Sulaiman Al Habib board approves setting up Tabuk Hospital for SAR 420 mln

One of Dr. Sulaiman Al Habib Medical Services Group hospitals

Dr. Sulaiman Al Habib Medical Services Group Co.’s board of directors approved, on Oct. 29, the project to establish Tabuk Hospital at an estimated cost of SAR 420 million through Bawabat Al Shamal for Healthcare Co., a 100% owned subsidiary company that was established for the project.

Tabuk Hospital will be an integrated facility as it will have clinics in various medical specialties and a capacity of 140 beds, the company said in a statement to Tadawul.

The project’s construction work is expected to begin in the fourth quarter of 2023, after obtaining the necessary regulatory approvals from the relevant authorities. The construction will likely complete by Q3 2027.

The new hospital will be funded from the company’s internal resources and through long-term Shariah-compliant loans from local banks, the statement added.

The project will have an impact on the company’s financial results when it starts operating in the fourth quarter of 2027, the healthcare provider said.

The group also noted that to date no contract is signed for the project. The work will be carried out by several specialized contractors and suppliers after signing contracts, following obtaining the necessary regulatory approvals from the relevant authorities.

Any other material developments related to this project will be disclosed in a timely manner, the statement added, pointing out that no related parties are included in the project.

In January 2022, Sulaiman Al Habib signed a lease contract with Tabuk Municipality to build, operate and maintain a hospital on the land located on King Faisal Road, Tabuk city for SAR 32.5 million representing the total rental value for 50 years, Argaam reported.