![search Loader](/Content/ar/images/search-loader.gif)
Search Result
- TASI
-
Energy
- 2222 - SAUDI ARAMCO
- 2030 - SARCO
- 2380 - PETRO RABIGH
- 4030 - BAHRI
- 4200 - ALDREES
- 2381 - ARABIAN DRILLING
- 2382 - ADES
- 1201 - TAKWEEN
- 1202 - MEPCO
- 1210 - BCI
- 1211 - MAADEN
- 1301 - ASLAK
- 1304 - ALYAMAMAH STEEL
- 1320 - SSP
- 2001 - CHEMANOL
- 2010 - SABIC
- 2020 - SABIC AGRI-NUTRIENTS
- 2090 - NGC
- 2150 - ZOUJAJ
- 2170 - ALUJAIN
- 2180 - FIPCO
- 2200 - APC
- 2210 - NAMA CHEMICALS
- 2220 - MAADANIYAH
- 2240 - ZAMIL INDUST
- 2250 - SIIG
- 2290 - YANSAB
- 2300 - SPM
- 2310 - SIPCHEM
- 2330 - ADVANCED
- 2350 - SAUDI KAYAN
- 3002 - NAJRAN CEMENT
- 3003 - CITY CEMENT
- 3004 - NORTHERN CEMENT
- 3005 - UACC
- 3010 - ACC
- 3020 - YSCC
- 3030 - SAUDI CEMENT
- 3040 - QACCO
- 3050 - SPCC
- 3060 - YCC
- 3080 - EPCCO
- 3090 - TCC
- 3091 - JOUF CEMENT
- 3092 - RIYADH CEMENT
- 2060 - TASNEE
- 3008 - ALKATHIRI
- 3007 - OASIS
- 1321 - EAST PIPES
- 1322 - AMAK
- 2223 - LUBEREF
- 2360 - SVCP
- 1212 - ASTRA INDUSTRIAL
- 1302 - BAWAN
- 1303 - EIC
- 2040 - SAUDI CERAMICS
- 2110 - SAUDI CABLE
- 2160 - AMIANTIT
- 2320 - ALBABTAIN
- 2370 - MESC
- 4140 - SIECO
- 4141 - ALOMRAN
- 4142 - RIYADH CABLES
- 1214 - SHAKER
- 4110 - BATIC
- 4143 - TALCO
- 4031 - SGS
- 4040 - SAPTCO
- 4260 - BUDGET SAUDI
- 2190 - SISCO HOLDING
- 4261 - THEEB
- 4263 - SAL
- 4262 - LUMI
- 1810 - SEERA
- 6013 - DWF
- 1820 - ALHOKAIR GROUP
- 4170 - TECO
- 4290 - ALKHALEEJ TRNG
- 6002 - HERFY FOODS
- 1830 - Leejam Sports
- 6012 - RAYDAN
- 4291 - NCLE
- 4292 - ATAA
- 6014 - ALAMAR
- 6015 - AMERICANA
- 4003 - EXTRA
- 4008 - SACO
- 4050 - SASCO
- 4190 - JARIR
- 4240 - CENOMI RETAIL
- 4191 - ABO MOATI
- 4051 - BAAZEEM
- 4192 - ALSAIF GALLERY
- 4001 - A.OTHAIM MARKET
- 4006 - FARM SUPERSTORES
- 4061 - ANAAM HOLDING
- 4160 - THIMAR
- 4161 - BINDAWOOD
- 4162 - ALMUNAJEM
- 4164 - NAHDI
- 4163 - ALDAWAA
- 2050 - SAVOLA GROUP
- 2100 - WAFRAH
- 2270 - SADAFCO
- 2280 - ALMARAI
- 6001 - HB
- 6010 - NADEC
- 6020 - GACO
- 6040 - TADCO
- 6050 - SFICO
- 6060 - SHARQIYAH DEV
- 6070 - ALJOUF
- 6090 - JAZADCO
- 2281 - TANMIAH
- 2282 - NAQI
- 2283 - FIRST MILLS
- 4080 - SINAD HOLDING
- 2284 - MODERN MILLS
- 4002 - MOUWASAT
- 4004 - DALLAH HEALTH
- 4005 - CARE
- 4007 - ALHAMMADI
- 4009 - SAUDI GERMAN HEALTH
- 2230 - CHEMICAL
- 4013 - SULAIMAN ALHABIB
- 2140 - AYYAN
- 4014 - EQUIPMENT HOUSE
- 4017 - FAKEEH CARE
- 1010 - RIBL
- 1020 - BJAZ
