Dubai’s Amanat gears up to invest $272 mln in Saudi, UAE and Egypt

Amanat Holdings, the Dubai-listed healthcare and education investment company, aims to invest AED 1 billion ($272 million) to fortify its presence in the education and healthcare sectors across Saudi Arabia, the United Arab Emirates and Egypt, its CEO Tristan de Boysson told Argaam in an exclusive interview.

“We have AED 500 million of cash on our balance sheet. Since we have the ability to leverage our balance sheet and that of our portfolio companies, we probably have a dry powder of close to AED 1 billion that we intend to invest over the next few years in our target markets,” he said.

The company deployed $323 million (AED 1.2 billion) in four portfolio companies operating in the education and healthcare sectors last year. 

Eyeing higher education

Amanat is seeking to expand its footprint in Saudi Arabia’s education market, as it looks to capitalize on the need for higher educational institutions in the Gulf and beyond.

It holds 35 percent stake in Abu Dhabi University Holding Company and 100 percent stake in Middlesex University.

“We are looking at private higher education universities in the Kingdom,” Boysson said, referring to a possible extension of its UAE-based educational portfolio to gain a strong foothold in the higher education market.

In addition, there is huge potential in the K-12 education market, as an increasing number of parents in the Middle East region desire their children to get quality education in private schools, he added.

In its 2019 budget, the Saudi government allocated SAR 192 billion for education, representing 21 percent of fiscal spending and seven percent of total GDP.

A recent report by Colliers International found that demand for private-sector education in the Kingdom is expected to double from the present 18.2 percent by 2030. Another report by Boston Consulting Group expected private K-12 education market to grow to $12 billion by 2023 from $5 billion in 2017.

Healthcare sector growth

Meanwhile, Amanat is toying with the idea of building its healthcare platforms within Saudi Arabia, targeting segments such as specialty hospitals, rehabilitation facilities, mental health and home care.  

“The Kingdom’s healthcare sector is expected to grow at an annual rate of 9 to 10 percent, on the back of a growing population, the prevalence of non-communicable diseases (obesity, diabetes, etc.), and the rollout of the mandatory health insurance scheme,” Boysson noted.

Amanat has already concluded two acquisitions in the Saudi healthcare market. It holds 33 percent stake in Sukoon International Holding Company and a 13.18 percent stake in International Medical Center (IMC).

Last week, IMC announced the acquisition of three medical facilities in Jeddah.

“Amanat was instrumental in terms of leading and executing the acquisition of three clinics in north Jeddah for its portfolio company IMC. We aim to support the management team of our portfolio companies to achieve profit improvements and value enhancement initiatives,” Boysson added.

Seeking PPP opportunities

As privatization gains pace in Saudi Arabia in line with Vision 2030, Amanat is open to participate in public-private partnership (PPP) opportunities in the healthcare and education sectors.

In May, the Saudi Ministry of Health sought proposals from international suppliers for a project, which involved the upgrade of radiology and medical imaging services at seven hospitals in the Riyadh area, through PPP.

Read: Saudi Arabia offers promising pipeline of privatization deals

“We have told them about our interest,” Boysson added. 

Write to Parag Deulgaonkar at parag.d@argaamplus.com