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Education Report

Dubai 2018 / 2019

A F F O R DA B I L I T Y

R E G U L AT O RY C H A N G E S

E VO L U T I O N O F S U P P LY

1
Introduction
In a matter of a few decades, the emirate of Dubai has
witnessed rapid transformation from a trading port, to a
regional innovation hub underpinned by provision of quality
infrastructure and world class educational institutions.

Through the efforts of Knowledge and Human Development Authority (KHDA),


the quality of education in Dubai has significantly improved, now featuring many
internationally recognised operators offering 16 different curricula to cater to the

Affordability
requirements of an increasingly multinational population.

In tandem with this transformation we have seen a broad range of developments


which we will look to cover in this report. These topics include:

• Affordability is relative!
is relative!
We go beyond simply measuring affordability (in terms of
To test our hypothesis - Affordability is relative to distance and
monetary value) to examining it within the context of distance /
time - Knight Frank carried out a survey with prominent education
time. Education experts views have been considered which
service providers to gauge their understanding of this concept.
allowed us to frame the parameters of ‘affordable schooling’
and redefine traditional concepts of catchment areas in Dubai. Key components of this section:

• Key regulatory changes • Parameters of an affordable school


In this section Clyde & Co set out a high level overview of some • Testing distance or time as a measure under current
of the key regulatory developments which affect the private and future market conditions
school sector in Dubai and which increase the compliance
obligations on operators and new entrants to the market. • Implications for education service providers and
real estate developers
• Historical evolution of supply
• Tuition fee, heat map and enrolment density map
Supply of education institutions for five key curricula has been
analysed and mapped since 1997.

I hope you will enjoy this paper and wish all stakeholders success in the
years to come.

Shehzad Jamal
Partner — Education Consultancy
+971 56 4101 298
shehzad.jamal@me.knightfrank.com

Please refer to the important notice at the end of this report.

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DUBAI EDUCATION MARKET REVIEW 2018 / 2019 DUBAI EDUCATION MARKET REVIEW 2018 / 2019

Affordability is relative!
the underlying factor which defines unique USP. The following two pages
FIGURE 1
affordability, is growing in importance and include Dubai’s education sector maps,
The influence of distance
was tested in our survey. Our key findings presenting the current situation of tuition
or time on catchment area
The education sector in Dubai is now at a tipping point, with aggressive marketing and tuition fee are presented below: fee price points and student density
discounts symptomatic of an oversupply of schools. Pressure is expected to increase with a further 13 across Dubai.
Distance/time: The participants were 0-5 km 5-10 km 10 km ++
schools slated to open this academic year, bringing the total number of private schools in Dubai to 207. requested to place the students in three We expect catchment areas to continue
brackets a) 0 to 5km b) 5 to 10km and c) reducing, driven by the increase in the
With this drastic increase in choice, the market is now tipped in favour of consumers who are demanding Total sample
10km ++ number of schools and choices available.
quality education at lower price points. However, affordability has never been uniformly defined, nor do we
It will be what makes the school most
know if meeting these demands is possible? • The number of students fell evenly
attractive, with the exception of schools
between the three brackets with
that offer certain USPs, which can still
The education sector is now maturing, to develop schools that are affordable in • Year 7: 77% mentioned tuition fees 34% students residing <5 km
command a wider radius because they
with 16 curricula available, price points the long-term. should be less than AED 41k, and (Figure 1)
are serving a particular target market. 34% 34%
that range from a few thousand dirhams 44% indicated that tuition fee should • When international branded schools, However, as competition continues to
to schools that have an approved fees be in the range of AED 33k to 46k or schools with a unique offering increase, even these schools will most
of more than AED 100,000 annually Affordability is relative! likely rely more on catchment area than
• Year 13: 70% of participants believed were excluded, the number of
and internationally-branded operators Arriving at a universally accepted students in bracket (a) increased to the USP they are offering.
tuition fees should be equal or less 33%
commonplace. Demand for international tuition fee for the private sector that 46% (the assumption is that people
than AED 60k Education service providers and real
brands and schools to provide something would be considered affordable by all, will travel a longer distance for the
out of the ordinary has driven the desire estate developers both have lessons to
is an impossible task. This is because unique attribute)
for better quality education, by a growing School parameters: draw from this:
affordability is not one-dimensional,
number of population, perceived to have • When price sensitive schools were
which is why Knight Frank went beyond • Number of students: 2,000 to • Education service providers:
large disposable income. eliminated (tuition fees less than
simply measuring affordability in terms 3,000, with class sizes ranging from Target market is the one on their Excluding foreign branded schools
AED 33k for Year 13) the percentage
In the last 5 years the majority of new of monetary value, to rather examining it 25 to 30 doorstep. Therefore, new schools and schools with USP’s
of students residing in 0-5 km
school openings have driven up average within the context of distance, or time i.e and existing schools considering
• Plot size: many plot sizes were distance from the school increased
tuition fees. A recent report by HSBC, 5 km or 15 minutes travel. repositioning should invest in
quoted but 30,000 sq m was to 53%
ranked UAE school fees as the second undertaking a catchment area
In Q2 2018, we conducted a survey with quoted the most
highest in the world, behind only Hong Catchment: 70% of participants agreed analysis to understand population
education service providers; representing
Kong. Furthermore, against a stagnated • BUA to plot ratio: optimally 0.8 sq m that they have witnessed a decline size, income profile, nationality 30%
58 large, small, branded and local private
rate of growth in the economy, many to 1.0 sq m in their schools’ catchment diameter mix, competition and above all, 46%
schools in Dubai, using the UK curriculum
schools have missed their student due to greater choice available. This is requirement of residents, as it
to enable comparisons. The aim was two-
enrollment targets as supply has started supported by the fact that the second will help the school create a value
fold: Facilities:
to outstrip demand. most popular reason for students leaving proposition, which in turn will ensure 23%
1. To define affordable schools (price • Essential: Cafeteria, multi-purpose schools is to move to a school closer long-term profitability.
With more choice and increasing tuition points and facilities) to home, with relocation given as the
hall and outdoor swimming pool • Real estate developers: Master
fee levels, parents are inevitably seeking primary reason. (Figure 2)
2. To identify whether distance and/ were identified as being essential for planned communities during their
value for money, bringing the issue of
or time is a relevant measure for an affordable school planning phase need to consider the
affordable education under the spotlight.
affordability • Can be excluded: auditoriums, Lessons learned target market for their development.
In 2018, stakeholders reacted to market This will help determine the type Removing price sensitive schools
It is important to note, the overarching tennis courts and indoor swimming The survey contained other items as
conditions in the following manner: and size of school and attract an
condition to this survey was that pools well, but we noticed that each participant
• Private education service appropriate education service
responses must take into account that the was drawing from their own experiences
providers invested in costly provider. Empirical evidence
quality of education is to be maintained. Salaries: which did not necessarily tally with the 21%
marketing campaigns including suggests that planning for the right
rest. However, what stands out from the
outdoor advertising, radio and print, • Teacher salaries: the range between school positively affects other real
and introduced disruptive pricing Defining affordable schools the highest and lowest basic salary
survey is that the population of most
estate offerings by way of improved
53%
relevance lies within a 5 km radius of
by reducing tuition fees, introducing (Key findings) was in excess of AED 7,000
the school, unless the school has a
occupancy and yields.
discounts, and implementing various 27%
Participants were unanimous in their • Headmaster salary: salary ranges
scholarship schemes.
belief that providing affordable education were fairly consistent
FIGURE 2
• The Dubai Government issued a is challenging, but confirmed it should be Has your school catchment decreased over time?
freeze on both private school fees accessible to communities and relative to
Testing distance or time as a
and rents (for those schools that rent an individual’s income.
land from its Knowledge Fund) for
measure under current and
academic year 2018/19.
Tuition fees: future market conditions Source: KHDA, Knight Frank Middle East
10% 20% 70%
• Year 1: 80% mentioned tuition fees With an increasing number of different
These strategies were aimed at
should be less than AED 33k, and types of schools available, parents have
alleviating worries of operators and
56% indicated that tuition fee should more choice and are seeking greater
parents alike, by reducing the burden of Can’t say No Yes
be in the range of AED 18k to 28k value for money. Under this current
both fees and rents. These actions can
scenario, we believe that our hypothesis
be termed as stop gap measures. They
on distance and catchment area, being Source: KHDA, Knight Frank Middle East
don’t tackle the underlying issue of how

