Rising School Costs Drive UAE Parents to Debt

School Expenses in UAE Skyrocket: Parents Turn to Loans and Credit Cards

The start of the new school year in the United Arab Emirates brings not only excitement but also significant financial strain for many families. According to a recent survey, 63% of parents expect that by the time their children reach university, educational expenses will range between 250,000–600,000 dirhams. This estimate covers only costs directly related to education, such as tuition, school buses, textbooks, and uniforms, excluding housing, healthcare, or recreational expenses.

Beginning of the School Year and Financial Pressure

The school year commencement in the UAE can be particularly costly, as many institutions charge tuition and transport fees quarterly. Added to these are other essential expenses like school supplies, textbooks, uniforms, or extracurricular classes. Collectively, these expenses impose a financial burden on families that increasingly necessitate external assistance—such as bank loans or credit cards.

Many can no longer afford to finance the academic year on their own, making bank loans and credit cards indispensable. Although these provide temporary solutions, they may lead to long-term interest costs and financial stress.

Role of Loans and Credit Cards in Financing Education

In recent years, more individuals have turned to banks for personal loans to finance their children's education. Some parents take out large loans to prepay tuition for the entire year, ensuring their children's education continues uninterrupted.

It's also common for credit card cash advances to be the only quick solution, especially when rent or other major expenses coincide. In such cases, many families are forced to repay in monthly installments while interest rates compound the financial burden.

Rising Tuition and Increasing Expenses

For the 2025–26 school year, several educational institutions have raised tuition by approximately 2.5%. While this increase may seem minor, it significantly impacts the budget of families with multiple children, particularly when other expenses like school buses or previous arrears are due simultaneously.

For many families, borrowing from friends or relatives is no longer an option—so they turn to banking solutions, even if it means long-term commitments.

Importance of Long-Term Planning

More experts emphasize that parents who take their children's future seriously should seek more than short-term solutions. Conscious financial planning, saving programs, and insurance packages may provide sustainable long-term education funding solutions.

Educational savings programs that can be combined with life insurance not only cover tuition costs but also offer protection against unforeseen events. A structured financial plan enables parents to prepare for future expenses over decades, avoiding sudden financial crises.

Survey Results Paint a Grim Picture

The latest survey by Zurich International reveals that most parents in the UAE didn't anticipate the rapid increase in educational costs. Nearly two-thirds of respondents expect to spend at least 250,000 dirhams on their children's education by university age—and that's just for education-related expenses.

The survey also showed that 87% of parents prefer savings plans that offer both returns and insurance protection.

No More Procrastination

High tuition fees and rising school costs create an environment where financial planning is no longer a luxury but a necessity. Most schools in the UAE are private institutions with rising costs year by year, while the general cost of living also escalates.

Those who prepare now and devise long-term financial strategies—even with small, regular savings—can face future challenges more confidently. Financial awareness and early foresight not only aid the child's future but also bring peace of mind to the parents.

Summary

Starting school in the UAE presents an increasing financial burden for many families. Tuition, school buses, textbooks, and other expenses collectively reach a level that some families can only cover through personal loans or credit cards. Meanwhile, more experts emphasize the importance of conscious financial planning—whether through savings programs, insurance combinations, or structured future planning. Investing in education always pays off—but only if the family is prepared for it in a timely manner.

(Article source based on a joint survey by Zurich International and YouGov.)