Philips and Al Faisaliah Medical Systems enter Healthcare joint venture in the Kingdom of Saudi Arabia

September 29, 2012

Amsterdam, the Netherlands and Riyadh, Saudi ArabiaRoyal Philips Electronics (NYSE:PHG, AEX:PHIA) and Al Faisaliah Medical Systems (FMS), a subsidiary of the Al Faisaliah Group, today announced that they have signed an agreement to set up a 50-50 joint venture to sell Philips’ Healthcare solutions and services in the Kingdom of Saudi Arabia. The proposed transaction is subject to governmental approval, 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 Healthcare 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 healthcare market is estimated to grow by 8% 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,” said Mohammed bin Khaled Al Abdullah Al Faisal, President and Chief Executive Officer of the Al Faisaliah Group. “We expect that the joint venture will contribute to new levels of healthcare services for the people of Saudi Arabia.”


“By partnering with Al Faisaliah Medical Systems in a joint venture, Philips can accelerate its growth in the important Saudi Arabian market for healthcare products, services and solutions,” said Philips Chief Executive Officer Frans van 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 healthcare 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 healthcare needs of the population in Saudi Arabia.  In addition, the joint venture will facilitate a focus on developing the next generation of skilled Saudi healthcare professionals through dedicated education and training programs.

Philip's relationship with the Kingdom of Saudi Arabia dates back to 1935:

Philip's relationship with the Kingdom of Saudi ArabiaEmir Saud visits Anton and Frits Philips in Eindhoven, the Netherlands (1935)

Examples of Philips' Healthcare product portfolio:

Patient monitoring

Patient monitoring Philips Ingenia MRI system

Imaging systems

For further information, please contact:

Steve Klink
Philips Corporate Communications
Tel.: +31 20 5977415


Sarah Campbell
Philips Middle East and Turkey
Tel: +971 551 003 806


About Royal Philips Electronics

Royal Philips Electronics (NYSE: PHG, AEX: PHI) is a diversified health and well-being company, focused on improving people’s lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips posted 2011 sales of EUR 22.6 billion 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 healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming, home and portable entertainment and oral healthcare. News from Philips is located at


About Al-Faisaliah Medical Systems

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 Healthcare 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 healthcare structure in any country through continuous collaboration and partnership with international healthcare leaders. FMS’ mission is to serve the healthcare community by offering innovative and quality solutions and services at competitive values to customers and to leverage the quality of healthcare services in the region by being trend setters and making the new de-facto-standards. Through its patented CardioSpace® program FMS dominates the market in turnkey Cardiology projects in Saudi Arabia. For more information about FMS, visit our website at


Forward-looking statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.