Philips and Al Faisaliah Medical Systems (FMS), a subsidiary of the Al Faisaliah Group, have signed an agreement to set up a 50:50 joint venture to sell Philips' healthcare systems and services in Saudi Arabia. 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. Financial details of the agreement were not disclosed.
The joint venture will combine Philips' healthcare portfolio, including medical imaging systems, patient monitoring devices and clinical information solutions, with FMS-recognised 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 FMS in a joint venture, Philips believes it can accelerate its growth in the Saudi Arabian market for healthcare products and services.
Philips believes the joint venture with FMS will facilitate a focus on developing the next generation of skilled Saudi healthcare professionals through dedicated education and training programmes.