Mubasher: Leejam Sports Company (Fitness Time) signed a memorandum of understanding (MoU) with the UAE's Burjeel Holdings on 5 February 2023 to foster sports healthcare services in Saudi Arabia.
In accordance with Saudi laws, Fitness Time and Burjeel will develop a joint venture (JV) to be equally owned by the two companies, according to a press release.
The partnership marks the UAE-based healthcare provider’s entry into the Saudi market.
Under the agreement, the two sides will join forces in the field of physiotherapy to establish and operate a network of over 60 rehabilitation and wellness centres in Leejam clubs across the Kingdom.
The joint project is backed by the Saudi Ministry of Sport in line with its objectives to boost and drive the sports environment in the Kingdom.
The newly created entity will initially launch six centers in Riyadh during the second quarter (Q2) of 2023, scaling up its services across the Leejam network in Saudi Arabia over the next 12-18 months.
In a bourse disclosure, Fitness Time pointed out that it will disclose any further developments regarding the deal, including the financial impact, in due course.
Shamsheer Vayalil, Founder and Chairman of Burjeel, said: “We are also committed to supporting the transformative Vision 2030, which acknowledges the importance of partnerships with the private sector to promote sports for wellbeing.”
Ali Al Sagri, Chairman of Fitness Time, noted: “Our partnership with Burjeel Holdings, a leader in the field of healthcare services, ensures integrated sports medicine services of the best international standards.”
In the first nine months (9M) of 2022, the net profits attributable to the shareholders of Burjeel Holdings hiked to AED 189.97 million from AED 121.92 million in 9M-21.
Meanwhile, Fitness Time logged net profits after Zakat and tax worth SAR 150.10 million in 9M-22, an annual growth of 24.96% from SAR 120.12 million.
