Setting Up an Educational Institute in the UAE: Dubai, Abu Dhabi, and Ras Al Khaimah

June 21, 2024 by Middle East Briefing

Setting up an educational institute in the UAE offers benefits like a growing market, modern infrastructure, tax incentives, strategic location, and government support. Each emirate, such as Dubai, Abu Dhabi, and Ras Al Khaimah, has specific regulatory frameworks and support systems.

By Giulia Interesse

The United Arab Emirates (UAE) has experienced a significant population surge in recent years, with millions of residents, the majority (88.5 percent as of 2024) being expatriates. This dynamic nation, particularly cities like Dubai and Abu Dhabi, has become some of the fastest-growing urban centers globally, leading to a burgeoning demand for quality education. Both regional and international families are seeking exceptional educational opportunities to support their living standards in the UAE.

Consequently, there is an increasing need for educational institutions that cater to the diverse requirements of students. Establishing an educational institute in the UAE presents a unique and profitable opportunity for entrepreneurs and educators.

This article aims to provide a comprehensive guide on how to set up an educational institute in the UAE – with a focus on Dubai, Abu Dhabi, and Ras Al Khaimah – highlighting the advantages, necessary steps, and regulatory requirements to ensure a successful and compliant setup.

What are the advantages of setting up an educational institute in the UAE?

Growing and profitable market

Education is a fundamental necessity, ensuring a consistently profitable business. With over 300,000 higher education students from 187 nationalities pursuing 18 diverse curricula, the demand for educational institutions is significant in the UAE.

The popularity of British, Indian, American, International Baccalaureate (IB), and UAE Ministry of Education curricula underscores the varied educational preferences, providing ample opportunities for new entrants.

Modern infrastructure

The UAE features world-class infrastructure, including advanced educational facilities. Modern campuses equipped with cutting-edge technology enhance students’ learning experiences and well-being. This high standard of infrastructure is a significant draw for students and parents, ensuring that educational institutions can offer top-notch amenities.

Tax benefits

Private educational institutions in the UAE benefit from exemptions on certain corporate and personal taxes. This significant advantage helps maintain the profitability of these institutions and fosters a conducive business environment. The tax benefits are a major financial incentive for investors looking to enter the educational sector.

Favorable location

Strategically located at the crossroads of Asia, Europe, and Africa, the UAE offers excellent connectivity to regional and international markets. This accessibility is advantageous for attracting students from diverse backgrounds and facilitates easy transportation for international faculty and staff.

Government support

The UAE government is highly supportive of educational initiatives. Various policies are in place to promote education and maintain high standards. Additionally, the ease of setting up an educational institution in the UAE is facilitated by a more straightforward regulatory framework.

The government also offers the benefit of 100 percent foreign ownership of educational businesses, enhancing attractiveness for international investors.

Dedicated educational zones

Dedicated educational zones provide convenience and support for new institutions. These zones offer a supportive ecosystem, including streamlined processes for obtaining necessary approvals and permits from the concerned authorities.

The specialized zones ensure that educational institutes can operate efficiently and focus on delivering quality education.

Regulatory framework for establishing an educational institute in the UAE

Establishing and operating an educational institute in the UAE involves adhering to several regulatory requirements. The Federal Decree Law No. 18 of 2020 on Private Education outlines these regulations, with a focus on licensing, curriculum approval, and student safety. Here are the key obligations and requirements outlined in the decree:

Comprehensive educational, administrative, health, and environmental facilities are mandatory for private educational institutes.
Qualified and licensed staff are essential to ensure students receive quality education.
Annual reports on academic, financial, and administrative status must be submitted to the Ministry of Education (MoE) or local education authority for transparency and accountability.
Detailed records for students and staff must be created and maintained.
Private educational institutes must uphold Islamic and Arab principles, public morals, and UAE values. They must raise only the UAE flag and play the national anthem.
Significant changes in activities, facility use, or curriculum require prior approval from the MoE or local education authority.
Educational fees or additional charges cannot be raised without approval from the MoE or local education authority.
Educational institutes must have a clear policy on student affairs, emphasizing equality and non-discrimination.
Compliance with the unified Code of Conduct issued by the MoE or local education authority is mandatory to ensure consistent standards of behavior and operations.

Establishing an educational institute in Dubai

Relevant authority: Dubai’s Knowledge and Human Development Authority

The Knowledge and Human Development Authority (KHDA) in Dubai, established in 2006, plays a pivotal role in regulating the private education sector. It oversees the quality and development of education by setting rigorous standards for educational institutions. KHDA mandates that new providers meet specific criteria before commencing operations. These criteria include ensuring qualified teachers, maintaining high teaching standards, fostering academic excellence, and promoting positive student behavior.

The authority also emphasizes the enhancement of Arabic and Islamic education across Dubai. Additionally, KHDA-approved teacher training institutes encourage educators to improve their teaching methodologies, contributing to overall educational quality in the emirate. Teachers must hold appropriate educational degrees corresponding to their teaching roles, demonstrate proficiency in English, and possess legal residency in the UAE, which are essential requirements for KHDA approval.

