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The economics of a private school in Dubai

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

An illustrative private school in Dubai has capacity for 1,500 students and is 80 percent full. The average fee is AED 45,000 a year. It keeps a student-teacher ratio of 12 to 1 and pays each teacher AED 180,000 a year in total cost. Other staff (teaching assistants, administration, and support) cost AED 9.6 million, rent is AED 8 million, and other costs are AED 7 million. What are revenue and EBITDA, and what happens at 60 percent utilization if the school keeps the same ratio?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

EBITDA = students x fee minus teachers minus other staff, rent, and other costs
- Students = capacity x utilization
- Teachers = students / student-teacher ratio
- Other staff, rent, and other costs are mostly fixed

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Students
What a strong candidate does: 80 percent of 1,500.
Students: 1,500 × 0.8 = 1,200
Step 2: Revenue
What a strong candidate does: 1,200 x AED 45,000, in AED millions.
Revenue (AED millions): 1,200 × 45,000 ÷ 1,000,000 = 54
Step 3: Teacher cost
What a strong candidate does: 100 teachers x AED 180,000, in AED millions.
Teacher cost (AED millions): 1,200 ÷ 12 × 180,000 ÷ 1,000,000 = 18
Step 4: Staff cost share
What a strong candidate does: Teachers plus other staff, as a share of revenue: about half, inside the usual range for a private school.
Staff cost (percent of revenue): (18 + 9.6) ÷ 54 × 100 = 51.11
Step 5: EBITDA
What a strong candidate does: Revenue minus teachers, other staff, rent, and other costs.
EBITDA (AED millions): 54 - 18 - 9.6 - 8 - 7 = 11.4
Step 6: EBITDA margin
What a strong candidate does: EBITDA as a share of revenue.
EBITDA margin (percent): 11.4 ÷ 54 × 100 = 21.11
Step 7: At 60 percent utilization
What a strong candidate does: 900 students, 75 teachers, other costs unchanged.
EBITDA at 60 percent (AED millions): 900 × 45,000 ÷ 1,000,000 - 900 ÷ 12 × 180,000 ÷ 1,000,000 - 9.6 - 8 - 7 = 2.4

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The school should focus on filling seats, because EBITDA falls from AED 11.4 million at 80 percent full to AED 2.4 million at 60 percent, a drop of almost 80 percent from a 25 percent fall in students. First, rent, other staff and other costs of AED 24.6 million do not fall with enrolment. Second, this means utilization, driven by reputation such as inspection ratings and exam results, decides profit. The risk is that fees are regulated in Dubai (frozen for 2026-27), so growth must come mainly from filling seats. As a next step, track enrolment and re-enrolment by year group each term.

Risks a strong answer names: Fee increases are regulated in Dubai (no increase at all was allowed for 2026-27), so revenue growth must come mainly from filling seats; Teacher hiring is lumpy: one class of students still needs a full teacher.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.