In Washington, DC:
Ludi Joseph
Phone: +1 (202) 473 7700
Email: ljoseph@ifc.org

In Cairo:
Egidio Germanetti & Riham Mustafa
Phone: +20 2 461 9140/45/50
E-mails: egermanetti@ifc.org / rmustafa@ifc.org


Washington, D.C./Jeddah/Cairo, October 23, 2007 — IFC, a member of the World Bank Group, has partnered with Saudi Arabia’s Andalusia Group to expand private health care in Egypt. This will help address the need for high-quality medical services in the country and bring clinical and patient care to underdeveloped markets across the region.

IFC will provide a $15 million loan and $10 million in equity as part of the $48 million project, which involves expanding the 80-bed Al-Salama hospital in Alexandria to 120 beds, and building the new 100-bed Andalusia-Heliopolis hospital in Cairo. Later, the project will establish a new nursing school in Cairo, with the capacity to train 350 nurses a year. This will help address the severe shortage of trained nurses in the country. The new hospitals are expected to treat an additional 200,000 patients a year and create 1,000 new jobs for medical professionals.

Dr. Darweesh Zagzoug, Founder and Chairman of the Andalusia Group, said, “We are delighted to have IFC’s help in developing a modern and efficient private health care network in Egypt. We look forward to major success with IFC’s global expertise in investing in the sector.”

Dr. Hazem Zagzoug, CEO of Andalusia Group, said, “This project marks a key step in our strategy to expand beyond Saudi Arabia to other countries in the region that have the greatest need for high-quality health care and to implement global best practices. Our partnership with IFC came after a thorough due diligence process that reflects our strengths and sound values.”

Michael Essex, IFC Director for the Middle East and North Africa, noted, “IFC is very pleased to support the Andalusia Group in a project that will help expand access to health care in Egypt, relieve the growing burden on the public health system, and increase employment opportunities for local professionals.”

Guy Ellena, IFC Director for Health and Education, added, “This project is in line with IFC’s strategy to support intraregional investments in the health care sector. It will help improve the Andalusia Group’s environmental, social, insurance, and corporate governance standards and operating practices.”

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.  

About Andalusia Group
Established in 1984 with one hospital, the Andalusia Group today operates a network of three hospitals and two specialized clinics in Saudi Arabia and Egypt, providing services to 430,000 patients a year. It is the fastest-growing medical group in the Middle East. With a strong customer base and experienced management, it hopes to become the top health care provider in the region. Its planned projects include Andalusia-Hai Al-Jamea Hospital, Andalusia-Women and Child Hospitals, and Andalusia-Heliopolis Hospital. The group has established a prominent position in both the Saudi and Egyptian markets. It aims to consolidate this position and obtain a larger market share.