Levant Capital Invests in Warehouse Gym, Supporting Growth in the GCC Fitness Sector

Warehouse Gym, one of the largest premium gym operators in the UAE, has secured a significant investment from Levant Capital, a leading private equity firm in the Middle East. This strategic partnership is poised to accelerate Warehouse Gym's expansion throughout the region while introducing innovative fitness solutions in key GCC markets, reflecting the growing emphasis on health and wellness in the area.

"We are excited to partner with Levant Capital at this crucial juncture in our journey. Their vast expertise and resources will undoubtedly empower us to reach new heights and continue providing exceptional fitness experiences to our expanding community. I take great pride in what we have achieved so far and look forward to the future with enthusiasm. I am confident that our collaboration with Levant Capital will enhance our members' fitness journeys, support our growth, and create exciting opportunities for our employees," said Kevin Teixeira, Co-Founder and CEO of Warehouse Gym.

Llevant Capital's investment aligns seamlessly with its expertise in consumer sector investments, strategically enhancing Warehouse Gym's robust brand equity and distinctive market position. This partnership aims to foster growth and consolidation within the underserved premium fitness segment, while enhancing the existing portfolio and expanding services to encompass overall wellness.

The MENA fitness market has been experiencing remarkable growth, expanding at an annual rate of 30% since 2020. The UAE market is valued at USD 550 million, while the market in Saudi Arabia (KSA) is significantly larger at USD 1.7 billion. Currently, fitness chains account for only 60% of the market share in the UAE and 50% in KSA. This indicates substantial potential for growth, especially considering that only 7% of the UAE population and 8% in KSA have gym memberships.

Warehouse Gym currently operates 10 clubs and aims to expand to 30 over the next four years with this investment. A highlight of this expansion is a new 55,000-square-foot facility at Dubai Science Park, set to open in Q4 2024. This state-of-the-art location will feature innovative design and equipment, alongside co-working spaces, private meeting areas, creative suites, a podcast studio, a restaurant, nutrition services, recovery suites, and dedicated group exercise zones.

"The UAE recognizes the significance of physical, mental, and social well-being, and has rightly prioritized health and fitness through nationwide fitness challenges and the promotion of sports initiatives that encourage quality participation," stated Fahad AlRafi, Co-Founder of Warehouse Gym. "We have consistently aimed to enhance the health and fitness experience for our rapidly growing member base in the UAE, and we have exciting plans for innovation and expansion in the coming years. Our partnership with Levant Capital will be instrumental in accelerating and realizing these objectives."

Warehouse Gym plans to expand its presence across key GCC markets by opening multiple locations, aiming to build a membership base of 50,000 through 30 clubs in the UAE and Saudi Arabia. This growth will not only create job opportunities but also contribute to economic diversification by fostering a culture of wellness and community health.

The gym enjoys high member retention rates, driven by its strong community focus. It boasts a significant female membership and attracts younger demographics by allowing access for those under 16. Furthermore, Warehouse Gym offers a comprehensive approach to wellness, including mental health programs, recovery and mobility services, and nutrition support.

Source: onearabia

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