The UAE’s largest school operator has been criticised after telling parents they would be means tested before being entitled to reductions in fees.
Earlier this week, Gems Education said families who had been "adversely impacted" by the coronavirus pandemic could receive financial help from the group.
The move was initially welcomed by parents anxious to reduce their spending in light of the potential economic repercussions of the outbreak.
But Gems later revealed it would require bank statements and letters from employers before offering the discounts.
This means-tested approach will allow us to allocate our relief efforts to those most in need during these unprecedented times
The provider did not comment on parents' criticism on Thursday, but earlier this week said the "means-tested approach will allow us to allocate our relief efforts to those most in need".
It said the move would allow it to "retain all of our teachers and manage our cost base".
Parents said they should not have to hand over their personal income details in exchange for relief.
“What they are suggesting is just crass,” said Samiah Hamdani, 45, who pays Dh155,000 a year for her two teenage boys to attend Gems schools.
“They are being so insensitive. It’s obvious they could afford to offer a flat reduction in fees as a goodwill gesture to all parents especially when plenty of other schools in the country, who don’t charge as much in fees, are able to do it.
“My daughter goes to a non-profit school and even they offered us a discount.”
Gems Education manages more than 250 schools around the world, teaching some 174,000 pupils.
This week, officials sent a letter to parents in the UAE saying they could apply for reduced fees provided they met a certain criteria. The conditions included the loss of a job, being placed on unpaid leave or being required to take a pay cut.
Parents were also told the group reserved the right to contact employers to verify any documents.
On Thursday, many parents said they were taken back by the means testing policy.
They pointed out that other schools in the Emirates had agreed to reduce fees by as much as 50 per cent for all pupils, regardless of individual financial circumstances.
Others have offered a 25 per cent reduction for the summer term owing to the UAE’s remote learning programme continuing until the start of the next academic year in September.
“We are asking for a discount across the board,” said Bindu Jag, from India, who pays more than Dh145,000 a year in Gems school fees.
“Our family’s income may not be hit now but will be in six months’ time.
“Gems is asking for bank statements and we would not want to share our personal documents.
“The smaller schools are most affected but they have gone ahead and offered discounts.
“This [pandemic will have] a long-term impact and we do not know what the next few months will be like.”
On Wednesday, parents at Kings School Dubai, another school operator, also said they were unhappy at not being offered a flat discount on school fees.
Families have launched an online petition asking the school to provide a 30 per cent reduction in the cost of education for the summer term.
So far, more than 760 parents have signed the appeal, arguing that given school premises were not being used - lowering operating costs - it was reasonable to also expect a reduction in fees.
“Children are not attending school for the entire semester, neither using the premises, utilities, facilities nor all extra circular activities which are now closed for the entire semester thus reducing the school’s costs,” the petition said.
“While we appreciate the school’s decision to pay its staff in full, we also firmly believe that this is purely an employer’s decision and responsibility and that the financial implications of this decision must not be passed on to the parents.”
The petition also stated it was unfair to ask parents to pay the full amount when they were currently spending anywhere from five to seven hours a day assisting their children while they completed online lessons.
“The school is asking for bank statements to prove people do not have the means to pay,” said Natasha Rawden, who has two children enrolled at a Kings school and pays close to Dh125,000 a year in tuition fees.
“This is awful and is an invasion of our privacy. They deposited our cheques for term three without informing us.
“We wrote to the school and told them we should have had prior warning and some compensation.
“Many people may not be in much financial difficulty at the moment but things may change.”
The National approached Kings' School Dubai for comment but received no response.
Gems Education said they would not be commenting on the matter.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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.”
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
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