Alpha Dhabi and ADQ sign deal to create UAE’s largest healthcare provider

Seha and Daman will be consolidated into Pure Health under new arrangement

ADQ will become the largest shareholder in Pure Health after the deal. Photo: ADQ

Abu Dhabi holding company ADQ is merging its health care subsidiaries with Alpha Dhabi’s Pure Health Medical Supplies as the two companies continue to streamline their portfolios.

The move will create the UAE’s largest healthcare provider.

As part of the deal, Abu Dhabi Health Services Company, better known as Seha, and the National Health Insurance Company, better known as Daman, will be consolidated into Pure Health, Alpha Dhabi said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.

“This unique ecosystem, with a keen focus on combining technology with health care, creates a scalable platform for international growth, driving recognition and value for the nation and our investors,” said Mohamed Al Rumaithi, chairman of Alpha Dhabi.

“Going forward, Pure Health will actively seek expansion opportunities globally to further diversify its portfolio and leverage its success in the UAE.”

Demand for healthcare services has grown amid the coronavirus pandemic and companies are planning to tap into this demand by ramping up their investments in businesses providing diagnostics, testing and other support services.

Tamouh Healthcare, Yas Clinic Group and the Abu Dhabi Stem Cell Centre will also become part of Pure Health as it seeks to expand, the two companies said on Wednesday.

ADQ will become the largest shareholder in Pure Health after the deal, which is subject to regulatory approvals. Apart from Alpha Dhabi, other shareholders include International Holding Company, AH Capital and Ataa Financial Investments.

Set up in 2018, ADQ has a portfolio of companies in strategic sectors of Abu Dhabi’s non-oil economy, including tourism and hospitality, aviation, transport, logistics, industrial, property, media, health care, financial services and agriculture and food.

ADQ’s portfolio of companies includes the Abu Dhabi Power Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, Seha, Daman, Abu Dhabi National Exhibitions Company and media companies Abu Dhabi Media and twofour54.

“Pure Health will be instrumental in transforming the provision of health care as we consolidate several companies into the platform,” said Mohamed Alsuwaidi, chief executive of ADQ.

“Combining the strength of clinical powerhouses and the UAE’s leading health insurer will develop a scalable healthcare platform for growth.”

Alpha Dhabi, which had a market value of Dh263.8 billion ($71.82bn) as of Wednesday and was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions in 2021.

Earlier this week, it acquired a 25.24 per cent stake in Al Qudra Holding and increased its stake in Abu Dhabi’s biggest listed developer Aldar Properties after it bought an additional 17 per cent in the company. The deal brings Alpha Dhabi's overall stake in Aldar to 29.8 per cent.

Last year, ADQ, merged its healthcare entities Rafed and Union71 with Pure Health to create a major healthcare support services provider.

Other major deals in the healthcare sector in 2021 include International Holding Company's agreement to buy a 40 per cent stake in Response Plus Medical Services, a unit of VPS Healthcare.

Abu Dhabi-based investment group Yas Holding also acquired a majority stake in Geltec Healthcare's Dubai-based business for an undisclosed sum.

Dubai-listed investment company Amanat Holdings acquired Cambridge Medical and Rehabilitation Centre for $232 million in one of the region's biggest healthcare deals in March.