Following Dubai government’s freeze on tuition fees last year, the Dubai Executive Council has now announced its approval to increase education fees in the 2019/2020 academic year based on the education cost index, which is 2.07%.
Around 90% of students are unlikely to have their fees increased in the upcoming academic year by more than 2.07%, according to the quality of education index in Dubai private schools.
The private profitable schools that maintain their evaluation will be allowed to increase their fees by the same value of the education cost index, while the private profitable schools in which the quality of education is declining as assessed by Dubai School Inspection Bureau (DSIB) will not be allowed to increase their fees.
Last year’s freeze affected the expansion plans of many players in the market, although mainly GEMS Education, the world’s largest operator of K-12 schools with more than 250 schools worldwide, which suspended its plan to list GEMS in London at an estimated valuation of $5 billion.
As per the new framework, private schools whose ranking improves from very good to outstanding will be allowed to increase their fees by 1.5 times of the education cost index value, while schools whose assessment moves from good to very good will be allowed to increase their fees by 1.75.
Meanwhile schools that move from the very weak category to weak or from weak to acceptable will be allowed to increase their fees by double 2.07.
Dubai Executive Council said that the framework has been developed based on the annual assessment by the DSIB and the education cost index approved by the Dubai Statistics Center (DSC) to motivate private schools to enhance their performance and reward them when they improve the quality of education.
“Meeting the growing needs of the future labor market requires successive developments in the education sector and developing proactive legislations that ensure enhancing the relationship between educational service providers, students and their families”, said Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum Crown Prince of Dubai and Chairman of Dubai Executive Council.