Education has long been an attractive sector for investment in the GCC. Courtesy: Dubai School
Education has long been an attractive sector for investment in the GCC. Courtesy: Dubai School
Education has long been an attractive sector for investment in the GCC. Courtesy: Dubai School
Education has long been an attractive sector for investment in the GCC. Courtesy: Dubai School

Private schools in Dubai will not increase fees next year


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Private schools in Dubai will not increase fees for the 2021-22 academic year, the emirate's education regulator said on Monday.

This is the second consecutive year that fees for Dubai schools have remained steady.

Aparna Sharma, a mother of two girls, 11 and 5, at Gems Wellington International School, said the announcement came as a big relief during the pandemic.

“I’m very relieved to hear this. All of us have gone through so much in the last year that we needed this relief,” she said.

“Nobody wants to compromise on the education of their children. Freezing the fees this year will really help each and every parent who is trying to survive at this moment.”

But parents hoped schools would protect teacher salaries.

“I'm happy that the fees are not increased but I hope the schools will cut from their profits, not from the costs,” said Clementina Kongslund, a Romanian resident of Dubai, and mother of two children.

“We want happy teachers and for the teachers to be paid well.

“Not having a fee-increase helps families like ours so we can plan our budget better, and do not have to face surprises.”

Zoe Woolley, head of Repton School Al Barsha, said the fee freeze was a “wise decision by the KHDA at this time.”

“We have actually gone further, by reducing fees by 10 to 16 per cent across from the foundation school and into the senior School.

“This was achieved by applying economies of scale across the UAE Repton family of schools.”

Gems Education confirmed to The National that they will not increase fees at any of their schools in Dubai.

“We follow the directives and guidance of the government regulators in all matters concerning tuition fees,” said a Gems Education representative.

“In Dubai, increases are determined by the Education Cost Index, and schools are only able to raise fees with approval from KHDA. We will follow the official guidance that has been issued.”

The announcement by the Knowledge and Human Development Authority was prompted by results of the annual Education Cost Index, calculated by the Dubai Statistics Centre at minus 2.35 per cent.

The index is calculated annually by the Dubai Statistics Centre based on the operational costs of Dubai's education sector, which may include school workers' salaries, rents, maintenance, and electricity and water costs.

The index together with a school's performance is used to decide the hike in its annual fees.

Schools in Dubai are rated by the Dubai Schools Inspection Bureau on a six-point scale, from very weak to outstanding.

Schools that improve their ratings from very weak, weak or acceptable to the next category may hike their fees at twice the ECI.

Those that improve their performance from good to very good may hike it by 1.75 times the ECI. Schools that improve from very good to outstanding may hike their fees by 1.5 times the ECI.

Those that maintain their ratings can increase their fees by the same factor as the index while schools that see a drop in their performance ratings are not allowed any hike in their fees.

Mohammed Darwish, chief executive of the regulations commission at KHDA, said: “This announcement shows Dubai’s commitment to ensuring that the private school sector continues to deliver value to parents, investors and school operators."

Additional reporting by Georgia Tolley

Dubai's newest schools – in pictures

  • Adrianna Chestnut, principal of Bright Learners Private School, prepares for the school's first day on September 13. All photos by Reem Mohammed / The National
    Adrianna Chestnut, principal of Bright Learners Private School, prepares for the school's first day on September 13. All photos by Reem Mohammed / The National
  • A teacher sanitises a classroom at Bright Learners Private School
    A teacher sanitises a classroom at Bright Learners Private School
  • Staff and pupils undergo temperature checks to test for fever
    Staff and pupils undergo temperature checks to test for fever
  • And fresh masks are available at entrances
    And fresh masks are available at entrances
  • Teachers at the school will welcome pupils for the first time later this month
    Teachers at the school will welcome pupils for the first time later this month
  • Part of pupils' induction is learning to keep their hands clean and keep their distance from children and teachers
    Part of pupils' induction is learning to keep their hands clean and keep their distance from children and teachers
  • Part of pupils' induction is learning to keep their hands clean and keep their distance from children and teachers
    Part of pupils' induction is learning to keep their hands clean and keep their distance from children and teachers
  • Stickers remind pupils to keep their distance from one another
    Stickers remind pupils to keep their distance from one another
  • Teachers prepare for lessons to begin later this month
    Teachers prepare for lessons to begin later this month
  • Teachers prepare for lessons to begin later this month
    Teachers prepare for lessons to begin later this month
  • Staff decorate the corridors of the school, which is located on the site of a former government school
    Staff decorate the corridors of the school, which is located on the site of a former government school
  • Workmen clean the building after construction was completed
    Workmen clean the building after construction was completed
  • Staff decorate the corridors of the school, which is located on the site of a former government school
    Staff decorate the corridors of the school, which is located on the site of a former government school
  • A traditional water tower located on the school premises
    A traditional water tower located on the school premises
  • Bright Learners is based is a former government school and underwent extensive renovation
    Bright Learners is based is a former government school and underwent extensive renovation
UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
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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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