Page 98 - SGH REPORT - FEBRUARY 2024

2/28/24, 10:25 AM Saudi German Hospital's Milestone: A SAR 1 Billion Sukuk Issuance …

Breaking New Ground in Healthcare Financing

The issuance, which began on 12 February and saw its allocation and settlement dates set for the end of

February and early March 2024 respectively, has been a testament to the Saudi German Hospital's financial
acumen and strategic planning. With the Sukuk listed and traded on the Saudi Exchange (Tadawul), this

move not only enhances the hospital's financial liquidity but also contributes significantly to the burgeoning

Sukuk market within the region. This is a clear indicator of the Middle East Healthcare Company's

commitment to innovation, not just in medical services but in financial strategies that ensure sustainability and
growth.

A Sign of Investor Confidence and Sectoral Health

The remarkable financial performance of the Saudi German Hospital in the first nine months of 2023, which

saw net profits after Zakat and tax skyrocket by 241.91% year-on-year, has evidently played a crucial role in
the success of this Sukuk issuance. This performance is not just a numerical achievement but a beacon of

investor confidence, signaling the healthcare sector's resilience and potential for growth. Furthermore, the

structured financial product with a 7.20% annual return presents an attractive proposition for investors,

blending the safety of a bond with the profitability potential of stocks.

Future Implications: Beyond the Numbers

While the completion of this Sukuk issuance is an immediate financial victory for the Saudi German Hospital, it
harbors deeper implications for the future. It points towards a healthcare sector that is becoming increasingly

sophisticated in its financial structures, ready to leverage global capital markets for sustainable growth.

Moreover, this move could potentially inspire other entities within the sector to explore innovative financing

solutions, thereby strengthening the overall health infrastructure in the Middle East. The success of this
issuance, as reported, is not just about the numbers; it's a narrative of growth, confidence, and a forward-

looking approach that other healthcare providers might well take inspiration from.

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