Private schools in Dubai granted up to 5.2% fee increase based on latest inspections

Dubai’s private schools have been given the green light to increase their fees by up to 5.2%, contingent on their performance in the latest annual inspections, announced the Knowledge and Human Development Authority (KHDA). Schools that saw a decline in their ratings will not be eligible for any fee hikes.

According to a Khaleej Times report, the decision follows KHDA’s release of an Education Cost Index (ECI) standing at 2.6%, serving as the benchmark for fee adjustments for the upcoming 2024-25 academic year. The rate of increase is intricately linked to each institution’s inspection rating, with any proposed fee adjustments necessitating approval from the KHDA.

The calculation breakdown is as follows:

  • Schools elevating their rating from ‘Weak’ to ‘Acceptable’ or ‘Acceptable’ to ‘Good’ may raise their fees by up to double the ECI, reaching 5.2%.
  • Institutions progressing from ‘Good’ to ‘Very Good’ are entitled to an increase of up to 1.75 times the ECI, amounting to a maximum of 4.55%.
  • Schools improving their rating from ‘Very Good’ to ‘Outstanding’ can hike fees by up to 1.5 times the ECI, equivalent to 3.9%.
  • Schools maintaining their inspection rating are permitted to increase fees by up to 2.6%.

The Education Cost Index, derived from private schools’ annual audited financial statements, delineates operational costs and is a collaborative effort with the Digital Dubai Authority.

This marks the second consecutive year allowing fee adjustments following a three-year freeze (2020-21; 2021-22; and 2022-23) amid the Covid-19 pandemic. In the 2023-24 academic year, schools were permitted fee increases of up to 6%.

Shamma AlMansouri, director of Permits at KHDA, underscored, “Aligning the fee adjustment with schools’ inspections ratings emphasizes the quality offered by schools, while enhancing the competitiveness of the sector.”

The latest data indicates that 77% of students were enrolled in schools rated ‘Good’ or better last academic year, with Dubai’s private school enrollment witnessing a 12% increase. Currently, over 365,000 students attend 220 private schools in Dubai, offering 17 different curricula.