More investors flock to UAE’s K-12 education sector

The UAE's Kindergarten to Grade 12 (K-12) education industry is seeing an increase in investment, getting attention from both domestic and foreign investors. With more than 100 schools expected to open in the UAE by 2030, investors, both new and established, have lined up to take advantage of the opportunities.
On Thursday, Dubai Financial Markets-listed Al Mal Capital REIT (AMCREIT), the first REIT listed on DFM, announced the acquisition of a 100% equity position in Carnation Education LLC. Carnation owns real estate assets, including the freehold land and buildings of Kent College Dubai.

“The acquisition of Kent College is a testimony to Al Mal Capital REIT’s well-defined strategy of investing in high-quality education assets in the UAE,” said Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital.

He added, “The acquisition has further diversified the asset portfolio, with assets across various Emirates, including Dubai, Sharjah, and Ajman.”Kent College, which follows the English National Curriculum for students from Nursery to Year 13, is built on land with a total plot area of 563,950 square feet. Carnation has leased the land and buildings to Kent College for 25 years (initially commenced in November 2017) with agreed lease rentals, which can be further renewed for a similar period. Moreover, the acquisition has also bolstered the Assets under Management, which has touched nearly Dh 1 billion since the commencement of its operations in January 2021.

What do these investments mean?

The private K-12 educational industry in the UAE is expected to increase by 40% over the next five years. This expansion is being driven by a growing expat population, which has raised the demand for high-quality private education. The government wants to boost education land area by 25% by 2040 to meet Dubai's growing population.

“As the K-12 education sector is well set for further growth as seen from the recent announcements of new schools opening in Dubai, AMCREIT is well-poised to take advantage of the strong sentiments in the sector and grow its AUMs,” said Al Nabulsi.

Campuses of the future

The Reigate Grammar School Masaar campus will include a performing arts center, a library, multi-purpose halls, a STEM Centre, sports facilities, and swimming pools. Bright Capital Investment, a UAE-based education provider that currently owns four schools in Dubai, will operate Reigate Grammar School Masaar. Bright Capital Investment, founded in 2010, seeks to expand across the Middle East and Africa.

Esref Temel, the company’s Managing Director, said, “Our collaboration aims to offer unparalleled academic opportunities to students in the UAE, ensuring they receive a world-class education that prepares them for global success.”