Sulaiman Al Habib signs 2 O&M contracts for Red Sea, AMAALA hospitals

Dr. Sulaiman Al Habib Medical Services Group signed today, Sept. 8, two operation and maintenance (O&M) contracts with Red Sea Real Estate Co. and AMAALA Co. for the operation, management, and maintenance of two hospitals.

In a statement to Tadawul, the company said that the first contract was concluded with Red Sea Real Estate Co. for the operation and maintenance of the Red Sea Hospital, located in the Turtle Bay area on Red Sea coast of Saudi Arabia, with a capacity of 44 beds.

The financial impact of the contract is expected to be reflected starting from Q4 2025.

In a separate statement, the medical services provider indicated that the second deal reached with AMAALA Co. is related to the operation and maintenance of AMAALA Hospital, which is located within AMAALA destination on Red Sea coast with a capacity of 44 beds.

The financial impact of the contract is expected to be reflected starting from Q1 2026.

The estimated contract value of each deal for a term of five years exceeds 5% of the group’s total revenues, according to the audited financial statements for 2024.

The scope of the two contracts includes providing design review services and commissioning services for the hospitals’ operational requirements, and the operation, management, and maintenance services of the hospitals. This shall include providing and managing the required medical, nursing, technical, and administrative staff for the hospitals’ operation, supplying and managing medications and medical supplies, as well as providing and managing non-medical support services, all in accordance with the operational requirements.