“Al Hammadi” Board Approve Construction of New Hospital to Replace the Old

The Board of Directors of Al Hammadi Company for Development and Investment approved the establishment of a new hospital to replace the current Al Hammadi Hospital Olaya in a meeting held today, Thursday, September 16. The new hospital will cost around 450 million riyals.

The firm said in a statement today on (Tadawul) that building on the project will begin in the first quarter of 2022, with % of the project’s funding coming from loans and % from self-financing flows.

In the first quarter of 2026, the project is projected to be finished. The project’s estimated financial impact on the company’s performance is a 30 percent rise in revenue. In the first quarter of 2026, the impact will be felt.

The project’s trial production is planned to begin in the first quarter of 2026, and the trial production period will last two months, with commercial production following in the first quarter of 2026.

The existing Al Hammadi Olaya Hospital’s receiving auditors will be suspended in October 2021, with the following financial implications: In the fourth quarter of 2021, the company recorded asset exclusion losses of roughly 57 million riyals and a 10% reduction in sales.

The closing of Al Hammadi Hospital Olaya is not expected to have a substantial negative influence on the company’s profitability in the following years, according to the company’s management.