A unit of Saudi Arabia’s sovereign wealth fund, Jada, has invested in a $250 million health fund. This investment is expected to play a pivotal role in the kingdom’s healthcare industry.
What Happened: The fund, named Afiyah, will focus on the healthcare sector in Saudi Arabia. The fund will invest in local healthcare companies and international firms looking to expand into the kingdom. It will also concentrate on specialist treatment centers and clinics, reported Bloomberg.
Other investors in the fund include entities from the Middle East and Europe. TVM Capital Healthcare, a Dubai and Singapore-based healthcare investment firm, will manage the fund.
The Afiyah fund is one of the first healthcare-focused investment vehicles in Saudi Arabia and aims to capitalize on plans to increase the role of the private sector in the industry.
Why It Matters: This investment by Jada is in line with Saudi Arabia’s broader strategy to diversify its economy and reduce its reliance on oil. The country has been making significant strides in AI technology, semiconductors, and open-source AI, and this move further solidifies its commitment to developing non-oil sectors.
Investments in the healthcare industry are also a part of the country’s broader strategy to boost the private sector and attract foreign investment.
This is evident in the recent success of healthcare IPOs in the country, such as the Dr. Soliman Abdul Kader Fakeeh Hospital’s IPO, which was oversubscribed by institutional investors, according to the report.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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