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Logo of Al Hammadi Company for Development and Investment
Al Hammadi Company for Development and Investment’s board of directors approved, in a meeting today, Sept. 16, the construction of a new hospital to replace the current Al Hammadi Hospital Al Olaya at the cost of SAR 450 million.
The new hospital will have a capacity of 300 beds and 120 clinics, the company said in a bourse filing. It will provide general medical services, oncology treatment, treatment of sports injuries, and rehabilitation.
Work on the project will commence during Q1 2022 and is scheduled for completion in Q1 2026.
The company said that 80% of the project’s cost will be funded through loans, while the remaining 20% will be financed from the firm’s internal cash flow.
Al Hammadi expects the project to result in a 30% increase in revenue starting from Q1 2026.
The pilot operation will start in Q1 2026 for two months, with commercial operations beginning in Q1 2026.
The company indicated that operation at the current Al Hammadi Hospital Al Olaya will be suspended in October 2021. The financial impacts of the closure process will be recording asset disposal losses of nearly SAR 57 million and a decrease in sales by about 10% in Q4 2021.
The company’s management does not expect any significant negative impact on its profitability in the coming years due to the closure of Al Hammadi Hospital Al Olaya hospital.
The project executing party will be determined later, the company said, adding there are no related parties.
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