Dubai’s GII invests SAR600m in Saudi hospital chain

Dubai’s Gulf Islamic Investments (GII) has agreed to acquire a significant equity stake in Saudi Arabia’s Abeer Medical Company (Abeer) in a deal valued at an estimated SAR600m, the latest deal in the kingdom’s buoying healthcare sector.

With $4bn of assets under management, GII’s growth strategy for Abeer includes expanding the number of hospitals and clinics in addition to the roll-out of additional brands to widen the healthcare provider’s scope and geographical footprint.

“GII’s investment will enable us to boost Abeer Medical Company’s network of 14 medical centres and two general hospitals – all with clinics – with a blend of organic growth acquisitions and investment in new healthcare facilities,” said Mohammed Alungal, Abeer’s President & CEO, added

“This is a very exciting development for the healthcare landscape in Saudi Arabia Abeer will continue to pioneer its commitment to providing Affordable Quality Healthcare” as the group is celebrating its 25^th anniversary this year.”

The deal will boost GII’s Saudi healthcare portfolio, which already includes a majority stake in the AlMeswak chain of dental and dermatological clinics.

The partnership of GII and Abeer’s established healthcare network of hospitals, clinics, pharmacies and optical across six cities in Saudi Arabia offers ample opportunities to expand the healthcare services in the kingdom.

Abeer operates about 50 health-care facilities including hospitals, pharmacies and clinics in Saudi Arabia and the Arabian Gulf region.

GII taps Saudi’s buoying healthcare sector

Meanwhile, GII’s acquisition of a SAR600m stake in Abeer comes at a time when the Saudi healthcare sector has been attracting more investment as the kingdom embarks on a plan to boost private-sector participation in the industry.

Saudi Arabia pharma giant Middle East Pharmaceutical Industries Company, also known as Avalon Pharma, set the price for its planned initial public offering (IPO) on the Saudi Exchange last Friday.

Saudi Arabia pharma giant Middle East Pharmaceutical Industries Company, also known as Avalon Pharma, has set the price for its planned initial public offering (IPO) on the Saudi Exchange.

Avalon Pharma set the price range for the offering between SAR78 – 82 per share.

Similarly, generic drugmaker Jamjoom Pharmaceuticals Factory Company raised $335m in an IPO last year and its shares have since doubled.

Read: Saudi Arabia’s Avalon Pharma sets IPO price range