Education

Education sector in UAE ripe for more M&A deals

April 17, 2025, 4:45 PM

The education sector in the UAE is growing and the country may need 150 more schools by 2030

Mubadala takes stake in Nord Anglia
CGR of 7.5% predicted for schools
Up to 150 new schools needed

Mubadala is the latest big name to announce a foray into the UAE’s $7 billion education market as experts predict an increase in mergers and acquisitions in the sector, fuelled by the Gulf state’s rising population, economic diversification and expatriate demand.

The Abu Dhabi sovereign wealth fund has more than $300 billion in assets under management. It has agreed to take a $600 million minority stake in Nord Anglia Education.

It joins a consortium, led by Swedish buyout group EQT and including Dubai Holding, which ploughed $14.5 billion into acquiring the UK school operator last month.

“The increasing demand for high-quality education, coupled with Nord Anglia’s innovative approach and commitment to individualised learning makes this a compelling opportunity,” said Alvin Teh, head of consumer investments at Mubadala, in a statement.

There has been a wave of consolidation in the UAE education market. According to Mordor Intelligence, the UAE’s K-12 education market – covering kindergarten to grade 12, or age 16 to 17 – is valued at just over $7 billion, and is projected to exceed $10 billion by 2030, a compound annual growth rate of 7.5 percent.

The country may need up to 150 additional schools by the end of the decade to meet rising demand.

In Dubai alone, student enrolment is expected to rise from 360,000 currently to more than 430,000 by the 2031-32 academic year, according to Colliers Middle East.

Dubai private schools face major shortfall of places

Gems Education plans to spend $300m on growth

School’s in: UAE education is ripe for investment

“This demand is encouraging investment and consolidation to meet capacity needs,” said Sajida H Shroff, CEO of investment advisory firm Altamont Group.

Dubai-listed Taaleem Holdings, one of the UAE’s largest private school operators, is among the local players expanding rapidly. The company acquired Lebanese Francophone Private School in 2023 and Jebel Ali School in 2022.

This week it also announced the site of its upcoming Harrow International School Dubai, part of a strategic partnership with London-based Harrow International Schools Limited.

“What we’re seeing in the UAE is a unique growth environment,” said Alan Williamson, CEO of Taaleem.

Strong margins are also drawing investor attention. Efficient private schools in the region can deliver net profit margins of up to 20 percent, according to Altamont’s Shroff.

“Education is widely recognised as a defensive sector with significant latent demand and low downside risk,” said Anil Menon, EY Mena head of M&A and equity markets leader.