GEMS Education to Invest $300 Million for Growth in Dubai
ABU DHABI: GEMS Education, based in Dubai, has announced plans to invest approximately $300 million over the next two to three years. This investment is part of their strategy to support organic growth as the company anticipates a rise in population and an influx of wealthy newcomers.
Dubai has become one of the fastest-growing cities in the world, experiencing significant population growth driven by expatriates, especially those with higher incomes. Many are drawn to the city due to its favorable tax policies, business-friendly environment, and convenient time zone.
Dino Varkey, the CEO of GEMS Education, shared this news during a conference in Abu Dhabi, mentioning that the education provider aims to increase its student enrollment by 30,000 to 35,000 by 2028. He noted a growing demand for education from families relocating to Dubai from various regions around the globe.
In particular, changes in tax regulations in the UK, such as the introduction of VAT on private school fees, have prompted some wealthy families to move to the UAE for a more advantageous financial environment.
Varkey commented, "What we’re seeing now is likely influenced by some of the tax reforms in the UK and Western Europe, leading more families to consider relocating to the UAE."
Last year, a group led by Brookfield Asset Management made significant investments in GEMS, reflecting a trend where private equity firms are increasingly backing local businesses in the Gulf region.
GEMS is set to open a new school this August, with potential annual tuition fees reaching up to $56,000 in the future. Varkey also mentioned that the company will explore acquisition opportunities as part of its growth strategy.
Founded in 1959 as a single school, GEMS Education has grown to become an important player in the education sector, now serving 170,000 students from over 176 countries.
