The 2017 Educational Cost Index (ECI) has been released by the Dubai Statistics Centre.
The new ECI rate for 2017 is 2.4 percent and schools will be allowed to apply to the KHDA to increase their fees between 2.4 percent and a maximum of 4.8 percent based on the KHDA Fees Framework.
According to the Fees Framework, Outstanding schools will be eligible for an adjustment of up to double the Educational Cost Index (a potential 4.8 percent increase in fees), Very Good schools are eligible for up to 1.75 times (a potential 4.2 percent increase), Good schools are eligible for 1.5 times (3.6 percent increase) and the rest are allowed an increase equivalent to the ECI per cent.
For Dubai's most expensive Outstanding rated school that would equal an average increase of 3,864 AED per year per student. With 870 students on its register that would deliver an extra 3.4 million AED a year for the school.
Mohammed Darwish, Chief of Regulations & Permits Commission at KHDA said:
“Schools can adjust their costs in line with the fees framework which takes into account the quality of education offered at private schools in Dubai. It protects parents from arbitrary increases and provides an effective mechanism to balance the expectations of school investors and parents.”
The ECI takes into account school operating costs, which include teacher salaries, rent, maintenance, electricity and water charges among a basket of other commodities.
Darwish added, “the ECI protects the interests of both parents and investors and balances expectations.”
New private schools do not have the right to increase tuition fees for the first three years of operation.