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).
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.