EGYPT: Hard times ahead for private universities

Months after the government scrapped their tax exemptions, Egypt's private universities are facing even tougher times. A decision by education authorities to reintroduce the sixth grade in Egyptian schools five years ago has produced a gap year. As a result, the estimated number of new students to attend public and private universities in 2011 will not exceed 5,000 - compared with the 200,000 usually admitted annually.

The gap year will take a toll on private universities for the next four years at colleges offering theoretical studies and the next six years at institutions teaching scientific subjects, said Nawal al-Dejwi, President of the University of Modern Sciences, one of Egypt's 16 private universities. The problem would lead to at least a 25% drop in the annual revenues of these universities during this period, al-Dejwi said.

The issue prompted the Ministry of Higher Education and the Higher Council for Universities, a governmental authority overseeing higher education institutions, to hold a series of crisis meetings. They have yet to craft a substantial solution, according to insiders.

"The situation will become more difficult for private universities in view of the cancellation of tax exemptions by the government last May and the higher education authorities' decision to raise the minimum grades to admit foreign students at Egyptian universities," said al-Dejewi. "These two moves were not apparently on the mind of the government when it decided to reintroduce the sixth grade."

Since the 1990s, the Egyptian government has encouraged the creation of private universities to attract investment into higher education, encourage quality, meet growing demand for higher education and ease problems that would face Egyptians attending universities abroad.

"Despite this, increasing restrictions are put on private universities in Egypt in a way which spells trouble and uncertainty for these institutions," said al-Dejewi. "Strangely enough, Egypt is the only country which levies taxes on education."

Farouk Ismail, President of the privately owned Al Ahram-Canadian University, said lowering admission grades for foreign students - especially Arabs - to 50% could help universities in Egypt tackle the looming gap year crisis.

"This is what we are seeking to do now in cooperation with the Ministry of Higher Education," said Ismail, who also heads the Education Committee at the Shura Council, the upper house of Egypt's parliament. He disclosed that Higher Education Minister Hani Helal had asked private universities to formulate suggestions on how to solve the problem.

Ismail, however, ruled out the possibility the government would revoke its decision to levy taxes on private universities: "This is impossible for the time being, given the government's efforts to increase its financial resources to grapple with the repercussions of the global economic crisis," he said.

Mohamed Hamed, an ex-president of the privately owned October 6 University, saw the issue differently. "I think private universities will not be affected significantly by the gap year," Hamed said. Private universities usually admitted only around 2% of new students in Egypt and only "a certain class of student wishing to major in certain subjects" usually applied to attend them.

He balked at the idea of slashing minimum entrance grades to lure more foreign students to attend private universities in Egypt: "On the contrary, entry grades should be maximised if we want to maintain high academic levels and quality education. If not, these institutions will lose their raison d'être."