RIYADH — Foundation Holdings, a strategic global investment firm, in collaboration with MindChamps PreSchool, a leading early learning institution with centers in Australia and Singapore, announced the launch of a joint venture targeted at transforming the preschool education segment in Saudi Arabia and the GCC region. Foundation Holdings and MindChamps PreSchool each own 50 percent of the joint venture and are partners in the GCC PreSchool Fund that was established as a first order of business. The two partners aim to leverage the fund to raise an initial tranche of between $50 million and $100 million to facilitate them in acquiring and establishing preschools across the Kingdom and the GCC region. The joint venture will leverage Foundation Holdings’ strategic insight and sector-specific knowledge and the MindChamps brand’s operational expertise and experience to introduce innovative and high quality academic offerings. According to a recent report by Boston Consulting Group, the K-12 market is expected to double over the next five years, from $13 billion to $26 billion by 2023. In Saudi Arabia alone, the K-12 private education market is poised to catapult from $5 billion in 2017 to $12 billion in 2023. With an intake of more than 437,000 preschool students each year in Saudi Arabia and 154,000 in the United Arab Emirates — 39 percent of these in private schools — the sector continues to hold considerable appeal for investors and school operators. Under the joint venture, a new company will be created and appointed master franchisee for MindChamps in the region. The entity will facilitate the management and operations of the newly established or acquired preschools under the MindChamps brand in the GCC region. Speaking on the partnership, Abhishek Sharma, founder CEO of Foundation Holdings, said: “The Organization for Economic Cooperation and Development (OECD) strongly encourages countries and communities to invest more in high quality early children education and care. We strongly believe the healthcare and education sectors are set to drive human capital, innovation and transformational opportunities in the coming phase. “This groundbreaking joint venture is an exciting new chapter for Foundation Holdings, especially in Saudi Arabia and the UAE. The ambitious collaboration allows Foundation Holdings and MindChamps to combine forces and utilize education, the most powerful tool in the arsenal of governments today, to bring about change at a grassroots level.” Developed by a team of interdisciplinary experts, the MindChamps program is designed to create champion learners at the early learning stage through nurturing the joy of discovery. In unison with the 3-Mind teaching method, the school’s philosophy of ‘100% Respect and Zero Fear’ empowers young kids with the freedom to be creative and unique. David Chiem, founder CEO and executive chairman of MindChamps PreSchool Limited, said: “Individuals and nations cannot reach their full potential without quality, accessible education. Today, there is a strong need in the GCC region to build and invest in the pre-schools sector, and develop new capacity — thereby improving access, and upgrading quality and service. This new alliance will further enable MindChamps to strengthen its branding and positioning. “We are excited that our partnership with Foundation Holdings will enable us to transfer our breakthrough education model and research-based curriculum of the "3-Minds" (the Champion Mind, the Creative Mind and the Learning Mind) approach to prepare children of the GCC region for the fascinating world of AI and beyond.” The education sector in the GCC region is anticipated to grow due to a rising population, and a growing preference for private education is perceived. Despite a regional economic slowdown, governments have continued to make sizable budgetary allocations to the education sector. Various studies show the investments in early children education and care support parents and boost female employment. One of the central themes of Saudi Arabia’s National Transformation Program (NTP) is to boost female labor force participation (FLP) to 25 percent by 2020. Saudi Arabia’s efforts to raise FLP are expected to yield positive outcomes for the country’s pre-schools sector. MindChamps PreSchool Limited is a leading early education provider and market leader of premium preschools with over 75+ centers in Singapore and Australia. Since 2017, the group has been listed on Singapore Exchange Limited, Singapore’s principal stock exchange. Foundation Holdings is a strategic global investment firm focused on building sustainable, industry-defining companies in the impactful healthcare, education and consumer sectors across India and the GCC region. Since its inception, the firm has invested over $150 million in healthcare and education in India and the GCC region. — SG