Abu Dhabi Caps Private School Fee Hikes at 15%

Private schools in Abu Dhabi are now required to meet specific criteria before increasing tuition fees, even in extraordinary cases, under a new education policy from the Department of Education and Knowledge – Abu Dhabi (ADEK). This policy caps private school fee increases at a maximum of 15% in exceptional cases, aiming to protect families from unexpected hikes and ensure a fair, transparent fee structure across the education system.

Conditions for Exceptional Fee Hikes

To qualify for an exceptional fee hike, schools must meet several conditions:

• Prove Financial Losses: Schools need to provide audited financial statements showing losses over the past two years.
• Operational Tenure: Schools must have been operational for at least three years.
• Occupancy Rate: Schools should maintain an occupancy rate of at least 80%.
• Licensing: A valid operational license is also required.

If approved, only one exceptional fee increase is allowed per academic year. Even then, ADEK has the authority to reject requests for fee hikes, ensuring transparency and accountability in the approval process. Schools must also split tuition fees into at least three instalments – up to 10 instalments – throughout the year, providing flexibility to parents.

Registration Fees and Instalment Payments

The new policy provides guidelines on fee collection, helping to balance school administration needs with affordability for parents:

• First Instalment: Schools may collect the first instalment a month before the academic year.
• Registration Fee: A registration fee up to 5% of the total tuition may be charged, deductible from the final tuition fees. Schools may collect this registration fee up to four months in advance.

Additionally, schools are prohibited from requiring financial guarantees or deposits from parents as a substitute for tuition payments. Schools are also restricted from asking for any initial registration fees before the student is formally enrolled.

Fee Structure and Transparency

ADEK’s policy requires schools to categorize and itemize all fees, helping parents understand what they are paying for. The six required categories include:

1. Tuition fees
2. Educational resources
3. Uniform costs
4. Transportation
5. Extra-curricular activities
6. Miscellaneous administrative fees

Furthermore, schools can charge reasonable administrative fees for board exams, covering document processing, supervision, and mailing costs, provided they are justified and disclosed on the school’s website.

Embassy-Affiliated Schools and Exceptional Increases

Embassy-affiliated private schools are permitted to request fee hikes if they obtain approval from their Board of Trustees and the relevant embassy or consulate. This exemption offers flexibility for embassy-affiliated schools while still requiring justification and accountability.

Regular Fee Hikes Based on Inspections

Under standard conditions, private schools in Abu Dhabi are only allowed to raise fees based on the ratings from ADEK’s school inspection system, Irtiqaa, in conjunction with the Education Cost Index (ECI). Schools rated as "outstanding" can increase fees by up to 3.94%, while "very good" schools can implement a 3.38% increase. "Good" schools may apply a 2.81% hike, and schools rated "acceptable," "weak," or "very weak" have a maximum increase limit of 2.25%.

These guidelines aim to keep fee increases reasonable while recognizing the varying standards and operational needs of different institutions.

Clearer Financial Practices

This policy is a strong step by ADEK to foster trust and clarity in school fee practices in Abu Dhabi. By setting clear rules for exceptional fee increases, transparent fee categorization, and structured payment schedules, Abu Dhabi’s education system continues to prioritize families’ interests while supporting the financial sustainability of private schools.