>Greece\u2019s <a target=\"_blank\" href=\"https:\/\/greekreporter.com\/2023\/09\/22\/greek-university-opens-branch-alexandria-egypt\/\" style=\"\" rel=\"noopener\">University of Patras<\/a> is reportedly ontrack to set up a branch in Alexandria by 2025 and Russia\u2019s <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2dcb4d47-a5e9-40f8-964c-57ddb6704e76\" style=\"\" rel=\"noopener\">University of St. Petersburg<\/a> is opening a branch in New Cairo, along with fellow Russia Kazan Federal University, which is establishing a presence in Sixth of October City. Toronto-based <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/da61dec1-9efd-4b49-b7a3-9d1fe93592a7\" style=\"\" rel=\"noopener\">Seneca College<\/a> also plans to open two branches in Egypt \u2014 one in East Cairo and the other in West Cairo \u2014 and the US\u2019 <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/08b848b7-6203-4aa8-b134-6ca84ea9c62a\" style=\"\" rel=\"noopener\">University of Texas Medical Branch<\/a> and Portugal\u2019s <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/06438f39-0351-4f4d-8d74-79c429d2f7ab\" style=\"\" rel=\"noopener\">University of Aveiro<\/a> could also set up shop here at some point in the future.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">BUT WHY CHOOSE EGYPT?-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The government has a growing appetite for TNE:<\/strong> The overall operating environment iswelcoming to international higher ed institutions (HEIs) thanks to a \u201csupportive government with an internationalization agenda\u201d and \u201can enthusiastic domestic higher education sector that is eager to develop foreign university partnerships,\u201d the report reads. The drive to deliver an attractive environment for foreign universities is part of the government\u2019s efforts to improve the quality of higher ed, boost employability, and develop a modern workforce, the report states.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Our demographics make for a promising TNE market: <\/strong>Coupled with one of the largest youthpopulations in the world, rapid population growth means the higher education sector faces the challenge of generating significant capacity to meet current and future demand. Almost 51% of our <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2038f489-a513-4973-aebb-e852d15b092b\" style=\"\" rel=\"noopener\">105.9-mn<\/a> population is under the age of 25 and the current average growth rate stands at an annual 1.7% \u2014 with Egypt set to see the largest overall population increase in the region between 2015 and 2030 \u2014 according to the report. The government plans to tap into international education to provide the needed capacity while introducing new subjects and skills.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Demand for TNE is also driven by financial considerations: <\/strong>With Egyptian families facingtighter budgets and limited access to foreign currency as a result of the devaluation of the EGP and the ongoing FX crunch, international education on home soil stands as an attractive alternative to overseas education. While IBCs can quote tuition fees in foreign currency for international students, Egyptian students can only be charged in local currency. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">THE HEADWINDS-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Despite the Madbouly government\u2019s efforts to bring more foreign universities to Egypt<\/strong>, a number of obstacles have remained untackled. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- The sector is squeezed by the FX crunch:<\/strong> IBCs in the pipeline have been facing delayson the back of the foreign exchange crunch and soaring construction costs, Universities of Canada in Egypt President Magdy El Kady (<a target=\"_blank\" href=\"https:\/\/www.linkedin.com\/in\/magdy-elkady-99280239\/?originalSubdomain=eg\" style=\"\" rel=\"noopener\">LinkedIn<\/a>) told Enterprise. While the hub\u2019s Prince Edward Island University has been in operation since 2018, construction work on its three other planned universities has come to a halt, with construction only a third of the way complete, El Kady said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- There\u2019s room for improvement on the regulatory front:<\/strong> While the regulatory environment for TNE is most advanced for IBCs, which are governed by the IBC Act, the processes by which other types of TNE are set up aren\u2019t as clear-cut, the report states. For instance, joint and dual degrees are arranged at the discretion of the partners involved, and there are no specific regulations for franchises or online learning. Improved clarity could serve to attract more foreign universities, the report suggests.