Pupils make their way to class at Harrow School, an English independent school for boys in north-west London. School fee rises in Britain's private schools have been hampered by lockdowns. Getty Images
Pupils make their way to class at Harrow School, an English independent school for boys in north-west London. School fee rises in Britain's private schools have been hampered by lockdowns. Getty Images
Pupils make their way to class at Harrow School, an English independent school for boys in north-west London. School fee rises in Britain's private schools have been hampered by lockdowns. Getty Images
Pupils make their way to class at Harrow School, an English independent school for boys in north-west London. School fee rises in Britain's private schools have been hampered by lockdowns. Getty Image

Rise in UK private school fees slows as demand from Gulf parents ramps up


Alice Haine
  • English
  • Arabic

The cost of private education in the UK increased at its slowest rate on record this year, as demand from Gulf countries surged during the pandemic with parents seeking face-to-face teaching for their children.

Fees at British private schools increased 1.1 per cent in 2021, according to the Independent School Council’s annual census, compared with a 4.1 per cent increase in 2020, with the average annual fee for independent schools now £15,191 ($21,458) for day pupils and £36,000 for boarders.

Sara Sparling, education consultant and director of UK boarding school specialists Anderson Education, said demand for school places from families in the Gulf has risen significantly during the pandemic, with parents wanting to send their children to schools in the UK where they can receive a full-time, face-to-face education.

“We've seen a definite increase in the number of families from the Gulf considering boarding,” Ms Sparling told The National.

“I had an inquiry yesterday from a British expat family in Saudi who said their schools are not going to provide face-to-face teaching until January or February 2022. That will be two years of not going into a classroom, so they're now considering boarding.”

More than 530,000 pupils attend private schools in the UK, with almost 25,000 non-British pupils whose parents are based overseas attending boarding schools, and 644 of those from the Middle East. Separately, almost 8,000 British expatriates send their children to UK boarding schools.

While some UAE schools have offered a combination of home and school learning since the start of the academic year, schools in England faced two further lockdowns following the first shutdown at the start of the pandemic before pupils returned full-time on March 6.

As a result, falling household incomes, international travel bans and school closures made it difficult for private schools to justify fee increases.

“Independent schools have been very sensitive to the Covid situation, so when they switched from face-to-face to online learning last summer, they didn't charge the boarding fee with the tuition fee and many of the schools froze their fees for this academic year because they knew that families are finding it quite tough,” said Ms Sparling.

Sara Sparling (centre), education consultant and director of Anderson Education. The company has been forced to delay this year's UK Boarding School Exhibition in Dubai until later in the year due to Covid-19 travel restrictions. Courtesy Sara Sparling
Sara Sparling (centre), education consultant and director of Anderson Education. The company has been forced to delay this year's UK Boarding School Exhibition in Dubai until later in the year due to Covid-19 travel restrictions. Courtesy Sara Sparling

A total of 868 schools froze or reduced all their fees during the pandemic, the ISC found, with more than £1.1 billion of fee assistance provided this year.

Anderson Education, whose key market is British expats and international families based in the Middle East, hosted its 20th UK Boarding School Exhibition in Dubai in February 2020, just before the pandemic hit, at the emirate's Grosvenor House Hotel.

However, it was forced to postpone this year’s event until November due to travel restrictions between the UAE and the UK, instead relying on zoom meetings and online exhibitions to offer advice and guidance for parents looking for school places.

Ms Sparling hopes Britain’s traffic light system for international travel - which currently places the UAE in the red zone and travellers expected to quarantine in hotels on arrival - will change to allow more parents to fly in to view schools.

However, she said many parents are still willing to quarantine because they are considering their child’s education for the next four years.

“Rather than have teenagers home-schooled and not socialising and mixing academically with their peers, as they have been throughout the Gulf countries because of distance learning, once they were in school [in the UK] in a safe bubble with their boarding houses, it was actually a very safe place to be," said Ms Sparling.

An aerial view Eton College an independent school outside London. Almost 25,000 non-British pupils with parents based overseas attend boarding schools in the UK including 644 from the Middle East. Getty Images
An aerial view Eton College an independent school outside London. Almost 25,000 non-British pupils with parents based overseas attend boarding schools in the UK including 644 from the Middle East. Getty Images

One British, Dubai-based mother of four boys, who did not want to be named, sends two of her children aged 16 and 13 to a boarding school in England, while two remain at school in the UAE.

