NMC Health expands into Saudi market

Emirates-based NMC Health said it was expanding into Saudi Arabia with the purchase of a 70% stake in a hospital for $45m and and investment in a long-term care facility.

The As Salama hospital is in Al Khobar, eastern Saudi and offers a range of services, from acute to long-term care for chronic illnesses.

NMC said it plans to revamp the existing facility's long term care capabilities to extend its capabilities and “strengthen its market positioning as a leader in this highly specialised treatment area”.

The company added that it had taken a 67.5% stake in Jeddah to build a chronic care centre with120 beds through its Provia unit.

A total investment of $4m has been made by NMC into the project along with a shareholder loan of $9m.The loan is repayable over the next two years. NMC expects a contribution towards earnings before interest, tax, depreciation and amortisation (EBITDA) of around $5m in 2017, with this business ramping up to exceed $10m a year in the following three years.

NMC increased its earnings guidance for 2017 to $300m from $290m.