Investment to propel growth and innovation in line with rising health and wellness demand across the Middle East
Warehouse Gym Secures Majority Investment from Levant Capital
Warehouse Gym, the largest premium gym operator in the UAE, known for its innovative spaces and community-driven approach, announces a majority investment from Levant Capital, a prominent Middle East private equity firm. This investment will drive Warehouse Gym’s regional expansion and introduce advanced fitness solutions across key GCC markets, aligning with the region’s increasing focus on health and wellness.
Fuelling Growth in the GCC Fitness Market
The MENA fitness market has been expanding at an annual rate of 30% since 2020, with the UAE market valued at USD 550 million and the KSA market at USD 1.7 billion. Currently, chains represent only 60% of the fitness market in the UAE and 50% in KSA, leaving significant room for growth as the fitness market remains fragmented and underpenetrated, with only 7% of the UAE population and 8% in KSA holding gym memberships.
Currently, Warehouse Gym operates 10 clubs, with plans to leverage this investment to expand to 30 clubs over the next four years, including a 55,000-square-foot facility at Dubai Science Park, opening Q4 2024. In addition to its cutting-edge design and fitness equipment, this new location will also feature a co-working space, private meeting zones, and creative suites. Moreover, it will include a podcast studio, restaurant, nutrition services, recovery suites, and dedicated group exercise areas, offering a comprehensive fitness and wellness experience
“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.
Strategic Partnership and Market Alignment
Levant Capital’s investment strategically aligns with its expertise in consumer sector investments. Additionally, it further leverages Warehouse Gym’s strong brand equity and unique market position. Moreover, the partnership will support the expansion and consolidation in the underserved premium fitness segment, while also building and developing the current portfolio and broadening its services to encompass overall wellness.
With the highest member retention rates in the industry, and a strong focus on community, Warehouse Gym’s inclusive approach includes high female membership rates and appeals to younger demographics, with under-16 access. Its mental health programs and holistic wellness offerings – including recovery, mobility, and nutrition – are all central to its mission. Warehouse Gym has successfully cultivated a loyal community across its network. Moreover, as a locally founded and Emirati-owned business, it exemplifies the UAE’s strong commitment to health, wellness, and inclusivity. In addition, it has firmly established itself as a leading destination for blue-chip corporate customers, while also acting as a collaborative partner for the global fitness brand, PUMA.
“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 calendarsthat 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.”
Expanding Footprint and Impact
Warehouse Gym aims to open multiple locations in key GCC markets, with the goal of reaching 50,000 members across 30 clubs in the UAE and Saudi Arabia. Furthermore, this expansion will create job opportunities while also promoting economic diversification through a growing culture of wellness and community health.