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DUBAI EDUCATION MARKET REVIEW 2018 / 2019

Average tuition fee heat map


FIGURE 3
Academic year 2016/2017

THE WORLD ISLANDS

PALM JUMEIRAH

DEIRA ISLANDS

DUBAI MARINA
JEBEL ALI
AL SUFOUH JUMEIRAH
DUBAI MEDIA
JUMEIRAH LAKES TOWERS CITY
DEIRA

AL MAMZAR
JUMEIRAH ISLANDS BARSHA AL KARAMA
HEIGHTS
EMIRATES LIVING AL BARSHA AL QUOZ DOWNTOWN
JEBEL ALI
VILLAGE
BUSINESS BAY AL NAHDA
BUR DUBAI

AL TWAR
JUMEIRAH VILLAGE
CIRCLE
AL QUSAIS
DUBAI FESTIVAL
NAD AL SHEBA CITY

DUBAI SPORTS CITY Using data published by KHDA, Knight Frank’s GIS Team has
constructed a heat map to show the spread of schools in Dubai
DUBAI INVESTMENT by seven broad fee brackets (Figure 3) ranging from fees which
PARK MUHAISNAH
RAS AL KHOR fall below AED 23,000 per annum (dark blue) to fees which are
ARABIAN RANCHES RASHIDIYA above AED 63,000 per annum (dark red).

Looking at the heat map there are a few areas where the
WADI AL SAFA concentration of the highest fee schools is acceptable given the
income profiles of these communities. This is particularly the
case for the vast majority of these schools which are in the top
AL WARQA
20% of the market (by fees) where occupancy is around 77% (if
schools that commenced operations in academic year 2017/18
DUBAI SILICON OASIS
INTERNATIONAL CITY
are removed, then the occupancy level increases to 84%). As
AL YALAYIS MUSHRIF
UMM NAHAD noted earlier in this report, this number is slightly distorted by
the fact that some of these schools have USPs which will attract
demand from a wider catchment area, meaning the impact of
Tuition Fee (average year 6 & 7), in AED AL KHAWANEEJ
the 5 km is not as relevant under current circumstances.

< 23,000 43,001-52,000 ACADEMIC CITY Additionally, there are a large number of schools which are
priced towards the higher fee brackets of AED 52,001 and
above and are located in what are known to be middle income
23,001-30,000 52,001-63,000
Av. Year 6/7 Fees Per Annum (AED) communities. As a result of this mispricing, we have seen that
occupancy in the AED 52,000 to AED 83,000 price point stands
30,001-36,000 >63,000
<23,000 43,001 - 52,000 at around 69% compared to 84% in price points below this level.
As the number of schools in Dubai continue to grow, pressure
23,001 - 30,000
36,001-43,000
52,001 - 63,000 may increase on these schools that are located in middle
income communities.
30,001 - 36,000 >63,000
36,001 - 43,000
Source: KHDA, Knight Frank Middle East Esri, HERE, Garmin, © OpenStreetMap contributors, and the GIS user community

