The education sector in the United Arab Emirates is increasingly attracting mergers and acquisitions, with experts predicting significant growth due to rising population, economic diversification, and demand from expatriates. The UAE’s education market, valued at over $7 billion, is expected to exceed $10 billion by 2030, with a compound annual growth rate of 7.5 percent. To meet the rising demand, the country may require as many as 150 new schools by the end of the decade.

Mubadala Investment Company, the Abu Dhabi sovereign wealth fund managing over $300 billion in assets, has recently announced it will take a $600 million minority stake in Nord Anglia Education. This investment comes as part of a consortium that includes Swedish buyout group EQT and Dubai Holding, which collectively invested $14.5 billion in acquiring the UK school operator last month. Alvin Teh, head of consumer investments at Mubadala, emphasized that the combination of increasing demand for quality education and Nord Anglia’s innovative educational approach presents a compelling opportunity.

The surge in consolidation within the UAE education market is evident, as local companies like Taaleem Holdings expand rapidly. Taaleem, one of the largest private school operators in the UAE, has made strategic acquisitions, including the Lebanese Francophone Private School in 2023 and Jebel Ali School in 2022. It also recently announced plans for the new Harrow International School Dubai, which is part of a partnership with London-based Harrow International Schools Limited. Alan Williamson, CEO of Taaleem, remarked on the unique growth environment in the UAE, further underscoring the sector’s investment potential.

Despite current challenges, strong profit margins are attracting investor interest, with efficient private schools in the region achieving net profit margins of up to 20 percent. Anil Menon, EY Mena head of M&A, noted that education is seen as a defensive sector with significant latent demand and minimal downside risk. This environment is fostering investment and consolidation to address the growing capacity needs within the UAE education system.