Understanding Dubai School Fees Increase: How Is It Calculated?

Understanding Dubai School Fees Increase: How Is It Calculated?

For families with children attending school in Dubai, knowing how tuition fees change can help them manage their educational expenses better or choose a school that fits their budget. Recently, private schools in Dubai got permission to raise their fees for the upcoming academic year.

The Knowledge and Human Development Authority (KHDA), which oversees education in Dubai, has announced an Education Cost Index (ECI) of 2.6%. This index is used by schools to decide how much they can increase their fees for the 2024-25 academic year.

Here's a simple explanation of how these calculations work to determine school fee increases.

What is the ECI?

The Education Cost Index (ECI) is based on the annual audited financial statements of private schools in Dubai, which outline the operational cost of running a private school to offer a high-quality education and is calculated in collaboration with the Digital Dubai Authority.

What criteria does KHDA consider when approving school fee adjustments under the School Fees Framework?

The KHDA considers several criteria when approving school fee adjustments under the School Fees Framework. In Dubai, private schools that operate for profit can raise their fees based on their individual school grade determined by the Dubai School Inspection Bureau (DSIB) and the Education Cost Index (ECI), which is regularly calculated.

According to the School Fees Framework, the rate at which schools can adjust their fees is linked to each school's most recent inspection rating. Any fee adjustments proposed by schools must receive approval from the KHDA.

How is the ECI applied to these adjustments this year?

Schools that improve their rating from Weak to Acceptable or from Acceptable to Good will be eligible to increase their fees by up to double the ECI of 2.6 percent.

Schools moving from Good to Very Good will benefit from an increase of up to 1.75 times the ECI and schools improving their rating from Very Good to Outstanding will be eligible to increase their fees by up to 1.5 times the ECI.

What is the purpose of the School Fees Framework?

As per the KHDA, the framework aims to regulate school fees and protect the students and parents (as beneficiaries of the educational services); as well as to provide a favourable environment for investors in the education sector, encouraging them to improve the quality of education in the Emirate of Dubai.

This is achieved through a comprehensive mechanism taking into account the educational and economic aspects and protecting the interests of all stakeholders.

What are the services covered by the Fess Framework?

This framework applies to all tuition fees and costs of services that are provided by the school. However, this framework is not applicable for services outsourced by the school or provided by third parties, that are optional for the parents, and which are governed by other Government authorities.

Schools with performance ratings ‘Acceptable’ and lower are required to submit (as part of their application) a KHDA-approved action plan detailing how the school will invest in the educational process to improve the quality of education in the school.

This framework applies to all private schools in Dubai that have completed three years of operation. It does not apply to schools that don’t charge tuition fees.

Fee increases for a particular academic year can only be implemented in that year and cannot be carried forward to the upcoming academic years.

News Source: Khaleej Times

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