6 7
DUBAI EDUCATION MARKET REVIEW 2018 / 2019

Student enrolment density


FIGURE 4
Academic year 2016/2017

THE WORLD ISLANDS

PALM JUMEIRAH

DEIRA ISLANDS

DUBAI MARINA
JEBEL ALI
AL SUFOUH JUMEIRAH
DUBAI MEDIA
JUMEIRAH LAKES TOWERS CITY
DEIRA

AL MAMZAR
JUMEIRAH ISLANDS BARSHA AL KARAMA
HEIGHTS
EMIRATES LIVING AL BARSHA AL QUOZ DOWNTOWN
JEBEL ALI
VILLAGE
BUSINESS BAY AL NAHDA
BUR DUBAI

AL TWAR
JUMEIRAH VILLAGE
CIRCLE
AL QUSAIS
DUBAI FESTIVAL Figure 4 shows the density of number of students per school
NAD AL SHEBA CITY
in Dubai. We have used five broad ranges with the dark blue
DUBAI SPORTS CITY
circles showing schools which have less than 1,000 students and
the dark red circles reflecting schools which have over 4,000
DUBAI INVESTMENT
PARK MUHAISNAH students.
RAS AL KHOR

ARABIAN RANCHES RASHIDIYA First, we note that almost 90% of schools in Dubai have total
student numbers below 3,000 and 61% have total student
numbers below 1,500 students. There is also a clear trend in
WADI AL SAFA
schools which fall in the fee brackets of AED 36,000 and below,
these schools are likely to have a higher total student population.
AL WARQA We can see this is the case in the majority of schools in areas
such as Bur Dubai, Deira and International City. Whereas schools
INTERNATIONAL CITY
where fees are in the higher brackets (over AED 63,000) tend to
DUBAI SILICON OASIS
AL YALAYIS MUSHRIF have a enrolments of 1,000 students or fewer. Furthermore, in
UMM NAHAD
this higher fee bracket where the school is not a foreign branded
school we see this number fall even further.
AL KHAWANEEJ
We also note that occupancy on average, is significantly higher
in schools where the student capacity is higher. Schools
Number of students ACADEMIC CITY
which have a capacity of up to 1,500 students have recorded
occupancy at 76%. Schools having a total student population
< 1,000 3,001-4,000 higher than this, recorded occupancy of over 92%.

The data clearly shows that affordability is relative to the


Number1,001-2,000
of Students > 4,000
community. Schools with fee points matching the community
income profile are maintaining high enrolment and occupancy,
< 1,000
2,001-3,000
3,001 to 4,000 and these schools are likely to record a desirable level of
profitability.
1,001 to 2,000 > 4,000
2,001 to 3,000
Source: KHDA, Knight Frank Middle East Esri, HERE, Garmin, © OpenStreetMap contributors, and the GIS user community

8 9
DUBAI EDUCATION MARKET REVIEW 2018 / 2019

Delivering an affordable school comes with its own challenges. The K-12 sector in the UAE is heavily
regulated and this affects both the operation of schools and the establishment of new schools. The
regulations apply regardless of the school fees to be charged, and there is an increasing cost associated
with regulatory compliance that an affordable school operator will need to take into account. This section
highlights some of the key regulatory developments that are relevant to the private K-12 sector.

Key regulatory “Operators and International Branded stake in the Dubai school to mitigate
any perceived risk flowing from the
Schools in Dubai
changes impacting Investors need to
understand the
Where an operator or investor is looking
board resolution, and we expect this to
continue.

the education sector


to establish a school in Dubai that will
The KHDA also has restrictions on the
regulatory framework operate under an existing international
closing of schools, or the termination
school brand, the following restrictions
in Dubai to ensure and requirements apply.
of brand licence agreements, as they
do not want the international school to
compliance. This The existing international school needs walk away, or the Dubai school to close,
affects not just the to be involved in the licensing process,
regardless of whether they will have
without their approval. The main purpose
of this is the welfare and safety of the
operations of the ownership in the Dubai school. The students.
governing body of the school will also
school, but also the need to provide a commitment to KHDA
Teacher Licensing and
structures available to (by way of a board resolution) that it
Good Conduct Certificates
will be responsible for a list of specific
establish the school in education matters, that termination and In the first quarter of 2018, the UAE
the first place.” closure of the Dubai school is subject Government launched the Teacher
to KHDA approval, and that the school Licensing System (TLS), with the aim
will be responsible for settling financial of ensuring both a high quality and
disputes in relation to parents and staff ‘uniform’ standard of teaching staff within
on termination. the region, notwithstanding the fact
Understandably this can cause some that teachers’ qualifications in the UAE
concerns with school governors, and we are estimated to be from around 180
have assisted a large number of school countries across the world.
governing boards to understand the The TLS is being rolled out in phases
implications of this resolution and its but will become mandatory for every
impact on the school and the governors. teacher in the UAE in 2021. In order
The school will want to ensure they have to obtain their Licence (issued by the
the right to influence the Dubai school or Ministry of Education), teachers will have
make it comply with KHDA requirements. to sit exams and undertake professional
We are seeing an increasing trend of development training across four
international schools taking a minority ‘standards’ – (i) Professional and Ethical

11
DUBAI EDUCATION MARKET REVIEW 2018 / 2019

“Operators and Investors need


to understand the regulatory
framework in Dubai to ensure
compliance. This affects not
just the operations of the
school, but also the structures
available to establish the
school in the first place.”

