Burjeel Holdings is betting its Saudi expansion on specialized day surgery centers

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%.