Mouwasat OKs SAR 1.4B projects to build AlAhsa hospital, expand Qatif, Riyadh hospitals

Mouwasat Medical Services Co.'s board of directors approved the project of establishing the company's new hospital in AlAhsa, as well as the expansion of its hospital in Qatif and hospital in Riyadh, at a total value of SAR 1.38 billion.

AlAhsa hospital will be built with a capacity of 200 beds at a total cost of SAR 700 million. The project construction is expected to begin in Q1 2026, upon receiving required regulatory approvals.

In a separate statement to Tadawul, the company announced that its board of directors approved the project of adding new building with a capacity of 100 beds at a total cost of SAR 350 million adjacent to Mouwasat Qatif Hospital. It expects the project construction to begin in Q4 2025, upon obtaining require regulatory approvals.
 
The board also nodded to the expansion project of Mouwasat Hospital Riyadh by adding new building with a capacity of 100 adjacent to the existing hospital at a total cost of SAR 330 million. The company expects the project construction to start during Q1 2026 after obtaining the necessary regulatory approvals.

According to the company, the expected financial impact from the new hospital in AlAhsa will begin with the results of Q4 2029. Meanwhile, the financial impact from Riyadh hospital expansion is set to begin with the results of Q2 2029 and the financial impact from Qatif hospital expansion is likely to begin with the results of Q4 2028.
 
Mouwasat also indicated that the projects will be self-financed and financed by local banks with long-term Shariah-compliant loans. The financial impact and any other material developments related to the projects will be disclosed later, it aded.