GEMS Education, a prominent private school operator backed by Brookfield Asset Management, has emerged as a key bidder for the acquisition of Saudi Arabia's Ajialuna Educational Co. This potential transaction is particularly significant as Ajialuna, which is majority-owned by Sulaiman Alrajhi Holding, serves over 14,000 students through various private and international schools located in major cities including Riyadh, Al-Khobar, and Jeddah.
The Saudi group is reportedly looking to divest its entire stake in Ajialuna, with several local investors also having submitted non-binding offers. Although the exact timeline and deal value are currently unspecified, the interest in Ajialuna reflects a broader trend driven by the rising demand for private education in Saudi Arabia. This demand is fueled by the kingdom’s Vision 2030 initiatives aimed at diversifying the economy, coupled with a growing young population and an expanding expatriate community.
The strategic rationale behind GEMS' bid is clear: since the easing of foreign ownership restrictions in 2017, there has been a surge in international and regional school operators entering the Saudi market. GEMS Education, which has grown into one of the world's largest private school operators, is well-positioned to capitalize on this trend. The group recently attracted significant investment in a $2 billion deal led by Brookfield, alongside partners Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of Azerbaijan.
As for the next steps, while a definitive closing date for the transaction has yet to be revealed, the involvement of multiple bidders indicates a competitive landscape. The outcome of this bidding process will not only affect shareholders and employees of Ajialuna but could also have broader implications for the private education market in Saudi Arabia, potentially influencing future investments and market dynamics.
From a regulatory standpoint, any acquisition would likely require approval from Saudi authorities, particularly given the recent focus on enhancing the quality of education in the kingdom. As this situation develops, stakeholders will be closely monitoring the bidding process and its implications for the future of private education in Saudi Arabia.