Her British boarding school will increase its fees by 2.5 per cent in the next academic year, despite her children missing large chunks of in-school education due to two lockdowns.

Meanwhile, her children in Dubai, aged seven and 14, have been in the school full-time since September.

"We did get discounts at the British school during the lockdowns. Last term we had 25 per cent off the fees for the weeks they weren't there, but my Dubai-based children have not been off school since returning in September, so they've had far better schooling from that aspect than the UK kids," she said.

Charles Bonas, director of the British Boarding Schools Show, said the UK’s private schools have been praised for the delivery of their home-schooling programmes during the three lockdowns in England.

"There's no question about the way the independent sector delivered the home-schooling programme during the lockdown," Mr Bonas told The National.

“It was generally perceived to be more effective than state schools so that is one of the reasons for the increase [in demand] for private education.”

Last year, the British Boarding Schools Show was forced to cancel its March event when the world plunged into the first lockdown. The company has also postponed its 2021 event at the Sheraton Hotel in Dubai's Mall of the Emirates, the 10th edition of its show, until September.

“We’ve still got a lot of families saying 'can you get us into a school in September'. Extraordinarily England’s gone from being the sick country of Europe last spring and this spring we're almost like a sort of safe haven for Covid”, Mr Bonas said.

He said international parents often jet in and out of the UK to meet up with their children for half-term and weekend breaks, however he expects parents to stay in the country longer to get round travel restrictions.

“Instead of coming in September and dropping off children and coming back for the first weekend, they will stay here for that month,” he said.

The Dubai mother said she will not see her UK-based children for four months due to the red list restrictions, after flying into Britain in February to quarantine with them in an airport hotel after the third English lockdown.

The Department of International Trade has since issued a letter reassuring overseas parents in red list countries that children can spend their quarantine in boarding houses rather than in hotels.

“This ensures that many more students can return to the school environment without delay. Furthermore, we have provided guidance to ensure boarding schools are aware of the arrangements that need to be put in place for quarantine accommodation, transport from the port of entry and testing for those students who are required to quarantine,” the DIT said.

Ms Sparling said most of the schools have 95 per cent of their students back in school this term, with some schools even hiring guesthouses for children to quarantine in.

Looking ahead, Ms Sparling said Anderson Education's next boarding school exhibition will take place in November, with the company forced to limit its exhibitors to 20 schools, from 24 normally, because of social distancing regulations.

“We're up to at least 26 schools so we're having to prioritise them to get representation across the whole of the UK,” said Ms Sparling.

More on boarding schools 

UK boarding schools to focus on mental health in exam-free summer term

International pupils to isolate at English boarding schools, not hotel quarantine

First hotel quarantine passengers relieved to leave UK’s ‘Heathrow prison’

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Iran's dirty tricks to dodge sanctions

There’s increased scrutiny on the tricks being used to keep commodities flowing to and from blacklisted countries. Here’s a description of how some work.

1 Going Dark

A common method to transport Iranian oil with stealth is to turn off the Automatic Identification System, an electronic device that pinpoints a ship’s location. Known as going dark, a vessel flicks the switch before berthing and typically reappears days later, masking the location of its load or discharge port.

2. Ship-to-Ship Transfers

A first vessel will take its clandestine cargo away from the country in question before transferring it to a waiting ship, all of this happening out of sight. The vessels will then sail in different directions. For about a third of Iranian exports, more than one tanker typically handles a load before it’s delivered to its final destination, analysts say.

3. Fake Destinations

Signaling the wrong destination to load or unload is another technique. Ships that intend to take cargo from Iran may indicate their loading ports in sanction-free places like Iraq. Ships can keep changing their destinations and end up not berthing at any of them.

4. Rebranded Barrels

Iranian barrels can also be rebranded as oil from a nation free from sanctions such as Iraq. The countries share fields along their border and the crude has similar characteristics. Oil from these deposits can be trucked out to another port and documents forged to hide Iran as the origin.

* Bloomberg

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Based: Dubai and Muscat

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UAE central contracts

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Rohan Mustafa, Ahmed Raza, Mohammed Usman, Chirag Suri, Mohammed Boota, Sultan Ahmed, Zahoor Khan, Junaid Siddique, Waheed Ahmed, Zawar Farid

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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