Fakeeh Care's 33% Dividend Vote Reshapes Saudi Healthcare Yield

Dr. Soliman Abdel Kader Fakeeh Hospital Co. (Fakeeh Care) is asking shareholders to approve a cash dividend of 33% of capital, or SAR 3.3 per share, at an ordinary general meeting on June 30. The proposal covers the full 2025 fiscal year. This is the company’s first payout since its 2023 initial public offering, making the vote a key test of management’s commitment to shareholder returns in Saudi Arabia’s private healthcare sector.

The dividend translates to a yield of about 4.7% based on the current share price around SAR 70. That yield sits near the upper end of the Tadawul health-care-services peer group, where most companies pay between 2% and 4%. If approved, the payout would consume roughly 60% of 2024 net income–a ratio that signals management is comfortable with current cash generation and balance-sheet leverage.

Why the Dividend Matters Now

Fakeeh Care operates three hospitals in Jeddah and Mecca, with a fourth under construction. The sector is capital-intensive, and investors have been watching whether the company would prioritise expansion over distributions. The 33% payout ratio provides an answer: management sees enough free cash flow to fund both the new hospital and a regular shareholder return.

Saudi Arabia’s healthcare market is growing at a compound annual rate of 8-10%, driven by population growth, medical tourism, and the government’s Privatisation Program. Higher occupancy rates and tariff increases have boosted margins at listed operators such as Al Moammar Information Systems (MIS) and Dallah Healthcare. Fakeeh Care’s dividend proposal aligns it with peers that have already established payout policies.

For income-focused funds in the Gulf Cooperation Council, the vote creates a new yield anchor in a sector typically considered a growth play. If the resolution passes, Fakeeh Care shares will trade with a forward dividend yield that makes them comparable to utility stocks, narrowing the range of acceptable valuations.

Shareholder Vote on June 30

The OGM will be held via electronic voting through the Tadawulaty system. Shareholders registered on the record date–June 22–are eligible to vote. The board needs a simple majority of shares represented to approve the dividend. Given that the company’s free float is roughly 50% and the largest shareholder, the Fakeeh family, controls a significant stake, passage is likely.