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Dallah Health, AWJ Investment ink deal to build Jeddah hospital

Dallah Health has signed a joint venture agreement with AWJ Investment to incorporate a closed joint stock company

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].

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).

Watch: PIF's construction investments set to secure Saudi's growth

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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Construction Week - Issue 751
Oct 13, 2019