Conduct, (ii) Professional Knowledge, (iii) While the ruling was welcomed by aim to ensure safe transportation for
Professional Practice and (iv) Professional parents, it has caused practical students. The Dubai Roads and Traffic
Growth. Teachers with qualifications
from certain jurisdictions (namely UK,
Ireland, US, New Zealand, Canada and
challenges for schools who had already
forecasted and/or implemented their
2018/2019 financial budgets on the basis
Authority has, for example, issued the
Guiding Manual of School Transport in
the Emirate of Dubai which sets out the
Historical evolution
Australia) will be exempt from (ii), (iii)
and (iv), however will need to participate
in the training and take the exam in
of a fee increase. As a general rule of
thumb, the better a school performs in
the annual KHDA inspection, the more
expected standards and obligations of
transport operators and schools. of supply
It is anticipated that more legislation that
Professional and Ethical Conduct. likely they are to be awarded the right to This section presents a summary analysis of 5 key curricula along with the
is prescriptive will be enacted in the near
increase their fees. Additionally, school locations of schools in 1997, 2007 and 2017. The curricula analysed are:
Schools themselves will have to meet the future. In the meantime, schools must
fees in Dubai have, historically, risen year
costs of the training and exams for their ensure that they undertake sufficient due • UK Curriculum Schools
on year.
teachers although the fees have not yet diligence when appointing a third party
been announced. It is not yet known whether the school transport provider. • Indian Curriculum Schools
fee freeze will be extended to the next • American Curriculum Schools
In order to obtain the license, it was
academic year, or whether it will be
recently announced that teachers
replicated to other Emirates. Many Data Protection • IB Curriculum Schools
will also be required to obtain a good
schools have escalating rent charges in Data protection remains a hot topic • Ministry of Education Curriculum Schools
conduct certificate from the police
their operating leases with landlords, and globally, and the UAE is no exception.
department of the country where they
now is the time for schools and landlords Although privacy laws are being
last taught. This requirement also applies
to look at those arrangements to ensure developed, those working and living in
to those currently teaching in the UAE.
the sustainability of the school during the the UAE are becoming more aware of the
As the TLS is in its nascent phase, there
coming period. risks of not protecting their own data. It
has been limited information released
in relation to the requirements. For is only a matter of time until substantive
regulations are enacted and now is the
example, the consequences if certain School Transport time to start implementing best practice.
jurisdictions are unable to provide the
required certification are unclear. We Education institutions naturally have
In particular, schools should be mindful of
expect these aspects to be clarified extensive obligations in relation to the
the way in which they collect information
soon. health and safety of their students. Safety
about pupils, employees, parents,
obligations on school transport have
governors and others. It may be that
become an increasingly topical issue
consent requirements will be introduced
School Fee Freeze following the occurrence of a number of
in line with data protection laws globally,
tragic events.
In June 2018, the Dubai Executive whereby those giving their information
Council announced that private schools Notwithstanding the fact that they must expressly give consent for the
in Dubai would not be permitted to raise may use an external provider, schools information to be used for a particular
their school fees for the academic year themselves remain responsible for purpose. Schools may also need to
2018/2019. The announcement came at a the health and safety of their pupils consider whether staff will need further
late stage in the academic calendar after and employees on school transport. training on data protection matters, and
issuance of KHDA approvals to schools in Throughout the course of 2018, the UAE whether information about pupils can be
relation to fee increases. has launched a number of initiatives that given readily, even to their parents.

12
DUBAI EDUCATION MARKET REVIEW 2018 / 2019 DUBAI EDUCATION MARKET REVIEW 2018 / 2019

UK Curriculum Schools Penetration of UK Schools in Dubai

FIGURE 5 FIGURE 6 FIGURE 9 FIGURE 10


Academic year 2016/2017 snapshot Number of students and schools by DSIB curriculum rating 1997 2007

40,000 30 THE WORLD ISLANDS THE WORLD ISLANDS


Number of schools (branches excluded) 74
35,000
25

Number of students 93,771 30,000 PALM JUMEIRAH


DEIRA ISLANDS
PALM JUMEIRAH
DEIRA ISLANDS
20
25,000 DUBAI DUBAI
AL SUFOUH JUMEIRAH AL SUFOUH JUMEIRAH
New schools established since 2007 34 MARINA
DEIRA
MARINA
DEIRA
20,000 15 JUMEIRAH AL KARAMA AL MAMZAR JUMEIRAH AL KARAMA AL MAMZAR
LAKES BARSHA LAKES BARSHA
TOWERS HEIGHTS DOWNTOWN TOWERS HEIGHTS DOWNTOWN
AL QUOZ AL QUOZ
Number of students attending schools with 15,000 AL BARSHA BUSINESS AL BARSHA BUSINESS
67,462 10 BAY BAY
rating good and above 10,000
DUBAI
FESTIVAL AL QUSAIS
DUBAI
FESTIVAL AL QUSAIS
JUMEIRAH JUMEIRAH
VILLAGE NAD AL SHEBA CITY VILLAGE NAD AL SHEBA CITY
5
Number of schools with improved 5,000 CIRCLE CIRCLE
3
DSIB rating 0 0
RAS AL
MUHAISNAH
RAS AL
MUHAISNAH
ARABIAN KHOR RASHIDIYA ARABIAN KHOR RASHIDIYA
RANCHES RANCHES

No
evaluation

Inspection
upcoming

Weak

Acceptable

Good

Very
good

Outstanding
Weighted average fee in AED* 37,071 MIRDIF MIRDIF

AL WARQA AL WARQA
INTERNATIONAL INTERNATIONAL
DUBAI SILICON CITY DUBAI SILICON CITY
AL YALAYIS UMM NAHAD OASIS MUSHRIF AL YALAYIS UMM NAHAD OASIS MUSHRIF
Source: KHDA, Knight Frank Middle East *Based on median fee range for year 6 & 7 Source: KHDA, Knight Frank Middle East Students Number of schools (RHS)
ACADEMIC CITY ACADEMIC CITY
AL KHAWANEEJ AL KHAWANEEJ

FIGURE 7 FIGURE 8
Number of students & schools by year 6 & 7 fee brackets, AED Number of students vs total
CONTRIBUTION
30% 34%

