A consortium led by Brookfield Asset Management has signed a binding agreement to invest in Dubai-based private school provider Gems Education.
Other investors in the education provider also include Gulf Islamic Investments, Marathon Asset Management and the State Oil Fund of Azerbaijan.
The completion of the deal is expected in the third quarter of 2024, depending on the fulfilment of certain conditions by all parties, Gems and Brookfield said in a joint statement on Tuesday.
Financial details were not revealed, but Bloomberg previously reported that Canadian investment firm Brookfield was planning to invest about $2 billion in Gems.
“We are well positioned for future growth, thanks to a supportive operating environment that is driving record enrolments, underpinned by a strong UAE economy and a growing population,” said Dino Varkey, group chief executive of Gems.
The investment will help the company prepare for its "next phase of growth", he added.
Gems, which began with a single school in Dubai in 1959, is now the largest private school operator in the UAE and among the biggest education providers globally.
It achieved record enrollment levels in the UAE and Qatar last year and expects to exceed 140,000 students in the region by September, a company spokesperson told The National.
The company is expanding its UAE portfolio with new schools opening in Dubai South and Masdar City in Abu Dhabi in August this year, bringing the total number of schools across the UAE and Qatar to 46, the spokesperson said.
Gems said on Tuesday that it has also secured financing commitments from a consortium of UAE banks to fund the transaction and repay its existing financing arrangements.
Its existing minority shareholders, including Khazanah Nasional Berhad, will exit as part of this transaction, and funds managed by CVC Capital Partners will largely exit their stake in Gems.
In 2019, CVC Capital Partners led a consortium that agreed to buy a 30 per cent stake in Gems.
The deal resulted in the exit of an investor group led by Fajr Capital, including Tactical Opportunities funds managed by Blackstone and Bahrain's sovereign wealth fund Mumtalakat Holding Company, which acquired a minority stake in Gems in 2014.
Gems had been considering options for the business after talks to sell a controlling stake to a consortium of Abu Dhabi state-backed entities stalled over valuation, Bloomberg reported last year, citing sources.
Brookfield, which has more than $925 billion in assets under management, has been exploring raising dedicated funds specifically for investments in the Middle East.
Last week, Brookfield teamed up with UAE-backed Alterra to raise up to $5 billion for a climate finance-focused fund that will invest in clean energy projects in emerging markets.
Alterra, a private investment vehicle launched during Cop28, aims to raise $250 billion globally in the next six years to create a fairer climate finance system.
“The investment in Gems marks a milestone for Brookfield and our private equity business in the Middle East, underscoring our commitment to investing in this high-growth region and the strength of our local partnerships,” said Jad Ellawn, managing partner and regional head, Middle East, Brookfield.
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Batti Gul Meter Chalu
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Director: Sree Narayan Singh
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Director: James Cameron
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Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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