Two Saudi medical companies have begun talks with local financial and consulting firms in an effort to evaluate joint expansion opportunities in the near future, reported Al-Hayat newspaper. These companies aim to take advantage of the imposing of a compulsory cooperative medical insurance on the expatriate residents of Saudi Arabia.
The Doctor Akef Al-Maghreby Company, a major medical firm in Saudi Arabia, has begun negotiations with the Medical Centers Company, the Medical Equipment Company and the Optics Company in order to merge into a single giant medical company.
In addition, the Saudi German Hospitals Group (SGH) was the first operating medical company in the kingdom to think of exploiting the imposition of cooperative medical insurance on foreign residents of Saudi Arabia.
The SGH Group currently possesses and operates eight hospitals in Saudi Arabia, some of which are still under construction. The company is planning to build up to 15 hospitals over the next 15 years in order to benefit from the expected market growth in the future.
The imposition of the cooperative medical insurance law on the foreign residents of Saudi Arabia is expected to boost the value of the medical insurance market in the Kingdom of Saudi Arabia from present $1.06 billion to $4.47 billion. The cost of the medical insurance is estimated at 1,500 Saudi riyals per resident. — (Albawaba-MEBG)