Cross-border expansion in the higher education sector – from a UAE perspective
Education Focus
Law Update: Issue 361 - Education
Nazanin MaghsoudlouSenior Associate,Corporate Structuring
The United Arab Emirates (UAE) stands as a beacon in the realm of education, offering a mature market that holds immense promise for businesses and investors aiming to make their mark in this ever-evolving sector. According to data from the Knowledge and Human Development Authority (KHDA), the private education landscape in the UAE is set to experience a steady Cumulative Average Growth Rate (CAGR) of 5% during the forecast period spanning from 2022 to 2027.
This impressive growth trajectory can be attributed to a multitude of factors, including deliberate enabling regulation, the increasing expatriate population, a notable surge in enrollments, a pronounced enhancement in educational quality, and the increasing shift towards private institutions from the public sector.
The UAE’s education environment is marked by its diverse offerings, spanning from early childhood centers to higher education institutions and presents an attractive expansion opportunity for foreign educational institutions who are planning to expand their education business overseas.This article highlights some key considerations that businesses and investors, specifically in the higher education sector, should be mindful of when weighing the option to enter into the UAE education sector. These considerations encompass pivotal aspects like optimal corporate structure selection, company form determination, and the acquisition of necessary approvals from regulatory bodies. Moreover, an alternative approach involves expediting the process through strategic collaborations with existing educational institutions already established within the UAE such as Higher Education Provider (HEP) Branch campuses.
Establishing Local PresenceAny educational institution providing services within the UAE is mandated to establish a legal presence within the country. This entails acquiring a commercial licence and formal registration from relevant commercial authorities, including the Dubai Department of Economy & Tourism (DET) or the Abu Dhabi Department of Economic Development (ADDED), or other corresponding authorities in different emirates of the UAE. Concurrently, obtaining an academic authorisation permit (Academic Authorisation Permit) from educational authorities such as Knowledge and Human Development Authority (KHDA), Abu Dhabi Department of Education and Knowledge (ADEK), and/or Ministry of Education (MOE) stands as a crucial prerequisite.
The KHDA’s RoleThe KHDA is a regulatory authority in Dubai, responsible for overseeing the education sector and ensuring the quality and standards of educational institutions operating within the Emirate. The KHDA is the regulatory authority that issues Academic Authorisation Permits to HEPs operating within the Emirate of Dubai free zones.
In the context of HEP Branch campuses situated within Dubai’s free zones, the process of obtaining KHDA’s Academic Authorisation Permit necessitates the validation of their programmes by the Quality Assurance International Board (UQAIB) . Alternatively, these campuses have the discretion to pursue programme accreditation through the Commission for Academic Accreditation (CAA) , reflecting a multifaceted approach to quality assurance.
Alternatively, newcomers to the UAE education market could opt to tap into the expertise of established HEPs by offering their programmes in collaboration with licensed institutions that already possess a lawful presence in the UAE (e.g., HEP Branch campuses).
A growing trend within the education sector involves HEPs from jurisdictions outside the UAE offering programmes or joint/ dual degrees to students in the UAE by entering into contractual arrangements with HEP Branch campuses in the UAE.
Embarking on a collaborative venture in the realm of higher education can be a dynamic and transformative journey, particularly when bridging international borders. As a foreign HEP delves into the intricacies of setting up a dual/joint degree programme in the UAE with an HEP Branch campus, a profound understanding of the regulatory landscape is paramount. Before embarking on a collaborative pathway, foreign HEPs should assess the following aspects:
Licensing and Regulatory ApprovalsForeign HEPs entering into collaborative agreements should determine whether specific licences / permits from education authorities (i.e., KHDA) will be required or relying on the local partner institution's existing licensure will suffice. In the event of latter, Foreign HEPs must satisfy themselves that the HEP Branch (local institution) holds an Academic Authorisation Permit and relevant licences as an established higher education provider within the UAE.
Clearance for Collaboration AgreementIn relation to the agreement between foreign HEP and HEP Branch, evaluate whether endorsement by the HEP Branch's parent institution, rather than the UAE-based Branch, is preferable by the education authority.
Obligations and RestrictionsExamine potential obligations and limitations that concerned local authorities might impose on the foreign HEP participating in the collaboration (if any).
Recognition of Dual / Joint Degrees and Constraints on AcknowledgmentInvestigate whether there are notable constraints on acknowledging dual or joint degrees within the UAE, in alignment with the proposed collaboration.
Implications of Online and In-person ClassesDetermine the implications of offering classes online from an international location versus conducting in-person classes at the HEP Branch campus.
Program Validation assumes a critical role in the landscape of dual/joint degree programs within Dubai. This integral process entails harmonising the learning outcomes and program quality of HEP Branches with those of their home institution, even while acknowledging potential variations in specific aspects. Typically, the validation process requires a track record of quality assurance at the home institution. Importantly, when HEP Branches intend to offer a dual/joint degree in collaboration with third-party HEPs, a common expectation by KHDA is that the degree must already have been offered, or is first offered, at the HEP Branch's home campuses. This will be central to acquiring the requisite approvals from UQAIB for successful validation.
In the dynamic realm of international higher education collaboration, understanding the regulatory intricacies is the key to a successful partnership. Aspiring for an academic alliance in the UAE demands adherence to licensure, programme validation, and other regulations. To embark on such a journey, seeking legal expertise and guidance is a prudent step to navigate the evolving educational landscape effectively.
At Al Tamimi & Company, our legal experts within the Education Sector Group specialise in UAE education regulations, offering regular counsel to both local and foreign HEPs. Our services encompass a wide array of areas including the incorporation of HEPs, fostering collaborations between educational entities, facilitating the acquisition of local HEPs, and providing comprehensive advice on education regulations.
For further information,please contact Nazanin Maghsoudlou.
Published in September 2023
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