Saudi Arabia’s Maarif Education has bought Ibn Khaldoun Education Company as part of its plans to grow
Saudi Arabia’s Maarif Education has signed a final deal to buy Ibn Khaldoun Education Company (IKEC), making it one of the largest investments in the country’s education sector.
IKEC Acquisition Update
Maarif Education is now in the final stages of acquiring IKEC, making it the largest kindergarten to 12th-grade (K-12) education provider in Saudi Arabia by revenue and reach, according to a statement by EFG Hermes on Thursday.
IKEC currently operates eight campuses in Riyadh under the name “Ibn Khaldoun Schools,” serving over 13,000 students. Once the acquisition is completed, Maarif schools will have more than 36,000 students enrolled.
This move is part of Maarif’s plans to grow its presence in Saudi Arabia and offer high-quality education to more students, the company said in a separate statement on Monday.
EFG Hermes acted as Maarif’s financial advisor for the deal, though the value of the transaction has not been revealed.
Important Statement
“We are dedicated to improving education quality and making it more accessible, in line with Vision 2030’s goals. Our aim is to empower future generations to succeed in a changing world,” said Husam Zaman, vice chairman of Maarif Education’s board of directors.
Saudi Arabia’s Education Sector
The private K-12 education sector in Saudi Arabia is expected to grow significantly in the coming years as the country focuses on improving education quality through privatization, according to Maarif.
Key reasons for this growth include:
- Rapid population growth.
- Increasing household incomes.
- A growing preference among Saudis for private schools.
- Government efforts to attract international talent.
Saudi Arabia’s school-aged population is about three times larger than the combined school-aged population of Gulf Cooperation Council (GCC) countries, highlighting the high demand for educational facilities.
A December 2023 report by Knight Frank revealed that the private school sector in Saudi Arabia will need an additional 214,000 student seats. Additionally, 54% of surveyed Saudi households showed a strong preference for private schools.
Tangent
EFG Hermes announced earlier this month that its private equity branch started a $300 million Saudi Education Fund (SEF). The fund aims to create a top-quality K-12 education provider in Saudi Arabia and has also signed a deal to buy several international schools.
Published: 6th December 2024
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