Amanat Holdings PJSC: A High-Growth Investment in UAE Education and Healthcare Sectors

Amanat Holdings PJSC (DFM: AMANAT) has emerged as a compelling investment opportunity in the UAE's evolving economic landscape. As a mid-cap stock with a market capitalization of AED 3.06 billion according to the company's press release, the company is strategically positioned to capitalize on the rapid growth of the education and healthcare sectors-two pillars of the UAE's long-term development strategy. With robust earnings momentum, a clear monetization strategy, and exposure to high-growth industries, Amanat offers a rare combination of value and potential.

Financial Performance: Earnings Momentum and Strategic Monetization

Amanat's 2025 financial results underscore its operational strength. For the nine-month period ending September 2025, the company reported a 15% year-on-year increase in revenue from continuing operations, reaching AED 622.1 million. This growth was driven by its Education and Healthcare segments, which contributed AED 332.3 million (24% growth) and AED 289.8 million (6% growth), respectively according to the company's financial results. The Education segment's outperformance was fueled by a 22% year-on-year rise in student enrollments, while the Healthcare segment benefited from expanded bed capacity and operational efficiency as reported in financial data.

A critical catalyst for Amanat's financial resilience has been its monetization strategy. The divestment of real estate assets from North London Collegiate School generated AED 453 million in cash proceeds, strengthening liquidity. Additionally, the company's planned IPO of its Education business, Almasar Alshamil Education, was oversubscribed 102.9 times, signaling strong investor confidence. These moves not only de-risk the balance sheet but also unlock value for shareholders.

Sectoral Exposure: UAE's Education and Healthcare Growth Trajectory

Amanat's dual focus on education and healthcare aligns with UAE government priorities. The education sector, in particular, is undergoing transformative reforms. For the 2025-2026 academic year, the UAE Ministry of Education introduced diagnostic assessments to identify learning gaps and promote personalized learning. These reforms, coupled with the adoption of AI curricula and e-learning, are expected to drive demand for private and international education institutions. The UAE's higher education market alone is projected to grow at a compound annual growth rate (CAGR) of 19.92%, reaching USD 872.15 million by 2033. Amanat's Education segment is well-positioned to benefit from this trend, given its scalable infrastructure and focus on expatriate and international student populations.

The healthcare sector is equally promising. UAE healthcare spending is forecasted to account for 4.6% of GDP by 2026, driven by an aging population, rising obesity rates, and government investments in infrastructure. Initiatives like the partnership between Abu Dhabi Health Services Company (SEHA) and Mayo Clinic to establish Sheikh Shakhbout Medical City highlight the UAE's commitment to world-class healthcare delivery. Amanat's Healthcare segment, with its expanding bed capacity and operational efficiency, is poised to capture a growing share of this market.

Valuation and Analyst Sentiment: A Buy Opportunity

Amanat's valuation metrics further reinforce its appeal. The stock trades at a price-to-earnings (P/E) ratio of 14.8x, which is above the peer average of 12.6x but below the industry average of 15.8x according to financial analysis. This suggests the market is pricing in growth while leaving room for upside. Analysts have assigned a strong "Buy" consensus rating, with a target price of AED 1.30-implying a 2.36% potential gain from the last closing price of AED 1.27 according to market data.

Despite a rise in the debt-to-equity ratio from 2.8% to 10.9% over five years according to financial reports, Amanat's free cash flow remains robust at AED 103 million as of September 2025 as reported in financial data, providing flexibility for reinvestment or shareholder returns. The company's earnings growth-up 330.2% year-on-year in 2025-far outpaces the Diversified Financial industry's 15.4% growth, underscoring its competitive edge.

Conclusion: A High-Growth, Undervalued Mid-Cap

Amanat Holdings PJSC represents a rare convergence of strong earnings momentum, strategic sectoral exposure, and an attractive valuation. Its Education and Healthcare segments are directly aligned with UAE government priorities, ensuring long-term growth tailwinds. Meanwhile, its monetization efforts and IPO success demonstrate management's ability to unlock shareholder value. For investors seeking exposure to the UAE's high-growth industries, Amanat offers a compelling case as an undervalued mid-cap with significant upside potential.