The privatization of Saudia Medical Services Company (SMS), a subsidiary of Saudi Arabian Airlines, has been completed through the sale of a majority stake in SMS to Dr. Soliman Abdel Kader Fakeeh Hospital Company.

The transaction is the first privatization of a government-owned healthcare entity, according to Jadwa Investment which acted as the exclusive financial advisor.

“As part of the privatization mandate, Jadwa provided advisory services on several key aspects of the transaction, including the corporatization and restructuring of SMS from a cost center that was operated by Saudi Arabian Airlines into an independent, commercially-managed healthcare entity, which will provide healthcare services at the highest standards to the beneficiaries of Saudi Arabian Airlines, “ Jadwa Investment said in a statement.

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SMS provides healthcare services to more than 140 thousand employees and dependents of Saudi Arabian Airlines and its subsidiaries.

(Writing by Nada Al Rifai nada.rifai@refinitiv.com , edited by Seban Scaria)

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