TVM Capital Healthcare launches $250m fund for Saudi medical firms

TVM Capital Healthcare launches $250m fund for Saudi medical firms
The launch of the new fund builds on the firm’s past successes in the region, delivering compelling returns and showcasing its expertise in sourcing deals and nurturing the growth of sustainable enterprises. Shutterstock
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Updated 28 May 2024
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TVM Capital Healthcare launches $250m fund for Saudi medical firms

TVM Capital Healthcare launches $250m fund for Saudi medical firms

RIYADH: Saudi medical companies stand to benefit as private equity firm TVM Capital Healthcare unveils its second pool of funding valued at $250 million for the Middle East. 

Since 2009, the international growth capital investment fund has operated in the Middle East, expanding to Southeast Asia in 2021. 

The launch of the new fund builds on the firm’s past successes in the region, delivering compelling returns and showcasing its expertise in sourcing deals and nurturing the growth of sustainable enterprises, according to a press release. 

Bandr Al-Homaly, managing director and CEO of Jada Fund of Funds, said that the closing of the deal marks an important milestone in mobilizing private capital into Saudi Arabia’s healthcare sector. 

“We are pleased to lead the investment, providing capital to support the development of the sector in line with Vision 2030,” he said. 

TVM Capital focuses on addressing medical needs through strategic investments in entrepreneurial ventures. 

These efforts bring about lasting positive impacts in local communities and offer significant returns for investors, it said. 

The firm said it has built a reputation as an international fund manager involved in financing and overseeing major medical companies within the Kingdom. 

The company also invests in healthcare growth deals in Europe and the US to support these firms’ expansion plans for Saudi Arabia and the wider Gulf Cooperation Council. 

With this two-pronged strategy, TVM Capital aims to bolster the Saudi economy and enhance the region’s access to cutting-edge products, technologies, and services.

Chairman and CEO Helmut M. Schuehsler expressed pride in attracting a notable consortium of institutional and family investment groups from Saudi Arabia, other GCC countries, and Europe. They are investing in a specialized capital pool dedicated to domestic companies in the Kingdom and international firms entering the market.

 “We are uniquely positioned for success because our leadership team comprises executives with long-standing expertise in Europe and the US, who have built excellent international networks throughout their careers, alongside local Saudi healthcare experts,” he said. 

The chairman noted that their investment journey in the GCC and Egypt spans over 13 years, with a specific focus on Saudi Arabia since 2015 through their previous portfolio companies, ProVita International Medical Center and Cambridge International Medical Center. 

“Today, we are truly excited about our ability to enhance the local and regional healthcare ecosystem at a much larger scale, helping to improve access to high-quality patient care, medical products, and treatment regimens across the Kingdom,” Schuehsler said. 

Among the initial investments of the fund are Baraya Extended Care, a chain of long-term, post-acute care and rehabilitation clinics based in Riyadh; and DEBx Medical, a developer and manufacturer of innovative products for chronic wound treatment based in Amsterdam, which is set to enter the Saudi market. Additionally, neurocare group, a provider of personalized mental health services and products headquartered in Munich, with clinics in the US, the Netherlands, and Australia, is gearing up to enter Saudi Arabia and the GCC. 

According to the statement, additional deals encompass longevity and genomics, oncology and pharmaceuticals, as well as manufacturing and diagnostics. 

TVM Capital operates offices in Riyadh, Dubai, Singapore, and Ho Chi Minh City, with supporting offices in Munich and Boston. 

The multinational law firm Morgan Lewis represented the firm in the fundraiser.


UAE, Ukraine sign comprehensive economic partnership deal

UAE, Ukraine sign comprehensive economic partnership deal
Updated 19 sec ago
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UAE, Ukraine sign comprehensive economic partnership deal

UAE, Ukraine sign comprehensive economic partnership deal

JEDDAH: The UAE and Ukraine have signed a Comprehensive Economic Partnership Agreement, removing customs duties on 99 percent of Emirati goods and 97 percent of Ukrainian exports to boost trade and investment. 

The agreement aims to unlock new trade and investment opportunities, fostering deeper economic ties between the countries, reported the Emirates News Agency. 

The signing ceremony was attended by UAE President Sheikh Mohamed bin Zayed Al-Nahyan and Ukrainian President Volodymyr Zelenskyy, marking a major step in enhancing bilateral economic cooperation. 

