Dubai – Mubasher: Dubai-based GEMS Education has signed an SAR 3 billion ($800 million) deal with the Saudi asset management firm Hassana Investment Company, the investment arm of the kingdom’s General Organization for Social Insurance (GOSI), to build a network of new schools across the kingdom.
This deal is considered the first investment in the Saudi education sector, and it will pave the way for further foreign investments, according to a statement.
The partnership was announced during the third day of the Future Investment Initiative (FII) conference being held in Riyadh. The event started Tuesday and ends Thursday, 25 October.
The anticipated educational network will serve up to 130,000 students and provide around 16,000 jobs, nearly 40% of these jobs are expected to be offered for Saudi nationals, officials said.
“This partnership is driven by our view that the education market in Saudi Arabia is one of the most attractive growth markets over the long term,” Hassana CEO Saad Al-Fadhli said, adding that “both partners expect to create a strong and successful education platform in Saudi Arabia.”
For his part, GEMS Education CEO in Saudi Arabia Majed Al Mutairi said that his company was a “strong supporter of Saudi Arabia’s Vision 2030. The Vision’s focus on opening up public service sectors such as education highlights a commitment to developing human capital and allowing the private sector to enable long-term positive change for Saudi citizens."
The top official further added that the education sector, as a major catalyst for change, would help create a new generation of Saudi citizens with a global perspective that is strongly rooted in the Kingdom’s culture.
The deal was signed on the third day of Saudi Arabia’s Future Investment Initiative (FII) between GOSI governor Suliman Abdulrahman Al-Gwaiz, Hassana CEO Saad Al-Fadhli, and GEMS Education founder Sunny Varkey along with GEMS Education CEO Dino Varkey.
It is worth noting that the Saudi Arabian General Investment Authority (SAGIA) unveiled a series of memoranda of understanding (MoU) worth $2.4 billion at the FII conference, including a $1.6 billion deal between NMC Health and Hassana to develop medical facilities in Saudi Arabia.
The joint venture is expected to be one of the kingdom’s largest private healthcare operators and is projected to offer up to 10,000 jobs over the next five years.
