Abu Dhabi: Al Noor Hospitals Group, an Abu Dhabi-based healthcare provider, posted a net profit of $84.0 million (Dh308 million) in 2014, an increase of 36 per cent compared to the previous year as the group focuses on expansion in one of the most dynamic healthcare environments in the Gulf region with increasing incidence of lifestyle related ailments such as diabetes and obesity.
The revenue of the company, listed on London Stock Exchange, increased by 23 per cent from $365 million in 2013 to $449.1 million in 2014 and total dividends by 32 per cent — from 9 pence in 2013 to 12.7 pence in 2014.
“We are pleased with the results. We achieved good growth in 2014 which was driven predominantly by our increased outpatient capacity, the expansion of our network of medical centres and the impact of medical centre acquisitions,” said Ronald Lavater, chief executive officer of Al Noor Hospitals.
He said the growth strategy of the company would be to continue expanding current assets and hospitals.
“Abu Dhabi, which is our home market, is growing. We are developing new services and expanding capacity of our home market and that is going to yield organic growth for us,” Lavater said. “We see Abu Dhabi as a wonderful market to be in. It has a strong economy. It has a growing population. It is a good place to work and live. We also see the need for healthcare services. There are gaps in the community. We are trying to fill those gaps with additional services.”
He said acquisitions were very much part of the company’s strategy.
“We continue to look at acquisitions that make sense in the way we run our company as well as to make sure that we have acquisitions at the right price,” Lavater said.
The company plans to open three medical centres this year in Sharjah, Al Ain and Abu Dhabi, and a 40-bed hospital in Al Ain in 2016. It also has plans to expand beyond the UAE and enter other GCC (Gulf Cooperation Council) countries in the long run.
When asked whether the opening of Cleveland Clinic in Abu Dhabi will increase competition in the healthcare industry, Dr Sami Alom, chief strategy officer of Al Noor Hospitals, said the Cleveland Clinic is being brought in not to compete with the existing private sector but to stem the flow of patients, especially UAE nationals, going abroad to seek treatment.
“They will take care of very sick patients that the existing private sector [hospitals are] not able to. I see the impact as minimum,” Dr Alom said.
Cleveland Clinic opened its eye institute earlier this month and is set for full operation soon.
