Bahrain entities acquire NAS United Healthcare Services

Bahrain’s Arcapita, an investment firm, and the country’s sovereign wealth fund Mumtalakat Holding Company acquired Abu Dhabi’s NAS United Healthcare Services as they vie to tap demand in the Arabian Gulf’s rapidly-growing healthcare sector.

The two entities combined will acquire a 90 per cent stake in NAS, which provides third-party administrator services to more than 40 health insurance and takaful companies in the Gulf region, for an undisclosed sum.

“Global population trends indicate the importance of increased healthcare solutions and by extension, health insurance services,” the Mumtalakat chief executive Mahmood Al Kooheji said.

“We believe NAS has significant potential to expand into regional countries and secure large contracts and we are delighted to partner with Arcapita to invest in NAS.”

Mumtalakat, which has about US$11 billion in assets, has other healthcare investments that include Jordan’s Arab Company for Drug Industry and Medical Appliances and Italy’s Kos Group.

Arcapita’s other investment in the sector includes US-based Meridian Surgical Partners.

NAS provides services to more than 7,200 healthcare providers across the GCC region, the Middle East and India, serving more than 500,000 insured members and it processes in excess of 3 million medical claims per year.

“We are excited to partner with Arcapita and Mumtalakat and believe their investment expertise, extensive network, and strategic oversight will help guide the company through its next phase of growth,” said Joseph Boulos, chief executive of NAS.

Competition for healthcare assets across the Gulf is intensifying, as governments look to cut costs and increase the involvement of private companies in the sector, especially in Saudi Arabia, the region’s largest economy.

The region’s health care is forecast to grow to $71.3bn by 2020, at a compounded annual rate of 12.1 per cent, according to Alpen Capital.

Saudi Arabia’s National Transformation Programme, rolled out by the government last year, envisages private spending rising to 35 per cent of the country’s total healthcare expenditure by 2020 – up from 25 per cent in 2016.

The country’s ministry of health is examining bids for the privatisation of 55 healthcare centres in Riyadh, with similar sell-offs being considered.

NMC Healthcare, the UAE’s largest private healthcare provider, last month acquired majority stakes in two multi-speciality hospitals in Najran and Ha’il for a total consideration of $40 million.

NMC, which entered Saudi Arabia last year via a 70 per cent stake in As Salama Hospital in Al Khobar, is also planning a multi-speciality facility in the eastern oil city, and has received regulatory approvals for its proposed long-term care facility, Chronic Care Specialty Medical Centre in Jeddah.

We believe NAS has significant potential to expand into regional countries and secure large contracts MAHMOOD AL KOOHEJI Mumtalakat chief executive