In a recent development, private schools in Dubai have been authorized to adjust their fees by up to 5.2 per cent for the upcoming academic year, contingent upon their performance in the latest annual inspections conducted by the Knowledge and Human Development Authority (KHDA). Notably, schools that experienced a decline in their ratings will not be eligible to apply for any fee increase.
This decision follows the announcement by KHDA of an Education Cost Index (ECI) standing at 2.6 per cent, which serves as the basis for fee adjustments for the academic year 2024-25. The rate of increase is correlated with the inspection ratings assigned to each educational institution by the regulatory authority on an annual basis. It’s imperative to highlight that any modifications to fees by schools must receive approval from the KHDA.
The breakdown of fee adjustments based on inspection ratings is as follows:
- Schools upgrading from ‘Weak’ to ‘Acceptable’ or ‘Acceptable’ to ‘Good’ can implement fee hikes of up to double the ECI, amounting to 5.2 per cent.
- Institutions progressing from ‘Good’ to ‘Very Good’ are entitled to fee increases of up to 1.75 times the ECI, equating to a maximum rise of 4.55 per cent.
- Schools elevating their rating from ‘Very Good’ to ‘Outstanding’ can raise their fees by up to 1.5 times the ECI, equivalent to a potential increase of 3.9 per cent.
- Educational establishments maintaining the same inspection rating are permitted to adjust their fees by a maximum of 2.6 per cent.
The Education Cost Index is determined based on the audited financial statements of private schools in Dubai, collaborating closely with the Digital Dubai Authority to ascertain the operational costs involved in running educational institutions.
This marks the second consecutive year that schools are permitted to adjust fees following a three-year freeze (2020-21; 2021-22; and 2022-23) prompted by the Covid-19 pandemic. In the 2023-24 academic year, educational institutions were allowed to raise fees by up to 6 per cent.
Shamma AlMansouri, Director of Permits at KHDA, underscored the significance of aligning fee adjustments with schools’ inspection ratings, emphasizing the quality of education while enhancing sector competitiveness. AlMansouri highlighted the transparent process facilitated by a scientific methodology in analyzing audited financial statements, ensuring the continuous improvement of education quality while preserving the sustainability of private schools.
During the last academic year, over three-quarters (77 per cent) of students were enrolled in schools rated ‘Good’ or better, with enrollment witnessing a 12 per cent increase compared to the previous academic year. Presently, more than 365,000 students attend 220 private schools offering 17 different curricula in Dubai.
