Cash crunch for the schools?

To me, the cash crunch in Dubai has finally gotten to the schools. Forget about the US$10 billion the Dubai government just raised. That is meant for paying down debts to banks and honoring bond obligations. It is not their Job Credit Scheme to protect jobs. That's right, forget about the "Development" bit some of you read about in the papers here. The Emirate is still short of about US$5 billion for 2009 alone. It wants to raise 20 billion bucks. The 10 billion will buy them many months (not years) to figure out something.

The rally in the stock market is understandable but certainly unsustainable.

The private schools here are likely to lose many of their pupils. Even in Korea where education is highly valued, parents are pulling their children from tuition centres. Ditto Singapore.

The article quote the words of some parents. By now, I can even picture what some of these parents might look like - very different from Singaporeans, who would have complained differently. We would have asked to understand the reasons first right?


Khaleej Times

It’s an ‘Unfair’ Practice
Staff Reporter

24 February 2009 DUBAI - A number of parents who received letters from their children’s schools in Dubai demanding advance fees have called the practice ‘unfair’.Some of them contacted Khaleej Times complaining the practice unfair.

“My son’s school, Raffles International School (RIS), has sent us a note asking for a deposit of Dh5000 payable within a few weeks while the full fees for term one must be made next month along with post-dated checks for term 2 and term 3,” said a parent.

“This payment scheme locks parents into the school until June 2010. The government law means that if you are made redundant, you must leave within a month or two. Like many parents, we now have to find this extra money by tightening our budgets, and paying in advance is something that not possible,” she added.

“We were asked to pay the new academic year’s fees by May. This is putting an awful lot of pressure on parents especially at a time when there is so much uncertainty. Families with two or three children will find it even more difficult. Schools should not be allowed to squeeze parents this way,” said a parent, who also spoke on condition of anonymity.

The parent, whose children study at the Wellington International School, said that last year they were given time until September to pay.

Wellington International School, which is managed by the Global Education Management Systems (Gems), said “a note was sent to parents reminding them that tuition fees were due in June for the following academic term, which is September.”

Emaar Education, which manages Raffles International School, said, “the school is in discussions with KHDA regarding re-registration fees and will inform parents accordingly.”
preeti@khaleejtimes.com