- 1030 - SAIB
- 1050 - BSF
- 1060 - SAB
- 1080 - ANB
- 1120 - ALRAJHI
- 1140 - ALBILAD
- 1150 - ALINMA
- 1180 - SNB
- 2120 - SAIC
- 4280 - KINGDOM
- 4130 - ALBAHA
- 4081 - NAYIFAT
- 1111 - TADAWUL GROUP
- 4082 - MRNA
- 1182 - AMLAK
- 1183 - SHL
- 8010 - TAWUNIYA
- 8012 - JAZIRA TAKAFUL
- 8020 - MALATH INSURANCE
- 8030 - MEDGULF
- 8040 - ALLIANZ SF
- 8050 - SALAMA
- 8060 - WALAA
- 8070 - ARABIAN SHIELD
- 8190 - UCA
- 8230 - ALRAJHI TAKAFUL
- 8280 - LIVA
- 8150 - ACIG
- 8210 - BUPA ARABIA
- 8270 - BURUJ
- 8180 - ALSAGR INSURANCE
- 8170 - ALETIHAD
- 8100 - SAICO
- 8120 - GULF UNION ALAHLIA
- 8200 - SAUDI RE
- 8160 - AICC
- 8250 - GIG
- 8240 - CHUBB
- 8260 - GULF GENERAL
- 8300 - WATANIYA
- 8310 - AMANA INSURANCE
- 8311 - ENAYA
- 8313 - RASAN
- 4330 - RIYAD REIT
- 4331 - ALJAZIRA REIT
- 4332 - JADWA REIT ALHARAMAIN
- 4333 - TALEEM REIT
- 4334 - AL MAATHER REIT
- 4335 - MUSHARAKA REIT
- 4336 - MULKIA REIT
- 4338 - ALAHLI REIT 1
- 4337 - SICO SAUDI REIT
- 4342 - JADWA REIT SAUDI
- 4340 - Al RAJHI REIT
- 4339 - DERAYAH REIT
- 4344 - SEDCO CAPITAL REIT
- 4347 - BONYAN REIT
- 4345 - ALINMA RETAIL REIT
- 4346 - MEFIC REIT
- 4348 - ALKHABEER REIT
- 4349 - ALINMA HOSPITALITY REIT
- 4020 - ALAKARIA
- 4323 - SUMOU
- 4090 - TAIBA
- 4100 - MCDC
- 4150 - ARDCO
- 4220 - EMAAR EC
- 4230 - RED SEA
- 4250 - JABAL OMAR
- 4300 - DAR ALARKAN
- 4310 - KEC
- 4320 - ALANDALUS
- 4321 - CENOMI CENTERS
- 4322 - RETAL
- NOMU
-
Utilities
Real Estate Mgmt & Dev't
REITs
Health Care Equipment & Svc
- 9518 - CMCER
- 9530 - TIBBIYAH
- 9527 - AME
- 9544 - FUTURE CARE
- 9546 - NABA ALSAHA
- 9574 - PRO MEDEX
- 9594 - ALMODAWAT
- 9572 - ALRAZI
- 9587 - LANA
- 9600 - QOMEL
- 9604 - MIRAL
- 9515 - FESH FASH
- 9532 - ALJOUF WATER
- 9536 - FADECO
- 9556 - NOFOTH
- 9559 - BALADY
- 9564 - HORIZON FOOD
- 9555 - LEEN ALKHAIR
- 9513 - WATANI STEEL
- 9514 - ALNAQOOL
- 9523 - GROUP FIVE
- 9539 - AQASEEM
- 9548 - APICO
- 9553 - MOLAN
- 9565 - MEYAR
- 9552 - SAUDI TOP
- 9563 - BENA
- 9566 - LIME INDUSTRIES
- 9580 - ALRASHID INDUSTRIAL
- 9583 - UNITED MINING
- 9576 - PAPER HOME
- 9588 - RIYADH STEEL
- 9575 - MARBLE DESIGN
- 9599 - TAQAT
- 9601 - ALRASHEED
- 9605 - NEFT ALSHARQ
- 9607 - ASG
- 9510 - NBM
- 9528 - GAS
- 9531 - OBEIKAN GLASS
- 9533 - SPC
- 9529 - RAOOM
- 9525 - ALWASAIL INDUSTRIAL
- 9542 - KEIR
- 9547 - RAWASI
- 9568 - MAYAR
- 9569 - ALMUNEEF
- 9578 - ATLAS ELEVATORS
- 9560 - WAJA
- 9540 - TADWEEER
