Burjeel shifts Saudi strategy to day surgery centers

1

WHAT WE’RE TRACKING TODAY

Chery to return to the Saudi market

Good morning, all. Our big story today is all about Burjeel Holdings’ Saudi expansion — we speak to Chairman and CEO Shamsheer Vayalil to get the inside track on the company’s plan, which will prioritize specialized day surgery centers. We also talk to Merak Capital Principal Abdulaziz Alsaid for a deep dive into ZYA, the Kingdom’s first fashion-dedicated PE fund.

PSAs

Real estate registration for 1.5k plots across the Makkah, Tabuk, and Riyadh regions starts next week, Sunday through Thursday, the Real Estate General Authority (Rega) said in a statement. This round covers parts of three neighborhoods in Makkah's Taif, plots in Tabuk’s Umluj, and plots in Riyadh's Afif. Owners can register through the Real Estate Registry platform or at service centers.

REMEMBER- Rega completed the registration process for all real estate zones within Riyadh's urban areas in May, finishing the city’s digital real estate map.

Chery to return to the Saudi market in 4Q

Chinese automaker Chery aims to re-enter the Saudi market in 4Q 2026, according to a press release. The company plans to introduce a new product lineup with advanced features, such as the super-intelligent valet parking, which allows drivers to remotely instruct vehicles to find a parking space or drive autonomously from a parking spot to a designated pickup point.

REMEMBER- The auto giant has other ongoing expansion plans into the Saudi market, including an aluminum smelter developed in partnership with the National Environmental Recycling. The project will have an initial production capacity of 50k tons per year and will produce aluminum for car manufacturing.

Gulf skies hold

Middle East travel demand has clawed back to as much as 90% pre-war levels — enough to keep Airbus confident Gulf carriers can shake off the Iran war disruption and keep adding capacity, Bloomberg reported last week. The planemaker expects the region's major carriers, including Emirates and Qatar Airways, to keep expanding their fleets.

Airbus’ wider outlook is still positive, just flatter. It expects global traffic to grow 2% this year and 3.9% annually over the next two decades, with China, India, emerging Asian markets, and the Gulf driving demand. It sees 42k aircraft deliveries over the period — slightly below last year's forecast — with single-aisle jets accounting for around 80% of the total at 34k units.

Our take: Gulf carriers anchor a large share of Airbus and Boeing's widebody order books. Their business model depends on pulling global traffic through Dubai, Doha, Abu Dhabi, and other regional hubs — Emirates alone operates the world's largest fleet of Airbus A380s and Boeing 777s, which is why Airbus' read on Gulf demand matters well beyond the region.

More capacity for Jeddah port

The Saudi Port Authority (Mawani) invested SAR 641 mn in Jeddah Islamic Port in 2Q, raising handling efficiency and competitiveness, it said in a statement. The investment expands container terminal yards by 200k sqm, adds three ship-to-shore cranes, 27 rubber-tyred gantry cranes, 91 terminal trucks, and seven pieces of ground handling equipment. Mawani also boosted the port's refrigerated cargo capacity.

Why it matters: This development underscores a growing dependence on Red Sea ports for trade and logistics following the closure of the Strait of Hormuz, as the port’s exports grew 37.6% y-o-y and imports were up 51.2% in the first half of April 2026. The Kingdom has been augmenting its logistics corridors initiative to position Jeddah, Yanbu, and King Abdullah ports as fallback gateways for Gulf trade.

Data point

SAR 4.6 bn — that’s the value of municipal investment contracts signed through the Furas platform in 1H 2026, after launching more than 13k potential investments across the Kingdom, the Municipalities and Housing Ministry said in a press release. The platform operates municipal assets spanning agriculture, industry, commerce, education, healthcare, tourism, entertainment, transport, and real estate.

*** You’re reading EnterpriseAM Saudi, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We’re out Sunday through Thursday by 7am Riyadh time.

EnterpriseAM Saudi is available without charge thanks to the generous support of our friends at Tas’heel and Hassan Allam Properties.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on [email protected].

DID YOU KNOW that we also cover Egypt, the UAE, the MENA logistics industry, and the MENA <> India corridor?

