Alkhabeer's fund acquires majority stake in Eed Group

Alkhabeer Capital, a leading asset management and investment firm based in Saudi Arabia, has announced that its fund — Alkhabeer Healthcare Private Equity Fund I — has acquired a majority stake in Eed Group, a Saudi-based integrated healthcare provider.
Established in 2001, Eed Group is one of the vertically integrated health care groups in Saudi Arabia. The group initially operated as an independent health care provider focusing on aesthetics and outpatient specialty primary care services and recently expanded into additional services such as a pharmacy business, medical equipment supply and third party management and operations. Alkhabeer Healthcare Private Equity Fund I is a Shariah-compliant and closed-ended investment fund which was launched in Q4, 2014 and is offered by way of private placement, in line with Investment Fund Regulations.
Ahmed S. Ghouth, deputy CEO at Alkhabeer Capital, said: “Eed Group is a successful business that has a solid track record in Saudi Arabia’s health care sector. Our team is excited about working with Eed Group’s management to implement a focused and ambitious growth strategy for Eed Group to become one of the leading health care providers in the MENA region within the coming 3-5 years.”
As the largest health care market in the region, Saudi Arabia provides considerable growth opportunities, especially for private health care providers that currently account only for 32 percent of the local market.
According to the Ministry of Finance, Saudi Arabia’s budget allocation to health and social affairs expanded to a CAGR of 15.2 percent during 2010-2014 to reach SR108 billion in 2014. In addition to supportive demographic trends, the health care market is also expected to benefit from government initiatives such as health insurance for expatriates, private sector employees and pilgrims.
Eed Group was founded by Professor Mohammad Deeb Eed, a highly regarded medical practitioner in the Saudi health care market and one of the pioneers of aesthetics in the Kingdom. His expertise and reputation have allowed him to develop Eed Group into one of the most distinguished brands in the Saudi health care industry.
Professor Eed said: “Eed Group has a strong brand name in Saudi Arabia and an ambitious management team who look forward to working with Alkhabeer Capital toward achieving our combined goals. We are well positioned to cater to the increasing demand for quality health care services, which are driven by the Kingdom’s sound economic fundamentals and its growing population with increasing medical needs. Our team is confident that Alkhabeer’s partnership will help facilitate and lead the growth of our business in the MENA region.”
Alkhabeer Capital is an asset management and investment firm authorized by the Capital Market Authority.