Sulaiman Al Habib subsidiary awards SAR 94.5 mln construction contract for Sehat Al-Kharj hospital

Logo of Dr. Sulaiman Al Habib Medical Services Group

Dr. Sulaiman Al Habib Medical Services Group’s board approved, on Dec. 12, to award and sign the contract of enabling and structural works by its subsidiary Sehat Al-Kharj for Healthcare Co. for Sehat Al-Kharj hospital project.

The contract was awarded to MASAH Construction Co., a related party, for SAR 94.45 million, including value-added tax (VAT).

The duration of the contract is 13 months, with the company planning to finance the project through internal resources and long-term Shariah-compliant facilities from local banks.

The contract was concluded within the normal course of business and did not include any preferential benefits.

Company Chairman Sulaiman Abdulaziz Al Habib and board member Hesham Sulaiman Al Habib are related parties with indirect interest.

The project is expected to have a financial impact on the company’s result from the commencement of operations anticipated in 2024. The contract will be presented for shareholders’ approval at the next general assembly.

In May, the company’s board of directors approved establishing a new hospital in Al-Kharj through its wholly owned subsidiary at an estimated cost of SAR 458 million.