Dubai private school operator Taaleem Holdings reported a 34% increase in net profit, helped by a surge in student enrollments amid an influx of arrivals into the emirate.
Net profit rose to 200 million dirhams ($54.5 million) in the nine months to the end of May, the firm said in a statement on Tuesday. Taaleem added 28,563 students for the 2022-23 academic year, it said, reflecting an increase in the population of the United Arab Emirates.
Parents in the UAE are among the world’s biggest spenders when it comes to educating their children. Dubai’s emergence as a post-Covid haven has drawn expatriates to the emirate, further helping to prop up demand.
“The trajectory of growth in the United Arab Emirates economy is very exciting,” Chief Executive Officer Alan Williamson said in an interview with Bloomberg TV. “We expect around 65,000 young people to be entering the market in the next five years.”
Taaleem announced a 2.8% weighted average tuition fee increase at its premium schools. Williamson said the firm would look at further hikes on a case-by-case basis with a view of retaining top teachers.
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The firm listed in Dubai last year. The stock plunged on debut, but has since risen about 27% from its IPO price.
Williamson also said:
- Higher real estate costs had so far not posed a problem. “We’ve got good relationships with private developers and it’s a win-win situation for some of them to have a good school in their villa communities.”
- Firm has paid a steady dividend and will continue to do that over the next five years. It will be related to performance and that’s been going very well.
- Will look to add to portfolio in the premium sector, not just within the UAE, though that’s very much the focus.
Author: Manus Cranny and Yousef Gamal El-Din