SMC signs SAR 148.5M contract for Riyadh hospital construction

Specialized Medical Co. (SMC) signed, on Sept. 27, a SAR 148.45 million construction contract, excluding value-added tax (VAT), with Mahart Al-Injaz Contracting Co. Ltd.

In a statement to Tadawul, the company said the contract covers foundation and construction works, including the structural framework for SMC 3 Hospital.

The scope of work includes all activities related to these stages, in accordance with the approved drawings, specifications, and bills of quantities.

SMC 3 Hospital, located on the Northern Ring Road in Riyadh, would accommodate 296 beds and 200 outpatient clinics.

The 360-day contract will commence upon site handover, the statement noted, adding that there are no related parties to the deal.

SMC expects the project to affect its liquidity during the construction period.

The project will be financed through internal resources and/or bank facilities, as required, with the total estimated cost amounting to SAR 148.45 million.

Construction is expected to be completed in Q4 2028, with the project's main financial impact expected to commence upon the hospital's planned opening in the same quarter.

The company said that the hospital is one of the key projects under its expansion strategy in Riyadh.

Its strategic location on the Northern Ring Road is expected to improve accessibility from various parts of the city and provide connectivity to major road networks.

The hospital is designed as an integrated specialized healthcare facility offering a wide range of specialized medical services and advanced healthcare solutions.

 It will also feature a helipad to support emergency services and the transportation of critical patients.

SMC said the project represents a strategic addition to its network of healthcare facilities.

Upon completion, the hospital is expected to increase the company's capacity and operational capabilities, broaden its healthcare service offering, and support its future growth and geographic expansion in Riyadh.

The hospital is built on a total land area of approximately 17,730 sq. meters and was established to provide healthcare services across various specialties. The total project cost amounts to SAR 1.3 billion.

According to data available with Argaam, the company said in its prospectus that construction work on the hospital began in 2024.

The company’s CEO announced in May 2025 that excavation work for the project had been completed.