Dubai: Paying $18,360 (around Dh67,439) annually on average in educational fees makes UAE parents the world’s biggest spenders on their children’s university studies, a latest research has suggested.
The figure represents a 140 percent higher spending against the global average of $7,631 (around Dh28,029) per year, Gulf News quoted The Value of Education: Foundations for the Future report by HSBC bank, as pointing out.
Despite the high outgoings, most parents (70 percent) depend solely on their daily income to fund the studies. “Compounding the potential problem this may raise, nearly two-thirds would be willing to go into debt to finance their child’s studies,” the report said.
Steep education outlays have made it difficult for three out of four parents to keep up with other financial commitments, it added.
More than 420 parents in the UAE were reportedly surveyed as part of the research, of which 55 parents had a monthly household income of Dh50,000 or above.
One reason parents here spend so much is because the cost of higher education in the UAE for expats, who comprise the bulk of the population, is, in many cases, relatively high compared to their home countries, an HSBC expert reportedly said.
According to a separate study by the Institute of International Education, students studying in universities in the UAE spend $13,827 (Dh50,788) per year on average.
Meanwhile, annual Dubai school fees can range from roughly Dh2,000 to roughly Dh100,000, said the news portal.
The Knowledge and Human Development Authority reportedly notes 60.7 percent of Dubai students pay less than Dh20,000 per year in school tuition fees.
Kunal Malani, HSBC’s head of customer value management for UAE and Mena region, said another reason why UAE parents are big spenders is that their relatively high disposable income allows them to send children to college in the West, particularly in the US, UK, and Australia which, the report added, are among the most expensive countries for higher education.
The majority (58 percent) of UAE parents want to send their children abroad, which is the second-highest rate globally (after Indonesia).
The study also reportedly noted that medicine is the most popular field of study that parents want their children to pursue, accounting for 26 percent of respondents.
The annual cost of medicine studies is $26,558 (Dh97,551) in the UAE and up to $44,724 (Dh164,277) in the US, the study added.
Despite the high education costs, most parents (70 percent) depend solely on their daily income to fund the studies. “Compounding the potential problem this may raise, nearly two-thirds (64 percent) would be willing to go into debt to finance their child’s studies,” the report said.
“The choices in terms of fields of study and the level of education parents hope their children will gain, coupled with the cost of education and accommodation indicates there is a mismatch in aspirations and financial preparedness,” Gifford Nakajima, Regional Head of Wealth Development, Retail Banking and Wealth Management, Mena, HSBC, reportedly said.
Commenting on the findings, Karen Bauer, regional director, Education USA, said: “A higher education that is international in scope has become a requirement for those seeking top careers in today’s competitive, increasingly global job market.”
“Parents are looking to an education abroad to give their children an advantage because it provides international work opportunities, foreign language skills, and exposure to intercultural experiences — skills that are valued by employers around the world,” she was quoted as saying by Gulf News. “However, parents need to have a long-term plan in place to enrol their children abroad, especially as costs continue to rise.”