25,000 18 300,000

16

20,000 250,000
14 FIGURE 11
CAGR: 5.9% 2017
12
15,000 200,000
10

8 THE WORLD ISLANDS


10,000 150,000
6

4
CAGR: 7.4% PALM JUMEIRAH
5,000 100,000
DEIRA ISLANDS
2

0 0 50,000
DUBAI MARINA
0-
10,000

10,001-
20,000

20,001-
30,000

30,001-
40,000

40,001-
50,000

50,001-
60,000

60,001-
70,000

70,001-
80,000

80,001-
90,000

90,001-
100,000

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17
JEBEL ALI AL SUFOUH JUMEIRAH
DUBAI
JUMEIRAH LAKES MEDIA DEIRA
TOWERS CITY
AL MAMZAR
BARSHA AL KARAMA
JUMEIRAH
HEIGHTS AL BARSHA AL QUOZ
ISLANDS DOWNTOWN
Source: KHDA, Knight Frank Middle East Students Schools Source: KHDA, Knight Frank Middle East UK Total JEBEL ALI EMIRATES
VILLAGE LIVING BUSINESS BAY BUR DUBAI AL NAHDA

AL TWAR
JUMEIRAH AL QUSAIS
VILLAGE DUBAI
NAD AL SHEBA
CIRCLE FESTIVAL
CITY
UK curriculum schools are the most prominent in Dubai, in terms of the number of students (34%) and number of schools DUBAI SPORTS
CITY
(39%). What makes the UK curriculum appealing to the Dubai market? DUBAI
INVESTMENT MUHAISNAH
RAS AL KHOR
PARK
• Global standardised curriculum and examination system that eases transferability between schools and countries – a factor that ARABIAN RASHIDIYA
RANCHES
is appealing to the expatriate community. MIRDIF
WADI AL SAFA

• It caters to almost the entire socio-economic spectrum of society, with tuition fees ranging from a few thousand Dirhams annually
to schools in excess of AED 90,000 per annum. AL WARQA

• UK branded schools aim to provide students similar educational experiences in terms of quality. AL YALAYIS
DUBAI SILICON
INTERNATIONAL
CITY MUSHRIF
UMM NAHAD OASIS

In academic year 2018/19, six schools will be introduced to the system, increasing the number of schools to 85.
AL KHAWANEEJ

ACADEMIC CITY

Source: Knight Frank Middle East

14 15
DUBAI EDUCATION MARKET REVIEW 2018 / 2019 DUBAI EDUCATION MARKET REVIEW 2018 / 2019

American Curriculum Schools Penetration of American Schools in Dubai

FIGURE 12 FIGURE 13 FIGURE 16 FIGURE 17


Academic year 2016/2017 snapshot Number of students and schools by DSIB curriculum rating 1997 2007

25,000 14 THE WORLD ISLANDS THE WORLD ISLANDS


Number of schools (branches excluded) 34
12
20,000
Number of students 48,257 PALM JUMEIRAH
DEIRA ISLANDS
PALM JUMEIRAH
DEIRA ISLANDS
10
DUBAI DUBAI
AL SUFOUH JUMEIRAH AL SUFOUH JUMEIRAH
New schools established since 2007 8 15,000
8
MARINA
DEIRA
MARINA
DEIRA
JUMEIRAH AL KARAMA AL MAMZAR JUMEIRAH AL KARAMA AL MAMZAR
LAKES BARSHA LAKES BARSHA
TOWERS HEIGHTS DOWNTOWN TOWERS HEIGHTS DOWNTOWN
AL QUOZ AL QUOZ
Number of students attending schools with 10,000
6
AL BARSHA BUSINESS AL BARSHA BUSINESS
23,476 BAY BAY
rating good and above 4
DUBAI
FESTIVAL AL QUSAIS
DUBAI
FESTIVAL AL QUSAIS
JUMEIRAH JUMEIRAH
VILLAGE NAD AL SHEBA CITY VILLAGE NAD AL SHEBA CITY
5,000
Number of schools with improved 2 CIRCLE CIRCLE
3
DSIB rating RAS AL
MUHAISNAH
RAS AL
MUHAISNAH
0 0 ARABIAN KHOR RASHIDIYA ARABIAN KHOR RASHIDIYA
RANCHES RANCHES

Inspection
upcoming

Weak

Acceptable

Good

Outstanding
Weighted average fee in AED* 29,495 MIRDIF MIRDIF

AL WARQA AL WARQA
INTERNATIONAL INTERNATIONAL
DUBAI SILICON CITY DUBAI SILICON CITY
AL YALAYIS UMM NAHAD OASIS MUSHRIF AL YALAYIS UMM NAHAD OASIS MUSHRIF
Source: KHDA, Knight Frank Middle East *Based on median fee range for year 6 & 7 Source: KHDA, Knight Frank Middle East Students Number of schools (RHS)
ACADEMIC CITY ACADEMIC CITY
AL KHAWANEEJ AL KHAWANEEJ

FIGURE 14 FIGURE 15
Number of students & schools by year 6 & 7 fee brackets, AED Number of students vs total
CONTRIBUTION
22% 18%

25,000 12 300,000

10 250,000
20,000
CAGR: 5.9% FIGURE 18

8 200,000 2017
15,000

6 150,000
THE WORLD ISLANDS
10,000
4 100,000
CAGR: 3.0% PALM JUMEIRAH
5,000
2 50,000
DEIRA ISLANDS

0 0 0
DUBAI MARINA
0-
10,000

10,001-
20,000

20,001-
30,000

30,001-
40,000

40,001-
50,000

50,001-
60,000

60,001-
70,000

70,001-
80,000

80,001-
90,000

90,001-
100,000

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17
JEBEL ALI AL SUFOUH JUMEIRAH
DUBAI
JUMEIRAH LAKES MEDIA DEIRA
TOWERS CITY
AL MAMZAR
BARSHA AL KARAMA
JUMEIRAH
HEIGHTS AL BARSHA AL QUOZ
ISLANDS DOWNTOWN
Source: KHDA, Knight Frank Middle East Students Schools Source: KHDA, Knight Frank Middle East American Total JEBEL ALI EMIRATES
VILLAGE LIVING BUSINESS BAY BUR DUBAI AL NAHDA

