Levant Capital Invests In Warehouse Gym, Fuelling Expansion In GCC Fitness Sector

Warehouse Gym, the UAE's largest premium gym operator, has announced a significant investment from Levant Capital, a leading Middle East private equity firm. This partnership aims to boost Warehouse Gym's regional growth and introduce advanced fitness solutions in key GCC markets, aligning with the region's growing focus on health and wellness.

"We are thrilled to partner with Levant Capital at this pivotal moment in our story. Their extensive experience and resources will undoubtedly help us scale to new heights and continue delivering exceptional fitness experiences to our growing community. Everything we've accomplished makes me proud and excited for the future. I am confident our partnership with Levant Capital will enrich our members' fitness experience, support our growth, and offer exciting opportunities to our employees," said Kevin Teixeira, Co-Founder and CEO of Warehouse Gym.

Levant Capital's investment aligns with its expertise in consumer sector investments, further leveraging Warehouse Gym's strong brand equity and unique market position. The partnership will support the expansion and consolidation in an underserved premium fitness segment, building and developing the current portfolio, and broadening its services to include overall wellness.

The MENA fitness market has been expanding at an annual rate of 30% since 2020. The UAE market is valued at USD 550 million, while the KSA market stands at USD 1.7 billion. Currently, chains represent only 60% of the fitness market in the UAE and 50% in KSA. This leaves significant room for growth as only 7% of the UAE population and 8% in KSA hold gym memberships.

Warehouse Gym currently operates 10 clubs but plans to expand to 30 clubs over the next four years using this investment. This includes a new 55,000-square-foot facility at Dubai Science Park set to open in Q4 2024. The new location will feature cutting-edge design and equipment along with co-working spaces, private meeting zones, creative suites, a podcast studio, a restaurant, nutrition services, recovery suites, and dedicated group exercise areas.

"The UAE recognises the importance of physical, mental and social well-being and has rightly prioritised health and fitness through nationwide fitness challenges and by promoting sports calendars that stimulate the desire to participate in quality sports," commented Fahad AlRafi, Co-Founder of Warehouse Gym. "We have always strived to play a key role in elevating the health and fitness experience for our fast-growing base of members in the UAE and we have exciting innovation and expansion plans over the next few years. Our partnership with Levant Capital will serve to accelerate and achieve those plans."

Warehouse Gym aims to open multiple locations across key GCC markets, targeting a membership base of 50,000 with 30 clubs across UAE and Saudi Arabia. This expansion will create job opportunities while promoting economic diversification through fostering a culture of wellness and community health.

Warehouse Gym boasts high member retention rates due to its strong community focus. It includes high female membership rates and appeals to younger demographics by offering under-16 access. Its holistic wellness offerings encompass mental health programs as well as recovery, mobility, and nutrition services.

The gym has cultivated a loyal community across its network as a locally founded Emirati-owned business. It embodies the UAE's commitment to health, wellness, inclusivity – proving itself as a leading destination for blue-chip corporate customers while being a collaborative partner for global fitness brand PUMA.