Abu Dhabi: Four new Indian curriculum and four International curriculum schools are set to open in the capital next academic year, adding nearly 24,000 more school seats, XPRESS can reveal.
Indian International School 2, Mayoor School, Global Indian International School and Abu Dhabi Indian High School-branch are the four Indian schools expected to begin operations in the Baniyas area in April 2014, according to regulator Abu Dhabi Education Council (Adec).
“There will be around 10,000 new school seats created for Indian children in Abu Dhabi by next April,” Tareq Zeyad Al Ameri, Acting Director of Private School Quality Assurance at Adec, told XPRESS.
GEMS Cambridge International School, Diyafa School, Repton School and Aliaa International School are the four American and British curriculum schools that will begin operations this September when the new academic year starts. Al Shohub, which has been operating since 1999, is moving to a new site in Khalifa A due to an increase in numbers and expansion of their curriculum.
Seat-crunch
Indian curriculum schools have experienced a staggering demand for seats in recent years, especially in Kindergarten and Grade 1. Every year, the 30 Indian schools operating in Abu Dhabi emirate witness a long waiting list, sending worried parents scampering for admissions for their kids.
For instance, the Abu Dhabi Indian School saw more than 1,700 applications for 75 Kindergarten seats this academic year.
Unfortunately, despite the massive seat crunch, there has not been any significant investment in new schools. This year only one new Indian school — Bright Riders — by B.R Shetty, opened in Abu Dhabi. And demand is expected to continue to rise as Adec projects the private sector to grow five per cent year on year.
“By 2020, millions must be invested to build 100 private schools in the emirate to serve the education needs of middle- and low-income families,” said Al Ameri.
But why are investors hesitant to open Indian schools in the capital? According to Adec, there is interest from investors to open new schools, but not many match Adec requirements.
“There are 60 applications pending with Adec from prospective investors who are willing to open new schools. But we have to look into how many meet our standards. We do not want to open shaky, sub-standard schools,” said Al Ameri.
In a bid to attract investors, Adec held its first annual private education investment forum this year which attracted around 150 operators and investors.
However, some investors maintain Adec’s policy which requires investors to have a track-record in managing and operating schools is a dampener for new operators looking to enter the sector. “We are catering to middle-income families who want affordable education for their expat children. It is difficult for us to meet international standards and charge a pittance as fees,” an investor attending the meet told XPRESS.
Profit-driven investors
Indian businessman B.R Shetty, who has reportedly invested Dh100 million in his new CBSE school in Abu Dhabi, believes that the profit-driven mentality of investors should change.
“The investment climate is conducive in Abu Dhabi. Land is available at subsidised rents. But the investor mentality has to change from profit-making to social commitment,” Shetty, who is CEO and managing director of the NMC Group of Companies, told XPRESS.
He said he is planning to open one more school in Abu Dhabi if he gets Adec approval.
Shetty’s Bright Riders currently caters to students from KG to Grade 6 CBSE curriculum and has a capacity of 4,000 students.
Will GEMS invest?
GEMS Education, the single-largest private education provider in the UAE, is a notable name missing on the list of those opening an Indian school in the capital in the last few years.
But the education giant says it has aspirations to open more Indian curriculum schools in the emirate and has seven to 10 applications pending with Adec across various curricula.
“We have submitted applications and are in discussions with Adec about the submissions,” said a GEMS spokesperson.
XPRESS can reveal that at least one GEMS Indian school and one British curriculum school have received approval from Adec. The education provider also has pending applications to open Winchester and Westminster brand schools in Abu Dhabi.
GEMS recently announced it has raised Dh2 billion in bank financing and has plans to build ten new schools over the next two years.
But the number of new seats it will create for Indian students remains to be seen.
GEMS currently has one American curriculum school, two British schools and one Indian curriculum school in the capital.
Fee cap and transparency
Taaleem, the second biggest education company in the UAE, has confirmed it has no plans to invest in Asian/Indian curriculum schools.
However, fee increase restrictions and transparency in regulations are issues that concern investors, said Clive Pierrepont, Director of Communication at Taaleem.
“It is unfortunate but a fact that the demand and supply imbalance will not be fixed overnight,” Pierrepont told XPRESS.
Similar sentiments were expressed by small operators who run one or two schools in the emirate.
Many of them have already raised capital to the tune of Dh50 million to Dh100 million to shift their villa schools to new premises.
“There is definitely a business opportunity as there is an acute shortage of seats in Indian schools. But not many have the capital to invest.
“Moreover, your consumers are very price-conscious and hence your return on investment is very limited,” said a school operator who did not want to be named.
The Indian operator added that previously it was easy to open a new school in a villa.
“But now opening a school would mean raising a huge capital even though Adec is offering land. I am not ready to take that risk,” he added.
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