SMC Healthcare Consortium wins US$1B contract for SABIC Behavioural Hospital

SAUDI ARABIA—Saudi Arabia’s Ministry of Health, in partnership with the National Centre for Privatisation & PPP (NCP), has awarded the contract to operate and manage the SABIC Specialised Behavioural Healthcare Hospital in North Riyadh to a consortium of Saudi and German healthcare providers.

The winning consortium, known as SEH Healthcare, brings together Tadawul-listed SMC Healthcare, German rehabilitation specialist Dr. Ebel Fachkliniken, and Saudi mental healthcare provider Health Gates Complex.

The project forms part of the Kingdom’s broader efforts to strengthen mental health services while expanding private sector participation in healthcare delivery under the Health Sector Transformation Programme.

Expanding access to specialised mental healthcare

According to NCP, the new facility will deliver a comprehensive range of behavioural and mental health services, including psychiatric care, addiction treatment, rehabilitation programmes, and long-term aftercare support.

 The project is designed to improve access to specialised treatment while enhancing the quality and efficiency of healthcare services across the Kingdom.

The hospital has a capacity of 150 beds and covers approximately 62,500 square metres.

In addition to inpatient services, the facility will house 19 outpatient clinics and six dedicated day-care rooms, enabling patients to receive treatment through a variety of care pathways.

The hospital was developed through collaboration between the Ministry of Health and the Saudi Basic Industries Corporation (SABIC), which contributed to the construction, infrastructure development, and equipping of the facility.

SMC subsidiary to lead operations

In a separate disclosure to the Saudi stock exchange, SMC Healthcare confirmed that it had received the project award letter on 17 June.

The company said its 51%-owned subsidiary, Al-Mukhtas Al-Sehhi Medical Company, will manage and operate the hospital under a 15-year public-private partnership concession agreement.

The project carries an estimated value of SAR3.8 billion (US$1.0 billion), including VAT.

Under the agreement, the consortium will oversee both clinical and non-clinical services, covering medical and non-medical operations and maintenance, facility management, equipment management, and specialised mental health and addiction treatment services.

Neither NCP nor SMC Healthcare disclosed details of the consortium’s ownership structure, project financing arrangements, or capital expenditure commitments.

Recent developments at SMC Healthcare

The award comes at a time of continued growth for SMC Healthcare.

Earlier this year, the company reported a 9.8% increase in first-quarter net profit to SAR32.55 million (US$8.68 million), supported by higher outpatient activity and growing inpatient revenues.

The company has also continued expanding its healthcare footprint in Riyadh through new outpatient facilities and has outlined plans to significantly increase its healthcare capacity over the coming years.

The SABIC Specialised Behavioural Healthcare Hospital project marks one of Saudi Arabia’s largest healthcare public-private partnerships focused on mental health services and reflects the Kingdom’s increasing emphasis on specialised care infrastructure under Vision 2030.