GE and Qatar generate R&D and a new JV

Designed as a “research accelerator,” the state-of-the-art Qatar Science & Technology Park is focused on becoming an international hub for research, innovation and entrepreneurship. Today, GE’s chairman and CEO Jeff Immelt, along with other international leaders, officially inaugurated the facility – and marked a new partnership with GE on a range of healthcare business and research initiatives, including digital healthcare.

Reinaldo Garcia, President and CEO of GE Healthcare EMEA and Rashid Al Naimi, Vice President of Administration, Qatar Foundation, sign a Memorandum of Understanding on Monday to form a partnership for healthcare R&D at Qatar Science and Technology Park. Witnessing the agreement is (left to right) Nabil Habayeb, President and CEO of GE Middle East & Africa; Jeffrey Immelt, Chairman and CEO of GE; Dr. Tidu Maini, Executive Chairman of Qatar Science and Technology Park; and Her Highness Sheikha Mozah bint Nasser Al Missned, Chair of Qatar Foundation.

GE’s presence in Qatar, which is located on a peninsula in the Arabian Gulf adjoining Saudi Arabia, is well-established with investments in a GE Oil & Gas Service Workshop in Ras Laffan and the upcoming ConocoPhillips & GE Global Water Sustainability Research Center that will be located in the science and technology park. GE has grown significantly in the Middle East, with record revenues of $6.6 billion last year, an increase of 21% over 2007. Qatar constituted more than $1 billion of that total.

Part of the private, non-profit Qatar Foundation, the Qatar Science & Technology Park opened in 2008 with 12 companies and will expand to 50 companies by 2012. It also shares space with the campuses of Carnegie Mellon, Texas A&M, Weill Cornell and other schools so that companies can easily interact with the universities and develop new technologies.

Next phase: The new partnership also establishes healthcare IT training and education facilities at the new GE Advanced Technology & Research Center located at the technology park. GE’s center is due to open in October 2009 and will be the regional R&D base for a number of GE businesses such as Aviation, Oil & Gas and Healthcare.

Today’s announcement between GE Healthcare and the Qatar Foundation, includes the formation of a 50-50 joint venture at the technology park that will be the headquarters for GE’s Healthcare IT business in the Middle East and Africa. The venture will develop healthcare IT solutions specifically adapted to meet local needs and provide marketing, sales and distribution services in partnership with GE Healthcare’s existing infrastructure across the region. The venture has a goal of achieving more than $200 million of annual revenues in the next five to seven years.

“The partnership is consistent with GE’s vision of helping solve some of the world’s toughest challenges and builds on our long-term relationships in the Middle East,” Jeff Immelt said. “It’s a great business opportunity for GE in a growing market with a great partner. Combining GE Healthcare’s global reach and strong healthcare offerings with Qatar Foundation’s local expertise and commitment to technological investment will allow us to capitalize on significant opportunities in the region and to enable better health through the development of new technologies.”

On the research and development front, the new partnership with GE also establishes a jointly funded, $400 million venture that will initially focus on expanding the digital x-ray and molecular imaging technologies already being explored by GE.

Read the announcement.

Learn more about the project and the key players.