Dallah's Al-Ahsa, Al-Khobar hospitals to add over SAR 500M to 2025 topline: CEO

In an interview with Argaam, the top executive expected Dallah’s recently-acquired Al-Khobar and Al-Ahsa hospitals to contribute more than SAR 500 million to revenues in 2025 (starting from their acquisition date).

This uptrend should persist at high rates in the following years, in tandem with increased occupancy rates at both hospitals, especially Dallah Hospital Al-Khobar, he further stated.

In Q2 2025, Dallah’s topline increased by 38.8% year-on-year (YoY), exceeding the SAR 1 billion mark for the first time in the Saudi-listed company's history.

This came thanks to elevated operational capacity and strategic expansions undertaken by the group, both being carried out at existing and recently-acquired medical facilities. This in turn has bolstered the growth momentum in patient visits, according to the CEO.

The March 23 acquisition of Al Salam Medical Services Co., which owns Dallah Hospital Al-Khobar, and Al Ahsa Medical Services Co., owner of Dallah Hospital Al-Ahsa, reflected positively on higher revenues.

Prior to this takeover, existing medical facilities had posted a YoY revenue hike of about SAR 121 million (or 15.8%), he highlighted.

Commenting on the impact of Dallah’s ongoing expansions on operating margins, Alkasabi said it is only normal for margins to be slightly hit for a relatively short period, especially since Dallah Hospital Al-Khobar is still in its early stages of operation.

He also clarified that operating expenses may top the benchmark average, albeit the two hospitals have already begun to see improved operating margins during the second quarter of this year. This uptrend is likely to prevail going forward, bringing margins on par with the rest of the group's facilities.

As for Dallah’s planned expansions, the coming period will see more focus on expanding Dallah Hospital Al-Khobar through the addition of new clinics, beds, and specialities.

At present, the hospital encompasses 150 beds. The goal is to bring the full run rate at more than three times its current bed capacity, or about 475 beds. This would translate into a group-wide operating capacity of over 1,900 beds, and a total of 2,560 beds when factoring in those of associates, according to the CEO.

Regarding the quantitative impact of recent expansions, Alkasabi stated that the acquisition of Dallah Hospital Al-Ahsa and Dallah Hospital Al-Khobar boosted the group's operational capacity by 37%, adding 424 beds (274 in Al-Ahsa and 150 in Al-Khobar).

He expects this percentage to reach 65% when the Al-Khobar hospital hits its full run rate.

In Q2 2025, Dallah witnessed a notable YoY surge in patient visits. At existing facilities, the footfall accelerated by 14%, particularly after the latest expansions (mainly the operation of the Dallah Hospital Namar expansion project).

Alkasabi also pointed to a potentially deeper influence from the recent hospital acquisitions, through which the total number of patient visits to all Dallah medical facilities increased by nearly 44%.

According to Argaam data, Dallah reported a net profit of SAR 279.8 million in H1 2025, up 21% from SAR 231.1 million a year earlier. The second-quarter bottom line also jumped by 11% YoY to SAR 124.3 million.