Al Baraka unit plans private equity fund to focus on education
Al Baraka Banking Group's Itqan Capital would be launching a private equity fund that would look for investments in the education sector in the Middle East. Itqan Capital Chief Executive Officer Adil Dahlawi told Reuters the company would be raising as much as USD 200 million for the fund. It would be launching the fund together with D3 Consultants, a school consultancy firm based in Bahrain, next year.
According to Reuters, the fund showcased the growing appetite for education-related investments in the Gulf Arab region. A strong economic growth has given rise to higher standards of living among the middle class.
Itqan Capital and D3 Consultants would provide initial capital for the private equity fund. It would first concentrate on the acquisition and operation of schools in the primary education sector before moving on to higher education.
The education market in the Gulf is valued at USD 40 billion, Itqan said. Of this, the private sector comprises 14% of the total market size.