This follows the UAE’s signing of CEPAs since 2021 with countries like India, Indonesia, Turkiye, Israel, Malaysia, Jordan, and Morocco to boost trade, attract investments, and protect exports and intellectual property. 

The UAE president emphasized the strategic importance of the CEPA, highlighting its role in boosting bilateral trade and advancing both nations' economic ambitions. He expressed confidence that the agreement would strengthen economic relations and contribute to sustainable development. 

Zelenskyy echoed these sentiments, emphasizing that the agreement would benefit both Ukraine and the UAE, expanding economic cooperation and providing new opportunities for growth. 

The CEPA agreement was signed in a formal ceremony at Qasr Al-Shati by UAE Minister of State for Foreign Trade Thani bin Ahmed Al-Zeyoudi and Ukraine’s First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko. 

The deal is projected to contribute $369 million to the UAE’s gross domestic product and $874 million to Ukraine’s by 2031. It is also expected to accelerate Ukraine’s economic recovery and create new opportunities in sectors such as infrastructure, heavy industry, and aviation, as well as aerospace, and information technology, according to WAM. 

The deal was signed after the two countries expressed their intent to negotiate a CEPA in December 2022, following over $3 billion in trade and investment commitments made during Zelenskyy’s visit to the UAE in February 2021.

Bilateral trade between the UAE and Ukraine totaled $372.4 million in 2024, down from $385.8 million in 2023. Joint foreign direct investment reached $360 million by 2022, covering sectors like logistics, infrastructure, tourism, and advanced technology. 

The CEPA aligns with the UAE’s broader strategy to expand its global trade partnerships and increase investment across various sectors. The country aims to grow its non-oil trade to 4 trillion dirhams ($1.1 trillion) by 2031, with international trade playing a central role in its economic vision.


Closing Bell: Saudi benchmark index edges down to close at 12,266

Closing Bell: Saudi benchmark index edges down to close at 12,266
Updated 55 min 46 sec ago
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Closing Bell: Saudi benchmark index edges down to close at 12,266

Closing Bell: Saudi benchmark index edges down to close at 12,266

RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Monday, losing 105.61 points, or 0.85 percent, to close at 12,266.46.    

The total trading turnover of the benchmark index was SR5.4 billion ($1.2 billion), as 41 stocks advanced, while 201 retreated.      

The MSCI Tadawul Index also declined by 15.52 points, or 1.01 percent, to close at 1,521.64.  

The Kingdom’s parallel market, Nomu, lost 92.37 points, or 0.29 percent, to close at 31,644.81. This comes as 30 stocks advanced while 52 retreated.    

Arabian Internet and Communications Services Co. emerged as the best-performing stock, with its share price surging by 4.82 percent to SR355.    

Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 3.90 percent to SR29.30, and Shatirah House Restaurant Co., which saw a 3.65 percent increase to SR23.26.   

Abdullah Saad Mohammed Abo Moati for Bookstores Co. rose 3.02 percent to SR42.70, while Jamjoom Pharmaceuticals Factory Co. gained 2.74 percent to SR164.80.  

Anaam International Holding Group saw the steepest decline of the day, with its share price easing 5.80 percent to close at SR24.68.  

Al Mawarid Manpower Co. fell 3.45 percent to SR134.20, while Al Majed Oud Co. dropped 3.28 percent to SR171.20.  

Middle East Healthcare Co. also faced a loss in today’s session, with its share price dipping 2.99 percent to SR81.20, while Mutakamela Insurance Co. saw a 2.77 percent to settle at SR17.52.   

On the announcements front, Dar Al Arkan Real Estate Development Co. has fully redeemed its $600 million sukuk from its 2025 Series 6 Medium-Term Note program. 

In a bourse filing, the company confirmed that the sukuk was paid in full on its due date, with the principal amount transferred to the designated account.  

The sukuk, valued at $600 million, was originally issued on Oct. 15, 2019, with a trading end date of Feb. 15. 

Dar Al Arkan utilized its internal resources to meet the obligation, ensuring a smooth redemption process. HSBC Bank served as the transaction’s paying agent and sukuk holders’ agent.  

A total of 3,000 sukuk units, each with a par value of $200,000, were redeemed, representing 100 percent of the issued amount. 

Sukuk holders are scheduled to receive their respective amounts in their accounts on Feb. 17.

The financial impact of the redemption will be reflected in the company’s first-quarter 2025 results. 

