Philips, Al Faisaliah in 50-50 JV

Updated 01 October 2012

Philips, Al Faisaliah in 50-50 JV

RIYADH: Royal Philips Electronics and Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group, signed an agreement yesterday to set up a 50-50 joint venture to sell Philips health care solutions and services across the Kingdom.
Prince Mohammed bin Khaled Al-Abdullah Al-Faisal, president and chief executive officer of the Al Faisaliah Group and Philips Chief Executive Officer Frans van Houten signed the deal.
The proposed transaction is subject to governmental approval and certain contractual and other closing conditions, and is expected to close in the first half of 2013. Financial details of the agreement were not disclosed.
The joint venture will combine Philips' strong health care portfolio, including medical imaging systems, patient monitoring devices and clinical information solutions, with FMS' recognized knowledge of the market requirements and strong position in Saudi Arabia, the largest economy in the Middle East by GDP.
The Saudi Arabian health care market is estimated to grow by 8 percent annually between 2013 and 2017, driven by targeted government spending on health services and hospital infrastructure.
"Through the partnership between Philips and Al Faisaliah Medical Systems, we combine Philips' clinical expertise and innovations, with Al Faisaliah Medical Systems' thorough knowledge of local customer needs and requirements supported with our talented staff and strong infrastructure," Prince Mohammed bin Khaled said.
"We expect that the joint venture (JV) will contribute to new levels of health care services for the people of Saudi Arabia."
Over the past 35 years, we have been working diligently on developing and investing extensively in health solutions and systems through Al Faisaliah Medical Systems, the prince said, adding that by partnering Phillips and Al Faisaliah Medical Systems, the two parties combine the strength of scientific research and innovations that Philips represents.
"By partnering with Al Faisaliah Medical Systems in a joint venture, Philips can accelerate its growth in the important Saudi Arabian market for health care products, services and solutions," said Houten. "We have built a strong and trusted relationship with FMS over the past 40 years, and with this joint venture we are now taking the next step to address important health care opportunities in a growth market."
The joint venture with FMS builds on Philips' ambition to better serve the needs of local markets and respond to the specific health care needs of the population in Saudi Arabia.
In addition, the joint venture will facilitate a focus on developing the next generation of skilled Saudi health care professionals through dedicated education and training programs.
Royal Philips Electronics is a diversified health and well-being company focused on improving people's lives through meaningful innovation in the areas of health care, consumer lifestyle and lighting.
Headquartered in the Netherlands, Philips posted 2011 sales of 22.6 billion euros and employs approximately 122,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home health care, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming, home and portable entertainment, and oral health care.
Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group Holding Co., was founded in 1973 and based in Saudi Arabia with a vision to be the leading health care solution provider in the Middle East.
It is currently operating in 6 Gulf and Levant countries with 19 offices throughout the region and over 700 employees. FMS is a major player in offering optimized wide range of services, providing planning, identification, supply, management, and design services to any health care structure in any country through continuous collaboration and partnership with international health care leaders.
FMS' mission is to serve the health care community by offering innovative and quality solutions and services at competitive values to customers, and to leverage the quality of health care services in the region by being trendsetters and making the new de-facto standards. Through its patented CardioSpace program FMS dominates the market in turnkey cardiology projects in Saudi Arabia.

Bank jobs go as HSBC and Emirates NBD reduce costs

Updated 15 November 2019

Bank jobs go as HSBC and Emirates NBD reduce costs

  • Others have also reduced headcount amid economic downturn and property market weakness

DUBAI: HSBC Holdings has laid off about 40 bankers in the UAE and Emirates NBD is cutting around 100 jobs, as banks in the Arab world’s second-biggest economy reduce costs.

The cuts come amid weak economic growth, especially in Dubai, which is suffering from a property downturn.

HSBC’s redundancies came after the London-based bank reported a sharp fall in earnings and warned of a costly restructuring, as interim CEO Noel Quinn seeks to tackle its problems head-on.

HSBC has about 3,000 staff in the UAE, part of a nearly 10,000-strong workforce in the Middle East, North Africa and Turkey.

The cuts at Dubai’s largest lender Emirates NBD came in consumer sales and liabilities, one source said, while a second played down the significance of the move.

HSBC and Emirates NBD declined to comment.

“The cuts are part of cost cutting and rationalizing to drive efficiencies in a challenging market,” the second source said.

Other banks have also reduced staff this year. UAE central bank data shows local banks laid off 446 people in the 12 months until the end of September. Foreign banks added staff in the same period.

Staff at local banks account for over 80 percent of the 35,518 banking employees in the country.

The merger between Abu Dhabi Commercial Bank, Union Commercial Bank and Al Hilal Bank saw hundreds of redundancies.

Commercial Bank International (CBI) said it would offer voluntary retirement to employees in September, which sources said saw over 100 departures. Standard Chartered, too, cut over 100 jobs in the UAE in September.

Rating agency Fitch warned in September a weakening property market would put more pressure on the UAE’s banking sector.