Dubai Investments snaps 20% stake in Dh465m medical centre

CMC Dubai Healthcare City will open in June next year

“Healthcare is one of the core development sectors of the nation, and there are concerted initiatives to strengthen it and bring world-class medical facilities to the region," said Khalid bin Kalban. Randi Sokoloff / The NationalShow less

Dubai Investments, a diversified company in which sovereign wealth fund Investment Corporation of Dubai has a stake, has bought 20 per cent of a Dh465 million medical centre in partnership with two other investors.

The company is co-investing with Dubai-based Khansaheb Investments, which will have a 55 per cent stake and Lebanon’s CMC with 25 per cent, Dubai Investments said on Sunday in a statement.

Construction of the 110-bed facility in Dubai Healthcare City Phase 2 is 68 per cent complete and will be open in June next year, the company added.

“The investment is part of a diversification strategy into identified sectors which achieve key business objectives for Dubai Investments, align with the long term plans of the UAE government and play an important role in supporting the momentum of the Dubai economy,” said Khalid bin Kalban, chief executive of Dubai Investments. “Healthcare is one of the core development sectors of the nation, and there are concerted initiatives to strengthen it and bring world-class medical facilities to the region.”

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The private sector is taking an increasing role in the region's healthcare industry as governments seek partners to grow the sector.

GCC expenditure on healthcare is forecast to rise to $104.6bn (Dh384.1bn) in 2022 from $76.1bn in 2017, at a compound annual growth rate of 6.6 per cent, Dubai-based investment bank Alpen Capital said in a report earlier this year.

The facility is managed by Clemenceau Medicine International and is part of the Clemenceau Medicine Network that includes centres in Riyadh and Beirut. Clemenceau Medical Centre Beirut has been selected by John Hopkins Medicine International as one of its affiliate medical institutions.

CMC Dubai Healthcare City will have six operating theatres, 44 consultation clinics, a cardiac center, advance and robotic surgery suite, and wide-ranging inpatient and outpatient services.

Dubai Investments reported a 33 per cent year-on-year drop in third quarter net profit to Dh233.2m.