The focus of the new Saudi day care centres, planned for a 2025 opening, will be on non-invasive support in oncology, advanced gynecology, orthopedics and neurology care. Image Credit: Supplied

Dubai: Abu Dhabi headquartered hospital operator Burjeel Holdings has confirmed plans to open two specialized day care centers in Riyadh by 2025. These facilities will offer support on oncology, advanced gynecology, orthopedics and neurology care.

The investments on the two centers will be handled directly by Burjeel, which is listed on ADX and is one of the biggest privately sector healthcare firms in the UAE. Last year, it had made its first investments in Saudi Arabia, through specialist fitness centers – but that was in association with Leejam Sports.

The likely capex on the new day care centers will likely be $30 million to $40 million each, with $10 million to $15 million working capital investment expected per center.

Once up and running at full capacity, these are expected to each generate annual revenue of at least SR150 million to SR200 million.

"Today’s announcement is part of our broader commitment to maximizing the accessibility of high-quality healthcare services across the region," said Dr. Shamsheer Vayalil, Founder and Chairman of Burjeel Holdings. "Importantly, the addition of Specialized Day Surgery Centers in KSA complements the recent launch of our PhysioTherabia network."

Based on Abu Dhabi model

Burjeel will take cues from its Al Reem Specialized Day Surgery Center in Abu Dhabi for the upcoming Saudi facilities. The Al Reem facility has generated 'significant referral traffic' since the 2017 opening and recorded Dh253 million in revenue last year and had a 62 per cent inpatient occupancy rate.

"It has complemented Burjeel Hospital and Burjeel Medical City by dealing with minimal invasive cases that would have previously been managed by those hospitals," the operator said in a statement.

Burjeel portfolio
Burjeel Holdings currently has 16 hospitals and 30 medical centers within its network. These include the Burjeel, Medeor, LLH, Lifecare, PhysioTherabia and Tajmeel brands.

A $1 billion Saudi outlay

Burjeel has a MoU with Saudi Ministry of Investment - which it signed in August 2022 - to explore investment opportunities in Saudi Arabia amounting to up to $1 billion by 2030.

The day care centers 'will allow us to tap into new segments and enhance our services in Saudi Arabia, resulting in increased revenue and profitability', said John Sunil, CEO of Burjeel Holdings. "The 'specialized day surgery center' model is one we’re experienced in and will act as a critical cog in our long-term network ambitions in KSA – enhancing the patient experience with sophisticated minimally invasive technology and boosting our relationship with insurance companies by providing them with cost-efficient services."