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM Saudi delivered every weekday.

***

The big story abroad

It’s a quiet Monday morning on the global front pages save for the latest escalations in the regional war.

The US military launched fresh strikes on Iran to keep the Strait of Hormuz open. Rejecting Tehran’s claims that it has closed the waterway, the US Central Command announced new strikes designed to weaken Iran’s ability to target commercial vessels. Meanwhile, Iranian state media reported explosions in cities along the strait.

Iran launched at least three waves of missiles and drones at Gulf nations, targeting US military bases across Jordan, Qatar, Kuwait, Bahrain, and Oman. The strikes were in retaliation for bombings in southern Iran, state-affiliated Tasnim News Agency reported.

Oil markets jolted: The escalations sent Brent crude prices up 3% to USD 78 a barrel at the open of Asian trading, while West Texas Intermediate surged 4% to USD 79 a barrel. Oil prices have been steadily falling, inching towards their pre-war level of USD 72.5, since the US and Iran announced their framework agreement — prices hit a war peak of USD 126 a barrel in April.

Burjeel Holdings focusing Saudi expansion on specialized day surgery centers

UAE-based Burjeel Holdings is focusing its Saudi expansion on specialized day surgery centers rather than large hospitals, with plans to open its first facility in the kingdom in early 2027 and to eventually build a network of up to 10 centers, Chairman and CEO Shamsheer Vayalil tells EnterpriseAM.

The strategy: Rather than deploying capital into 200- to 500-bed hospitals, Burjeel is focusing on smaller outpatient facilities that require less investment, while targeting faster-growing specialties. “We can actually go for up to eight to 10 day surgery centers once we evaluate the first facilities and invest accordingly,” Vayalil says.

Saudi rollout: The first center is expected to open in Khobar in early 2027, followed by Riyadh later in the year. Together, the two facilities come at an investment of around USD 100 mn, according to Vayalil. The group is also expanding through primary care, physiotherapy, home healthcare, and digital services, having already acquired a home care license and primary care assets in the kingdom.

Not chasing hospitals: Burjeel says it is deliberately avoiding direct competition with established Saudi hospital operators, opting instead to build specialized healthcare platforms where it believes it can differentiate itself.

Funding growth: Burjeel completed its inaugural USD 500 mn sukuk on 7 July, issued under its USD 1.5 bn program and listed on the London Stock Exchange’s International Securities Market, using the proceeds primarily to refinance existing bank debt. Future issuances, however, are expected to finance expansion projects rather than refinancing. “Whatever will come will definitely be for growth, for our specific projects,” Vayalil says.

Funding appetite: The sukuk attracted a USD 1.6 bn orderbook that was 3.2x oversubscribed, despite launching amid heightened geopolitical tensions across the Middle East. “We knew it would be covered, but to this extent, we never expected it,” he says.

The firm chose not to delay the issuance despite volatile markets, believing investors were looking for prospects beyond the region’s traditional issuers. “We did not want to wait for somebody else,” Vayalil says, adding that Burjeel was comfortable pricing the debut issuance in a way that allowed first-time investors to generate attractive returns.

What’s next: Beyond Saudi Arabia, Burjeel plans to invest around AED 1.4 bn over the next two to four years in a medical school, a research center, and digital healthcare initiatives in Abu Dhabi, while continuing to expand specialized care offerings across its existing markets. The company also aims to improve margins through higher-growth businesses such as day surgery centers while maintaining its long-term profitability guidance of around 20%.

ZYA fund targets growth-stage Saudi fashion brands

The Kingdom’s first fashion-dedicated PE fund, ZYA, is targeting growth-stage Saudi brands with the capital and commercial support to go regional and international, Merak Capital Principal Abdulaziz Alsaid tells EnterpriseAM.

REMEMBER- ZYA was launched in April by Merak Capital and the Cultural Development Fund, with a total investment size of SAR 300 mn to help attract capital into Saudi Arabia’s fashion sector.

