Some parents skip school transportation to cut costs. Sarah Dea/The National
Some parents skip school transportation to cut costs. Sarah Dea/The National
Some parents skip school transportation to cut costs. Sarah Dea/The National
Some parents skip school transportation to cut costs. Sarah Dea/The National

UAE families turn bargain-hunters to cut rising costs ahead of new school year


Anam Rizvi
  • English
  • Arabic

From sourcing second-hand uniforms and books to bulk-buying essentials during sales, families in the UAE are finding creative ways to control budgets at home amid increased living costs.

Dubai recorded an annual increase of 3.7 per cent in education costs, according to the latest data from the Dubai Statistics Centre, amid a booming property market. The first quarter of 2024 saw rental registrations up 5.8 per cent from last year, at 159,941, The National reported in June.

Mishal Siddiqui, an Indian mother of four with three children attending school in Dubai, noted a 10 per cent increase in costs for uniforms and books from last year. This year, she will pay Dh6,500 for both.

“The cost of books may have gone up a little, but the (price of) uniforms have gone up straight away,” she said, adding there are “only two or three uniform stores that are good”.

Mrs Siddiqui suggested pre-loved uniforms when possible and skipping school buses for private transportation to save money. “I would have to pay Dh6,500-Dh7,000 per child per year for the school bus,” she said, adding that it is far more economical to carpool, hire a driver or do the pick-up or drop-off yourself.

Mishal Siddiqui, a mother of three pupils, said she paid Dh4,500 for uniforms and books in 2021 but would be paying Dh6,500 for the same this year. Photo: Mishal Siddiqui
Mishal Siddiqui, a mother of three pupils, said she paid Dh4,500 for uniforms and books in 2021 but would be paying Dh6,500 for the same this year. Photo: Mishal Siddiqui

Education costs in Dubai have consistently gone up every year, barring the three years after the pandemic in 2020 when the government announced a freeze on school fees.

Souha Itani, a mother of four in Abu Dhabi, reported an increase in education costs post-pandemic but no increase in personal income. “My income hasn't gone up, neither has my husband's but the cost of living and rents have gone up,” she said.

The company Ms Itani works for covers education costs but not the year-on-year increase. “Last year, the fees went up by 5 per cent, but my education allowance remained the same so I ended up paying the difference”. Her company covers the school fees for two children, with Ms Itani paying the full tuition for her third child. However, the fee increase has cost her significantly.

She said that not many families have the “privilege” of having companies cover education costs, but every little increase dips into their family budget. Ms Itani is trying to offset the added costs by always “trying to look for the best prices and the best deals” and buying in bulk.

Discounts and deals on school fees

Some schools offer sibling discounts or deals on some credit cards used to pay fees, but Mrs Siddiqui said schools could do more to reduce the financial burden on parents.

Her children's school's sibling discounts only extend to the fourth child (15 per cent) and fifth child (25 per cent).

“I get zero discount, which I think is unfair. I feel there should be an incentive for working parents, or even parents who don't get education allowances from their employers,” she added.

Some new schools also offer special discounts for founding families. Dubai British School Jumeira offers a founders' discount to families, which will apply until the pupil is in primary school, while Gems Founders School Dubai South has reduced fees for founding families by 25 per cent.

According to Numbeo, a user-generated website that estimates the cost of living in cities across the world, the estimated monthly costs for a family of four in Dubai is Dh14,120, without rent, and Dh12,022 in Abu Dhabi.

From left, Diana Dsouza, Mehsoon Kazim, Kavita Faiz, Kaycee Sepida, Christmar Adhil and Ghazal Syed run the UAE Pay It Forward Group, which allows people to swap or give away items they no longer need. Photo: Kavita Faiz
From left, Diana Dsouza, Mehsoon Kazim, Kavita Faiz, Kaycee Sepida, Christmar Adhil and Ghazal Syed run the UAE Pay It Forward Group, which allows people to swap or give away items they no longer need. Photo: Kavita Faiz

Kavita Faiz, a mother living in Dubai, launched the UAE Pay It Forward Group in 2016 out of necessity to give away some of her used items. The group, which now has 23,000 members, allows people to swap or give away items they no longer need.

“ (The costs of) everything has gone up and I would say a mentality shift has happened. Before the pandemic, people were hesitant to take used items, but now the mentality has changed,” said Ms Faiz.

“We organise a back-to-school Initiative every year in which parents can give away uniforms and books.

“If it were up to me, I would change how uniform companies are linked to schools because they end up charging a lot. I'd also stop schools from changing the uniform colour or print.”

This year, Ms Faiz paid Dh75-Dh80 for a uniform shirt, Dh100 for a pair of trousers and Dh150 for a school jacket. She urged parents not to be shy to go for second-hand goods. “Don’t go for brands, go for quality. We need to teach children to be humble and not to compete with others,” she said.

Switching to homeschooling to cut costs

Some parents have switched to homeschooling for their children because they are unable to afford the high school fees.

Kaycee Sepida, who lives in Dubai, decided to enrol her children as homeschoolers because “the cost of education here is very expensive”.

She has three children aged nine years, three years and three months, and quit her job to take care of the children at home. Ms Sepida, who is also part of the team that runs the UAE Pay It Forward group, said the community had been of tremendous help to her family.

“The group has a lot of essential resources that we can get without purchasing them,” she said. “I got a lot of things from the group, such as toys, clothes and stationery for homeschooling. Even furniture and educational books can be found on a budget.

Ms Sepida said she's “always on the hunt for a good deal”. While shopping, she compares prices at several shops when and always scans for deals on near-expiry items. Another way she controls her budget is by preparing home-cooked meals rather than eating out. “It saves money and is a healthier option,” she said.

Best Academy: Ajax and Benfica

Best Agent: Jorge Mendes

Best Club : Liverpool   

 Best Coach: Jurgen Klopp (Liverpool)  

 Best Goalkeeper: Alisson Becker

 Best Men’s Player: Cristiano Ronaldo

 Best Partnership of the Year Award by SportBusiness: Manchester City and SAP

 Best Referee: Stephanie Frappart

Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)

Best Sporting Director: Andrea Berta (Atletico Madrid)

Best Women's Player:  Lucy Bronze

Best Young Arab Player: Achraf Hakimi

 Kooora – Best Arab Club: Al Hilal (Saudi Arabia)

 Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)

 Player Career Award: Miralem Pjanic and Ryan Giggs

FIXTURES

Saturday, November 3
Japan v New Zealand
Wales v Scotland
England v South Africa
Ireland v Italy

Saturday, November 10
Italy v Georgia
Scotland v Fiji
England v New Zealand
Wales v Australia
Ireland v Argentina
France v South Africa

Saturday, November 17
Italy v Australia
Wales v Tonga
England v Japan
Scotland v South Africa
Ireland v New Zealand

Saturday, November 24
|Italy v New Zealand
Scotland v Argentina
England v Australia
Wales v South Africa
Ireland v United States
France v Fiji

Griselda
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%C2%A0Andr%C3%A9s%20Baiz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3ESof%C3%ADa%20Vergara%2C%20Alberto%20Guerra%2C%20Juliana%20Aiden%20Martinez%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

Ten tax points to be aware of in 2026

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

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

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. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Long read

Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response

Sweet%20Tooth
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3EJim%20Mickle%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EChristian%20Convery%2C%20Nonso%20Anozie%2C%20Adeel%20Akhtar%2C%20Stefania%20LaVie%20Owen%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
Updated: August 15, 2024, 2:00 AM