Fakeeh Care core segments push up topline; beds to double by 2028: CEO

Mazen Fakeeh, CEO of Dr. Soliman Abdel Kader Fakeeh Hospital Co.

Mazen Fakeeh, CEO of Dr. Soliman Abdel Kader Fakeeh Hospital Co., said the core segments – healthcare and medical services – remain the company’s main revenue drivers, accounting for 95.5% of total revenue in 2024, with 20% year-on-year (YoY) growth.

Speaking to Argaam, the CEO noted that Q4 2024 revenue rose 12% YoY, supported by expansion efforts. However, the associated costs, including higher payrolls from employee retention and new hirings at facilities like Madinah had a greater impact during the quarter.

The group increased marketing spending to strengthen its position in existing and new markets, particularly Riyadh, which helped grow its market share.

Revenue growth in 2024 was driven by service expansion and a rise in patient numbers to 1.74 million. However, costs climbed 18% YoY, mainly due to higher salaries and benefits, particularly in Q4.

The CEO explained that rising housing expenses linked to management contracts further pressured margins. He noted that the group operates three hospitals, manages another one, and runs four medical centers.

Fakeeh Care has a total capacity of 835 beds and 374 exam rooms, with plans to double bed capacity by 2028, targeting a threefold increase in revenue, the top executive said. He added that education and technology segments contributed 4.5% of revenue, growing 24% YoY.

Home healthcare services expanded to new cities, including Abha and Dammam, besides Jeddah, Riyadh, Madinah, and Makkah, doubling home visits from 53,000 to 106,000 and driving a 120% revenue increase.

The ambulance fleet grew to 83 vehicles, making it the largest privately owned in Saudi Arabia, leading to a five-fold increase in 2024 revenues, according to the CEO.

Fakeeh Optical expanded to 17 locations, adding eight stores in 2024, including four in Riyadh, with plans to open eight more in 2025 and enter Dammam and Khobar.

Fakeeh Care hospital in Madinah will begin operations in March 2025 with 50 beds, the CEO said, adding that the company plans to expand through adding 200 beds and 49 clinics, to serve residents and visitors. It will feature integrated centers, including the city’s first advanced oncology center.

The top executive expects initial pressure on the group's consolidated profit margins but sees the hospital contributing positively once fully operational, thanks to its unique added value in the region.

The group also signed SAR 59.9 million worth of contracts in Jeddah, Makkah, and Madinah as part of an expansion plan to improve the patient experience in the current facilities.

In Jeddah, the group added 110 parking spaces at Al Basateen Medical Center to improve the patient access and experience.

In Madinah, a contract was signed with a subsidiary to provide the necessary operational services. In addition, construction started on an advanced hospital in Makkah, with a 200-bed capacity as part of the Masar Destination project.

The group acquired land in Riyadh’s Al Narjis district for a second medical center. It already started work on Al Hamra Medical Center, and construction on the new center will likely begin after completing the design in Q3 2025.

Fakeeh sees a strong financial position in 2025, with a solid balance sheet and net cash to support expansion. The group will focus on maintaining its lead in Jeddah, expanding in Riyadh hospital, in addition to launching and operating Madinah hospital, and strengthening business integration, through expanding its activities and applying the integration medical policy.

The CEO noted that the group is working to sustain its strong presence in Jeddah while boosting occupancy rates across its hospitals and medical centers. Expansion in Riyadh, through Fakeeh Hospital and a hub-and-spoke model, is seen as a key step toward improving service offerings and operational efficiency.

The company is also actively participating in tenders and privatization opportunities. If successful, these projects could further support long-term profitable growth.

According to Argaam data, Fakeeh Care reported a 3% increase in net profit, reaching SAR 287.6 million in 2024 (excluding minority interest), up from SAR 279.6 million in 2023. Fourth-quarter profit stood at SAR 73.8 million.