UAE, GCC schools raise tuition fees amid surging costs and tight profits
Growing demand for international curricula drive up operating costs for many schools
Dubai: UAE’s school fees are starting to see the full impact of more K-12 institutions featuring British, American and IB curricula.
These add to the upward pressure on tuition fees costs brought on factors such as ever increasing demand for school seats each year and the steady rise in costs for the operators.
The same market forces will soon pull private school fees in Saudi Arabia, which currently has one of the lowest fee levels within the GCC K-12 space, according to industry experts.
For the new academic year, which started Monday last (August 26), parents with children in private schools in the UAE would have seen their school fee related payments go up around 5.2 per cent on average. Throw in all the other expenses involved with educating a child, and it all adds up to quite a bit.
In Dubai, the Knowledge and Human Development Authority (KHDA) earlier this year announced an Education Cost Index (ECI) of 2.6 per cent for the 2024-25 academic year, allowing private schools in Dubai to adjust their fees accordingly. In Dubai, this is the second straight year that schools were allowed to hike fees after they remained unchanged for three years due to the pandemic fallout. For 2023-24 academic year, the KHDA allowed private schools to raise tuition fees to 6-7 per cent.
Shamma AlMansouri, Director of Permits at KHDA, said that linking fee adjustments to schools' inspection ratings highlights the quality of education and boosts competition. She said: "Analysing the audited financial statements of private schools in Dubai allows for a transparent process that takes into account the interests of all our stakeholders and ensures continuous improvement in the quality of education offered by schools while also safeguarding the sustainability of the private schools’ sector.”
This comes as some school operators in the UAE are talking school fees being ‘de-regulated’, which would been schools themselves can set a range for what they charge for tuition in a particular academic year. Others in the education sector say this is highly unlikely that the authorities would allow such a move.
What's causing the rise in fees?
"There is a strong correlation between private school enrollments and a country's GDP," said Ashwin Assomull, Partner at Dubai-based LEK Consulting and Head of Global Education Practice.
The influx of wealthy individuals from Russia and Ukraine into the UAE and the continued high migration levels from the Subcontinent will keep the demand for quality education at elevated levels.
"Moreover, with the increasing taxes in UK and Europe, many British and EU citizens are considering relocating to the UAE,” said Assomull. “These factors contribute to the natural population growth, leading to higher school enrollment numbers."
Tuition fees in the GCC
The fees for private schools offering British, American, and IB curricula in the UAE range significantly, with top-tier schools charging between Dh67,717 and Dh117,547 annually.
For Indian curricula, the tuition fees are much lower, ranging from (Dh3,698) to Dh15,095.
In Saudi Arabia, private schools’ fees show wide variance. The average annual tuition ranges from SR10,000 to SR50,000 or more, which, according to the National Company for Learning and Education (NCLE), which are among the lowest prevailing in the GCC.
"The cost of private education in Saudi Arabia has also increased due to the growing adoption of American and British curricula," said an education consultant.
"The rising number of multinational companies moving their headquarters to Riyadh should result in a growing expat population, leading to rising demand for education services. The school fees in the Kingdom are expected to rise further."
Even substantially, according to industry sources.
In Oman, annual fees typically range from OR1,000 (Dh9,541) to OR8,000 (Dh76,300) and more. In Qatar, British curriculum schools charge between $7,828 (Dh28,751) and $16,754 (Dh61,535), while those following American syllabus are at between $9,475 (Dh34,800) and $20,548 (Dh75,470).
Indian schools in Qatar charge between $1,703 (Dh6,254) and $5,003 (Dh18,375). In Bahrain, the fees range between Dh9,709 and Dh33,035 and Dh80,706.
Qatar has experienced moderate fee growth, with fees in international schools rising faster and higher.
"Factors such as high cost of construction, inflationary pressure, long gestation period, rising competition, and lack of subsidies are increasing cost pressures (on school operators),” said Krishna Dhanak, Managing Director of Alpen Capital.
And which are getting passed on through higher school fees.
Still regulated
Parents can however feel relief knowing that when it comes to setting school fees, authorities in the GCC will ensure they are kept within specific ranges each year. And if quite unforeseen factors, such as during the Covid pandemic, happen, then the authorities will call on school operators to hold the line.
However, Assumoul explained that government oversight of the sector will ensure school fees remain affordable.
"Dubai’s KHDA has a framework that always seeks to look after parents and make them feel they are getting great value for money,” said Assumoul. “I think that will continue."