I’ve spent over 20 years advising families in Dubai, and as a father of four myself, I know the pressure that school fees can place on a household. The numbers can be daunting, the rules confusing, and the stakes feel personal, because they are.
Families often come to me when the stress peaks, suddenly facing bills that don’t match expectations, or struggling with multiple children at different schools. The most common causes are familiar: changes in employment, bonuses or commissions that never materialise, and fee inflation that quietly compounds year after year.
Dubai schools operate under KHDA’s School Fees Framework, linked to the Education Cost Index, which sits at 2.6% for 2024–25 and 2.35% for 2025–26. At first glance, those increases seem small. But with two or three children, the impact is significant.
I often see what I call “lifestyle drag.” Families match a tax-free income with a tax-free lifestyle, then find themselves squeezed by a fixed education bill that doesn’t bend. Cars, rent, and holidays can be adjusted. School fees cannot.
If fees are already overdue, the key is transparency. Ignoring statements only makes matters worse. Schools in Dubai can withhold report cards, block transfer certificates, and decline re-enrolment if balances remain unpaid. In Abu Dhabi, ADEK formalises this with a three-warning process and suspension limits.
Engage early, agree on a staged repayment plan, and avoid rolling debt onto high-interest credit cards. If bridging is unavoidable, a 0% installment plan or short-term loan linked to a clear cash-flow event can help, but annual fees should never become a long-term liability.
Top-tier schools can now charge over AED 120,000 a year for senior grades. With two children, the increase in cost is obvious; but it doesn’t need to become unmanageable. The families who thrive ring-fence education costs, automate contributions to a dedicated fund, and adjust lifestyle spending before they ever compromise schooling.
A useful rule of thumb is to keep school fees within 10–15% of net household income. In reality, many families I meet are spending 25–40% in peak years.
By contrast, the reactive approach; paying fees with a card in September and worrying in November, is how short-term pressure turns into long-term debt.
Education is non-negotiable for most families, but the most expensive school is not always the best fit. Curriculum, KHDA inspection trends, and the full cost over a five- to seven-year horizon matter more than a single year’s bill.
The financial mistakes I see most often are families committing without modelling the long-range cost, underestimating fee inflation, or switching schools unnecessarily.
Each change brings new deposits, uniforms, and lost discounts.
Even modest contributions can go a long way when started early. AED 3,000 a month into a diversified portfolio at 7% annualised growth could build more than AED 1.2 million over 18 years. Practical steps include automating contributions into a dedicated education fund, keeping six to twelve months of fees in reserve
Also, mapping out the full cost of both school and university, so you plan for the entire journey, is vital.
Over the past decade, there has been more transparency from KHDA and ADEK around fee structures and deposits, alongside steadily rising costs at the top end. Families are now more proactive, exploring scholarships, setting up structured savings plans, and asking the right questions early.
Raising children in Dubai is an incredible opportunity, but it comes with financial responsibility. You can wait until fees overwhelm your budget, or you can take control now with a clear, structured plan.
If school fees are a pressure point for your family, the sooner you put structure in place, the easier it becomes. I’ve helped families across Dubai prepare for education costs with strategies that provide clarity, flexibility, and peace of mind, and I’d be happy to help you do the same.
With extensive experience spanning wealth management, financial strategy, and cross-border planning, Mike Coady is dedicated to helping clients achieve financial independence and security.
Mike’s approach centres on delivering tailored wealth management solutions that reflect each client’s unique goals and circumstances. From investment analysis to portfolio optimisation, his comprehensive strategies aim to grow and protect wealth over time, ensuring clients are well-positioned to reach their financial objectives.
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