Almoosa Health holds 52% of the Eastern Province’s private rehabilitation healthcare market, eyes further expansion: CEO

Malek Abdulaziz Almoosa, Managing Director and CEO of Almoosa Health Group

Almoosa Health Group plans to further expand into the Eastern Province, which has less competition in the healthcare sector, Malek Abdulaziz Almoosa, Managing Director and CEO, told Argaam in an interview.

Currently, two specialized hospitals are being designed and built in Al Khobar and Al Hofuf, he noted.

The CEO also pointed to the plan to open five primary healthcare centers, each featuring an in-house pharmacy. Three centers are expected to open in Al Ahsa between 2025 and 2027, in addition to one in Al Khobar in Q1 2026 and another in Dammam by Q4 2027.

The Saudi healthcare sector is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2023 to 2030, reaching a total value of SAR 360 billion. The private sector's contribution is projected to rise from 18% in 2023 to 25% by 2030.

The CEO emphasized that the group dominates 52% of the rehabilitation private healthcare market in the Eastern Province, reflecting its strong brand and customer appeal.

Commenting on the Group’s financials in the first nine months of 2024, Almoosa said these results were “robust” as revenues reached SAR 979 million and net profit amounted to SAR 98 million in 2023. Growth continued during the first nine months of 2024, with the top and bottom lines totaling SAR 870 million and SAR 40 million, respectively.

The CEO attributed this bullish performance to the Group’s successful expansion strategies and improved service quality.

He forecasts the group’s growth to persist, supported by the opening of new hospitals and primary healthcare centers, alongside leveraging technology to enhance efficiency and boost customer satisfaction.

Here are details of the interview:

Q: Could you give us insight into Almoosa Healthcare and its role in the healthcare sector? What is the capacity of its hospitals?

A: Our journey began in 1996, and we are proud to be among the leading providers of comprehensive healthcare services in the Eastern Province. Our vision is to have a trusted global healthcare system that promotes healthcare and combats illness.

We provide integrated healthcare services, including primary care, critical care, and rehabilitation services through Almoosa Specialist Hospital and Almoosa Rehabilitation Hospital in Al Ahsa.

Additionally, we offer supplementary services such as pharmacy, home healthcare, and telemedicine. As an industry leader, our hospitals boasted a capacity of 730 beds as of March 31, 2024. We cater to approximately one million clients among individuals as well as private and government entities in the Eastern Province.

Q: How do you see the future of the Saudi healthcare sector amid Vision 2030? What key factors should drive its growth?

A: We foresee a bright future for the Saudi healthcare sector under Vision 2030. This industry has witnessed significant investments and initiatives that have strengthened Saudi Arabia’s position as a leader in healthcare spending in the Middle East and North Africa (MENA) region, accounting for 33% (SAR 232 billion) of total regional healthcare spending in 2022.

Despite these whopping investments, healthcare infrastructure still requires development, especially as the Kingdom needs an additional 25,000–35,000 critical care beds to meet demand. The Eastern Province alone requires 4,000–5,000 beds by 2030.

In addition, mandatory insurance, coupled with the increased preference among Saudi citizens and expatriates for private insurance, could drive growth in the sector. The Kingdom also plans to expand coverage to 25 million beneficiaries (70% of the total population) by 2030.

Moreover, the Saudi healthcare sector is projected to grow at a CAGR of 6.5% between 2023 and 2030 to reach SAR 360 billion. The private sector’s contribution is likely to rise to 25% by 2030, compared to 18% in 2023.

Overall, these factors enhance the local healthcare sector's aptitude to meet the growing demand, ensuring the achievement of Vision 2030 objectives through improving the quality and integration of healthcare services for citizens and residents in the Kingdom.

Q: How do you assess Almoosa Healthcare’s market share in the Eastern Province? How do the Group’s services compare to its competitors?

 A: We hold a 52% share of the Eastern Province’s private rehabilitation healthcare market, underscoring our success in attracting and retaining customers, while reflecting our brand strength in this sector.

