Rising Cost of Education Has UAE Parents Worried

In the latest survey to understand the costs of education across the globe, HSBC put UAE as the third most expensive country when it comes to annual education fees – only behind Australia and United States at first and second place respectively.

The cost of studying in the UAE is equivalent to about half (51%) of the gross domestic product (GDP) per person, or nearly $28,000 (AED 102,760) per year. The average annual fees ($21,371) and an average cost of living per year ($6,000) puts the overall costs of education in UAE ahead of those in Canada, Singapore, Japan, and Germany.

For expat families in UAE, education is usually the second-highest expense after house rent. An Internationally reputed standard of education, coupled with the high demand for good schools and colleges is seen as the main reason behind expensive education fees in UAE, particularly in Dubai, Abu Dhabi, and Sharjah.

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In Dubai, school fees are set to become even more expensive after the latest decision by Dubai Executive Council (DEC) last week allowed schools to increase their annual fees by up to 7% depending on their performance. The cost of private school fees in UAE is a controversial topic among expats who argue there is little choice in the emirate.

The parents of a typical child aged 6 to 9 in Dubai are paying $18,878 (AED 69,283) each year in school fees alone, which increases to $21,725 (AED 79,733) for children aged 10 to 13, and further to $26,196 (AED 96,140) for the most expensive secondary schools.

Over in the UK, the latest study conducted by YouGov on behalf of the Lloyds Bank has reported that more than 37% of parents are considering withdrawing their children from private education over rising fees.

The study also reported a 24% increase in private school fees over the past 5 years, resulting in a significant 57% of the surveyed population expressing fears that they may not be able to afford their children’s education in the future.

Sarah Deaves, Investment Advice & Private Clients Director at Lloyds Bank Private Banking, said: “The survey suggests that many parents don’t want money to be a key consideration in their children’s education. But a lack of planning could lead to financial problems that may cause them to consider taking their children out of private schooling.”

Highlighting the importance of education fee planning, she added: “It is worth saving as early as possible for these costs before children are in full-time education. I’d always recommend consulting a financial adviser who can look at a family’s overall financial circumstances to help you build a plan that aims to make the costs more manageable.”