Taaleem, the education group managing 13 schools with more than 13,700 students across the UAE, has seen a large rise in expenses related to its efforts to make classes safe amid the ongoing coronavirus crisis.
CEO Alan Williamson told Arabian Business that the group is doing all that is in its power and budgets to ensure that in-person learning remains viable.
He said costs had increased by “millions of dirhams” but ruled out increasing school fees, saying the extra costs would be met “without bothering parents”.
Asked whether the new coronavirus protocols have meant additional expenses on an already strained budget, Williamson said: “The cost of making schools safe and meeting or exceeding regulations will have an impact on our P&L, no doubt.
“This is where lots of school groups have found the current situation very challenging, including Taaleem.”
Because the number of students in each class has been reduced, as per regulations, more teachers need to be hired.
“Previously, a kindergarten class size would be 20 students with one teacher and one learning assistant. We now have to create what is called bubbles or pods of 10 students each. The costs of that are additional staff, for certain,” said Williamson.
Other coronavirus related expenditures that schools in Dubai have incurred include the installing of infrared cameras for temperature detection of teachers and students, improved signage for mask wearing and distancing, investments into technology for students who still want distance learning and resources for schools’ health clinics, including PPEs, according to Williamson.
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Williamson said the estimated cost of these additional expenses is “literally in the millions of dirhams”, with 70 percent of expenditure going on extra staffing, adding that the average cost of a teacher for the premium sector in Dubai is AED250,000 dirhams.
His comments come as one question dominated conversations among parents on WhatsApp groups and during school pickups last month: Will schools remain open this year and what will I do with my children in the event of a second lockdown?
Just ahead of the current academic year, the Knowledge and Human Development Authority (KHDA) approved individual school readiness plans that were submitted by private schools in Dubai, according to protocols set by the KHDA.
Williamson said Taaleem has enough of a solid standing to weather this storm, despite difficulties. “Where we have been fortunate is that the company is in good financial health and therefore we have been able to meet these challenges, increase staffing and keep a P&L that is healthy for the board, shareholders and reinvesting in outstanding education,” he added.
Therefore, this increased cost will not be reflected in the tuition, especially considering the economic situation created by the coronavirus pandemic.
“Unless you are a business involved in technology or PPE, you are revaluating your P&L at the moment. So the challenge of that cost is one we have to meet on our own without bothering parents for that,” he explained.
Expansion to bring in the money
Instead, Williamson said he is counting on increased enrolment to make up for part of that investment.
Taaleem, which employs more than 900 teachers, has just completed the first phase of a second Raha International School, also in Abu Dhabi, and expects to complete the second phase soon. This move will bring 3,000 additional students to the group. “Obviously there are associated expenditure in building such a school but that is positive in terms of growth for us,” said Williamson.
There will also be more chartered schools coming Taaleem’s way out of Abu Dhabi, through the existing Private Public Partnership (PPP) it has with ADEK, Abu Dhabi’s Department of Education and Knowledge. This is where government run schools for the Emirati community are managed by private school groups including Taaleem, following a tender bidding back in August 2019.
Taaleem has also just signed an agreement with the Executive Council in Dubai to launch a similar project as the Abu Dhabi charter schools in Dubai. “A big role for us will be setting up schools specifically for the Emirati or expat Arabic community in Dubai at mid-market standpoint while delivering outstanding quality education,” enthused Williamson.
This will bring further dirhams to the coffers as the schools will be funded by the public sector but managed by the private sector, a win-win situation. “It costs X to educate an Emirati child in the public sector and the outcome thus far has been graded acceptable [by KHDA inspections]. The private sector thus far has a better record in gaining good, very good and outstanding outcomes for the students. So the money that is being spent there is just being transferred to the private sector to run it on that budget,” said Williamson.
Delivery of these new schools is expected to be by the upcoming academic year. Taaleem has a year to do the hiring and set up the infrastructure in existing public school facilities around Dubai that have closed due to financial difficulties incurred last year.
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