Integrated Diagnostics Holdings (IDH), a renowned healthcare services provider led by Egyptian multimillionaire businesswoman Hend El-Sherbini, is planning to invest $19.7 million in a new diagnostic venture in Saudi Arabia.
The move comes after the Egyptian healthcare services provider signed a joint venture agreement with its Jordanian subsidiary, Al Makhbaryoun Al Arab (Biolab), and Izhoor Holding Medical Company (Izhoor), on Monday to launch a new diagnostic venture in Saudi Arabia.
According to the terms of the deal, IDH and Biolab will own 50 percent of the new diagnostic venture, while Izhoor, a company owned by Saudi billionaire property developer Fawaz Alhokair, will own the remaining 50 percent.
IDH’s equity investment in the venture is estimated to be $4.70 million, with an investment of up to $19.7 million for the venture, of which $2.80 million will come from the holding company and $1.90 million from Biolab.
The coming on board of the new venture in 2023 marks IDH’s foray into the Saudi Arabian healthcare market, expanding its footprint in the region a year after it acquired a majority stake in the Islamabad Diagnostic Centre, one of Pakistan’s largest integrated diagnostics providers.
“The Kingdom represents an appealing new market for IDH with ample room for future growth, and provides us with an opportunity to positively impact the lives of hundreds of thousands of patients over the coming years,” El-Sherbini, CEO of IDH, said.
The Egyptian business leader added that the transaction aligns with the group’s long-term regional expansion strategy, which is aimed at driving and building investments in high-growth markets such as Saudi Arabia.
According to Fawaz Alhokair, founder and chairman of Izhoor, the transaction is a significant milestone for the newly launched healthcare initiative and a key step in the development of the unique healthcare ecosystem.
IDH is a leading consumer healthcare group in the Middle East and Africa. The group offers more than 1,400 international-standard diagnostics tests, with a branch network of 483 labs across four countries, making it the largest diagnostics provider in Egypt.
Under the leadership of El-Sherbini, who presently controls a significant 26.1-percent stake in the group, IDH has grown into a major consumer healthcare group in the Middle East and Africa, with operations in Egypt, Jordan, Sudan, and Nigeria.