Saudi German Health begins trial ops at Sobhi Batterjee Hospital

One of Middle East Healthcare Co. (Saudi German Health) hospitals

Middle East Healthcare Co. (Saudi German Health) said that Sobhi Abdul Jalil Batterjee Medical Hospital, owned by Al-Sobh New Medical Co., obtained final approval from the Ministry of Health to operate as a medical facility.

In a statement to Tadawul, the company said the hospital commenced trial operations as of today, Sept. 15, after completing all regulatory and procedural requirements.

For more news and details on the projects

This development follows the signing of three key agreements with Al-Sobh New Medical, covering preparation, qualification and supervision, the use of the Saudi German Hospital brand name and trademark, as well as hospital management and operations.

Saudi German Health expects that obtaining the final license and starting trial operations will enable the hospital to begin receiving patients in the coming period, supporting its operational expansion plans and enhancing the quality of its medical services.

The company contributed SAR 70 million to the project, representing 23.33% of the hospital’s total capital of SAR 300 million, following approval by the general ordinary meeting (OGM) held on July 16, 2022.

There will be no material financial impact on the company’s results for the current quarter. The positive financial effect is expected to appear gradually with the start of full hospital operations, the statement noted.

According to data available with Argaam, the company’s board of directors approved, in December 2024, signing a 10-year agreement to use the Saudi German Hospital brand with Sobhi Abdul Jalil Batterjee Medical Hospital, a related party.

Under the contract, Saudi German Health will receive 10% of the hospital’s monthly net profit. The agreement does not pose any risk to the company’s earnings or assets.

It also signed a six-month contract worth SAR 3.14 million in total to oversee the pre-opening preparation and qualification phase of Sobhi Abdul Jalil Batterjee Medical Hospital, a related party.

The board also approved a five-year management and operations agreement for Sobhi Abdul Jalil Batterjee Medical Hospital, starting from the date of official handover. Under this contract, Saudi German Health will receive 3% of the hospital’s net revenues after deductions.