Key steps to establish an educational institute in Dubai

Opening a private educational institute in Dubai involves several key steps and requirements to ensure compliance with local regulations and the successful launch of the institution. Below is a guide to navigate this process:

Name registration: The first step involves registering a unique and appropriate trade name for the educational institute. The name must comply with local laws and adhere to public interest regulations.
Obtaining initial approvals: Necessary documents must be submitted to the relevant authorities along with registration forms to obtain these approvals, which are essential to proceed further.
Developing a business plan: A comprehensive business plan outlining the institute’s services, objectives, details of study programs (including syllabus, courses, subjects, etc.), and operational specifics. This plan must be submitted to the KHDA for review and compliance with educational standards.
Submitting required documents: Upon KHDA approval, all necessary documents are required to obtain certificates and approvals required for subsequent steps in the establishment process.
Registering the professional license: To operate the educational institute in Dubai, businesses must apply for a professional license. This license is critical for legal compliance and must be renewed annually for validity.
Submitting additional details to KHDA: Supplementary details must be provided to the KHDA, such as professional licenses, tenant contracts (if applicable), and other required certificates, as part of the final approval process.

Required documents

A successful establishment of an educational institute in Dubai requires the following documents:

Detailed list of educational activities, courses, subjects, and programs offered;
Updated copies of passports for all institute members;
Visa pages for shareholders’ residency verification;
Passport-sized photographs of all members for applications and paperwork;
Lease agreement for institute premises detailing location and terms;
Employee details including qualifications, experience, and relevant certificates for teachers, trainers, and educators; and
Copies of certificates, approvals, licenses, and other regulatory documents issued.

Establishing an educational institute in Abu Dhabi

In Abu Dhabi, the establishment and operation of private educational institutions are strictly regulated by the Department of Education and Knowledge (ADEK).

To open a school, natural or legal persons must first obtain a private school license from the Council, adhering to specific terms and conditions. Licensing is categorized into temporary, general, and accredited licenses, as follows:

Temporary license: Valid for one renewable year, is granted based on a detailed application and operational plan. Renewal applications are subject to stringent evaluations of the school’s performance and adherence to the approved operational plan.
General license: Required within two years of school operation commencement, is valid for two years and is granted to schools meeting satisfactory inspection standards.
Accredited license: Valid for up to five years, is awarded after rigorous inspections and evaluations by the Council or its authorized entities. Accredited schools must demonstrate effective leadership, management, and a minimum ‘good’ overall performance rating.

ADEK also mandates schools to maintain websites with comprehensive information, observe public holidays, and respect the national anthem and flag. Additionally, schools must apply for Council approval for their academic calendars, ensuring a minimum of 175 school days per year.

Relevant authority: Abu Dhabi’s Department of Education and Knowledge

Abu Dhabi’s ADEK is responsible for overseeing the emirate’s educational activities and operations, aligning them with national strategies and priorities. ADEK’s jurisdiction includes public and private education institutions, spanning from early childhood education to higher education and technical and vocational education and training (TVET).

ADEK has fostered international partnerships and attracted private investment to enhance educational output and offerings in Abu Dhabi. The emirate hosts campuses of prestigious institutions such as New York University, Paris-Sorbonne University, New York Film Academy, University of Strathclyde Business School, and London Institute of Banking & Finance.

In July 2023, ADEK signed a memorandum of understanding with India’s Ministry of Education and the Indian Institute of Technology Delhi (IIT-Delhi) to establish IIT-Delhi’s first international branch in Abu Dhabi. This initiative follows the UAE-India Comprehensive Economic Partnership Agreement (CEPA) signed in February 2022, focusing on mutual human capital development, education standards, innovation, and knowledge transfer

Establishing an educational institute in Ras Al Khaimah

Ras Al Khaimah (RAK) stands out as a prime location for establishing educational businesses, driven by its growing expatriate population and increasing enrollment rates in private institutions. The region offers affordable and attractive pricing, making it an appealing destination for education providers.

Like elsewhere in the UAE, when considering setting up an educational institution in RAKEZ, it’s essential to decide on the type of institution and the courses to offer. Here are some preferred options:

K-12 private school: This option suits entrepreneurs aiming to invest in or operate a private school catering to primary and secondary education.
Higher education institution: Establishing a branch of an international university is a favored model. It offers world-class learning opportunities and prepares students for the workforce, attracting both local and international students.

In recent years, RAK has seen a significant increase in demand for STEM (Science, Technology, Engineering, and Mathematics) courses. Particularly sought-after programs include:

Computer Science
Electrical Engineering
Industrial Engineering
Environmental Management
Aviation Sciences
Supply Chain and Logistics
Tourism and Event Management
Data Analytics/Artificial Intelligence

At the same time, new programs are expected to be in demand, such as:

Big Data and Data Science
Travel, Tourism, and Hospitality
Smart Manufacturing
Fintech
Media and Communications
Sustainability
Cybersecurity

Relevant authority: RAK’s Department of Knowledge

Starting June 2024, private educational institutes in Ras Al Khaimah RAK will be regulated by the newly established Ras Al Khaimah Department of Knowledge (Rakdok). The transfer of regulatory powers from the Ministry of Education (MoE) to Rakdok will be gradual, with completion expected by the end of the year. Rakdok’s mission is to enhance educational services in the emirate and align them with international standards.

Rakdok is structured into four main departments:

Institutional licensing and compliance;
Operations management and customer relations;
Quality management; and
Evaluation, strategies and policies.

This transition aims to advance the education sector by attracting top international educational institutions to RAK and developing the educational system across the UAE.

RAK Academic Zone

The RAK Academic Zone is a dedicated educational hub within the Emirate’s Economic Zone, hosting both local and international institutions. This zone aims to attract and support educational institutions committed to offering market-driven education, training, and professional development services. The benefits of the RAKEZ Academic Zone include:

Simplified business set-up: The zone streamlines the process of establishing an educational institution.
Facility and land leasing options: It offers various leasing options for facilities or land, enabling institutions to build, own, and operate their schools, colleges, or training centers.
Professional assistance: Institutions receive support throughout the entire process, from market exploration to business establishment and sustainability.

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