Investment Case
Burjeel Holdings is a leading private healthcare services provider in MENA with a compelling growth story, operating the largest private healthcare network in the UAE by bed count. Operating a network of hospitals, medical centers, pharmacies and other assets, we have significant utilization headroom across our assets and are focused on growing in areas of high-yield highly complex care. We are equally focused on leveraging and enabling the strength of our unique multi-brand portfolio, ensuring the strength of our network benefits all of our assets. With plans to grow our network in new markets, we are well positioned to unlock organic value while exploring strategically aligned inorganic expansion opportunities.
Unique vision and strategy focused on quality and clinical excellence, with an expanding service mix in areas of super-specialty care
- We are focused on attracting, training and developing the best and most innovative consultants to drive medical advancements in the MENA region
- Our strong clinical team has been responsible for the Group’s growth to date and remains committed to delivering quality and clinical excellence going forward, ensuring we invest in services that attract new patients, deliver on unmet, complex needs and deliver attractive ARR for the Group
- Joint Commission International (JCI), the world’s largest healthcare accreditor, has accredited 12 Burjeel hospitals, making them a part of an elite group of hospitals that deliver international standard treatment and service delivery across multiple specialties
Primed to deliver strong, predictable growth, recurring revenue and profitability, through an unmatched patient offering and network of brands
• We possess a track record of strong financial performance and consistent growth that has been driven by its ramp-up of assets launched in recent years and supported by its focus on treating a higher-end patient mix and cost optimization
• For the years ended 31 December 2019, 2020, and 2021, the Group’s revenue was AED 2,420.5 million, AED 2,605.2 million and AED 3,351.0 million, respectively, representing a CAGR of 17.7 per cent
• For the years ended 31 December 2019, 2020, and 2021, the Group’s EBITDA was AED 417.9 million, AED 470.2 million and AED 779.1 million, respectively, representing a CAGR of 36.5 per cent
Elevating utilization across our 16 hospitals and 23 medical centers, enabling exponential revenue growth with limited additional investment
• On average, we have a group inpatient bed occupancy rate of 55.6% and an outpatient capacity utilization rate of 72.9% - providing significant room for growth in both categories.
• We are focused on elevating utilization specifically in areas of high-yield complex care, ensuring return from utilization improvement is amplified through increased Average Realized Revenue (ARR), or average revenue per patient
• We consider 12 of our 16 hospitals to be in the medium or high-growth phase, meaning their current utilization is below 70%
• Our largest hospital, the largest hospital in the UAE, Burjeel Medical City (BMC), had inpatient bed occupancy of 34% and outpatient capacity utilization of 29% in 2022, a year in which BMC posted 125% revenue growth to AED 741 million
Increasing patient yield through a focus on delivering more super-specialty medicine and complex surgical care, with a focus on the premium, high-value market
• Burjeel Holdings has a proven ability to drive patient yield across our portfolio by increasing in-patient capacity in areas of complex, high-yield care
• In line with this strategy, between 2019 and 2022 we increased our Average Realized Revenue (ARR) by 32%
• In 2020 we opened Burjeel Medical City (BMC), the leading quaternary care hospital in the UAE and the only ESMO-accredited cancer care center in the UAE. BMC operates the country’s largest long term acute care and rehab center and the leading multi-organ transplant center
• We are partnered with two world-leading organizations at BMC, the Kypros Nicolaides Fetal Medicine & Therapy Center and the Paley Middle East Clinic. These and similar partnerships are key to building a globally relevant and attractive complex care capability
Expanding geographically in MENA and further abroad, with a focus on low-capex opportunities that deliver robust return with limited capital expenditure
• In 2022 we signed a Memorandum of Understanding (MoU) with the Kingdom of Saudi Arabia’s (KSA) Ministry of Investments, stating our intention to invest up to $1 billion in KSA by 2030
• We commenced our KSA expansion in 2023 through a joint venture with Leejam, the largest operator of fitness centers in the MENA region. Together, we are opening physiotherapy, rehabilitation and wellness centers across KSA
• We are also in discussions to operate and maintain a number of hospital assets in KSA and other markets, as well as separate potential partnerships in areas of niche, specialized medical care
• Geographic expansion will provide additional growth opportunities in the respective new markets as well as facilitating the movement of more international patients to the UAE for complex treatment.
Investing in centralization and digitization to deliver groupwide operational efficiency, leveraging the value of our group structure
• Centralized radiology, laboratory services, ICU command centers and the pooling of resources are key initiatives that are both reducing cost and improving outcomes for patients
• Tele-health technology is an area of investment where we are better leveraging resource while ensuring footfall capacity in our medical centers and hospitals is reserved for higher-value care requiring face-to-face interaction
• Other initiatives being rolled out include centralized procurement, centralized one-OR platform, digitization of services, employee training and nurse rotation programs
Improving our ESG performance which is opening opportunities to contribute to global health initiatives, raising our global profile and increasing demand for Burjeel’s services
• ESG principles serve as a fundamental foundation for sustainable growth and a crucial enabler of excellent patient outcomes, shareholder value and partnerships, opening potential commercial opportunities
• Key pillars of our ESG approach are humanitarian and charitable activity, as well as initiatives that enable scalable, sustainable healthcare delivery in developing countries
• Our ‘Healing Beyond Boundaries’ initiative focuses on the provision of humanitarian aid in the Middle East, Africa and Asia, an initiative through which we have established and run humanitarian medical facilities and donated to aid initiatives
• We work closely with the World Economic Forum and Edison Alliance in areas of Women’s Health, digital inclusion and broader global health research and outcomes, providing us a platform to contribute to global solutions and to engage with governments and NGOs
Established operations in large, attractive and resilient growth markets, with targeted expansion in global markets
- The UAE and Oman, our core markets, increased their healthcare expenditure from U.S.$12.4 billion and U.S.$2.9 billion, respectively, in 2016, to U.S.$18.0 billion and U.S.$3.5 billion, respectively, in 2021. They are expected to further expand healthcare investments to U.S.$34.0 billion and U.S.$5.3 billion, respectively, by 2031
- The Kingdom of Saudi Arabia (KSA), a market we entered in 2023, recorded the highest annual GDP growth among G20 countries in 2022, as it continues to diversify and expand its economy, attracting skilled migrants and growing its population
- We are focused on driving meaningful medical advancements in our markets, introducing complex services that meet unmet medical needs