$250 Million Injection Boosts Saudi Healthcare Sector

Dubai and Singapore-based healthcare private equity firm, TVM Capital Healthcare, announced a significant investment in Saudi Arabia's burgeoning healthcare sector. The firm closed its Afiyah Fund at roughly $250 million, earmarked specifically for investments in Saudi healthcare companies.

The funding round drew participation from a diverse group of investors, including Saudi Arabian entities, investors from the Gulf Cooperation Council (GCC), and European firms. Jada, a fund-of-funds company affiliated with Saudi Arabia's Public Investment Fund (PIF), played a leading role in the fundraising efforts.

This substantial capital infusion goes beyond the initial $250 million. TVM Capital anticipates co-investments from its limited partner base, potentially mobilizing a total of $400 million to $500 million for Saudi healthcare companies. The fund will also target international companies with ambitious expansion plans for the Saudi Arabian market.

Afiyah Fund's focus aligns with Saudi Arabia's Vision 2030 and the Health Sector Transformation Program. These national initiatives prioritize bolstering the country's healthcare infrastructure and fostering innovation within the medical field. By investing in domestic companies and facilitating the entry of international players, the fund aims to address key healthcare needs outlined in these programs.

TVM Capital has already begun deploying the Afiyah Fund's capital. Early investments include Baraya Extended Care, a Riyadh-based chain of post-acute care and rehabilitation clinics. The fund has also provided backing to DEBx Medical, a Dutch wound care company seeking to expand its operations into Saudi Arabia.

This investment by TVM Capital reflects the growing confidence in Saudi Arabia's healthcare sector. The country is undergoing significant reforms aimed at improving healthcare access, quality, and affordability for its citizens. This, coupled with an expanding population, is creating a dynamic and lucrative market for healthcare providers and technology companies.

The Afiyah Fund is expected to play a crucial role in propelling Saudi Arabia's healthcare sector forward. By providing essential funding and strategic expertise, TVM Capital is helping to build a more robust and diversified healthcare landscape in the Kingdom. The fund's focus on attracting international companies with innovative solutions will further accelerate progress towards achieving the goals outlined in Vision 2030 and the Health Sector Transformation Program.

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