Developments relating to the construction of a pharmaceutical plant and a hospital were announced recently.
Malaysian firm Pharmaniaga Bhd has teamed up with Saudi Arabia-based Modern Healthcare Solutions Co Ltd to jointly construct and manage a pharmaceuticals manufacturing plant in Sudair Economic City, near Riyadh airport.
However, no details were given concerning the size or investment of the proposed plant. Under a deal signed on May 18, Pharmaniaga and Modern will form a 50-50 joint venture company called Modern-Pharma Co Ltd in Riyadh.
“Apart from the construction of the pharmaceuticals manufacturing plant, the JV company will also produce, market and supply healthcare products and services to countries in the Middle East and North Africa (Mena) region,” said Pharmaniaga in a statement.
“This JV is part of Pharmaniaga’s long-term strategy to accelerate growth plans for our international pharmaceuticals business by capitalising on the rapidly growing opportunities within the Mena region,” said its managing director Datuk Farshila Emran.
The JV is subject to conditions precedents, among them, completion of a feasibility study and due diligence conducted by the shareholders.
Meanwhile, Arabtec Holding PJSC said its joint venture between Arabtec Saudi Arabia LLC and Greece’s Terna SA has been awarded a SR404 million )$107.7) contract by Aldara Medical Corporation to build Aldara Hospital and Medical Centre, a 105-bed hospital in the Saudi capital.
Arabtec is implementing a strategy to diversify across the GCC region and expand into specialised, high-margin areas of construction. It has a 60 per cent stake in the Arabtec-Terna joint venture.
The six-storey hospital is being constructed on a built-up area of 107,000 sq m and will consist of six floors and include two medical centres.
“Saudi Arabia is rapidly developing its social and physical infrastructure, and we believe there is a strong opportunity for Arabtec to participate in construction projects in the kingdom such as hospitals, schools and transportation. This is another sign that the regional construction market is returning to health,” said Arabtec Holding chief executive Hasan Abdullah Ismaik.
Arabtec’s current backlog is valued at nearly Dh21billion ($5.7 billion). Arabtec’s operations in Saudi Arabia, where the company is building a 5,000-villa project, have been a key driver of revenue growth.
Construction on the Aldara Hospital and Medical Centre is expected to be completed in early 2015.
