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Home / NEWS / Dallah Health, AWJ Investment ink deal to build Jeddah hospital

Dallah Health, AWJ Investment ink deal to build Jeddah hospital

by Fatima De La Cerna on Nov 14, 2017


Dallah Health and AWJ Investment have signed an agreement to build and operate a hospital in Jeddah [representational image].
Dallah Health and AWJ Investment have signed an agreement to build and operate a hospital in Jeddah [representational image].

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Dallah Health has signed a joint venture agreement with AWJ Investment to incorporate a closed joint stock company, it has been revealed.

In a statement issued to Saudi Arabia’s stock exchange, Tadawul, Dallah Health said that the joint stock company will build and operate a full-service hospital in the Al Manar area of Jeddah, with an initial capital of $133,317 (SAR500,000).

Shares of the new company will be divided between the two entities, with 56% going to Dallah Health and the remaining 44% to AWJ Investment.

Under the terms of the deal, Dallah Health will invest $93.3m (SAR350m) for the construction of the hospital, while AWJ Investment will provide the land on which the hospital will be built. The land spans 150,000m2 and is valued at $72m (SAR270m).

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The contract also indicates that the parties may terminate the joint venture agreement if they are unable to acquire the necessary permits within a year of signing.



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