Saudi Dallah Health expands its presence and doubles its occupancy rate since 2012
RIYADH: Saudi Dallah Health Co. has seen the number of patients rise from around 715,000 in 2012 to over 1.7 million by 2021, boosting the healthcare scenario in the region.
Speaking to Arab News, Tarek Othman Alkasabi, chairman of the board of Dallah Health, said the increase in health services could be attributed to its expansion from one hospital to five. The company has also added 13 beauty clinics and launched a major pharmaceutical distribution company, Dallah Pharma, since listing on the Tadawul stock exchange in 2012.
Over the same period, revenue has increased exponentially, from around SR637 million ($169.7 million) in 2012 to SR2.11 billion in 2021, according to Alkasabi.
Dallah Health currently offers medical services in major Saudi cities such as Riyadh, Makkah and Jeddah.
As part of its expansion plans, the executive noted that Dallah was seeking to establish its operations in Riyadh to meet the growing demand for health services, drug distribution and production.
“We are also focused on expanding into the most populated areas of the Kingdom, such as the eastern and western regions,” Alkasabi said.
“With regard to international expansion, our efforts are focused on Dallah Pharma, a direct subsidiary of Dallah Health, which holds a license to produce 40 pharmaceutical and cosmetic products to be marketed throughout the Kingdom and seeks to expand in the markets international,” he added.
In terms of investments and acquisitions, Dallah had recently acquired an 8.2% stake in International Medical Co. as part of a strategy to strengthen its presence in Jeddah.
Alkasabi said the company is looking to eventually acquire 27.2% of International Medical, adding that it is “constantly evaluating opportunities that will allow us to bring our quality healthcare to the wider Saudi community.”
When asked if the company intended to borrow, he said: “The option to exploit the debt market is always open, and we have long-standing relationships that we could exploit. if we wanted to.”
The path to follow
Dallah management recently launched a five-year strategy to achieve strategic goals by 2026, including improving the patient experience at Dallah facilities by redesigning patient-centric journeys, using data to identify necessary changes and digitizing operations across our network of organizations.
Under Dallah Health’s new five-year strategy, the company will invest in digitizing patient experiences and operations across all hospitals and facilities by implementing state-of-the-art core solutions and comprehensive digital infrastructure.
As part of the Ministry of Health’s eHealth strategy, Dallah is working to improve patient convenience by using telemedicine and online appointments to improve eHealth adoption.
“Currently, we are seeing growing private sector involvement in healthcare across the Kingdom,” Alkasabi said.
He expects the trend to continue as the Kingdom moves forward in its transformation of the health sector under the Vision 2030 plan.
Dallah Health recorded strong financial results in 2021, posting a 104% increase in profit to SR275 million, while revenue increased by 60% to SR2.11 billion at the end of 2021. 2021.
In the second quarter of this year, Dallah recorded a 59% increase in profit to SR 82.8 million, mainly driven by higher revenues due to continued increase in patients and improved efficiency.
Shares of the Saudi-listed company have soared 54% year-to-date to close at SR116 on June 15.