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UAE’s Burjeel Holdings to Invest $1 Billion in Saudi Arabia Health Sector

Part of the signing event of the MoU between the UAE-based Burjeel Holding and the Saudi Ministry of Investment. (Asharq Al-Awsat)
Part of the signing event of the MoU between the UAE-based Burjeel Holding and the Saudi Ministry of Investment. (Asharq Al-Awsat)
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UAE’s Burjeel Holdings to Invest $1 Billion in Saudi Arabia Health Sector

Part of the signing event of the MoU between the UAE-based Burjeel Holding and the Saudi Ministry of Investment. (Asharq Al-Awsat)
Part of the signing event of the MoU between the UAE-based Burjeel Holding and the Saudi Ministry of Investment. (Asharq Al-Awsat)

The UAE-based healthcare provider Burjeel Holdings signed on Wednesday a memorandum of understanding (MoU) with the Saudi Ministry of Investment that includes working with local institutions.

The company, which owns and operates hospitals and other healthcare facilities, will invest up to SAR3.75 billion ($1 billion) in the Kingdom by 2030.

The operator of 39 hospitals and medical centers will seek investment opportunities through joint ventures and public, private, partnership (PPP) models to establish and expand various healthcare offerings across Saudi Arabia, it said in a statement.

These offerings comprise an industry-leading healthcare network that will include specialty medical centers, day surgery capability, digital health ventures, comprehensive super specialty hospitals and clinical research programs.

Its research commitments also include exploring innovation in areas of cancer prevention, screening and therapy.

In addition to healthcare services delivery, Burjeel will also work through the Investment Ministry in areas of humanitarian aid and international healthcare volunteering.

The Group is currently holding talks with various private sector providers and leading public sector hospitals in the Kingdom to deliver these services and expects to begin formalizing collaboration agreements over the coming months.

Founded in 2007, Burjeel Holdings is the leading private healthcare services provider in the UAE, with a growing presence in the Gulf Cooperation Council States.

The group continues to set new benchmarks for healthcare delivery and patient outcomes, with state-of-the-art facilities and world-class service standards.

Founder and CEO Dr. Shamsheer Vayalil said: “Saudi Arabia is a key focus market for Burjeel Holdings and we are proud to commit to this MoU with the Ministry of Investment – a significant step in our entry to the Kingdom.”

“We are excited about the many opportunities to support the Kingdom’s healthcare ambitions and to bring our expertise to a sector which is integral to the delivery of Vision 2030,” he added.

The company recorded more than AED3.3 billion ($898 million) in revenue for 2021, representing an 18% compound annual growth rate over the three-year period 2019-2021.

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S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)
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S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)

S&P Global Ratings anticipates that Saudi issuers will continue to tap local and international capital markets to finance projects under Saudi Arabia’s Vision 2030. The agency expects debt levels to remain manageable, with private sector debt-to-GDP ratios staying below 100% over the next 12 to 24 months.

According to S&P’s report, “Saudi Capital Market Overview: Rising Issuance Levels Are Just the Start”, Saudi companies have dominated issuance activity in recent years. Over the past five years, Saudi entities, including government-related entities, have accounted for roughly two-thirds of non-governmental US dollar-denominated issuances. However, the report predicted that banks will play an increasingly significant role in the future.

The report noted that Saudi issuers have raised over $130 billion in US dollar-denominated issuances over the last five years. This adds to $144 billion raised domestically in Saudi riyals during the same period, driven by Vision 2030 initiatives.

While the government accounts for about 60% of these issuances, the Kingdom’s Vision 2030 has created expansive opportunities in the non-oil economy and banking system, paving the way for future growth, the report underlined.

S&P highlighted the development of Saudi Arabia’s mortgage-backed securities market as a key factor to watch over the next two years. As of the end of September 2024, Saudi banks held more than $175 billion in mortgage financing, most of which carried fixed interest rates but were funded through short-term resources, primarily local deposits.

With declining interest rates, some of these mortgages could re-enter circulation, enabling banks to sell them in the secondary market without incurring losses. This would allow banks to offload mortgage financing from their balance sheets, provided legal challenges surrounding the mortgage-backed securities issuance are resolved or mitigated sufficiently to attract local and international investor interest.

According to the report, developing the mortgage-backed securities market could significantly enhance banks’ financial capacity, enabling them to better support the implementation of Vision 2030. This could occur through existing infrastructure, such as the Saudi Real Estate Refinance Company, or via direct issuances in the capital markets.