Dubai-based Foundation Holdings, a leading healthcare and education-focused investment firm, announced its strategic majority investment in a leading Jeddah-based primary healthcare chain Shifa Al Munthaza Polyclinic (SMP).
This is the second investment into Saudi Arabia’s healthcare sector, with $66.65 million (SR250 million) earmarked for initiatives in the Kingdom, half of which was on the SMP deal.
The investment into the healthcare sector of Saudi Arabia will support Foundation Holdings’ and SMP’s shared objective of positively impacting the Kingdom’s health care.
SMP has a 30-year track record of serving over 1 million patients each year across 10 specialties and over 140 doctors.
Foundation Holdings will use the investment to consolidate the fragmented primary care market and provide quality, affordable value-based healthcare in accordance with the Kingdom’s Vision 2030 for healthcare.
Primary health care was highlighted in a recent report as a segment that is ripe for development across the GCC. The Kingdom is anticipated to restructure primary care with a projected investment of SR23 billion into the industry as part of Saudi Vision 2030 to develop a robust and sustainable healthcare sector.
This in turn is expected to create an SR220 billion market opportunity by 2025 growing at an annual average rate of 16 percent driven by population growth and the increasing incidence of chronic diseases such as diabetes and hypertension.
Abhishek Sharma, chief executive officer of Foundation Holdings said: “We are convinced that Saudi Arabia is set to become a focal point for healthcare and we are excited to partner with SMP to further enhance the quality of healthcare in the region. We are committed to creating a lasting, positive impact within this critical sector and meet the growing demand for high-quality healthcare. We will use our operational know-how and expertise to accelerate the growth of SMP, with a view to IPO in the near future.”
Commenting on the partnership, Hamza Mohyeldin, founder of SMP, said: “We are delighted to be entering into this partnership with Foundation Holdings, as we believe this will provide our business with the additional resources and expertise to continue to strengthen our brand and consolidate our position in our market. We see it as the next step for us to fulfill our own growth ambitions and further serve the country by providing quality affordable healthcare and accessibility at scale.”
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