Philips in big Saudi healthcare JV
Riyadh, September 30, 2012
Royal Philips Electronics has signed an agreement with Al Faisaliah Medical Systems (FMS), a subsidiary of Saudi-based Al Faisaliah Group to set up a joint venture company to sell its healthcare solutions and services in the Kingdom.
The JV with FMS builds on Philips’ ambition to better serve the needs of local markets and respond to the specific healthcare needs of the population in Saudi Arabia, said the company in a statement.
In addition, the joint venture will facilitate a focus on developing the next generation of skilled Saudi healthcare professionals through dedicated education and training programs, it added.
The JV will combine Philips’ strong healthcare portfolio, including medical imaging systems, patient monitoring devices and clinical information solutions, with FMS’ recognized knowledge of the market requirements and strong position in Saudi Arabia, the largest economy in the Middle East by GDP.
The Saudi Arabian healthcare market is estimated to grow by 8 per cent annually between 2013 and 2017, driven by targeted government spending on health services and hospital infrastructure.
“By partnering with Al Faisaliah Medical Systems in a joint venture, Philips can accelerate its growth in the important Saudi market for healthcare products, services and solutions,” remarked Philips CEO Frans van Houten.
“We have built a strong and trusted relationship with FMS over the past 40 years, and with this joint venture we are now taking the next step to address important healthcare opportunities in a growth market,” he added.
Al Faisaliah Group president and CEO Mohammed bin Khaled Al Abdullah Al Faisal said,“Through the partnership between Philips and FMS, we combine Philips’ clinical expertise and innovations, with FMS' thorough knowledge of local customer needs and requirements, supported with our talented staff and strong infrastructure.”
“We expect that the joint venture will contribute to new levels of healthcare services for the people of Saudi Arabia,” he stated.
The proposed transaction is subject to governmental approval, certain contractual and other closing conditions, and is expected to close in the first half of 2013.-TradeArabia News Service
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