Based Al-Yaa in Advanced Talks to Acquire Controlling Stake in Saudi Arabia’s Ajialuna Education at Potential $500 Million Valuation

UAE-based Al-Yaa, a school operator backed by private equity firm TA Associates, is in advanced talks to acquire a controlling stake in Saudi Arabia’s Ajialuna Education, in a potential transaction that could value the Riyadh-based company at approximately $500 million, according to people familiar with the negotiations.

The discussions come as Saudi Arabia’s education sector continues to attract regional and international investors, supported by population growth, rising demand for private and international schooling, and the sector’s ongoing transformation under Saudi Vision 2030. Negotiations remain ongoing, and no final decision has been reached.

Talks Focus on Sulaiman Alrajhi Holding’s Stake

The current discussions center on Sulaiman Alrajhi Holding’s stake in Ajialuna Education, which operates private and international schools in Saudi Arabia. While the company’s potential valuation could reach $500 million, the proposed purchase price has not been disclosed, and no definitive agreement has been signed.

Al-Yaa, Ajialuna Education, and Sulaiman Alrajhi Holding did not respond to requests for comment, while TA Associates and GEMS Education declined to comment on the discussions.

Ajialuna Education Operates 10 Schools

Ajialuna Education operates 10 private and international schools across Saudi Arabia, serving more than 17,000 students from kindergarten through secondary school. Headquartered in Riyadh, the company specializes in managing and operating educational institutions across multiple grade levels.

Its established school network and student base position the company within a growing market for private and international education, attracting investors seeking opportunities to expand their educational portfolios.

Al-Yaa Seeks to Expand Its Regional Footprint

Headquartered in Dubai, Al-Yaa operates a network of 15 schools serving more than 20,000 students across the Gulf Cooperation Council (GCC). Private equity firm TA Associates acquired a controlling stake in the company in 2024.

A potential acquisition of Ajialuna Education would strengthen Al-Yaa’s presence in Saudi Arabia, adding 10 schools and more than 17,000 students to its regional network. The transaction would also expand the group’s exposure to one of the Middle East’s key private education markets.

GEMS Education Previously Expressed Interest

Al-Yaa is not the only regional operator to have explored an investment in Ajialuna Education. Dubai-based GEMS Education, backed by Brookfield Asset Management, expressed interest in the Saudi company last year, according to Bloomberg.

GEMS operates one of the region’s largest private school networks, highlighting the growing competition among regional and international education providers for established school assets in Saudi Arabia.

Saudi Vision 2030 Supports Sector Growth

Saudi Arabia’s education market has undergone significant changes since foreign ownership rules in the sector were relaxed in 2017, paving the way for regional and international education brands to enter the market and expand their operations.

The sector’s growth is supported by population expansion, an increasing expatriate population, and rising demand for private and international schools. These trends coincide with government efforts to improve education quality, broaden the choices available to families, increase private-sector participation, and align educational outcomes with future workforce requirements.

Under Saudi Vision 2030, education remains part of the Kingdom’s broader economic and social transformation, creating opportunities for school operators and investors to develop and expand their networks.

Investment Activity Continues Amid Regional Challenges

The potential transaction comes as investors continue to pursue sectors associated with essential services and relatively stable demand. Education is among the sectors attracting attention, supported by family needs, population growth, and urban expansion.

According to Global SWF data cited in the report, government-backed investors in the Middle East and North Africa deployed approximately $102 billion during the current year, putting them on track for their second-best year in terms of deal activity.

The investment momentum comes amid discussions about cross-border capital flows between Saudi Arabia and the UAE and the potential impact of regional tensions on investment activity. In September, UAE Vice President Sheikh Mansour bin Zayed Al Nahyan met Saudi Crown Prince Mohammed bin Salman during a visit described as the first publicly announced visit to Saudi Arabia by a senior UAE official that year.

A Potential Deal in a Competitive Education Market

Saudi Arabia’s appeal is underpinned by its demographic and economic scale. The Kingdom has a population of approximately 35 million, including around 20 million citizens, while continuing efforts to attract expatriates and international talent.

If completed, the transaction would strengthen Al-Yaa’s position in the Saudi market by combining its regional school-operating capabilities with Ajialuna Education’s established local network and student base.

However, the transaction remains under negotiation, with no final decision reached. Its ultimate valuation and terms may change, and completion remains subject to a definitive agreement between the parties and the necessary procedures.