GEMS Education, the Dubai-based school operator backed by Blackstone Group, is planning to freeze teachers’ salary increases in 2019 and cut corporate jobs after the emirate said it would cap school fees.
The privately-held company told its education staff that Dubai's decision to cap school fees will lead to a halt in incremental salary increases, Gems Education confirmed in a statement to The National. GEMS Education will also cut 75 jobs at its head-quarters, three sources familiar with the matter said, requesting anonymity as the information is not public.
“The current move to hold salary increases is based on the recent school fee freeze decision,” a GEMS Education spokesperson said. “This is not an unusual measure to take in uncertain times. Our priority remains on providing quality education. Teachers within the GEMS Education network of schools are our most valuable resource and are at the core of our profession.”
GEMS Education declined to comment on the job cuts at the corporate level, saying it does not comment on rumours and speculation as per company policy.
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Read more:
Dubai parents hail school fees freeze - but expert warns quality of education could be at risk
No increase to private school fees in Dubai
More than 20 Dubai schools freeze or lower fees
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GEMS, one of the largest education providers globally, owns and operates 47 schools and nurseries in the UAE, Saudi Arabia and Qatar, according to its website.
The company told its education staff that Dubai's decision to freeze tuition fees has had a "dramatic" impact on its future plans and that it has "significant" financial obligations to meet, according to a letter from GEMS Education chief executive Dino Varkey, which was seen by The National.
“The decision to freeze salary increases for the 2019 financial year is not one that we have made lightly and we know that this will have an impact on a significant number of you,” Mr Varkey said in the letter. “The decision by the Dubai executive council to freeze tuition fees for the next academic year was unforeseen and has had a dramatic effect on our plans for the future. The company has significant financial commitments that must be maintained and serviced if we are to continue to operate as we do at present.”
In its statement, GEMS said it has invested “significantly” in teachers’ salaries and benefits over the past five years.
“The cumulative salary increase was 25 per cent to 48 per cent when the Education Cost Index only increased by approximately 11 per cent,” it said. “We created 7,000 new jobs over the same period.”
Staff from the company’s schools were called into a meeting at the end of the work day on Tuesday and were informed about the freeze on incremental salary rises next year and the non-education staff’s job cuts, the sources said. Contracts signed in January will be re-issued to reflect the lack of salary increases in the 2019 fiscal year.
“We also know that we will need to work hard to rebuild your trust in our company in the future,” Mr Varkey said in the letter. “We sincerely hope that you remain committed to your school, now and further into the future.”
The company, which is owned by founder Sunny Varkey, Dubai-based private equity firm Fajr Capital and Bahrain’s sovereign wealth fund Mumtalakat Holding, is also planning to delay an initial public offering after the Dubai government decision to freeze school tuition fees, Bloomberg reported last week.
GEMS is studying the potential impact on its earnings projections from the government decision, according to Bloomberg.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
City's slump
L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1
The%20specs
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Book%20Details
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A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
Killing of Qassem Suleimani
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Company%20Profile
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Company%20Profile
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Conservative MPs who have publicly revealed sending letters of no confidence
- Steve Baker
- Peter Bone
- Ben Bradley
- Andrew Bridgen
- Maria Caulfield
- Simon Clarke
- Philip Davies
- Nadine Dorries
- James Duddridge
- Mark Francois
- Chris Green
- Adam Holloway
- Andrea Jenkyns
- Anne-Marie Morris
- Sheryll Murray
- Jacob Rees-Mogg
- Laurence Robertson
- Lee Rowley
- Henry Smith
- Martin Vickers
- John Whittingdale
UAE currency: the story behind the money in your pockets
