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magazineNMC Health to benefit from growing UAE healthcare market
NMC Health (NMC) £33.60
Gain to date: 59.8%
Buy at £21.03, 6 July 2017
United Arab Emirates-based private healthcare provider NMC Health (NMC) has soared since we flagged its potential last July.
The UAE healthcare market is anticipated to expand in the low double digits, driven by an ageing population suffering from more diseases, according to Berenberg analyst Charles Weston.
He is optimistic further growth will be supported in Abu Dhabi by the higher oil price, flagging the International Monetary Fund’s forecast growth of 3.2% in 2018 on the basis of $53 per barrel. Oil currently stands around $70 per barrel, suggesting growth could surprise on the upside.
NMC was busy in January, acquiring a 70% stake in CosmeSurge for $250m and buying an 80% stake in Al Salam Medical for $37m.
Dubai-based cosmetic clinic CosmeSurge offers a high margin, double-digit growth business and Al Salam extends NMC’s foothold in Saudi Arabia with a 100-bed hospital and two clinics.
To build on its position as the second largest player in the global fertility market, the company has bought the remaining 49% stake in Fakih IVF. NMC also acquired the remaining 30% stake in As Salama Hospital for $218m.
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