Dubai permits private schools to raise fees by 5.2%; here’s how it’s calculated

Dubai Private Schools Fee Increase Tied to Inspection Ratings: KHDA

In Dubai, the framework for adjusting private school fees is closely tied to the performance metrics outlined in the annual inspections carried out by the Knowledge and Human Development Authority (KHDA). As part of this system, the recent announcement of an Education Cost Index (ECI) at 2.6 percent by the KHDA serves as the benchmark for fee adjustments in the forthcoming 2024-25 academic year. This indexing mechanism reflects the operational costs associated with running schools and is pivotal in determining permissible fee increases.

The calculated fee adjustment percentages are contingent upon the inspection ratings assigned to individual schools. For instance:

1. Schools that demonstrate an improvement in their rating, such as moving from ‘Weak’ to ‘Acceptable’ or from ‘Acceptable’ to ‘Good’, have the potential to increase their fees by up to double the ECI, equating to a maximum of 5.2 percent.
2. Institutions transitioning from a ‘Good’ to ‘Very Good’ rating stand to benefit from an increase of up to 1.75 times the ECI, amounting to a potential rise of 4.55 percent.
3. Schools elevating their rating from ‘Very Good’ to ‘Outstanding’ are eligible for a fee increase of up to 1.5 times the ECI, totaling 3.9 percent.
4. Schools maintaining the same inspection rating are permitted to increase their fees by up to 2.6 percent, in line with the ECI.

The Education Cost Index, derived from the comprehensive analysis of annual audited financial statements of private schools in Dubai, is a collaborative effort with the Digital Dubai Authority. This index provides transparency and accuracy in assessing the cost dynamics within the education sector, ensuring a fair and equitable framework for fee adjustments.

This year’s allowance for fee adjustments marks the second consecutive year following a three-year freeze enforced due to the Covid-19 pandemic. Notably, in the previous academic year, educational institutions were granted the authority to implement fee hikes of up to 6 percent.

Shamma AlMansouri, the director of Permits at KHDA, emphasizes the significance of aligning fee adjustments with schools’ inspection ratings, emphasizing that it not only underscores educational quality but also bolsters sector competitiveness. The meticulous monitoring and analysis of audited financial statements ensure a transparent process that considers the interests of all stakeholders while fostering continuous improvement in educational quality and safeguarding the sustainability of the private schools’ sector.

The positive educational landscape is evidenced by the fact that over three-quarters (77 percent) of students were enrolled in schools rated ‘Good’ or better during the last academic year. Moreover, enrollment at Dubai private schools has witnessed a notable 12 percent increase since the previous academic year. Currently, more than 365,000 students are enrolled across 220 private schools offering 17 different curricula in Dubai, reflecting the diversity and growth of the education sector in the region.