Advertisement
|25 October, 2018

NMC Health and Hassana Investment Company sign MoU in Saudi healthcare sector

The proposed JV is expected to employ up to 10,000 employees over next 5 years

NMC Health and Hassana Investment Company Sign MoU to Target Investments Valued up to SAR 6 Billion Over Next 5 Years in Saudi Healthcare Sector

NMC Health and Hassana Investment Company Sign MoU to Target Investments Valued up to SAR 6 Billion Over Next 5 Years in Saudi Healthcare Sector

Deal signed on the sidelines of the Future Investment Initiative (FII) 2018 in Riyadh

RIYADH – NMC Health (NMC), a London-listed international private healthcare operator with operations across 17 countries, and Hassana Investment Company (Hassana), the investment arm of the General Organization for Social Insurance (GoSI) of Saudi Arabia, have signed an MoU that aims to form a joint venture (JV) to acquire and develop a pan Saudi Arabia network of world-class healthcare facilities with a capacity of up to 3,000 beds. This MoU targets a total investments value of up to SAR 6 billion over the next 5 years and to employ up to 10,000 employees, including full-and part-time positions. At inception, the proposed JV will become one of the largest private healthcare operators in Saudi Arabia with a combined capacity of 1,489 beds (664 beds contributed by five NMC facilities and 825 beds by two National Medical Care facilities).

NMC and Hassana signed the MoU on the sidelines of the Future Investment Initiative (FII) 2018, the second edition of a major conference-taking place in the Saudi capital Riyadh from October 23rd – 25th, organized by the Public Investment Fund (PIF) of Saudi Arabia and attended by global investors, CEOs and business and governmental leaders.

Advertisement

Prasanth Manghat, Chief Executive Officer of NMC, said: “We identified the Kingdom of Saudi Arabia as a key strategic priority for NMC and the proposed partnership between NMC and GoSI/Hassana would offer a tremendous opportunity for both companies to better serve the KSA healthcare market. The Saudi government’s forward-looking and investor-friendly policies make the Kingdom one of the most attractive destinations in the region for investment in the healthcare sector. NMC is keen to bring its international expertise, world class collaborations, specialized services (Maternity, Oncology, Pediatrics, Diabetes centers etc.) and key verticals (Fertility, Long-term Care, Cosmetics etc.) to serve population of the Kingdom.”

Saad Bin Abdulmohsin Alfadly, Hassana’s CEO, said in a statement, “The proposed partnership between Hassana and NMC is driven by our view that healthcare in Saudi Arabia is one of the most attractive markets for strong long-term growth. The proposed JV has ambitious growth plans across different healthcare sub-sectors, with both partners committed to compounding returns over the long term, whilst providing best-of-class services to patients. Benefiting from Hassana’s role as a strong long-term financial and strategic investor and NMC’s expertise as a sophisticated and successful healthcare expert internationally.

Moreover, Hassana’s strong commitment to the sector, particularly in the form of strategic investments, remains a vital means of attracting and developing healthcare expertise in the country. NMC has been the most progressive foreign entrant into the Saudi healthcare market and would accelerate the process of bringing best international practices to KSA.”

The proposed JV platform would be well-positioned to become one of the most dominant healthcare players in Saudi Arabia and is ideally positioned to capitalize on the health care privatization program in Saudi Arabia in line with the Saudi Vision 2030 initiatives. The JV drives future expansion for NMC in Saudi Arabia where it will seek to take majority stakes in Saudi-based healthcare operators. It will also acquire operation and management contracts to oversee private and government hospitals in the Kingdom, NMC will hold a voting majority in the proposed JV, with the exact stake subject to final terms. NMC will also retain operational and management control of the assets.

The formation of the proposed JV is subject to regulatory approvals and signing of definitive agreements after completion of necessary due diligence by both NMC and Hassana.

As demonstrated with a number of investment announcements during FII, the Kingdom’s investment attraction and promotion strategy is accelerating under the INVEST SAUDI initiative, in line with the objectives of Vision 2030. It seeks to support and build awareness of the significant opportunities that Saudi Arabia offers to international, regional and local investors, led by the Saudi Arabian General Investment Authority (SAGIA) in collaboration with partners across government. 

-Ends-

Riyadh - NMC Health (NMC), a London-listed international private healthcare operator, and Hassana Investment Company (Hassana), the investment arm of the General Organization for Social Insurance (GoSI) of Saudi Arabia, have signed an MoU that aims to form a joint venture (JV) to acquire and develop a pan Saudi Arabia network of world-class healthcare facilities with a capacity of up to 3,000 beds. Signing the deal are H.E. Sulaiman Bin Abdulrahman Al-Gwaiz, Hassana Chairman and Governor of the General Organisation for Social Insurance Director General – Building Technology Stimulus Initiative and  Mr. Khalifa Butti Bin Omeir, Executive Vice Chairman of NMC Health and Founder and Chairman of KBBO Group. This MoU targets a total investments value of up to SAR 6 billion over the next 5 years and to employ up to 10,000 employees, including full-and part-time positions. [Photo by SAGIA, Kingdom of Saudi Arabia]​

About INVEST SAUDI

The Kingdom’s investment attraction and promotion strategy is accelerating under the INVEST SAUDI initiative, launched as part of the National Transformation Plan (NTP) and in line with the objectives of Vision 2030. INVEST SAUDI seeks to support and build awareness of the significant opportunities that Saudi Arabia offers to international, regional and local investors, across all sectors. The initiative is led by the Saudi Arabian General Investment Authority (SAGIA), the inward investment agency of Saudi Arabia, in collaboration with partners across government. 

About Hassana Investment Co.

Founded in 2014, Hassana Investment Co (HIC) is an investment company of the government of the Kingdom of Saudi Arabia for asset management focusing on international equities and fixed-income market. HIC invests in the best interests of GoSI’s stakeholders and maximizes investment returns within acceptable levels of risk being a prudent pension investment manager.

About NMC Health (NMC)

NMC Healthcare is the largest private healthcare company in the UAE and ranks amongst the leading fertility service providers in the world. Over the last 43 years, NMC has earned the trust of millions, thanks to its personalized care, genuine concern and a sincere commitment to the overall well-being of the patient.

NMC was the first company from Abu Dhabi to list on the London Stock Exchange and is now part of the premium FTSE 100 Index, an elite club of top 100 blue-chip companies by market cap. NMC's strategic acquisitions coupled with its legacy institutions have allowed us to fill the service gap in our healthcare delivery system and offer a continuum of care to patients.

Media Contact
For any queries, please contact:
The Center for International Communication, Ministry of Media, Kingdom of Saudi Arabia;
Telephone: +966 59 545 5467
Email: cic@media.gov.sa 
Twitter: @CICSaudi

© Press Release 2018

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.