Abraaj makes 'significant' education investment

Abraaj Capital has acquired a “significant” stake in Dubai-based Global Education Management Systems (GEMS), the investment firm said today.

GEMS owns and manages a number of primary and secondary schools across the Middle East, including Our Own English High School, Dubai American Academy, Cambridge International School and Our Own Indian School.

The company would not reveal how large an investment it has made or what percentage of GEMS it now controls.

Abraaj said the investment in GEMS, made through its Infrastructure and Growth Capital Fund (IGCF), is aimed at capitalising on the rising demand for education in the region.

The Dubai-based investment firm said this demand, coupled with limited capacity in the sector, is straining the region’s existing education infrastructure.

“The MENASA (Middle East, North Africa and South Asia) region's youthful population and high demographic growth rate will place great pressure on the economies over the coming decade,” said Arif Naqvi, vice chairman and chief executive of Abraaj.

“As a result, today more than ever, the region needs educational institutions that produce individuals with the skills necessary to compete in a modern and global economy,” he added.

The investment follows the launch last month of a $10 billion education foundation by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, at the World Economic Forum (WEF) in Jordan.

Naqvi said the stake in GEMS would also contribute to the stability and diversification of Abraaj’s investment portfolio.

Currently the firm’s investment portfolio includes companies such as the Egyptian Fertilisers Company, Air Arabia, Egyptian financial services firm EFG-Hermes, Arab internet portal Maktoob.comm, and Saudi Arabia’s National Air Services (NAS).

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