The investment thesis: ZYA is not an import-substitution play. “The goal is not simply to reduce imports. It is to increase the share of value created by Saudi brands within a market that will continue to welcome leading international names,” Alsaid says. Saudi fashion and beauty already contribute 2.6% of GDP, he tells us, and the market is projected to reach USD 36.8 bn by 2025, the largest in the Gulf, growing at a compound annual rate of 6.4% through 2029, according to the latest Saudi State of Fashion report. The fund’s job is to ensure Saudi brands capture a bigger slice of that, not to lock anyone out.

What ZYA actually does: The fund backs established Saudi brands with the capital, strategic guidance, and market access to move from domestic traction to regional and international growth. Beyond capital, every investment comes with hands-on mentorship, commercial partnerships, and collaboration across the ecosystem, Alsaid says. The fund is also working with the Saudi Fashion Commission to establish fashion as an investable asset class that can attract wider institutional capital.

The funding Saudi fashion lacked: The Kingdom has “distinctive design talent” and a large young consumer base, but needed institutional growth capital, Alsaid says. ZYA intends to supply that, along with the corporate infrastructure, to carry domestic brands beyond the home market.

Who qualifies: Growth-stage companies with “consistent revenue growth, a resilient customer base, strong brand positioning, disciplined operations, and a credible path to profitability,” Alsaid says.

The supply chain question: Manufacturing depth, logistics, and supply chain capability remain real constraints. Alsaid's view is that they are “best addressed through demand-led growth.” As local brands scale and build healthier balance sheets, their volume justifies deeper investment in local production and more efficient supply networks.

Some brands are already moving. JAY3LLE had announced plans to enter New York, London, and East Asia through pop-up stores, followed by permanent retail locations in March.

Propane disruption hit Advanced net income

Propane squeeze pushes Advanced into the red: Advanced Petrochemical swung to a SAR 98 mn net loss in 2Q from a SAR 82 mn net income a year earlier, it said in a Tadawul filing. Rising feedstock costs, lower production due to propane supply disruptions, and higher operational expenses at the polyolefins plant outweighed stronger selling prices.

Higher selling prices compensate for lower sales volumes: Revenue rose 18.5% y-o-y to SAR 827 mn during the period, driven by a 34% increase in net selling prices, despite a 12% decline in sales volumes.

A similar story in the first half: Advanced posted a SAR 69 mn loss in 1H, reversing a SAR 153 mn net income a year earlier. Rising propane and purchased propylene prices, together with costs associated with the Advanced Polyolefins facility, continued to pressure earnings despite stronger revenue.

A recovery underway? 2Q earnings also absorbed a one-time expense of SAR 20 mn after the company launched maintenance activities earlier than scheduled to make the most of the propane supply disruption. Advanced expects this will improve operating efficiency, adding that propane supplies and production volumes returned to normal in June.

Knowledge Economic City gets a new CEO ahead of foreign ownership play

Knowledge Economic City appointed Moath Ahmed Alyahya (LinkedIn) as its new CEO, according to a Tadawul disclosure. Alyahya brings more than 20 years of experience in real estate development, investment, and portfolio management. He previously served as AlRajhi United Real Estate’s CEO and held senior leadership roles at the Labor and Social Development Ministry, Osoul Integrated Real Estate, and the Public Pension Agency.

Alyahya replaces acting CEO Hazem Elbanna, KEC's COO, who had run the company on an interim basis since long-time CEO Mohammad Almubarak stepped down at the start of the year. He takes over just as KEC's core asset — its some 2 mn sqm land bank in Madinah — becomes one of the few regulated routes for foreign capital into holy-city real estate.

Al Rasheed wagers on silica products + SPAC listings get final green light

Al Rasheed is buying into its own supply chain. Industrial silica sand miner Mohammed Hadi Al Rasheed & Partners signed an agreement to acquire a 50% stake in Taif Shipping for SAR 92.5 mn, it is said in Tadawul filing. Taif provides oilfield services including the transportation and blending of silica sand and chemicals used in conventional and unconventional oil and gas extraction.

This is a vertical integration play. Al Rasheed mines and processes the silica; Taif ships and blends it for oilfield customers. Owning half the logistics chain gives Al Rasheed direct access to downstream marketing channels for its products.

What’s next? The acquisition, once cleared by the regulator, will be funded through Al Rasheed’s own resources and available financing facilities.

