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The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has
disclosed details regarding its investment in the educational
institution ‘GEMS Education (Global Education Management Systems),
Azernews reports.
SOFAZ pursues investments in alternative financial instruments
to enhance profitability through long-term portfolio optimisation
and monitoring of emerging macroeconomic trends.
“In this context, the investment of $100 million in ‘GEMS
Education’ was undertaken as part of an infrastructure investment
and an alternative financial instrument. Currently, over 135,000
students are enrolled across more than 40 GEMS schools in the UAE.
Generally, SOFAZ’s investment strategy, guided by global indices
and benchmarks, includes a substantial portion in developed
countries. Additionally, the fund strategically allocates
investments, considering regional dynamics and sectors with growth
potential. The Gulf region, particularly the UAE, is a leading
global hub for private secondary education, driven by a growing
population and its emergence as a financial centre. The education
sector, known for its stable long-term income potential, typically
delivers steady returns with minimal susceptibility to economic
fluctuations.”
“The joint investment in GEMS Education alongside prominent
international partners underscores SOFAZ’s recognition as a trusted
investor on the global stage,” the statement emphasised.
Regarding the investment duration in GEMS Education, SOFAZ
indicated a typical long-term approach (5-8 years) for alternative
financial instruments geared towards high profitability: “Unlike
stocks, investments in fixed-income securities and quoted
instruments are closed and span a lengthy period. SOFAZ’s
alternative investments aim at promising growth prospects, with
management companies employing various strategies to enhance
financial performance, increase investment value, and achieve high
profitability. Realising substantial growth and potential expansion
necessitates several years to yield desired outcomes.”
“Notably, SOFAZ, as part of a consortium, invested $100 million
in GEMS Education, among the world’s largest private educational
institutions based in Dubai. Managed by Brookfield Asset
Management, a leading global alternative investment firm
specialising in infrastructure, industrial, and business services,
the consortium also included reputable local and international
investment institutions. Founded in 1899, Brookfield Asset
Management commands significant influence in the market, managing
assets totaling $900 billion.”
It’s worth mentioning that on January 27, 2023, President Ilham
Aliyev met with Bruce Flatt, CEO of Brookfield Asset
Management.
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