AL TWAR
JUMEIRAH AL QUSAIS
VILLAGE DUBAI
NAD AL SHEBA
CIRCLE FESTIVAL
CITY
The American curriculum schools have a market share of almost 18% for both the number of students and schools. In DUBAI SPORTS
CITY
the last three academic years, student numbers were almost constant, which has resulted in a gradual decline in market DUBAI
INVESTMENT MUHAISNAH
share from 22% in academic year 2009/10 to 18% in 2016/17. PARK
RAS AL KHOR
ARABIAN RASHIDIYA
RANCHES
The majority of the schools have received a DSIB rating of “acceptable” and “good” with only one school maintaining an MIRDIF
WADI AL SAFA
“outstanding” rating.

In academic year 2018/19, two schools will be introduced to the system, increasing the number of schools to 36. AL WARQA

INTERNATIONAL
DUBAI SILICON MUSHRIF
AL YALAYIS CITY
UMM NAHAD OASIS

AL KHAWANEEJ

ACADEMIC CITY

Source: Knight Frank Middle East

16 17
DUBAI EDUCATION MARKET REVIEW 2018 / 2019 DUBAI EDUCATION MARKET REVIEW 2018 / 2019

Indian Curriculum Schools Penetration of Indian Schools in Dubai

FIGURE 19 FIGURE 20 FIGURE 23 FIGURE 24


Academic year 2016/2017 snapshot Number of students and schools by DSIB curriculum rating 1997 2007

25,000 12 THE WORLD ISLANDS THE WORLD ISLANDS


Number of schools (branches excluded) 33
10
Number of students 79,579 20,000 PALM JUMEIRAH
DEIRA ISLANDS
PALM JUMEIRAH
DEIRA ISLANDS

8 DUBAI DUBAI
AL SUFOUH JUMEIRAH AL SUFOUH JUMEIRAH
New schools established since 2007 16 15,000 MARINA
DEIRA
MARINA
DEIRA
JUMEIRAH AL KARAMA AL MAMZAR JUMEIRAH AL KARAMA AL MAMZAR
6 LAKES BARSHA LAKES BARSHA
TOWERS HEIGHTS DOWNTOWN TOWERS HEIGHTS DOWNTOWN
AL QUOZ AL QUOZ
Number of students attending schools with 10,000 AL BARSHA BUSINESS AL BARSHA BUSINESS
41,150 BAY BAY
rating good and above 4 DUBAI
FESTIVAL AL QUSAIS
DUBAI
FESTIVAL AL QUSAIS
JUMEIRAH JUMEIRAH
VILLAGE NAD AL SHEBA CITY VILLAGE NAD AL SHEBA CITY
5,000
Number of schools with improved 2 CIRCLE CIRCLE
nil
DSIB rating 2016 vs 2017 RAS AL
MUHAISNAH
RAS AL
MUHAISNAH
ARABIAN KHOR RASHIDIYA ARABIAN KHOR RASHIDIYA
0 0
RANCHES RANCHES

No
evaluation

Inspection
upcoming

Weak

Acceptable

Good

Very good

Outstanding
Weighted average fee in AED* 10,766 MIRDIF MIRDIF

AL WARQA AL WARQA
INTERNATIONAL INTERNATIONAL
DUBAI SILICON CITY DUBAI SILICON CITY
AL YALAYIS UMM NAHAD OASIS MUSHRIF AL YALAYIS UMM NAHAD OASIS MUSHRIF
Source: KHDA, Knight Frank Middle East *Based on median fee range for year 6 & 7 Source: KHDA, Knight Frank Middle East Students Number of schools (RHS)
ACADEMIC CITY ACADEMIC CITY
AL KHAWANEEJ AL KHAWANEEJ

FIGURE 21 FIGURE 22
Number of students & schools by year 6 & 7 fee brackets, AED Number of students vs total

CONTRIBUTION
30% 29%

300,000
60,000 14

12 250,000
50,000
FIGURE 25
CAGR: 5.9%
10
200,000 2017
40,000

8
30,000 150,000

6 CAGR: 5.5% THE WORLD ISLANDS

20,000 100,000
4
PALM JUMEIRAH

10,000 50,000
2 DEIRA ISLANDS

0 0 0
DUBAI MARINA
0-
10,000

10,001-
20,000

20,001-
30,000

30,001-
40,000

40,001-
50,000

JEBEL ALI AL SUFOUH JUMEIRAH


50,001-
60,000

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17
DUBAI
JUMEIRAH LAKES MEDIA DEIRA
TOWERS CITY
AL MAMZAR
BARSHA AL KARAMA
JUMEIRAH
HEIGHTS AL BARSHA AL QUOZ
ISLANDS DOWNTOWN
Source: KHDA, Knight Frank Middle East Students Schools Source: KHDA, Knight Frank Middle East Indian Total JEBEL ALI EMIRATES
VILLAGE LIVING BUSINESS BAY BUR DUBAI AL NAHDA

