Published in fastcompanyme.com

If you weren’t someone keeping a keen eye on edtechs (or even if you were), you’d be forgiven for thinking those such as Coursera and Noon Academy are the be-all and end-all of the industry. Sure, there are other smaller edtech companies, and a few global education companies are expanding into the region. But that’s the extent of the picture most people paint when you ask them about edtech in the Middle East.

With everything happening in the world, expectations and needs are changing. For example, keeping the students’ attention and maintaining their motivation is becoming increasingly challenging. Employees need new skills to keep their jobs or find better ones.

Are edtech companies keeping up with new products and services?

Fuelled by the pandemic and the governments’ efforts to bring students online, several edtech solutions have emerged, filling the learning gaps left unaddressed by mainstream players.

The pandemic supercharged things, with investor money flooding in and carrying edtechs to unimaginable heights just years prior. Four years later, though, the VC exuberance around edtech has somewhat faded.

REDUCED FUNDING

“The sector grew at a CAGR of 54% between 2018 and 2021, creating notable excitement amongst investors who deployed $20.8 billion into the sector in 2021 alone,” says Sacha Haider, Partner at Global Ventures. “However, edtech funding has seen a sharp decline in recent years with Q1 2024 setting a new global low for EdTech VC funding—the lowest it has been since 2014.”

Outside the already anointed, VCs are more circumspect about which companies they back. Full-stack models, which helped edtech giants win the hearts and wallets of investors, no longer guarantee VC love. VCs are on the lookout for newer, more sustainable models.

“To continue to attract VC capital, edtech models will need to exemplify a renewed focus on scalability, sustainability, and exit pathing across the region,” Haider says.

So, how is the sector likely to shape in the coming years? What will it take for the region’s next generation of edtechs?

FRESH APPROACH

Well, the sector needs a fresh approach. It’s also time to focus heavily on teaching, content, and outcomes.

It’s not been easy. Compared to the pace of change within tech sectors, movement in education can be slow.

However, the shift to personalized learning is picking up steam. The Future of Edtech report named personalization one of the “5 ways education needs to change.”

“The new frontier of edtech in the Middle East is marked by the rise of personalized learning platforms and the increased integration of AI, data analytics, blockchain, and hybrid learning models,” says Ritesh Dhanak, Chief Innovation and Digital Officer at GEMS Modern Academy.

“Personalization helps improve learning outcomes by offering tailored content and real-time feedback,” he adds.

The push for hybrid models—both online and in physical classrooms—is also gaining momentum. These offer flexibility and continuity in education. Online courses use gamification to keep students’ attention and motivate them.

Additionally, Dhanak says, “The focus on creating high-quality Arabic/multi-language digital content is crucial, addressing language barriers in education.”

NEW OPPORTUNITIES

Interestingly, AI in the education market is set to skyrocket, with estimates predicting a global increase of approximately $21 billion by 2028.

Public sentiment indicates that traditional higher education often falls short, emphasizing the need for accessible, flexible learning solutions.

With a surge in demand across all tiers of the job market, edtech companies are becoming pivotal in empowering individuals for success in the swiftly evolving job market.

While there’s a focus on personalized learning, the region’s push for digital transformation, especially in countries like the UAE, Saudi Arabia, and Egypt, creates new opportunities.

“Niche edtechs are thriving, particularly those targeting coding, AI, and STEM skills,” says Mohamed Gawish, Co-Founder & CEO of iSchool, an edtech platform offering coding classes to students ages 6-18.

Since reskilling and upskilling remain key trends in the edtech space across the MEA region, driven by the evolving demands of the job market, the niche market also exists in skill-specific platforms, adds Dhanak.

Edtech platforms, says Haider, allow learners to focus on acquiring new competencies in areas such as technology, business, and soft skills, often through micro-credentials or certifications tailored to align with current market requirements.

COMPLEX CHALLENGES

However, the challenge lies in scalability and differentiation. “Many edtech companies now need to show they can deliver sustainable impact beyond the initial boom, moving beyond basic e-learning platforms to more integrated and personalized learning experiences,” says Gawish.

While advancements in digital acceleration and AI, the evolving student needs, and the shifting job market will continue to drive significant innovation and foster new solutions to address the diverse requirements of learning environments, Haider says, edtech involves navigating a complex network of stakeholders, including students, parents, administrators, and government entities.

“[This] can make it challenging to secure universal buy-in, identify the payer, and develop a holistic product that meets the needs of diverse functions.”

“The landscape is complex but also presents ample opportunities for transformative technologies to align and coordinate these stakeholders,” adds Haider.

INCLUSIVE AND ENGAGING

Thanks to technology, a more inclusive and effective educational environment can be created, and dynamic, interactive, and multimedia-rich content can be tailored to diverse learning styles and cultural contexts.

“Platforms can personalize how students learn by adjusting content delivery, offering text-to-speech features, visual aids, and interactive exercises that accommodate attention challenges or reading difficulties,” says Haider.

There’s a rise in integrated gamified learning experiences, real-world simulations, and adaptive materials that evolve with student performance, making learning more engaging and relevant.

Haider says Lamsa, a UAE-based edtech platform focused on early childhood development (ECD), is an example of technology’s impact on the sector. The platform caters to children’s educational needs, providing interactive activities, memory and observation games, songs, and videos—all based on ECD research—to develop children’s intelligence, learning skills, problem-solving abilities, and emotional growth.

“The startup has over 17 million downloads, emphasizing market demand,” says Haider.

IS THERE ENOUGH INNOVATION?

In the coming years, the rise of new technologies, especially those related to AI, the preferences of Generation Z, and the crowded online space will continue to influence edtech.

But is there enough innovation in the sector?

“Innovation in the edtech space is happening, but the pace varies across different areas,” says Dhanak. “While significant advancements are being made in personalized learning, Arabic content creation, and AI-driven education platforms, other areas like VR in education and AI-driven assessments are still in the developmental stages.”

Apart from adaptive learning technologies, which can help cater to individual student needs, Gawish says the Middle East’s education system can benefit by developing AI-driven tools that provide real-time feedback and more efficient assessments.

“Expanding reach to underserved and remote areas through edtech platforms is critical for bridging the digital divide and integrating more advanced coding and AI learning tools to prepare the region’s youth for future jobs,” Gawish adds.

Dhanak adds that more needs to be done to foster a culture of continuous innovation, particularly in addressing specific regional challenges such as accessibility and teacher training. “There is a lot to innovate in the edtech space, particularly with the World Economic Forum’s indication about the top four most important skills by 2030 being analytical thinking and innovation, active learning and learning strategies, complex problem solving and critical thinking and analysis.”

Driven by an unprecedented global push for workforce upskilling and an increasing number of learners year-on-year, technology will continue to play a pivotal role in the expanding education landscape. However, the key to achieving success in this evolving sector is understanding that edtech players need to offer more than just technology.

‍