We provide comprehensive services through our facilities, including Almoosa Specialist Hospital that is deemed the first of its kind in Al Ahsa, not to mention running the only accredited oncology center in the region.

When compared to our market peers, we are distinguished by providing high-quality integrated healthcare services, as we integrate modern technology into service delivery, which improves patient experience and increases the efficiency of care provision.

We also work to enhance health awareness and spread the concept of comprehensive care. We also seek ambitious expansion plans that include establishing new facilities to better meet the needs of the community.

Q: What medical sectors do you expect to see significant growth? How do you plan to strengthen your presence there?

A: We expect significant growth in several medical sectors, most notably primary healthcare, critical care, and rehabilitation care services. With increasing health awareness and interest in prevention, the demand for primary care services is on the rise. The high rates of chronic diseases underpin the need for critical care, while the need for rehabilitative care services escalates due to injuries and rehabilitation surgeries.

We focus on expanding our infrastructure to enhance our presence in these sectors. Our plans include building two specialized hospitals in Al Khobar and Al Hofuf, which shall reinforce our absorptive capacity. We also intend to open five primary care centers in Al Ahsa, Al Khobar and Dammam, with a focus on providing high-quality services as per the highest standards.

Additionally, we are committed to adopting the latest technologies and strengthening strategic partnerships with government and private entities, contributing to stepping up the efficiency of services and meeting consumer needs. Through these strategies, we aim to provide integrated and effective healthcare that reflects our commitment to improving the quality of life.

Q: How do you plan to address the gap in the number of medical beds in the Eastern Province? What major expansions are in the pipeline?

A: We seek to fill in the gap in the number of medical beds in the Eastern Province by undertaking a comprehensive strategic plan that focuses on expanding services and boosting the accommodating capacity. Given the soaring demand for healthcare, the Group is ramping up the number of beds in existing hospitals by improving the infrastructure and developing new units, allowing for the provision of better care to the community.

One of our key expansion projects is the design and construction of two specialized hospitals in Al Khobar and Al Hofuf, which are still under construction. These projects aim to enhance the region's capacity and meet the population's growing needs for specialized healthcare.

Meanwhile, we plan to open five primary care centers, each of which will include one pharmacy. Three primary care centers are scheduled to open in Al Ahsa in Q2 2025, Q4 2025, and Q2 2027. Another primary care center is also underway in Al Khobar, which is scheduled for inauguration in Q1 2026, with one also planned to open in Dammam in Q4 2027.

Q: How do you evaluate the Group’s financial performance over the past years? What are your expectations for profit and revenue?

A: Our financial performance over the past years demonstrated significant growth in revenue and profit, reflecting the success of our operational and expansion strategies. The Group reported SAR 979 million in revenue in 2023, with a net income of SAR 98 million, showcasing efficient cost and operations management.

In the first nine months of 2024, we achieved SAR 870 million in revenue and a net income of SAR 40 million, indicating continued growth and the effective adaptation to changing market demands. This positive performance is linked to our expansion in offering new services and enhancing service quality.

Looking ahead, we anticipate sustained growth driven by ongoing expansion efforts, including the opening of new hospitals and primary care centers. Additionally, our focus on leveraging technology in healthcare delivery is bound to sharpen efficiency and customer satisfaction.

Based on these factors, we expect sustainable profitability growth in the coming years, reflecting our commitment to providing high-quality healthcare and elevating service standards.

Q: What message would you like to convey to new shareholders? What should they expect post-listing?

A: Our message to new shareholders is that we are committed to delivering top healthcare and innovation across all our services. We believe that our Saudi market listing is deemed strategic in terms of enhancing financial transparency and raising our aptitude to attract investments necessary for expanding our services.

Post-listing, shareholders can expect sustainable growth in revenue and profit, driven by our expansion plans, including opening new hospitals and primary care centers. We will continue to focus on improving the quality of our services and adopting the latest medical technologies, reflecting our commitment to meeting community needs.

We consider every shareholder a partner in our journey towards excellence and we promise continuous communication regarding our financial and operational developments. Together, we will build a bright future for our hospitals and the respective investors.