Dubai’s GII invests $160m in Saudi medical group

Unsplash/Hush Naiboo Jade Photography

• GII investing $160m in Abeer
• Abeer operates 50 healthcare practices
• GII has $400m invested in the sector

Sharia-compliant asset management group Gulf Islamic Investments (GII) has invested $160 million (SAR 600 million) in Saudi Arabia’s Abeer Medical Group.

Abeer is the largest affordable healthcare services provider in Saudi Arabia, operating 50 medical centres, clinics, hospitals, pharmacies, and optical centres across GCC countries and India.

GII co-founder and co-CEO Mohammed Alhassan said the Dubai company will help to expand Abeer’s network to new cities and segments, adding additional brands to the scope of services.

• PureHealth acquires UK’s Circle Health for $1.2bn
• Avalon Pharma to float 30% in IPO on Saudi exchange
• Healthtech provider targets early cancer detection across Mena

GII has $4 billion (SAR15 billion) of assets under management, of which healthcare accounts for $400 million (SAR1.6 billion).

In 2021 GII bought a majority stake in Almeswak Dental Clinics, Saudi Arabia’s largest dental and dermatology network, and plans to expand its healthcare portfolio in the kingdom.

Increasing private sector involvement

Saudi Arabia has opened the healthcare sector to foreign investors and operators as part of its Vision 2030 programme.

GII’s acquisition is part of the Saudi medical sector’s continuing growth. It is one of the few industries that have not been affected by economic fluctuations. 

With strong demographic growth, the kingdom will need nearly 100,000 healthcare beds by 2030.

It is moving towards encouraging more private sector participation, scaling its market share from 35-40 percent to 65 percent, according to experts from professional services company Colliers.

Companies in the healthcare sector have been seeking private investment. For example, generic drugmaker Jamjoom Pharmaceuticals raised $335 million in an IPO last year. 

Saudi Arabia’s Middle East Pharmaceutical Industries Company, known as Avalon Pharma, on Friday set the price for its planned IPO on the Saudi Exchange at SAR78–82 per share.