Al Salam Bank invests in Saudi Arabia’s education sector - IFN

Al Salam Bank invests in Saudi Arabia’s education sector

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SAUDI ARABIA: In a filing to the Bahrain Bourse, Shariah compliant Al Salam Bank announced its acquisition of an equity stake in Riyadh-based Education Experts Company (EEC), one of the fastest-growing education institutions in the kingdom, as part of an increased focus by the Bahrain-based Islamic lender on the Saudi Arabian market. Commenting on the transaction, Talal Al Mulla, the bank’s chief investment officer, noted that the acquisition is the first of its kind. Expressing his confidence in the acquisition, he said: “The bank’s partnership with EEC would result in consummating many opportunities in the region with acceptable risk-adjusted returns to Al Salam and its investor base.” Yousif Abdulla Taqi, the director and CEO of Al Salam, further stated that the Saudi government has demonstrated its support towards education over the last five decades, having allocated a substantial amount of the kingdom’s annual budget for the sector. There are currently a total of 34,749 schools, 24 universities and 508 affiliated education institutions in Saudi Arabia. The Education Ministry placed in motion a 10-year strategic plan in 2004, with SAR204 billion (US$54.38 billion) currently put towards the sector; an increase from SAR105 billion (US$27.99 billion) in 2008. Established in 2011, EEC is a national company with several subsidiaries that provide educational training, research and counseling for individuals and institutions. The company also manages training facilities as well as organizes conferences and seminars for educational purposes.