Royal Philips Electronics has signed an agreement with Al Faisaliah Medical Systems in Riyadh, Saudi Arabia, to set up a 50-50 joint venture to sell Philips Healthcare products and services in the Kingdom of Saudi Arabia.
The Saudi Arabian healthcare market is estimated to grow by 8 percent annually between 2013 and 2017, driven by targeted government spending on health services and hospital infrastructure, according a release from Philips. The joint venture is part of Philips' goal to serve the needs of local markets. Dedicated education and training programs for Saudi healthcare professionals will be facilitated through the agreement.
Financial details of the agreement were not disclosed. It is expected to close in the first half of 2013, subject to governmental approval and certain contractual and other closing conditions.