AL TWAR
JUMEIRAH AL QUSAIS
VILLAGE DUBAI
NAD AL SHEBA
CIRCLE FESTIVAL
Indian curriculum schools have maintained 30% of the student population. In terms of the number of students per school, DUBAI SPORTS CITY
Indian schools are usually twice the size of American or UK curriculum schools. Indian curriculum schools not only serve the CITY
DUBAI
Indian community, but also cater to the population of the subcontinent. INVESTMENT RAS AL KHOR
MUHAISNAH
PARK
ARABIAN RASHIDIYA
Factors that draw parents are: RANCHES

WADI AL SAFA MIRDIF


• Standardised curriculum and examination system

• Competitive tuition fees - making it appealing to a wider population base AL WARQA

• High focus on core subjects DUBAI SILICON


INTERNATIONAL
MUSHRIF
AL YALAYIS CITY
UMM NAHAD OASIS
Indian branded schools aim to provide students similar education experiences in terms of quality. In the academic year 2018/19, two
schools are to be introduced to the system, which will increase the number of schools to 36. AL KHAWANEEJ

ACADEMIC CITY

Source: Knight Frank Middle East

18 19
DUBAI EDUCATION MARKET REVIEW 2018 / 2019 DUBAI EDUCATION MARKET REVIEW 2018 / 2019

International Baccalaureate Curriculum Schools Penetration of International Baccalaureate Schools in Dubai

FIGURE 26 FIGURE 27 FIGURE 30


Academic year 2016/2017 snapshot Number of students and schools by DSIB curriculum rating 2007

10,000 8 THE WORLD ISLANDS


Number of schools (branches excluded) 11

PALM JUMEIRAH
Number of students 13,232 8,000
6 DEIRA ISLANDS

Number of new schools in last 5 years 9


6,000
DUBAI MARINA
JEBEL ALI AL SUFOUH JUMEIRAH
Number of students attending schools with 4
JUMEIRAH LAKES
DUBAI
12,624 TOWERS
MEDIA DEIRA
rating good and above 4,000 CITY
AL MAMZAR
BARSHA AL KARAMA
JUMEIRAH
HEIGHTS
Number of schools with improved 2
ISLANDS AL BARSHA AL QUOZ DOWNTOWN
2 JEBEL ALI EMIRATES
BUSINESS BAY AL NAHDA
DSIB rating 2016 vs 2017 2,000 VILLAGE LIVING BUR DUBAI

Weighted average fee in AED* 65,517 0 AL TWAR


0
JUMEIRAH
Inspection Good Very Outstanding VILLAGE DUBAI
AL QUSAIS
NAD AL SHEBA
upcoming good CIRCLE FESTIVAL
DUBAI SPORTS CITY
CITY
Source: KHDA, Knight Frank Middle East *Based on median fee range for year 6 & 7 Source: KHDA, Knight Frank Middle East Students Number of schools (RHS)
DUBAI
INVESTMENT MUHAISNAH
RAS AL KHOR
PARK
ARABIAN RASHIDIYA
RANCHES
FIGURE 28 FIGURE 29
WADI AL SAFA MIRDIF
Number of students & schools by year 6 & 7 fee brackets, AED Number of students vs total

CONTRIBUTION AL WARQA
CONTRIBUTION
2% 6%
INTERNATIONAL
8,000 5 AL YALAYIS DUBAI SILICON
300,000 UMM NAHAD CITY MUSHRIF
OASIS

4 250,000
6,000 CAGR: 5.9%
200,000 FIGURE 31
3
2017
4,000 150,000

2
100,000
THE WORLD ISLANDS
2,000
1 CAGR: 21.9%
50,000
PALM JUMEIRAH

0 0 0 DEIRA ISLANDS
40,001-
50,000

50,001-
60,000

60,001-
70,000

70,001-
80,000

80,001-
90,000

90,001-
100,000

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17 DUBAI MARINA


JEBEL ALI AL SUFOUH JUMEIRAH
DUBAI
JUMEIRAH LAKES MEDIA DEIRA
TOWERS CITY
AL MAMZAR
Source: KHDA, Knight Frank Middle East Students Schools Source: KHDA, Knight Frank Middle East IB Total BARSHA AL KARAMA
JUMEIRAH
HEIGHTS AL BARSHA AL QUOZ
ISLANDS DOWNTOWN
JEBEL ALI EMIRATES
VILLAGE LIVING BUSINESS BAY BUR DUBAI AL NAHDA

AL TWAR
JUMEIRAH AL QUSAIS
VILLAGE DUBAI
NAD AL SHEBA
The International Baccalaureate is the fastest growing curricula within Dubai’s education space. It has witnessed a growth CIRCLE FESTIVAL
DUBAI SPORTS CITY
rate of 21.9% CAGR since academic year 2009/10, which led to market share increasing from 2% in academic year 2009/10, CITY

to 6% by 2016/2017. DUBAI
INVESTMENT MUHAISNAH
RAS AL KHOR
PARK
ARABIAN RASHIDIYA
Factors that draw parents to the system are: RANCHES

MIRDIF
• Standardised examination system that is internationally recognised WADI AL SAFA

• It is considered as a system that will instil attributes of independent learning in children AL WARQA

• Certain US colleges provide credits to students who have sat through their IB examinations AL YALAYIS DUBAI SILICON
INTERNATIONAL
UMM NAHAD CITY MUSHRIF
OASIS

Source: Knight Frank Middle East

20 21
DUBAI EDUCATION MARKET REVIEW 2018 / 2019 DUBAI EDUCATION MARKET REVIEW 2018 / 2019

Ministry of Education Curriculum Schools Penetration of Ministry of Education Schools in Dubai

FIGURE 32 FIGURE 33 FIGURE 36 FIGURE 37


Academic year 2016/2017 snapshot Number of students and schools by DSIB curriculum rating 1997 2007

