EFG Hermes to Establish Educational Platform Focusing on KSA
EFG Hermes revealed that the company is working on establishing a $300 million educational platform, focusing on the Gulf countries, specifically Saudi Arabia. Karim Moussa, Co-CEO of “EFG Hermes,” stated that 80% of the investment will go to the Saudi market, reflecting significant confidence in the potential and promising investment opportunities it offers.
In an interview with “Al Arabiya Business,” Moussa highlighted the considerable interest shown by previous investors, primarily from Saudi Arabia and the UAE, confirming their readiness to support this initiative. The educational platform will initially be launched in Jeddah and Riyadh, marking a significant step towards expanding the scope of distinguished educational services in the Kingdom.
According to Moussa, the fund identifies exceptional investment opportunities in medium-sized schools, with costs ranging from 40,000 to 60,000 Saudi Riyals, especially those offering international curricula and International Baccalaureate (IB) programs. This indicates the fund’s focus on enhancing the quality of education and achieving academic excellence.
Replicating Egypt’s Experience in Saudi Arabia
Hermes launched its educational platform in Egypt five years ago through a $150 million educational investment fund. The fund garnered investments from Saudi Arabia and the UAE (the same investors interested in the educational platform in Saudi Arabia).
Investments, totaling around 2.5 billion pounds over the past five years, have been allocated to operating 23 schools and nurseries. They offered international and IB curricula in addition to the Egyptian curriculum. The variety in curricula aims to meet the needs of students and their parents with high educational standards. These institutions may bring in revenues of up to 3.5 billion pounds in the current academic year, with profits exceeding one billion pounds before interest and taxes.
Moussa emphasized that the main reason behind the fund’s success lies in establishing a central company to manage schools uniformly, unlike the traditional approach relying on fragmented administrations. This approach has improved operational efficiency and quality control, leading to achieving excellence rates. This will be the new educational platform’s strategy in in the Gulf market.
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