SPAC listings get final green light

The CMA opened the door to SPAC listings on Tadawul. New amendments to the securities offerings rules establish a regulatory framework for special purpose acquisition companies (SPACs), giving private Saudi firms a route to the public market through a merger with a listed shell company rather than a traditional IPO, according to an announcement.

How it works: SPACs under the new rules are defined as joint-stock companies established to acquire or merge with unlisted Saudi firms. Licensed capital market entities authorized to carry out investment management activities can now serve as sponsors. SPAC shares will be redeemable either at the company's discretion or at shareholder request.

Why it matters: The framework creates a regulated shortcut to Tadawul for private companies and a new vehicle for institutional investors and asset managers looking to back acquisitions and take companies public.

GCC 2Q earnings to show Iran war’s financial impact

GCC firms’ 2Q earnings will provide the strongest signal yet of the Iran war’s financial impact. The forecasted sectoral breakdown displays mixed results, with oil and gas and telecoms set to weather the geopolitical storm, while property markets and consumer-facing sectors such as retail and tourism are expected to bear the brunt, Reuters reports.

Oil and gas earnings are expected to remain resilient for now, as higher energy prices offset lower volumes caused by disruption. These elevated prices might change, however, during the second half of this year if the tensions ease and Gulf oil exports normalize.

REMEMBER- Gulf crude exports continued to recover in June, reaching at least 75% of pre-conflict levels as loadings resumed at Ras Tanura, Aramco's main Gulf export terminal. Saudi shipments from the Gulf climbed to 4.45 mn bbl / d, their highest since the war erupted in late February, but remained below pre-war levels.

MEANWHILE- Telecom operators are also set to deliver robust results, benefiting from long-term contracts and inelastic demand. Still, consumer-facing sectors, including retail and tourism, are likely to reflect the impact of the conflict, although higher at-home consumption benefited some companies.

Banks are predicted to post single-digit q-o-q income declines, according to EFG Hermes, reflecting weaker trade finance activity and lower international travel-related card spending. The comparison is also affected by a strong 1Q that included two largely pre-conflict months. Despite slower growth, lenders remain well-capitalized with ample liquidity, with some UAE banks attracting deposits by raising rates for new savers.

The prolonged tension is the greatest threat to the regional property markets: The UAE's property market is displaying signs of strain after years of rapid growth, with analysts warning that prolonged tensions could weigh on expatriate inflows and tourism-driven demand. Some developers have responded by reducing or delaying dividend payments to preserve liquidity.

Some execs believe the markets will absorb this shock: FIM Partners CIO Francesc Balcells struck a more optimistic tone, saying some developers had underperformed, but regional credit spreads had largely normalized. “It is just an issue of balance sheets,” he said. “These guys have very strong balance sheets, so they can withstand big shocks like this.”

The economic impact varied across the region, depending on the countries’ reliance on the strait. Saudi’s economy is expected to grow by 2.1% in 2026, due to its Red Sea export infrastructure, according to HSBC, with the IMF expecting its real GDP growth to reach 6.8% in 2027. The UAE, Qatar, and Kuwait, which rely more heavily on the strait, are expected to contract.

The strait is unlikely to return to normal anytime soon. Regional growth projections across most sectors hinge on the outcome of US-Iran negotiations, with a lasting de-escalation needed to restore shipping through the strait to pre-conflict levels. This seems unlikely at the moment, with Trump saying last week that the ceasefire collapsed, while Iran warned it would no longer consider itself bound by any agreement if the US continued to violate the truce.

MARKETS THIS MORNING-

Asia-Pacific markets are down in early trading as escalating regional tensions put a drag on Japan’s Nikkei and South Korea’s Kospi. The Kospi is down 4.7% while the Nikkei is down a less dramatic 1.7%. “The strait closure will hang over the market with a risk-off tone,” Fed Watch Advisors’ Ben Emons wrote.

