04 March 2007
KUWAIT: A partnership between Kuwait's Educational Holding Group and Saudi Arabian investors launched the Educational Development Company yesterday in Kuwait with a capital of one billion Saudi Riyal. Chairman of Educational Holding Group and Vice-Chairman of the new company is Kuwait's Abdulrahman Al-Muhailan who said Educational Holding Group (Edu) maintains holdings from Kuwait to the US. Edu was established in 1982 and after ten years, it became the first educational company listed on the Kuwait Stock Exchange. It became a holding company in 2005 and boasts capital of about $71 million. Al-Muhailan said, "The ability of the Educational Holding Group to successfully develop institutions goes to their 25 years of experience in academics and management." He stated, "We are keen on every aspect of education from primary education to higher education and special needs." Of the new company he said, "Educational Development Company has gained the trust of foreign investors and the large number is a reflection of the excellent international reputation of the Educational Holding Group."
Feras Al-Odah, a board member of Educational Development Company said, "It is the biggest educational project in the Middle East and those who will make it happen are Kuwait and Saudi Arabia's private sector with a capital of one billion Saudi Riyal." He stated the entire one billion will be invested in Saudi Arabia. Much of the reasoning behind the large investment in the KSA stems from, according to Al-Odah, the kingdom's "weakness in the education of the workforce due to the fact that the educational institutions cannot absorb the number of students in the kingdom." He said, "There is a programme of reform approved by the World Monetary Fund that will help with privatisation and in opening Saudi markets." Al-Odah noted Saudi Arabia's GDP was $340.5 billion in 2005 -- the number one GDP in the region and is the largest oil resource in the world along with holding 25 per cent of oil reserves. He said, "Saudi Arabia is the largest GCC country and the only GCC country where the percentage of citizens outnumbers the residents." Kuwait, in contrast has a population of just under 1.3 million foreign residents and about 1 million citizens.
Al-Odah said, "Saudi Arabia had a 13 per cent unemployment rate in 2004 and by 2010, 42 per cent of Saudis will be under the age of 15 years old." He maintains that only students with very high GPAs are accepted into the over-crowded higher education system. "In higher education they only accept 13 per cent of applicants," said Al-Odah explaining the market readiness for new educational institutions to fill the void.
Chairman of Educational Development Company, Saudi Arabia's Dr Abdulrahman Al-Raghi, said the majority shares of the company are divided with 30 per cent of the new company held by Kuwait's Educational Holding Group, 35 per cent held by the Sheikh Salman Al-Rajhi Group, 12 per cent by Al-Zumorda company, 12 per cent by Wafra company, and the rest by other investors. Al-Raghi said the investment will be divided between the "three largest Saudi cities, Riyadh, Damman and Jeddah" and will be concentrated "in all aspects of education."
KUWAIT: A partnership between Kuwait's Educational Holding Group and Saudi Arabian investors launched the Educational Development Company yesterday in Kuwait with a capital of one billion Saudi Riyal. Chairman of Educational Holding Group and Vice-Chairman of the new company is Kuwait's Abdulrahman Al-Muhailan who said Educational Holding Group (Edu) maintains holdings from Kuwait to the US. Edu was established in 1982 and after ten years, it became the first educational company listed on the Kuwait Stock Exchange. It became a holding company in 2005 and boasts capital of about $71 million. Al-Muhailan said, "The ability of the Educational Holding Group to successfully develop institutions goes to their 25 years of experience in academics and management." He stated, "We are keen on every aspect of education from primary education to higher education and special needs." Of the new company he said, "Educational Development Company has gained the trust of foreign investors and the large number is a reflection of the excellent international reputation of the Educational Holding Group."
Feras Al-Odah, a board member of Educational Development Company said, "It is the biggest educational project in the Middle East and those who will make it happen are Kuwait and Saudi Arabia's private sector with a capital of one billion Saudi Riyal." He stated the entire one billion will be invested in Saudi Arabia. Much of the reasoning behind the large investment in the KSA stems from, according to Al-Odah, the kingdom's "weakness in the education of the workforce due to the fact that the educational institutions cannot absorb the number of students in the kingdom." He said, "There is a programme of reform approved by the World Monetary Fund that will help with privatisation and in opening Saudi markets." Al-Odah noted Saudi Arabia's GDP was $340.5 billion in 2005 -- the number one GDP in the region and is the largest oil resource in the world along with holding 25 per cent of oil reserves. He said, "Saudi Arabia is the largest GCC country and the only GCC country where the percentage of citizens outnumbers the residents." Kuwait, in contrast has a population of just under 1.3 million foreign residents and about 1 million citizens.
Al-Odah said, "Saudi Arabia had a 13 per cent unemployment rate in 2004 and by 2010, 42 per cent of Saudis will be under the age of 15 years old." He maintains that only students with very high GPAs are accepted into the over-crowded higher education system. "In higher education they only accept 13 per cent of applicants," said Al-Odah explaining the market readiness for new educational institutions to fill the void.
Chairman of Educational Development Company, Saudi Arabia's Dr Abdulrahman Al-Raghi, said the majority shares of the company are divided with 30 per cent of the new company held by Kuwait's Educational Holding Group, 35 per cent held by the Sheikh Salman Al-Rajhi Group, 12 per cent by Al-Zumorda company, 12 per cent by Wafra company, and the rest by other investors. Al-Raghi said the investment will be divided between the "three largest Saudi cities, Riyadh, Damman and Jeddah" and will be concentrated "in all aspects of education."
By Ahmad Al-Khaled
© Kuwait Times 2007
