Burjeel taps sukuk market for expansion drive

Abu Dhabi-listed Burjeel Holdings has launched a $1.5 billion senior unsecured sukuk programme on the London Stock Exchange’s International Securities Market, giving the healthcare group a new funding platform as it pushes into specialised care, research, digital transformation and AI-enabled medical services.

The programme, established through Burjeel Sukuk Limited, marks one of the group’s most significant capital-market steps since its Abu Dhabi Securities Exchange listing and comes alongside first-time corporate credit ratings from S&P Global Ratings and Moody’s Ratings. S&P assigned Burjeel a BB+ issuer credit rating with a stable outlook, while Moody’s gave the company a Ba2 corporate family rating, also with a stable outlook.

The Shariah-compliant issuance framework allows Burjeel to raise funds through sukuk that are senior in ranking but not backed by specific collateral. The structure is intended to diversify funding sources, extend the group’s access to regional and international debt investors and support a capital plan tied to higher-acuity healthcare services across the Gulf.

The company is preparing for potential fixed-income investor meetings linked to an inaugural Regulation S dollar benchmark five-year senior unsecured sukuk offering. Any issuance will depend on market conditions, regulatory approvals and the publication of offering documents.

The funding plan reflects a broader shift in Gulf healthcare, where large private providers are moving from conventional hospital expansion towards platforms combining complex care, clinical research, medical education, digital tools and cross-border patient services. Demand is being driven by population growth, mandatory insurance, higher expectations for specialist treatment and government efforts to position the region as a medical tourism and life-sciences hub.

Burjeel’s chairman and chief executive, Dr Shamsheer Vayalil, said the ratings and sukuk programme strengthen the company’s financial flexibility while preserving prudent leverage and liquidity. He said the group is building a healthcare platform that integrates patient care with research, education and artificial intelligence.

The company’s latest financial performance gives context to the timing of the programme. Burjeel reported revenue of AED5.5 billion for 2025, up 9.5 per cent, while net profit rose 39.5 per cent to AED503 million. EBITDA climbed to about AED1.1 billion, helped by the ramp-up of growth assets, stronger patient volumes and cost optimisation.

First-quarter 2026 results showed revenue rising 5.1 per cent year on year to AED1.3 billion, with EBITDA up 11.2 per cent to AED201 million and net profit increasing 44.5 per cent to AED57 million. Patient footfall grew 7.2 per cent despite seasonal and regional factors that affected activity during March.

Burjeel, founded in Abu Dhabi in 2007, operates across the UAE and Oman and has been building a specialised healthcare presence in Saudi Arabia. Its network includes hospitals, day surgery centres, medical centres, physiotherapy centres and long-term care facilities. The group’s brands include Burjeel, Medeor, LLH, Lifecare and Tajmeel, serving patients across primary, secondary, tertiary and quaternary care.

The company’s flagship Burjeel Medical City in Abu Dhabi has become central to its higher-acuity strategy. The facility spans about 1.2 million square feet, has more than 350 beds and covers more than 60 specialised medical disciplines. It supports complex services including oncology, transplant care, orthopaedics, rehabilitation, cardiovascular treatment and advanced diagnostics.

The new sukuk framework also follows a period of heavy investment in growth assets. Burjeel has been expanding specialist services, strengthening its referral network and investing in technology to improve patient access, appointment management, teleconsultations and medical-record integration. Those moves carry upfront costs but can raise patient yield when assets mature and occupancy improves.

Credit rating assessments point to both strengths and constraints. Burjeel benefits from a strong position in Abu Dhabi, exposure to a defensive healthcare sector and a growing contribution from complex care. At the same time, expansion brings execution risk, while leverage and margins will remain key indicators for investors assessing whether the group can scale without weakening its balance sheet.