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#3- Even IBC rules aren\u2019t without hurdles:<\/strong> There are \u201cunwritten expectations\u201d that IBCs should partner up with local investors and consultants to set up shop here. It\u2019s been the case for all IBCs created since 2018 that a private Egyptian investor covers the land, infrastructure, and operational costs, while the foreign university sees to the academics. While this lowers the cost of market entry for foreign universities, it makes them more dependent on the information provided by their partners. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">THE STATS-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The UK has the lion\u2019s share of the market:<\/strong> With 27 HEIs, the UK accounts for some 26% of TNE partnerships in the country, followed by Germany (20%), France (12%), and the USA (10%), according to the report. Egypt is the largest host of UK TNE in the region and was the fifth largest market for it in the 2021-2022 academic year \u2014 during which some 23.8k students were enrolled in British higher ed courses here. Other HEIs active here hail from Italy, Spain, Greece, Ireland, Finland, Sweden, Austria, Slovenia, Russia, Korea, Malaysia, Indonesia, Sudan, and Kenya.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>But, UK TNE growth in the country has been slowing:<\/strong> Growth of transnational education inEgypt in recent years has been driven by other countries \u2014 such as Germany and the US \u2014 as UK universities take a more cautious approach to expansion.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Despite robust TNE growth at home, Egyptians are still choosing to study abroad: <\/strong>Thenumber of Egyptian students traveling for higher education has grown more than fourfold to over 50.8k currently from <a target=\"_blank\" href=\"https:\/\/monitor.icef.com\/2022\/12\/a-primer-on-international-student-recruitment-in-egypt\/\" style=\"\" rel=\"noopener\">12.3k in 2008<\/a>, according to the latest figures by <a target=\"_blank\" href=\"https:\/\/uis.unesco.org\/en\/uis-student-flow\" style=\"\" rel=\"noopener\">UNESCO<\/a>. The majority of these students go to the UAE (30%), Germany (11.7%), and Turkey (8.7%).<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Your top education stories for the week:<\/strong><\/p>\n<ul>\n<li><strong>Gifte<\/strong><strong>d students are on the government\u2019s radar:<\/strong> The ministries of educationand higher education yesterday <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0XFzDnfFnrM7BwcCirRQ3je3aA9Tt2JmnqRHAwExPV2aetCKUidhmVCDRp3AABjuxl\" style=\"\" rel=\"noopener\">signed off on a plan<\/a> to identify and train students that are gifted in the fields of science and technology.<\/li>\n<li><strong>Egyptians can\u2019t be forced to pay tuition fees in USD:<\/strong> The Education Ministry issued a circular <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/edition\/am\/80d1afd8-6bde-47d6-b3bb-cdfcc961b115\/El-Sisi%E2%80%99s-EGP-180-bn-social-support-package-gets-House-approval\" style=\"\" rel=\"noopener\">last Monday<\/a> prohibiting private and international K-12 schools from collecting tuition fees in foreign currency from Egyptian students.<\/li>\n<li><strong>Giza Systems, Nahdet Misr to support social startups:<\/strong> Giza Systems\u2019 corporate social responsibility arm Giza Systems Foundation and Nahdet Misr\u2019s VC arm EdVentures will offer social startups <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/9c19537f-e5e9-4e0d-af59-6d419e8372e7\" style=\"\" rel=\"noopener\">training programs<\/a> and one-on-one mentoring.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>There are at least 102 foreign higher education institutions operating in Egypt through a number of models<\/p>\n","protected":false},"featured_media":615476,"template":"","categories":[7211],"tags":[7095,73,179,72,3251],"class_list":["post-615475","blackboard","type-blackboard","status-publish","has-post-thumbnail","hentry","category-blackboard","tag-blackboard","tag-education","tag-enterprise-blackboard","tag-enterpriseam","tag-the-knowledge-hub","wpautop","entry"],"acf":{"mongo_id":"4fd5cd79-93dd-4dff-a0d3-69d32d31ff6a","is_powered_by":false,"story_type":"2","photo_url":"https:\/\/ent.news\/2024\/2\/1657.jpg","photo_position":"above","homepage_title":"","full_issue_title":"What do foreign universities see in the Egyptian market and what challenges are they facing?","related_issue":[615455],"teaser":"There are at least 102 foreign higher education institutions operating in Egypt through a number of models","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/2\/.9baa152d-18de-428c-add3-cc3e37ea6642.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What do foreign universities see in the Egyptian market and what challenges are they facing? 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