UAE Cost of Living Report: Education costs spiral

'Schools have argued that escalating property rental prices, staff housing costs and rising inflation have given them no choice,' Kershaw Leonard says in its sixth Cost of Living report.

'This year, while rental costs have dramatically decreased, the cost of schooling continues to rise - although it is possible that, with the high costs of relocating premises, schools have not seen the same reduction in rents as other sectors.'

The schools that are available to expatriates in the UAE are almost uniformly fee-paying, and play a major role in residents' budgets. The fee structures of different schools seemingly offering the same curriculum can also be vastly different.

Price caps

For the 2008-2009 academic year caps were set at 16%, provided that schools had not increased their fees the previous year. Despite this it is noted that most schools have continued to raise their fees to the maximum allowable limit. The report also points out that a number of extra-curricular costs such as transport, uniforms, books and so on, are not covered by the price caps, and these can add considerable financial commitments.

Dubai has also recently introduced a system of compulsory inspections by the education authority. 'Maximum allowable fee increases are now linked directly with school performance - up to 15% for outstanding schools, and 12%, 9% and 7% for 'good', 'acceptable', and 'unsatisfactory' schools respectively,' the report states.

'Yet as a recent report suggests, even this is not cut and dried. Schools may be able to waive these limits in certain instances - one particular school that did not achieve top ratings has reportedly been allowed to hike its fees by 90% over the next two years.'

Fee variations

In Dubai, across all age groups and the different range of curriculums, the report notes that the biggest price increases from 2008 to 2009 have been at the minimum end of the price scale, while the top end has seen only minimal increases.

This is a reversal in the trend for western curriculum schools, when the 2007 to 2008 academic year saw the biggest increases at the top end of the scale. For Indian curriculum schools, 2008 saw large increases across the spectrum compared to the previous year, although changes from 2008 to 2009 have been more muted.

Prices for UK, US, or European curriculum schools with Western-qualified teaching staff have gone from averages of Dhs12,000 at the low end to Dhs66,000 at the top end, to Dhs17,630 and Dhs66,300 for KinderGarten 1 and 2.

For Primary and Secondary schools in this category prices at the top end have remained at 2008 levels (Dhs76,300 and Dhs92,000 respectively), while those at the lower end of the scale have risen respectively to Dhs32,800 and Dhs41,000, from Dhs30,000 and Dhs34,000.

Indian curriculum schools in the emirate, with Indian-qualified teaching staff, have held 2008 levels at the top end, costing Dhs14,100, Dhs18,000 and Dhs21,000 for KinderGarten, Primary and Secondary.

Country-wide increases

Across the UAE's other emirates school prices have remained much more accessible, with Abu Dhabi seeing downward differences of between 40% and 70% compared to Dubai. The average cost of fees in Sharjah and Fujeirah has remained the same as in 2008.

UK, US, or European curriculum schools with Western-qualified teaching staff in Abu Dhabi have seen prices at the lower end remain stagnant, while those at the top end have risen from Dhs45,000 and Dhs52,000 for Primary and Secondary, to Dhs56,000 and Dhs66,000. Indian curriculum schools in the emirate have seen top end prices hold steady, while those at the lower end have risen by an average of Dhs100 per year.

In Sharjah, these schools have seen the only increases in mentioned curriculums, going from Dhs3,600 and Dhs8,000 for Primary, to Dhs5,100 and Dhs8,500 in 2009. Similarly Secondary schools have seen increases of Dhs3,900 and Dhs5,900 to Dhs6,000 and Dhs10,000.

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