THE WORLD ISLANDS THE WORLD ISLANDS


Number of schools (branches excluded) 11 12,000 8

Number of students 13,678 10,000


PALM JUMEIRAH
DEIRA ISLANDS
PALM JUMEIRAH
DEIRA ISLANDS

6
DUBAI DUBAI
AL SUFOUH JUMEIRAH AL SUFOUH JUMEIRAH
Number of new schools in last 5 years Nil 8,000
MARINA
DEIRA
MARINA
DEIRA
JUMEIRAH AL KARAMA AL MAMZAR JUMEIRAH AL KARAMA AL MAMZAR
LAKES BARSHA LAKES BARSHA
TOWERS HEIGHTS DOWNTOWN TOWERS HEIGHTS DOWNTOWN
AL QUOZ AL QUOZ
Number of students attending schools with AL BARSHA BUSINESS AL BARSHA BUSINESS
2,949 6,000 4
BAY BAY
rating good and above DUBAI
FESTIVAL AL QUSAIS
DUBAI
FESTIVAL AL QUSAIS
JUMEIRAH JUMEIRAH
VILLAGE NAD AL SHEBA CITY VILLAGE NAD AL SHEBA CITY
Number of schools with improved 4,000 CIRCLE CIRCLE
1.00 2
DSIB rating 2016 vs 2017 RAS AL
MUHAISNAH
RAS AL
MUHAISNAH
ARABIAN KHOR RASHIDIYA ARABIAN KHOR RASHIDIYA
2,000 RANCHES RANCHES
Weighted average fee in AED* 6,518 MIRDIF MIRDIF

0 0 AL WARQA AL WARQA

Acceptable Good INTERNATIONAL INTERNATIONAL


DUBAI SILICON CITY DUBAI SILICON CITY
AL YALAYIS UMM NAHAD OASIS MUSHRIF AL YALAYIS UMM NAHAD OASIS MUSHRIF
Source: KHDA, Knight Frank Middle East *Based on median fee range for year 6 & 7 Source: KHDA, Knight Frank Middle East Students Number of schools (RHS)
ACADEMIC CITY ACADEMIC CITY
AL KHAWANEEJ AL KHAWANEEJ

FIGURE 34 FIGURE 35
Number of students and schools by Year 6 & 7 fee brackets Number of students vs total

CONTRIBUTION
9% 5%

12,000 6 300,000

10,000 5 250,000 FIGURE 38


CAGR: 5.9% 2017
8,000 4 200,000

6,000 3 150,000
THE WORLD ISLANDS

4,000 2 100,000
PALM JUMEIRAH
CAGR: -2.6%
2,000 1 50,000 DEIRA ISLANDS

0 0 0
DUBAI MARINA
0-10,000

10,001-
20,000

20,001-
30,000

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17 JEBEL ALI AL SUFOUH JUMEIRAH


DUBAI
JUMEIRAH LAKES MEDIA DEIRA
TOWERS CITY
AL MAMZAR
BARSHA AL KARAMA
JUMEIRAH
HEIGHTS AL BARSHA AL QUOZ
ISLANDS DOWNTOWN
Source: KHDA, Knight Frank Middle East Students Schools Source: KHDA, Knight Frank Middle East Private MoE Total JEBEL ALI EMIRATES
VILLAGE LIVING BUSINESS BAY BUR DUBAI AL NAHDA

AL TWAR
JUMEIRAH AL QUSAIS
VILLAGE DUBAI
NAD AL SHEBA
CIRCLE FESTIVAL
CITY
Designed to cater for UAE nationals’ requirements, the number of private Ministry of Education curriculum schools has DUBAI SPORTS
CITY
declined from 15 in 2009/2010 to 11 in 2016/17, resulting in the number of students also declining, albeit marginally. DUBAI
INVESTMENT MUHAISNAH
RAS AL KHOR
PARK
As time progresses, these schools are faced with increased competition as a result of improving standards in public sector schools ARABIAN RASHIDIYA
RANCHES
and also options available to parents to enrol their children in schools offering western curricula.
WADI AL SAFA

AL WARQA

INTERNATIONAL
DUBAI SILICON MUSHRIF
AL YALAYIS CITY
UMM NAHAD OASIS

AL KHAWANEEJ

ACADEMIC CITY

Source: Knight Frank Middle East

22 23
EDUCATION
FIGURE 39
Shehzad Jamal
Number of private schools Partner
+971 56 4101 298
90
shehzad.jamal@me.knightfrank.com
80
UK Emma Cleugh, MRICS
70
American
Partner, Department Head, UK
+44 7778 463 958
60 emma.cleugh@knightfrank.com
Indian

50 Others RESEARCH
40 MoE Taimur Khan
Manager
30 IB +971 56 4202 312
20 taimur.khan@knightfrank.com

10 DEVELOPMENT CONSULTANCY &


RESEARCH
0
2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/ 2018/ Harmen De Jong
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Partner
TOTAL 148 148 148 153 158 169 173 185 194 207 +971 56 1766 588
harmen.dejong@me.knightfrank.com

Source: Knight Frank Middle East CAPITAL MARKETS / INVESTMENT


Joseph Morris, MRICS
Partner
+971 50 5036 351
FIGURE 40 joseph.morris@me.knightfrank.com
Student population
MEDIA & MARKETING
120,000 Nicola Milton
Head of Middle East Marketing
UK +971 56 6116 368
100,000
nicola.milton@me.knightfrank.com
Indian

80,000 American
CLYDE & CO
Others Ross Barfoot, Partner
60,000
Naji Hawayek, Partner
MoE
Munisha Khatwani, Senior Associate
40,000 IB
Katy Thomson, Associate
+971 4 384 4000
clydeco.com
20,000

0
2009/ 2010/ 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/
2010 2011 2012 2013 2014 2015 2016 2017 2018

TOTAL 182,818 193,323 207,118 225,099 243,715 255,235 265,299 273,599 281,432

Source: Knight Frank Middle East


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