JEDDAH, 25 October 2007 -- Saudi-based Andalusia Group, which operates hospitals and specialized clinics in Saudi Arabia and Egypt, signed on Tuesday a partnership deal with International Finance Corporation (IFC), a member of the World Bank Group, to address the need for high-quality medical services in the country and bring clinical and patient care to underdeveloped markets across the region, especially Egypt.
IFC will provide a $15 million loan and $10 million in equity as part of the $48 million project, which involves expanding the 80-bed Al-Salama hospital in Alexandria to 120 beds, and building the new 100-bed Andalusia-Heliopolis hospital in Cairo. Later, the project will establish a new nursing school in Cairo, with the capacity to train 350 nurses a year. This will help address the severe shortage of trained nurses in the country. The new hospitals are expected to treat an additional 200,000 patients a year and create 1,000 new jobs for medical professionals.
Dr. Darweesh M. Zagzoug, founder and chairman of Andalusia Group and Guy Ellena, director, health and education department, IFC, signed the deal in a ceremony at Laylaty Hall.
The Andalusia Group chairman said "we are delighted to have IFC's help in developing a modern and efficient private health care network in Egypt. We look forward to a major success with IFC's global expertise in investing in the sector."
Ellena said: "This project is in line with IFC's strategy to support intraregional investments in the health care sector. It will help improve the Andalusia Group's environmental, social, insurance, and corporate governance standards and operating practices."
Dr. Hazem Zagzoug, deputy chairman and CEO of Andalusia Group, said "this project marks a key step in our strategy to expand beyond Saudi Arabia to other countries in the region that have the greatest need for high-quality health care and to implement global best practices. Our partnership with IFC has come about after a thorough process that reflects our strengths and sound values." He told Arab News "we will consider issuing an initial public offering (IPO) as a long-term plan."
Established in 1984 with one hospital, the Andalusia Group today operates a network of three hospitals and two specialized clinics in Saudi Arabia and Egypt, providing services to 430,000 patients a year.
Its planned projects include Andalusia-Hai Al-Jamea Hospital, Andalusia-Women and Child Hospitals, and Andalusia-Heliopolis Hospital.
IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments.
© Arab News 2007
