Almasar Alshamil in advanced talks to attract foreign university to KSA

Majed Almutairi, CEO of Almasar Alshamel Education Co., says the company’s financial position, cash flows and balance sheet are strong.

Almasar Alshamel Education Co.’s CEO Majed Almutairi said the company is in advanced talks with a British university to bring it to the Kingdom, aiming to sign an initial agreement before year-end and launch its first programs in the Saudi market next year.

He added that the company is also seeking to attract local universities and colleges.

In an interview with Al Arabiya on the sidelines of SNB Capital’s conference in Riyadh, Almutairi said that the company’s growth depends on improving the operational efficiency of existing centers and opening new ones.

He noted that Almasar Alshamil launched two new centers this year, bringing the total to 41 centers. The company aims to double its student numbers over the next three years, which would require adding at least 10 new centers.

The CEO said the company’s operating model is predictable, with new centers requiring around two years to reach high operating levels. The targeted operating rate is more than 70% at its day-care centers.

Almasar Alshamil maintained strong growth in recent years, with positive performance continuing this year, supported by sector fundamentals and rising demand for services for students with special needs and higher education, Almutairi said.

He added that both sectors are government priorities in Saudi Arabia.

The CEO confirmed that recent developments in the region had a limited impact on higher education, particularly for international students. However, this was offset by growth in the number of local students, balancing the impact on the company.

Meanwhile, the education and care sector for people with special needs has not been affected by the current situation, with growth continuing at double-digit rates in both sectors.

Speaking on dividends, Almutairi said the company seeks to balance its growth ambitions by creating value for investors and increasing returns. He noted that the company aims to meet the numbers promised to investors at the time of its IPO, while the decision on dividends remains the board's responsibility, in line with the company’s ambitions.

Almutairi confirmed that the company’s financial position, cash flows and balance sheet are strong, noting that this supports its ability to fulfill its commitments to investors and pay dividends during the current year.