GEMS Education, the Dubai-based school operator backed by Brookfield Asset Management, is among the parties that have submitted initial bids for Saudi Arabia’s Ajialuna Educational Co., according to people familiar with the matter.
Several local investors have also put forward non-binding offers for the Riyadh-based school company, sources said. Sulaiman Alrajhi Holding, the majority shareholder in Ajialuna, is seeking to sell its entire stake. Details of other bidders and the potential deal value have not yet been disclosed.
Ajialuna’s Role in Saudi Education
Founded in 2008, Ajialuna serves more than 14,000 students across Saudi Arabia through a network of private and international schools. Its portfolio includes Al Forsan International Schools, with campuses in Riyadh, Al Khobar, and a newly opened site in Jeddah. The schools offer international curricula from kindergarten to secondary level, catering to both Saudi families and a growing expatriate community.
Expanding Market Under Vision 2030
As Saudi Arabia diversifies its economy under Vision 2030 and attracts more expatriates, demand for high-quality education continues to grow. With a young and expanding population, the private education sector offers significant opportunities for expansion, according to the Oxford Business Group.
Since the easing of foreign ownership rules in 2017, both international and regional school brands have increased their presence in Saudi Arabia. At the same time, more Saudi students are enrolling in international schools, part of government efforts to enhance access and reduce the skills gap.
GEMS and Brookfield’s Global Reach
GEMS Education was founded by an Indian family more than 60 years ago and has become one of the world’s largest private school operators. In one of the region’s largest private equity deals, a consortium led by Brookfield and other investors committed $2 billion to GEMS last year.
Today, GEMS operates dozens of schools across the Middle East and is expanding into India through a partnership with the Adani Group, which aims to establish 20 schools in the next three years.
Brookfield has established itself as one of the Middle East’s most active institutional investors. After entering the Saudi market a few years ago, it has steadily increased its presence. The consortium that invested in GEMS also included Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of Azerbaijan.
Ongoing Deliberations
Sources cautioned that deliberations are still under way. Bidders may yet decide to withdraw, and the current owners could also choose to retain the business for a longer period.
Key Stats
- 2008 – Ajialuna founded
- 14,000+ – Students enrolled
- 3 cities – Riyadh, Al Khobar, Jeddah campuses
- $2bn – Brookfield-led GEMS investment
- 60+ years – GEMS Education legacy