JEDDAH — Foundation Holdings, a leading healthcare and education-focused investment firm, announced its strategic majority investment in a leading Jeddah-based primary healthcare chain Shifa Al Munthaza Polyclinic (SMP).

The investment into the healthcare sector of Saudi Arabia will support Foundation Holdings’ and SMP’s shared objective of positively impacting the Kingdom’s health care.

Foundation Holdings will use the investment to consolidate the fragmented primary care market and provide quality, affordable value-based healthcare in accordance with the Kingdom's Vision 2030 for healthcare.

The acquisition marks Foundation Holdings' second healthcare investment in Saudi Arabia and its 10th overall. Foundation Holdings has reserved SR250 million for initiatives in the Kingdom.

Primary health care was highlighted in a recent report as a segment that is ripe for development across the GCC. The Kingdom is anticipated to restructure primary care with a projected investment of SR23 billion into the industry as part of Saudi Vision 2030 to develop a robust and sustainable healthcare sector. This in turn is expected to create an SR220 billion market opportunity by 2025 growing at an annual average rate of 16 percent driven by population growth and the increasing incidence of chronic diseases such as diabetes and hypertension.

Abhishek Sharma, chief executive officer of Foundation Holdings said: “Predictably, in the market volatility caused by the pandemic, the healthcare sector has broadly outperformed. We are convinced that Saudi Arabia is set to become a focal point for healthcare and we are excited to partner with SMP to further enhance the quality of healthcare in the region. We are committed to creating a lasting, positive impact within this critical sector and meet the growing demand for high-quality healthcare. We will use our operational know-how and expertise to accelerate the growth of SMP, with a view to IPO in the near future.”

Commenting on the partnership, Hamza Mohyeldin, founder of SMP, said: “We are delighted to be entering into this partnership with Foundation Holdings, as we believe this will provide our business with the additional resources and expertise to continue to strengthen our brand and consolidate our position in our market. We see it as the next step for us to fulfill our own growth ambitions and further serve the country by providing quality affordable healthcare and accessibility at scale.”

Sheikh Abdulillah Abdullah Zahid, chairman of SMP, added that “a key pillar of Foundation Holdings’ investment approach is to work alongside differentiated and leading providers such as SMP and alongside entrepreneurs to create value. Under the leadership of Mr. Hamza Kandappan, SMP has emerged as a market leader in its segment and we have confidence in its future prospects. Foundation Holdings, SMP’s shareholders and the management team share a common vision for the Company which we look forward to realizing together over the coming years.”

The strategic investment builds on SMP’s 30-year track record of serving over 1 million patients each year across 10 specialties and over 140 doctors. Together Foundation and SMP plan to create an omnichannel, integrated health and wellness platform specifically for the value segment across the Kingdom.

Foundation Holdings partnered with EFG Hermes as a financial advisor on the transaction, with King & Spalding and Khalid Nassar & Partners serving as legal counsel. — Agencies