NMC Health, Hassana Investment form JV to build Saudi healthcare network

UAE-based NMC Health and Hassana Investment Company, the investment arm of Saudi Arabia’s General Organization for Social Insurance (GOSI), have agreed to form a joint venture (JV), according to an official statement on Wednesday.

The JV aims to acquire and develop a pan-Saudi network of healthcare facilities with a capacity of up to 3,000 beds.

It will target total investments of up to SAR 6 billion ($1.6 billion) over the next five years in the Kingdom’s healthcare sector, said the statement by Saudi Arabia’s Center for International Communication.

The JV is set to employ up to 10,000 people, 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),” the statement said.

The MoU was signed on the sidelines of the Future Investment Initiative (FII) 2018 in Riyadh.

Saad Bin Abdulmohsin Alfadly, Hassana’s CEO, said the proposed JV has growth plans across different healthcare sub-sectors.

“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.”

The new entity is expected to drive future expansion for London-listed NMC in Saudi Arabia, where it will seek to acquire majority stakes in Saudi-based healthcare operators.

It will also acquire operation and management contracts to oversee private and government hospitals in the Kingdom.

According to the statement, 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 venture is subject to regulatory approvals and signing of definitive agreements after completion of necessary due diligence by both NMC and Hassana.