Jadwa Investment (“Jadwa”), a leading investment management and advisory firm in the Middle East, and Gulf Islamic Investments LLC (“GII”), a leading real estate, private equity and venture capital company based in the United Arab Emirates, announced today that Jadwa Healthcare Opportunities Fund 3—a fund managed by Jadwa—has sold its majority stake in Al Meswak Dental Clinic (“Al Meswak”) to GII and Jadwa Healthcare Opportunities Fund 5, a newly formed fund managed by Jadwa.
Fast-growing and valued at over USD 530 million (SAR 2 billion), Al Meswak is the largest dental and dermatology service provider in Saudi Arabia. Since Jadwa’s initial investment in the company in December 2017, Al Meswak has grown its operations from 30 clinics in five cities to more than 80 clinics across 20 cities and more than 700 doctors serving 450,000 patients annually. This growth has been achieved through a combination of acquisitions and organic expansions, including the introduction of Al Meswak’s dermatology offering in 2020.
Commenting on the acquisition, Mohammed Al Hassan, Co-CEO and Co-Founder of GII, said: “This is a landmark transaction that reflects our capability and reach in the healthcare sector and the Saudi market. We look forward to building a long-term partnership with Jadwa Investment, and to work together towards listing Al Meswak on Tadawul within the next two to three years. This reflects our growing commitment to this market, where we are currently evaluating several other opportunities.”
Pankaj Gupta, Co-CEO and Co-Founder of GII, added: “The healthcare market in the Kingdom is the largest in the Gulf region and offers attractive investment opportunities for us to expand our asset portfolio. We also see significant potential in the fast-growing Saudi logistics and financial services sectors.”
Tariq Al-Sudairy, Managing Director and CEO of Jadwa Investmen, said: “Our success with Al Meswak demonstrates the strong fundamentals of the Saudi healthcare sector and our ability to create real value for our clients. We are pleased to partner with GII in Al Meswak’s next stage of growth, and to invest jointly in the continued development of the dental and dermatology space in Saudi Arabia.”
Saad Al-Saif, Head of Private Equity at Jadwa Investment, added, “This landmark transaction is a testament to Jadwa’s investment track record in healthcare and to our approach to long-term value creation. Over a four-year holding period, we worked closely with Al Meswak to expand the company’s operations, extend its service offering, and enhance its corporate governance.”
GII has a strong healthcare portfolio, comprising investments in care homes in Germany and private hospitals, pharmaceutical and diagnostic reagent manufacturers in India. This acquisition builds upon GII’s strong presence in the Gulf region, where many of its investors are based. The company, which has an investment portfolio of more than USD 3 billion (SAR 11.25 billion) in assets under management, continues to aggressively pursue new growth investment opportunities in the GCC, as well as overseas.
Jadwa Investment is a leading private equity investor in Saudi Arabia and the wider region. The sale of Al Meswak marks the firm’s seventh private equity exit and brings its aggregate private equity distributions to clients to SAR 6.5 billion.