Dar Al Arkan acknowledged the role of its investors and sukuk holders in the transaction, emphasizing their continued trust in the company, its board, and its executive management. 


Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister
Updated 17 February 2025
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Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

RIYADH: Turkiye’s efforts to tighten fiscal policy are being hampered by the financial burden of earthquake reconstruction, Finance Minister Mehmet Simsek said, as the government grapples with balancing spending and economic stability. 

Speaking during a closing panel at the AlUla Conference for Emerging Market Economies, Simsek said the country’s fiscal position remains under pressure due to ongoing rebuilding efforts. 

Turkiye was struck by a 7.8-magnitude earthquake and a powerful aftershock on Feb. 6, 2023, devastating 11 provinces, killing over 53,000, and causing $34.2 billion in damages — 4 percent of its 2021 gross domestic product, according to a World Bank rapid damage assessment report. The estimate covered direct physical damage but did not account for indirect or secondary economic impacts. 

“We have spent about $74 billion over the past two years, which is equivalent to just over 6 percent of GDP on earthquake reconstruction because we are building cities from scratch. Currently, 450,000 units are under construction; it’s the whole infrastructure,” Simsek said. 

“Last couple of years, fiscal deficit to GDP has been around 5 percent, which is relatively high by Turkish standards. This year, we aim to bring it down to about 3 percent, so fiscal adjustment is underway,” he added. 

The fiscal challenges come as Turkiye’s government pledged in March to continue tightening policy to curb inflation. The same month, Fitch Ratings upgraded Turkiye’s credit rating to “B+” from “B,” citing a more disciplined approach to monetary policy. 

Despite headwinds, Simsek said inflation expectations are improving, albeit slowly. 
 
“Inflation expectations are improving, but it’s been sluggish, in particular among households and among, you know, corporates, while markets obviously tend to have a better reading of what we are saying,” he said. 

He emphasized that there is no substitute for better policies, stressing that the key lies in sound policymaking and effective execution. “For this year, it’s a combination of tight monetary policy and tighter fiscal policy combined with a more supportive incomes policy,” he said, adding that these measures should help sustain disinflation, which is crucial for improving expectations. 

Macroeconomic stability 

During the panel, Egypt’s minister of planning, economic development, and international cooperation, Rania Al-Mashat, said investing in resilience is an investment in the future. 

“There are first principles that we all agree on, macroeconomic stability, this is a necessary condition if we want to move forward on privatization, if we want to move forward on confidence and credibility internally and externally,” Al-Mashat said. 

She pointed to recent reforms that have stabilized Egypt’s economy, particularly in the foreign exchange market, and noted a retrenchment in public investment. “Right after March, you can see the manufacturing non-oil sector moving forward. We can see more exports taking place once the intermediate inputs into production were actually pushed,” she added. 

Pakistan’s Finance Minister Muhammad Aurangzeb echoed the emphasis on fiscal responsibility, saying the country has achieved a primary surplus through disciplined management. 

“Our taxes to GDP ratio has been languishing between 9 to 10 percent. That sort of moved in the direction of 10.8 percent at the end of December. We have agreed to move it to 13.5 percent to join the committee of nations and to bring a certain level of sustainability to the primary surplus that we have,” Aurangzeb said. 

“On the other side, it’s also discussion on the expenditures and making tough policy choices with respect to what is a good cost and bad cost,” he added. 

Brazil’s economic outlook 

Brazil’s Finance Minister Fernando Haddad said the country’s central bank has played a key role in bringing inflation under control while maintaining growth. 

“We are growing in the last two years around 3.4 percent a year, contradicting all of the predictions both domestic and international,” Haddad said. 

“And we understand that the fiscal adjustment that we’re doing is not recessive because we’re guaranteeing a growth rate of 3.4 percent around a decline in inflation,” he added. 

Organized by the International Monetary Fund and Saudi Arabia, the first edition of the high-level annual conference in AlUla aimed to address global economic challenges. The two-day event brought together finance ministers, central bank governors, and policymakers, alongside leaders from the public and private sectors, international institutions, and academia. 


Emerging economies must ‘punch their weight’ in global policy

Emerging economies must ‘punch their weight’ in global policy
Updated 17 February 2025
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Emerging economies must ‘punch their weight’ in global policy

Emerging economies must ‘punch their weight’ in global policy

RIYADH: Emerging economies must play a greater role in global economic discussions, Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, said at the closing of the AlUla Conference for Emerging Market Economies. 