- 9545 - ALDAWLIAH
- 9570 - TAM DEVELOPMENT
- 9581 - CLEAN LIFE
- 9593 - PAN GULF
- 9597 - LEAF
- 9608 - ALASHGHAL ALMOYSRA
- 9520 - BURGERIZZR
- 9541 - ACADEMY OF LEARNING
- 9567 - GHIDA ALSULTAN
- 9562 - FOOD GATE
- 9590 - ARMAH
- 9526 - JAHEZ
- 9598 - ALMOHAFAZA
- 9603 - HORIZON EDUCATIONAL
Sign In
×Forgot password?
×-
Bank Ranking Banks Ratios Cement Statistics Cement Ranking Cement Ratios Monetary and Economic Statistics Oil, Gas and Fuel Macro Economy Consumer Spending Inflation Exports & Imports Food Prices Non Food Prices Construction Materials Petrochem. Ranking Petrochem. Ratios Retail Rankings Retail Ratios Grocery Ranking Grocery Ratios Top Growth Dividend History
![video link button](/Content/en/images/attachement-icon.jpg)
Mohammed Al-Farraj, CEO of Al-Dawaa Medical Services Co.
Al-Dawaa Medical Services Co. (DMSCO) holds a 14% market share in Saudi Arabia, which offers promising opportunities for more growth.
The company has a specific and well-studied plan to expand its network to 1,065 pharmacies by 2025.
Al-Dawaa is working on improving the measures related to selecting the locations and designs of new pharmacies, the company told Argaam in an exclusive, adding this measure led to a significant increase in the average sales per square meter, which will, in turn, help the company boost its financial performance through expansion plans.
The company began the construction of a plant in Sudair neighborhood, expecting to commence production in early 2023. Meanwhile, the medical equipment and devices represent a new market for the company.
Accordingly, the company will be well-qualified to benefit from the strong growth drivers in the Saudi healthcare sector.
It also elaborated that Al-Dawaa e-commerce platform recorded the fastest growth in the Kingdom’s retail pharmaceutical industry. In 2021, the platform accounted for 5% of the company’s net sales, compared to 1.5% in 2019.
The company added that it is able to deliver a robust value to shareholders in the long term, either through increasing the capital value of its assets or through its dividend policy. Going forward, Al-Dawaa aims to pay out dividends ranging between 50% and 60% of total profit.
Here's the full interview about the company’s business and plans:
Q: How do you see the pharmaceutical sector in Saudi Arabia, in terms of market size, spending, purchasing power and profit margins?
