UAE-Based Warehouse Gym Secures Investment for GCC Expansion
The premium gym operator plans to open 20 new locations and reach 50,000 members across the GCC in the next four years.
Warehouse Gym, a premium gym operator in the UAE, has received an undisclosed investment from UAE-based Levant Capital to support the company's expansion into key GCC markets and enhance its fitness offerings amid the region's growing focus on health and wellness.
Warehouse Gym currently operates 10 clubs in the UAE at locations like Al Quoz, Dubai International Financial Centre, Jumeirah Park Clubhouse, Yas Bay, Springs Souk, and Al Khawaneej. It now plans to expand to 30 clubs spread across the UAE and Saudi Arabia over the next four years.
The investment from Levant Capital—a Dubai-based asset manager specializing in private equity investments—is set to help it develop new facilities, including a 55,000-square-foot gym at Dubai Science Park, scheduled to open in the fourth quarter of 2024. The new facility will feature advanced fitness equipment, a co-working space, private meeting zones, a podcast studio, a restaurant, nutrition services, and recovery suites.
Warehouse Gym also aims to reach 50,000 members with its new locations across the UAE and Saudi Arabia. This expansion is thus expected to create job opportunities as well as contribute to economic growth.
In an interview with Inc. Arabia, Warehouse Gym co-founder and CEO Kevin Teixeira noted that its distinctive brand identity is what sets it apart from other fitness brands in the region. “As the UAE's largest premium gym chain, we understand customers want more from their fitness experience,” he said, “We offer a diverse range of services, including recovery therapies like ice baths, infrared therapy, sports massage, and cryotherapy; unique fitness programs like high-intensity training such as Crossfit, Grit, and Hyrox; specialized classes like yoga, mobility, and Pilates; and kids fitness classes, all of which are offered in beautifully designed spaces.”
Teixeira also pointed out that Warehouse Gym has made it a priority to integrate the latest fitness technologies and wellness trends to create a holistic experience for its members. “We're developing artificial intelligence (AI) solutions to understand our customers' needs better,” he shared. “Using advanced algorithms, our AI solution will offer personalized training recommendations, track progress, and provide insights tailored to individual fitness levels. This approach will help members optimize their workouts, and allow us to serve them better.”
Additionally, Teixeira revealed that Warehouse Gym is also developing an online platform to extend its expertise beyond physical locations, allowing members to access fitness knowledge anytime. “We are currently about to launch phase one towards achieving this goal,” he said, “This initiative also ensures that our members can access valuable fitness knowledge anytime, anywhere, empowering them to take charge of their health.”
Commenting on the investment from Levant Capital, Teixeira said that the private equity investor is hoping to grow the sales and profitability of the business, with its priorities including driving membership growth, enhancing its core offerings, and expanding to new locations across the UAE and GCC. “To enable this ambitious growth plan, Levant Capital works closely with the management team to quickly ensure that the company has the required governance structure, systems, processes, financial resources, and human talent,” Teixeira added.
The MENA fitness market has been growing at an annual rate of 30% since 2020, with the UAE market valued at US$550 million and the Saudi Arabian market at $1.7 billion. Chains currently represent 60% of the fitness market in the UAE and 50% in Saudi Arabia, which indicate potential for further growth.