Organized by the Saudi Ministry of Finance and the International Monetary Fund, the forum highlighted the need for developing nations to assert their global influence, focusing on economic diversification, deregulation, and digital transformation. 

Al-Jadaan stressed that emerging markets play a crucial role in shaping international economic policies and must be confident in their contributions. 

“Emerging economies will need to punch their weight. They need to gain more confidence, they need to acknowledge, understand—even with humbleness—that they have something to say to the world,” he said. 

He also criticized the dominance of advanced economies in global decision-making forums, emphasizing that “advanced economies have a lot to say, but they cannot resolve a lot of the key global issues alone.” 

IMF Managing Director Kristalina Georgieva echoed this sentiment, highlighting that economic growth and dynamism are increasingly driven by emerging markets. 

“Where is the youth population? Where is the potential for high growth that benefits everybody? It also benefits advanced economies—it is in the emerging world,” she said. 

Georgieva outlined three critical steps for emerging markets: diversification, deregulation, and digitalization. 

“Diversify your economy, your trade relations, your engagement, your vision for how you move forward,” she urged. 

She also emphasized the role of government in facilitating economic growth by reducing unnecessary regulations. 

“The government should do that—give indication as to where, what is the direction to travel, and then get out of the way,” she said, calling for the removal of bureaucratic obstacles. 

Finally, she stressed the necessity of embracing digital transformation, particularly in artificial intelligence and financial transparency, to ensure competitiveness in a rapidly evolving global economy. 

The conference, described by Al-Jadaan as “possibly the first global forum” dedicated solely to the economic prospects of emerging markets, provided a platform for leaders to discuss pressing challenges and opportunities. 

“Bringing experts and discussing issues, challenges, and means of actually cooperating and working together to improve the lives of the people and the emerging economies and the world at large” was a core objective, he said. 

As the event concluded, Georgieva asked the audience if they would be interested in a second edition of the conference, receiving an enthusiastic applause. 

She confirmed that the IMF and the Saudi Ministry of Finance would document key takeaways and begin preparations for future discussions. 

“We will work with our regional office and the Ministry of Finance so we can publish proceedings from the conference. But also, we will start immediately on thinking about how we bring this forward,” she said, indicating prospects for another conference edition. 

Georgieva expressed optimism about the future of emerging economies, stating her vision for a world where developing nations are no longer seen as “emerging” but as equal players in the global economy. 

“My dream, by the time I finish my term, is that we retire the term ‘emerging’ because you will have fully emerged,” she said. 


Dentsu CEO vows to help shape Saudi Arabia’s Vision 2030 through innovation

Dentsu CEO vows to help shape Saudi Arabia’s Vision 2030 through innovation
Updated 17 February 2025
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Dentsu CEO vows to help shape Saudi Arabia’s Vision 2030 through innovation

Dentsu CEO vows to help shape Saudi Arabia’s Vision 2030 through innovation

DUBAI: Japanese marketing and advertising firm Dentsu Group is expanding into Riyadh as it seeks to support the Kingdom’s transformation, according to its CEO.

Speaking to Arab News Japan, Hiroshi Igarashi said his firm is in alignment with Saudi Arabia’s Vision 2030 diversification initiative.

Through Dentsu Sports International in the Middle East, the company aims to reshape the Kingdom’s sports and entertainment landscape, delivering fan-centric experiences through sponsorships, digital engagement, and analytics.

“Saudi Arabia is positioning itself as a global hub for media, sports, and technology. Our ‘One Dentsu’ model aligns with Vision 2030’s focus on efficiency, innovation, and collaboration,” Igarashi said.

The ‘One Dentsu’ model, led by Deputy Global Chief Operating Officer Takeshi Sano, integrates media, creative and digital services for tailored business impact.

Igarashi told Arab News Japan that the company is a growth partner focused on digital transformation, not just acting as a service provider.

He said it was important to leverage global expertise in digital marketing, brand building and data solutions to empower local and international brands.

“Saudi Arabia is setting new standards, and we bring global best practices combined with local insights,” Igarashi said.

He highlighted how Dentsu’s Japanese roots, built on trust and precision, resonate with Middle Eastern business values: “We merge Japanese craftsmanship with global agility to drive lasting success.”

The CEO added: “We prioritize measurable results over media scale, offering clients a strategic edge in a fast-evolving market.”