
DUBAI,— GEMS Education has recorded a modest fall in student registrations at its schools across the United Arab Emirates, as uncertainty surrounding the Iran war affects relocation decisions, the company’s chief executive told Reuters.
CEO Dino Varkey said that the company’s long-term demand outlook remains positive, with growth expected next year.
He said the private education provider has already achieved 90% of its targeted new sales for the upcoming academic year, which includes fresh enrollments and re-enrollments, and noted this is slightly below last year’s level due to fewer overseas families relocating to Dubai.
We still see a growth scenario, but the pace has slowed somewhat, he said, adding that enrollment activity will continue through the end of September and could outperform expectations.
Once there is a clear resolution to the conflict, he expects many families to reconsider earlier decisions and potentially relocate to the UAE.
Dubai’s population has grown rapidly in recent years, rising in double digits as expatriates, including many high-income earners, are attracted to the Gulf’s business and tourism center by tax advantages and a convenient time zone.
The emirate plans to reach 5.8 million residents by 2040 from about 4 million currently and continues investing in infrastructure to support that goal, with its population recorded at 3.4 million at the end of 2020.
Airspace disruptions and heightened security risks have led to temporary school closures and remote learning during the height of the conflict, testing appeal for families considering relocation.
The Knowledge and Human Development Authority, which oversees private education in Dubai, said last month that no tuition fee increases will be applied for the coming academic year to support families.
At the height of the conflict in March, around 1,500 to 1,600 GEMS students, about 1% to 1.5% of the total student base, left for their home countries, Varkey said.
Since then, about 600 to 700 of those students and their families have signaled plans to return.
He said global political developments have not fundamentally altered the company’s long-term ambition, strategy, or aspirations in the UAE, and it continues to expect growth next year.
GEMS Education operates 45 schools in the United Arab Emirates serving 146,000 students.
It also maintains operations in Qatar and Egypt.
Under a $540 million investment over the next three years, the company plans to add about 20,000 spaces in the UAE, with the first 5,000 scheduled for September, Varkey said.
Funded through internal cash flows and potential partnerships with property funds for infrastructure development school.
(With files from Reuters)
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