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Taaleem buys majority stake in UAE nursery operator

According to Taaleem, Dubai nursery operator Kids First Group will generate cash flow from day one Reuters/Rula Rouhana
According to Taaleem, Dubai nursery operator Kids First Group will generate cash flow from day one

Taaleem, the UAE school operator, has agreed to acquire a 95 percent stake in Dubai-headquartered Kids First Group (KFG), an early-learning education provider in the GCC.

KFG manages a network of 34 nurseries situated near commercial hubs and residential communities across Dubai, Abu Dhabi and Doha, currently serving more than 5,000 students, the Dubai-listed company said in a statement.

According to Taaleem, KFG will provide a “plug-and-play” platform, generating cash flow from day one.

Taaleem listed on the Dubai Financial Market in November 2022. It’s share price has dipped slightly in recent days, due to escalating regional tensions as a result of the Israel-Iran conflict, but it is up nearly 9 percent year to date.

The KFG acquisition will be fully self-funded through a mix of equity and debt and is expected to complete in the fourth quarter of Taaleem’s financial year 2024/25.

Khalid Al Tayer, chairman of Taaleem, said the acquisition of KFG is part of the company’s growth strategy, expanding its footprint further into the early-learning education segment.

KFG will be run as a standalone vertical within Taaleem’s portfolio.

Founder Kamil Najjar will hold 5 percent of KFG and will continue to oversee the operations as the CEO, the statement said.

No financial details were given.

In July 2024 Taaleem signed a deal with the UK’s Harrow School to own and operate Harrow International Schools across the GCC.

A wave of consolidation is taking place in the UAE education market.

According to Mordor Intelligence, the UAE’s K-12 education market – covering kindergarten to grade 12, or age 16 to 17 – is valued at just over $7 billion, and is projected to exceed $10 billion by 2030, a compound annual growth rate of 7.5 percent.

The country may need up to 150 additional schools by the end of the decade to meet rising demand. 

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