TASI	10,819	+0.1% (YTD: +3.1%)
MSCI Tadawul 30	1,441	+0.1% (YTD: +3.9%)
NomuC	22,555	-0.8% (YTD: -3.2%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.25% repo	3.75% reverse repo
EGX30	52,256	-0.1% (YTD: +24.9%)
ADX	9,936	+0.6% (YTD: -0.6%)
DFM	6,043	+0.9% (YTD: -0.1%)
S&P 500	7,575	+0.4% (YTD: +10.7%)
FTSE 100	10,497	+0.2% (YTD: +5.7%)
Euro Stoxx 50	6,270	-0.2% (YTD: +8.2%)
Brent crude	USD 78.49	+3.3%
Natural gas (Nymex)	USD 2.92	-0.8%
Gold	USD 4,081	-0.8%
BTC	USD 63,989	-0.6% (YTD: -27.0%)
Sukuk/bond market index	910.46	0.0% (YTD: -1.0%)
S&P MENA Bond & Sukuk	151.73	+0.1% (YTD: -0.1%)
VIX (Volatility Index)	15.03	-5.1% (YTD: +0.5%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.1% yesterday on turnover of SAR 2.2 bn. The index is up 3.1% YTD.

In the green: Liva Ins. (+9.9%), Saudi Printing (+9.9%), and Sieco (+8.9%).

In the red: Saudi Fisheries (-4.8%), Sarco (-4.1%), and East Pipes (-4.0%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.8% yesterday on turnover of SAR 12 mn. The index is down 3.2% YTD.

In the green: Molan Steel (+6.4%), Lamasat (+5.9%), and Albabtin Food (+5.2%).

In the red: Alfakhera (-9.9%), Almujtama Medical (-8.3%), and Almuneef (-7.1%).

CALENDAR

AUGUST

30 August-1 September (Sunday-Tuesday): Saudi Paper and Packaging Expo, Riyadh International Convention & Exhibition Center.

31 August-3 September (Monday-Thursday): Leap Tech Conference, Riyadh Exhibition & Convention Center - Malham.

SEPTEMBER

8-10 September (Tuesday-Thursday): The WTM Spotlight Riyadh, Riyadh Front Exhibition & Conference Center (RFECC), Riyadh.

15-17 September (Tuesday-Thursday) The Global AI Summit, King Abdulaziz International Convention Center, Riyadh.

23 September (Wednesday): Saudi National Day.

28 September-1 October (Monday-Thursday): The International Conference on Theory and Practice of Electronic Governance (ICEGOV), Prince Sultan University, Riyadh.

OCTOBER

25-26 October (Sunday-Monday): The Global Proptech Summit, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

26-28 October (Monday-Wednesday): ACHEMA Middle East, Riyadh International Convention & Exhibition Center.

28-29 October (Wednesday-Thursday): Procurement and Supply Chain Futures Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

28-29 October (Wednesday-Thursday): Real Estate Supply Chain Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

30 October-1 November (Friday-Sunday): The New Global Sport Conference, Sofitel Hotel & Convention Centre, Riyadh.

NOVEMBER

11-12 November (Wednesday-Thursday): Aluminum Arabia, The Arena, Riyadh.

16-19 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Centre (Malham), Riyadh.

29 November-1 December (Sunday-Tuesday): The UN Trade and Development Global Supply Chain Forum, Riyadh.

Signposted to happen sometime in 2026:

2H: Sabic’s USD 6.4 bn Fujian project in China to start production;
November: The Esports Nations Cup, Riyadh;
The World Economic Forum’s Global Collaboration and Growth Meeting, Jeddah;

2027

FEBRUARY

1-3 February (Monday-Wednesday): Energy Regulators Regional Association annual conference, Riyadh.

MARCH

21-25 March (Sunday-Thursday):The World Water Forum, Riyadh.

22–24 March (Monday-Wednesday): Capital Markets Forum, Four Seasons Hotel, Riyadh

APRIL

26-29 April (Monday-Thursday): World Energy Congress, Riyadh.

JUNE

1-3 June (Tuesday-Thursday): The Saudi Entertainment and Amusement Expo, Riyadh Front Exhibition and Conference Center.

Signposted to happen sometime in 2027:

The Ocean Race finishes in Amaala on the Red Sea;
Riyadh-Kudmi transmission line to be completed;
Aero Middle East and Sand & Fun takes place in Thumamah Airport, Riyadh.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

Sections

About

Privacy & Support