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Dubai’s new schools are more expensive

While new schools are easing the demand-supply gap on paper, cheaper schools are feeling the pressure

More students in Dubai are paying higher fees than ever. — KT file photo used for illustrative purposes 

Dubai — New schools opening in Dubai are anything but cheap. And the average school fee in the emirate has increased every year.

According to official statistics from the Knowledge and Human Development Authority (KHDA), more students are paying higher fees than ever.

In 2013, 42 per cent of all students in Dubai paid less than Dh10,000 in fees per year. With fee increases across most schools, the figure dropped to 39 per cent in 2014, meaning fewer affordable schools.

New schools have compounded the problem by charging in excess of Dh20,000. Investors say the high fees are linked with education quality and facilities offered. The Swiss International Scientific School opening in September this year plans to charge between Dh60,000 to Dh95,000 per annum. The school’s founder, Omar Danial says the high prices are because of the bilingual education.

“When you build a school, you take into account inflation and plan a buffer zone by creating a fee structure which makes the business model sustainable. Scholarships and founder fees are also helpful in bringing down the cost,” said Omar.

The school will offer bilingual education with premium facilities including water-sports at Dubai Creek as an offering.

“There are people who look for premium schools. We are delivering a bit more than what other schools offer. Dubai is developing in terms of quality and this has become possible only by bringing good quality teachers to the region. This certainly has a cost associated with it,” said Omar.

Speaking with Khaleej Times, Dino Varkey, Group Executive Director and Board Member, GEMS Education said: “We believe affordable schools can still remain profitable by charging between Dh11,000 and Dh20,000. It is still possible to offer high-quality education at those price levels.”

The group plans to open about 17 schools over the next five years. It also operates the largest private school in Dubai with more than 10,000 students attending classes daily at the GEMS Our Own English High School. “We have always proved that you are able to deliver high quality education. It is perhaps easier for investors to associate private education with high-fee schools when they enter new markets,” he added.

While new schools are easing up the demand-supply gap on paper, cheaper schools are facing more pressure as no new school is offering education at less than Dh10,000 per annum.

“We are seeing a disproportionate demand at the primary level, especially in kindergarten classes. It will take time — continuous investment, new models and meeting the demand-supply gap at all grades will take time. Regulators understand the need and encourage further investment in particular curriculums and grade levels and investors responding to that by catering to the specific market need. If you are a high quality education provider, there is a significant demand in the UAE market,” highlighted Varkey.

Mohammed Darwish, Chief of Regulations and Permits Commission at Knowledge and Human Development Authority explained the existing fee framework was in the benefit of both parents and school owners. 

“The School Fees Framework was the result of a consultative effort. Many government entities participated in preparing this framework of school fees, that is the Executive Council, Department of Economic Development, Dubai Statistics Centre, Department of Finance, Dubai Chamber and Dubai Real Estate. The efforts resulted in the development of a comprehensive framework which can be applied in general to all private schools that have been in operation for over three years.”

muaz@khaleejtimes.com