OK, I'm just going to come right out and say it. School fees. Yes, we are back to one of my favourite topics thanks to the recent announcement that private schools in Dubai have been given permission by the education authority to hike their fees for the 2012-2013 school year.
I know, I know. Many of us are tired of paying the already high fees for our children's education. Throw in the divisive question of quality and it brings tears of frustration to some parents' eyes when they think about the amount they are paying compared with the quality (or lack thereof) of education their children are receiving.
But that is the life of the expat: you have to expect (and plan) to pay for your children's education because it is highly unlikely they will attend a state school - and it doesn't matter which country you are living in when it comes to this. Unless, of course, you've been posted to a country that speaks the same language as you.
Some employers might ease the financial burden and either contribute to or pay for all of your children's school fees. But with expat packages shrinking, salaries stagnating and the cost of living rising, this is becoming something of a rarity in the world of remuneration for overseas postings.
Which means that many of us have to work and save hard to meet the financial obligations of educating our kids.
I've always taken a hard line on quality versus cost. If I have to pay, for instance, tens of thousands of dirhams a year for my child's schooling, then I expect - and rightly so - good quality, excellent teachers and fabulous facilities.
I am one of the lucky parents in the Emirates; my child goes to what I believe is one of the best schools in Abu Dhabi. The facilities are great, the teachers are motivated and involved and the numerous after-school activities are fun and interesting. The fees I pay for her to attend the school are very reasonable when you consider the quality we receive in return.
It wasn't always this way and we had a difficult, two-year experience with another school before we finally found what was right for us, which makes me even more grateful for what we have now.
But others are not always so fortunate. The tight squeeze for places, which has led to the extraordinary introduction of lottery-type placements in some schools, means that many parents are being forced to lower their expectations in a desperate bid just to get their child educated, all the while paying through the nose for that privilege.
On April 9, The National reported that schools in Dubai had been given the go-ahead by the Knowledge and Human Development Authority (KHDA) to raise their fees for the next school year.
The news report, by Afshan Ahmed, our education reporter, said the fee structure would be "based on school inspection grades and an educational cost index calculated by the Dubai Statistics Centre".
So schools that were rated in the "acceptable" and "unsatisfactory" categories can increase fees by 3 per cent. Schools with a "good" ranking can raise their fees by 4.5 per cent and "outstanding" schools can hike theirs by 6 per cent.
In the story, one parent of a child at Dubai Modern High School, which has been ranked "outstanding", questioned the impending fee rises, saying it was a "disadvantage that the school had received the highest marks if an increase was the outcome".
"And I don't see the need because between then and now, there does not seem to be any drastic change in the school's efforts to justify the increase," they added.
Good point. If a school is ranked "outstanding", shouldn't they also be required to boost the level of their education in return for the fee rise? And how do you justify a fee rise if a school is ranked "unsatisfactory"? More to the point, how can an "unsatisfactory" school be allowed to continue to operate, let alone take on the huge responsibility of educating our future generations?
According to Booz & Co, the international research firm, the private and public school market in the GCC is expected to boom in the coming decade and will be worth a staggering US$90 billion (Dh330bn) by 2020.
In a report, titled A Decade of Opportunity: The Coming Expansion of the Private School Market in the GCC, Booz & Co said expatriates in the UAE currently spend about $4,363 a year on private education. However, the report, released last October, also said that expats in the UAE were willing to spend up to $11,471 a year on private education.
I don't know the demographic of people Booz & Co questioned for its study (except that they were expats), but do I know there's a lot of parents in the Emirates who would struggle to pay $11,471 - or Dh42,135 - a year for their children's education. Then again, that's assuming they've found a place for them.
fglover@thenational.ae
What do you think about school fee rises and the quality of education in the UAE? Let us know at pf@thenational.ae.
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1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
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10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
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1 India 71 per cent
2 New Zealand 70 per cent
3 Australia 69.2 per cent
4 England 64.1 per cent
5 Pakistan 43.3 per cent
6 West Indies 33.3 per cent
7 South Africa 30 per cent
8 Sri Lanka 16.7 per cent
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Omar Yabroudi's factfile
Born: October 20, 1989, Sharjah
Education: Bachelor of Science and Football, Liverpool John Moores University
2010: Accrington Stanley FC, internship
2010-2012: Crystal Palace, performance analyst with U-18 academy
2012-2015: Barnet FC, first-team performance analyst/head of recruitment
2015-2017: Nottingham Forest, head of recruitment
2018-present: Crystal Palace, player recruitment manager
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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