DUBAI / / Tuition fee increases have been approved at 117 private schools for the next academic year.
Fees can be raised by between 2.92 and 5.84 per cent after the decision by Dubai’s Knowledge and Human Development Authority.
Parents say they are reassessing whether they can afford to live in Dubai after the rises were announced.
Briton Louise Conroy has decided to move back to the UK. Her daughter Scarlett, 6, goes to Regent International School in The Greens, which will raise fees by Dh6,000 this year on top of a Dh7,000 increase last year, Mrs Conroy said.
“I’m horrified by the continual increase in school fees across the region,” she said. “I am not seeing the educational quality of my child increasing, or continuity of teaching.”
Fees are among the highest in the region. A study last year showed fees for top British-curriculum schools in Dubai were up to US$23,100 (Dh85,000) a year, the highest in the GCC.
US curriculum school fees were up to $17,700.
“Schools are run as businesses, rather than educational institutions,” Mrs Conroy said. “I am going to go back to the UK because, in terms of value, I would get much more there.
“Class sizes are increasing and fees are going up here. I have spoken with parents at the Wellington School and it’s the same there.”
Indian businessman Sudhir Baba has a daughter in Grade 7 at Sabari Indian School in Deira.
“I don’t understand why they have to keep increasing the fees every year,” he said. “The cost of living is much higher, rents are much higher but salaries aren’t going up.
“How do they expect parents to keep paying for increases? It’s getting to the point where we might have to leave because it’s so expensive.”
Another British mother, whose two boys attend an English-curriculum school in Dubai, said the fee increases were unjustified.
“We’re paying about Dh80,000 each year for both of them combined and it’s getting to the stage that we will have to seriously reconsider whether we can afford to stay in Dubai,” the mother said.
“I don’t know why schools think they can continuously increase their fees year after year, because we certainly don’t gets pay rises year on year.”
Despite parents’ frustrations, principals say fee increases are needed to attract the best staff and improve facilities.
“My main aim as a principal of a school is to provide the best possible education for our children,” said Andy Wood, principal of Greenfield Community School in Dubai Investments Park.
“But to do that we have to be competitive and offer the best packages for staff, not only to keep them but to also attract the most qualified.”
Greenfield has been rated as “good” in the past two KHDA inspections and will increase its fees by about 4.5 per cent.
Its current fees are between Dh37,878 for KG1 pupils and Dh69,754 for Grades 11 and 12.
“We have plans to spend around Dh3 million this year to upgrade our sports gymnasium and relay the AstroTurf for the sports field, and that doesn’t come cheap,” Mr Wood said.
School fees in Dubai are based on the Education Cost Index provided by Dubai Statistics Centre each year.
The index is calculated taking into account factors including the consumer price index and school operating costs, such as rent, utilities and salaries. This year it was set at 2.92 per cent.
Schools rated “outstanding” can increase fees by 5.84 per cent; “good” schools by 4.38; and “acceptable” and “unsatisfactory” by 2.92.
Clive Pierrepont is the director of communication for Taaleem, an education provider that runs 11 schools in Dubai.
“The quality of any school never exceeds the quality of its teachers, Mr Pierrepont said. “To employ the very top teaching talent, we have to offer highly competitive rates of pay, plus benefits.
“About 70 per cent of our schools’ budget is usually allocated to staffing. Costs rise steeply each year, on average between 5 to 10 per cent.”
But as school fees and cost of living continue to rise, the wider jobs market could be affected.
Bre Hill, regional human resources manager at MediaCom in Dubai, said: “A considerable majority of our staff have young families and increasing school fees puts pressure on family finances.
“Constant recruitment is expensive and best avoided by retaining talented staff. If school fees continue to increase exponentially it could put pressure on many businesses.”
nhanif@thenational.ae
* Additional reporting by Nick Webster
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2pm Handicap Dh 90,000 1,800m
2.30pm Handicap Dh120,000 1,950m
3pm Handicap Dh105,000 1,600m
3.30pm Jebel Ali Classic Conditions Dh300,000 1,400m
4pm Maiden Dh75,000 1,600m
4.30pm Conditions Dh250,000 1,400m
5pm Maiden Dh75,000 1,600m
5.30pm Handicap Dh85,000 1,000m
The National selections:
2pm Arch Gold
2.30pm Conclusion
3pm Al Battar
3.30pm Golden Jaguar
4pm Al Motayar
4.30pm Tapi Sioux
5pm Leadership
5.30pm Dahawi
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
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.”