UAE Economic Growth Drives Student interest in Business and Engineering Courses according to HSBC Research

HSBC Global Research reveals students in emerging markets opt for vocational courses to tap into buoyant economy. 84% of UAE students study vocational courses

Business and Engineering are the top two most popular degrees amongst university students in the UAE according to new global research developed by HSBC, which looks at higher education across major countries in developed and emerging market economies.

HSBC's research looks at the factors driving higher education choices in eight key markets around the world. It examines the most popular university courses, the cost of studying and comparisons between different social and economic factors driving these choices. It revealed that students in new or emerging markets are much more likely to study vocational subjects at universities than their counterparts in developed countries.

The UAE, in particular, has among the highest proportions of individuals choosing vocational subjects, with 84% of students in the country's top ten courses selecting Business, Engineering, Law, Medical & Health Sciences and IT to study at university. Whereas, a larger number of students tend to choose non-vocational courses, including humanities and social sciences, in developed countries such as the UK, USA and Canada, with fewer than 60% choosing vocational courses.

The type and state of economic activity in each country appears to be a key influencer and driver of the most popular university programs. Students in the UAE tend to enrol in courses that lead to specific in-demand jobs in the country, which is seen as an important route to good careers and financial prosperity over the course of a lifetime.
With infrastructure and construction spending to reach more than AED 480 billion by 2016, nearly double the amount in 2011,[1] students are looking to be part of the UAE's ongoing growth, which is driving interest in Business and Engineering courses.

One of the key insights highlighted by the research is that while the cost of Higher Education is higher in developed countries, notably 81% of GDP per person in countries such as Canada, there is less emphasis on studying courses that lead to a greater "return on investment" in terms of long-term job prospects. Students in economies such as the UK, USA and Canada are being drawn to courses that support their ageing demographic populations, such as Medicine, Nursing and Social Sciences. In contrast, students in emerging economies such as the UAE, Singapore and Hong Kong are more interested in courses that develop skills to meet the growing needs of boom sectors such as Engineering.
In the UAE, the cost of studying is equivalent to 51% of GDP per person and an average of $27,375 per year including university fees and living expenses, the highest amongst the emerging economies. When considering the costs of education in the country, students look to reap the benefits of a degree that provides a greater "return on investment" in terms of graduate employment.

According to the research, the USA showed to be the most expensive country for overseas students to study with a combined average cost of university fees and living expenses at over $35,000 per year for international students. Overseas students in Ivy League universities could pay over two thirds (67%) on top of this amount, with average total costs potentially reaching US$ 58,760 a year. In addition to being one of the most attractive education destinations, the UAE also has one of the lowest annual costs of living for international student standards amongst most developed and emerging markets, after China, Taiwan and Germany.

Paying for this education continues to be one of the most significant financial responsibilities impacting individuals long-term financial planning. An HSBC research report on the attitudes towards retirement in the UAE revealed that 34% of people believe that paying for their children's education is the main factor impeding their ability to save for retirement. This is particularly relevant in the UAE as the three most popular university degrees - business, engineering and law - are typically more expensive than degrees in non-vocational courses.

Rick Crossman, Head of Retail Banking and Wealth Management, United Arab Emirates, HSBC Bank Middle East Limited, said: "As higher education increasingly becomes one of the most important investments people can make in their lifetimes, either for themselves or their children, they have to realise the importance of being financially prepared for this goal. This is particularly pertinent in the UAE where we see a greater focus on vocational degrees, which require significant investment.

"In order to be adequately prepared to pay for this, people need to plan early and start saving for the cost of sending either themselves or a child to university. HSBC helps people plan for this phase of their lives by offering advice and products aimed at addressing customers' most important priorities. Since education is one of the five most important wealth needs, we have focused our efforts on building our wealth management capabilities in order to help customers achieve their ambitions in this area."

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