Sulaiman Al Habib estimates each deal value at more than 5% of the group’s 2024 audited revenues.
Dr. Sulaiman Al Habib Medical Services Group (HMG) announced on Sept. 8 that it signed two five-year operation and maintenance (O&M) contracts — one with Red Sea Real Estate Co. for Red Sea Hospital in Turtle Bay, and another with AMAALA Co. for AMAALA Hospital. Both are located on Saudi Arabia’s Red Sea coast and each with a 44-bed capacity.
In two separate statements to Tadawul, Sulaiman Al Habib said the financial impact of the Red Sea Hospital contract will begin in Q4 2025, while the AMAALA Hospital contract will be reflected in Q1 2026. Each deal value is estimated at more than 5% of the group’s 2024 audited revenues.
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The contracts cover a full scope of services, including design and commissioning, as well as hospital operations, management, and maintenance. This also entails providing and managing medical, nursing, technical, and administrative staff; supplying medications and medical consumables; and overseeing non-medical support services in line with operational requirements.
The contracts will take effect once Red Sea Co. and AMAALA confirm the start of design review services, followed by commissioning.
The healthcare services provider will handle operation, management, and maintenance for five years starting from the actual operation dates, with the option to extend contracts for another five years. Red Sea and AMAALA retain the right to terminate the agreements upon a 180-days prior notice.
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