Vipul Bhargava reviews the trends, models and key markets for UK international schools

UK schools continue to expand internationally, driven by the impact of VAT on fees and the need to diversify revenue streams. Currently, 46 UK schools have announced or opened international campuses, totalling 158 campuses worldwide (see graph).

While established institutions with significant global footprints – such as Harrow, Wellington, and Malvern – continue to grow, newer entrants are also venturing into international markets. Recent expansions include Hereford Cathedral School in Rwanda and Whitgift in India. Last year, notable announcements included Dulwich College in Thailand, Charterhouse in Kazakhstan and India, and North London Collegiate School in Japan. The trend has continued into this year, with The Perse School, Cambridge opening in Singapore in partnership with Futuris Education.

History

The internationalisation of UK schools began with the need to provide high-quality education to British expatriates, particularly in regions like the UAE. Places such as Dubai and Abu Dhabi saw the establishment of schools like Repton, Kent College and North London Collegiate catering to expat families seeking educational continuity. Over time, the British curriculum – notably its GCSEs, A-levels, and emphasis on critical thinking – gained popularity among local populations. Today, more than 70% of pupils in British international schools globally are host-country nationals, marking a significant shift from the expat-dominated early years.

Demand drivers vary by country but are rooted in the local population’s preference for academic rigour, holistic development, and pathways to global universities. British qualifications are globally recognised, with 94% of international universities accepting A-levels. Extracurricular programmes in sports, arts and leadership align with parental aspirations for a well-rounded education. Schools like Brighton College International, Abu Dhabi, boast university acceptance rates exceeding 80% for Russell Group or QS Top 100 institutions.

Emerging business models

Initially, the business model revolved around a traditional franchise framework, with revenue-sharing based on royalty fees calculated as a percentage of total revenue. Payments were structured across phases, including the memorandum of understanding and binding agreements.

However, as the industry matures, UK schools are starting to explore alternative models, such as acquiring equity stakes in operating companies in exchange for reduced royalty fees. This shift allows deeper operational involvement and aligns financial returns with EBITDA (earnings before interest, taxes and amortisation) performance, fostering collaborative partnerships.

Regulatory changes have further influenced business models. In 2022, the UAE’s Knowledge and Human Development Authority mandated “substantial involvement” in operations, discouraging passive franchising. Meanwhile Singapore’s Economic Development Board prioritises joint ventures in its tender processes, favouring long-term commitments between UK schools and local investors.

Key markets 

China – a closed door 

China’s 2020 regulatory crackdown on private education – including restrictions on foreign curricula and for-profit schooling – halted expansion efforts. Real estate-linked projects by firms like Vanke and Country Garden faced financial turmoil, further deterring new entrants.

UAE – a mature market with renewed momentum 

The UAE remains a cornerstone of British international education, hosting 15 UK-branded schools. Between 2008 and 2020, brands like Repton, Kent College, NLCS, and Brighton College entered the market. Post-Covid, Dubai’s population growth agenda (aiming to double by 2040) has reignited expansion. Recent entrants include RGS Guildford Dubai (partnered with Cognita) and Harrow International School (partnered with Taleem). Other emirates in the UAE are also gaining traction, with Reigate Grammar School announcing a Sharjah campus in 2024.

One important consideration, however, is the changes in regulation driven by

the UAE regulator, the Knowledge and Human Development Association, which is increasingly pushing for a much closer collaboration between the UK home school and the Dubai investor, with the traditional franchise model being looked at less favourably. This warrants greater flexibility in business models and approach by the UK independent schools.

India – a high-growth, price-sensitive market 

Historically, India has not been a priority market due to lower price points. However, the landscape is evolving as UK schools establish campuses across various pricing tiers. This shift is driven by parental demand for British education (and increasingly International Baccalaureate), local schools groups seeking to move up the value chain with a differentiated brand, and high fee inflation.

While the greatest opportunity in India still lies in the mid-price segment (annual fees ranging from £6,000 to £10,000), some UK schools have entered the super-premium segment with fees exceeding £12,000.

Early missteps by institutions like Repton School and Kings College Taunton – due to location errors or partnership misalignments – have given way to calibrated growth. Over the past three years, five schools have opened or announced partnerships, including Harrow Bangalore (2023, with Amity Group), Wellington Pune (2023, with Unison Group), and upcoming campuses by Shrewsbury, Charterhouse, and Whitgift. The number of UK schools in India is expected to double within two years, making it one of the fastest-growing markets for UK independent schools.

Saudi Arabia – Vision 2030 fuels expansion 

Saudi Arabia’s Vision 2030 aims to privatise education, increasing private sector participation from 10% to 25% by 2030. Early UK brand entrants like Kings Taunton, Downe House, Reigate Grammar and Aldenham have seen reasonable success, with some now planning second campuses. According to the education consulting firm, L.E.K. Consulting, the K12 market in Saudi Arabia is projected to expand significantly, with 900-1,000 additional private international schools by 2030 to meet rising demand.

The government is actively addressing supply challenges through initiatives like the International Schools Attraction Program. Additionally, with Saudi Arabia aiming to triple its high-skilled expatriate population by 2030, the demand for internationally recognised education options will continue to grow.

Key considerations 

For schools considering their first international branch campus, there are a few crucial considerations to bear in mind:

1. Secure governance buy-in early – Investors increasingly prefer schools that are agile and can make decisions quickly, rather than being delayed by lengthy trustee or governor approvals.

1. Develop a comprehensive view of expansion – It is vital that schools assess the advantages, challenges, timelines and financial implications of expansions thoroughly. Consulting institutions with prior experience, the UK government’s Department of Business and Trade, and other resources can provide invaluable guidance.

1. Ensure senior management bandwidth – Many UK schools appoint dedicated ‘international directors’ or delegate oversight to chief operating officers/bursars in the initial stages.

1. Choose the right market – Expansion should align with strategic priorities and risk appetite. Many schools run the risk of spreading efforts too thinly across multiple markets which can dilute focus. A targeted approach to finding a good partner is a more effective strategy than going wide.

1. Select the right partner – The choice of local partner remains the single most important factor for schools to consider. Ideally schools thinking of international expansion for the first time should choose a local partner with education experience to ensure both value alignment and a thorough understanding of the regulatory landscape. Rigorous due diligence should not be overlooked in the rush to secure a deal.

Conclusion

The international K12 sector, including brand partnerships as a subsector, continues to grow, fuelled by global demand and increasing competition from North American, European and Australian brands. With a strategic, focused approach, UK schools are well-positioned to capitalise on this opportunity and create a steady stream of diversified income.

 

Vipul Bhargava is a partner at Novistra Capital, an advisory firm specialising in mergers and acquisitions as well as international school partnerships in the education sector.

Vipul Bhargava