A: The retail pharmaceutical market in the Kingdom continues to show strong growth potential. Al-Dawaa is well-established to benefit from this valuable opportunity. Today, we see growing demand for prescribed medications and over-the-counter (OTC) medicines, in addition to cosmetics and body care products, as youth make up a large part of the Saudi population. Spending on medications is expected to hit SAR 43.8 billion by 2025, in parallel with a rise in spending on healthcare services. Pharmacy chains, such as Al-Dawaa chains, are among the biggest beneficiaries of this growth in spending. The pharmacy chains are forecast to see a compound annual growth rate (CAGR) of 5.9% in prescribed medications by 2025.
We also continue to develop new products and partnerships to enhance our ability to leverage this growth. For example, Dawaok program has improved the adherence of people with chronic diseases to prescribed medications as well as the correct advice and accurate dosages by 118% since its launch in 2015. This was, accordingly, reflected on increasing our customers’ loyalty and sales.
Finally, we are currently developing our own nutritional supplement brands, such as Ronzac and Hollins, to capitalize on consumer demand for healthcare products. Thus, launching our own brands allows us to further enhance our business’ profitability and take advantage of new marketing channels outside our existing pharmacies network.
Q: How many pharmacies and transportation fleet does the company operate? How are they distributed? How much is your market share?
A: Al-Dawaa currently has more than 900 pharmacies in 130 cities, towns and villages across Saudi Arabia. Our market share stands at 14%, which provides us with promising opportunities for further growth, supported by our unique logistics infrastructure that is based on the latest technology.
Our fully automated main warehouse in Sudayr area currently receives and delivers 60 million units per month. It has the ability to expand the handling volume for a larger number of units.
In addition, our fleet includes more than 600 vehicles equipped with advanced tracking technology that ensures smooth and safe transportation and delivery of our pharmaceuticals.
Q: What is the goal behind expansion in the pharmacy network this year?
A: The expansion of our pharmacy network is one of the key pillars for Al-Dawaa growth. The company has a specific and well-studied plan to expand its network to 1,065 pharmacies by 2025. Al-Dawaa is also working on selecting the locations and designs of new pharmacies, based on thorough studies and strict standards. In the last few years, we improved the measures related to selecting the locations and designs of new pharmacies. This move led to a significant increase in the average sales per square meter, thanks to the new branches we opened during that period. This expansion will in turn help the company boost its financial performance while pursuing its expansion plans.
Q: What about the contribution of Al-Dawaa e-channels to total sales?
A: Al-Dawaa e-commerce platform recorded the fastest growth in the Kingdom’s retail pharmaceutical industry. In 2021, the platform accounted for 5% of the company’s net sales, compared to 1.5% in 2019. We are excited about the available opportunities in this respect. We also have a solid track record for innovation and digital excellence. This applies to our e-commerce offers, as the company has its own mobile application, unlike peers in the sector. Al-Dawaa application has been downloaded by over 800,000 clients so far.
Q: Can you give us more details about the company’s plans to enter the medical equipment market? And what about the expected investments in this market?
A: Al-Dawaa has strong ties with government authorities in the Kingdom. Through our cooperation with the Ministry of Health, we found that there is a dire need for the localization of the medical equipment and devices industry. To this end, we broke ground on a new plant in Sudair neighborhood and we expect to commence production in early 2023. Meanwhile, the medical equipment and devices represent a new market for the company.
Accordingly, the company will be well-qualified to benefit from the strong growth drivers in the Saudi healthcare sector. Al-Dawaa aims to have a leading position in the localization of the medical equipment and devices industry.
Q: Any message to your partners?
A: We are pleased to welcome new investors in the company, after the completion of the initial public offering (IPO). Al-Dawaa is in a perfect position to seize available growth opportunities in the market. We are confident that we can deliver a robust value to shareholders in the long term, either through increasing the capital value of our assets or through our dividend policy. Going forward, Al-Dawaa aims to pay out dividends ranging between 50% and 60% of total profit.
Market Indices
Quotes
Popular Links
Quick Links
About Us
Join Us
Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. Know more about our Privacy Policy here.
Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. You consent to our cookies if you use this website
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}