Dubai’s government said it would allow a modest increase in tuition fees for most students in the 2019-2020 school year after last year’s freeze triggered a delay in the London listing of a major school operator.
The move is likely to provide some kind of concession to private investors, such as direct investment companies, which have the majority of schools in the emirate, which is the hub for international companies in the Middle East.
The move to freeze tuition fees in Dubai had a negative impact on the public offering of James Middle East, based on James Education, backed by Blackstone.
The London offer was postponed after authorities in Dubai abruptly decided to freeze tuition fees, which means the company’s financial projections should be adjusted, the sources said.
Dubai’s move last year to freeze tuition fees amid a number of other cost-cutting measures in an effort to revive the economy, which was hit by a fall in property prices.
The Dubai government said it would allow tuition fees to increase to 90 percent of students by a maximum of 2.07 percent from 2019-2020.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince, and son of the Ruler of Dubai has approved a new framework by which Dubai’s school monitoring system will assess the quality of education in each school according to its index and classify it accordingly.
Schools with lower education quality according to the government index will not be allowed to increase their fees.
The government said only 10 percent of students in Dubai would increase their fees by more than 2.07 percent.