The deal was signed with Hassana Investment Company
NMC Health, the UAE-based healthcare operator, announced that it has signed an agreement to establish a joint venture (JV) in Saudi Arabia in a bid to expand in the kingdom.
The deal was signed with Hassana Investment Company, the investment arm of the General Organisation for Social Insurance (GOSI) in Saudi Arabia, one of the largest pension funds in the world by assets under management, the company said in a statement.
Both parties are now working on closing regulator requirements of NMC's fifth asset in Saudi Arabia, after finalising all commercial terms and agreements.
“This partnership will allow NMC to significantly increase its pace of expansion in the kingdom, while simultaneously bringing best practices to the country. The attractive, but underserved Saudi healthcare market offers significant growth opportunities and the JV is uniquely placed to benefit from them,” Prasanth Manghat, CEO of NMC Health, said.
Under the deal, the Emirati company will own a 52% stake in the new project, while GOSI will hold the remaining 48% stake, and NMC will have operational control, the statement showed.
NMC and GOSI said that they have agreed to a “well-defined long-term sustainable growth plan” for the JV.
“The new JV is well positioned to capitalise on the market opportunities in Saudi and we look forward to transforming the JV into one of the leading healthcare players in the kingdom,” Saad bin Abdulmohsen Al-Fadly, CEO of Hassana, commented.
The company didn’t reveal further details on the JV’s capital.
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