Burjeel Holdings PLC (BURJEEL) Earnings Call Transcript & Summary

Hello, everyone, and welcome to Burjeel Holdings Earnings Call for the Third Quarter of 2024, covering the 3- and 9 months period ending 30 September 2024. Today's call will be hosted by our CEO, John Sunil; and CFO, Muhammed Shihabuddin. I am Sergei Levitskii, Director of Investor Relations. First, please review the disclaimer on Slide #2, which contains important information regarding the interpretation and limitation of historical data and forward-looking statements. Now I will hand over to our CEO, John Sunil, for an update on the results and key business highlights.

Thank you, Sergei. Good afternoon, everyone, and welcome to today's call. In the third quarter, we continued executing our strategic growth plan, boosting our financial and operational performance, which resulted in a 12% revenue increase for the first 9 months of 2024. We accelerated investments to expand our presence in the UAE, deepen our reach in the fast-growing Saudi Arabian market and enhance our super specialty care offering to drive patient growth and yield. Despite these investments, both EBITDA and net profit increased year-on-year for the first 9 months. During this period, we also advanced key business developments and partnerships in line with our growth strategy. We'll explore this in more detail over the next few slides. In the first 9 months, we made significant strides in complex care. Burjeel Medical City has performed 26 multi-organ transplants since early 2024, achieving a 100% success rate with a total of 30 transplants. Our partnership with Professor Kypros Nicolaides, the father of Fetal Medicine introduced advanced fetal surgery to the region with 24 complex cases completed, including treatments for spina bifida and twin-to-twin transfusion syndrome. Our collaboration with Axiom Space positions as at the forefront of health care innovation. Since 2024, our neurosurgery team at BMC has successfully handled 925 complex surgeries with excellent outcomes. These specialized services showcase our leadership and expertise in advanced care as well as a significant financial upside. As shown on our slide, our Super Specialty Care services aid higher patient returns, paving the way for long-term top line growth. In September, we strengthened a key part of our superspecialty offering women and child care with the launch of Trust Fertility Clinic at Burjeel Medical Center. This is now the UAE's largest fertility center with a capacity of 5,000 IVF cycles per year. This new clinic provides state-of-the-art IVF and comprehensive fertility treatments, complementing our existing women and child portfolio, which includes advanced gynecology, endometriosis treatment, fetal medicine and pediatric subspecialties. The launch of this facility completes our women and childcare offering, providing true 360-degree care for women at all stages of life and solidifying Burjeel's position as a leader in comprehensive care for women and children across the region. I would like to highlight our market-leading cancer care offering, a key foundation for our long-term growth. In July, we launched the Burjeel Cancer Institute at BMC, creating one of the UAE's largest cancer care networks to deliver advanced treatments across the region. Backed by the world-class clinical governance, our nationwide cancer care system provides comprehensive oncology services, including AI-driven and molecular diagnostics medical and surgical oncology, radiation and nuclear therapy as well as specialized treatments like bone marrow transplants and immunotherapy. We continue to forge new partnerships, including recent collaborations with Technology Innovation Institute and Abu Dhabi Stem Cells Center to advance immunotherapy and stem cell solutions. Additionally, we are conducting high-quality clinical trials and translation research, while establishing medical education programs with local and global institutions. These efforts will unlock access to latest innovations in cancer care and enable us to provide a best-in-class standard of treatment. Now let's move to our expansion projects in Saudi. This slide shows our continued progress in penetrating high-growth Saudi Arabian market. PhysioTherabia achieved remarkable growth with Q3 revenue more than doubling from Q2, along with efficiency improvements that have losses over the same period. In Q3, we expanded our PhysioTherabia network to 28 branches by opening 11 new centers and signed agreements with leading insurance like Tawuniya, Malath Insurance and Gulf Insurance to extend our service reach. Looking ahead, 32 additional centers are planned for 2025. By 2027, we aim to reach SAR 600 million in annual revenue with a 30% EBITDA margin. In addition, Burjeel is preparing to launch its first Day Surgery Center in Saudi Arabia, Burjeel 1. Located in Northern Riyadh and scheduled for completion in Q4 2025, this center is forecast to serve 450,000 patients annually, generating SAR 200 million in revenue by its third year. The location for a second center will be finalized by the end of the year. I will now hand over to our CFO, Shihab.

Thank you, John. and thank you all of you for joining today's call. In the third quarter, we saw a strong increase in both inpatient and outpatient footfall up to 13% and 12%, respectively, driven by ramp up of our growth assets and sustained demand for our high-quality health care services, particularly in oncology, orthopedics, pediatric and women's care. This quarter, we performed our 22,000 surgeries, marking a 12% year-on-year increase. As a result, bed occupancy rose to 70% and outpatient utilization remained stable, supported by an addition of 156 new physicians' year-on-year. Now let us look at the impact of our revenue growth on the next slide. As we indicated earlier, our brand and services get penetrated across the country, which is reflected in growth in patient as well as outpatient. We achieved a mid-teens top line growth of 14% in Q3, contributed by 12 percentage increase in inpatient footfall and improved patient yield. This brought our year-to-date revenue by AED 3.7 billion. Medical Oncology revenue remained strong, growing 34% year-on-year in Q3 and contributing 15 percentage to the total incremental revenue. Reported EBITDA increased by a solid 5% in Q3, reaching AED 273 million, despite ongoing investment in medical oncology, network expansions and marketing and business development activities to drive the future patient footfall and yield growth. Looking at the segmental performance, our Hospital segment saw revenue and EBITDA growth in line with the group dynamics up to 13 percentage and 8%, respectively in Q3. The Medical Center segment achieved a strong revenue growth of 14% in Q3. However, EBITDA growth was impacted by losses associated with the ramp-up of our new centers in UAE and KSA, which is -- we will discuss in the coming slides. Excluding the new assets, the Medical Center EBITDA for the 9 months would have been grown by 10 percentage. Now I would like to highlight the performance of our flagship hospital, Burjeel Medical City. The key growth driver in our strategy to provide the complex special care and high-yield health care services. BMC achieved an impressive footfall growth, increasing by 31 percentage in Q3 and 28% over the first 9 months. BMC revenue grew by 20% year-to-date. Patient yield was influenced by a higher share of outpatient revenue mix, which include 45% increase in medical oncology, which contributed 40% of our incremental growth. Despite boosting the bed occupancy to 60%, there remained stable capacity for further utilization and patient yield growth. On the OpEx side, BMC's EBITDA margin remained stable in Q3, as we increased the investment in the Board-certified physicians onboarded during this period and expanded super specialty services. As John mentioned earlier, this is an investment which is the company has invested into it, which is getting yield in the coming months. Turning now to our ongoing investment in Super Special Care and network expansion. Since the start of the year, we have launched 2 day surgery center in Al Dhafra and Al Ain region and 2 medical center in UAE and expanded our PhysioTherabia network to 28 centers in Saudi Arabia. As expected, with the new assets, there are initial ramp-up costs, which is amounting to AED 16 million in Q3. Excluding this impact, Q3 EBITDA rose by 11%, reaching a 22% EBITDA margin. As shown in EBITDA waterfall on the right side, our operational EBITDA margin was impacted primarily by increasing the direct costs, mainly -- moreover, like we onboard 159 physicians, which is impacted demand forecast as well and our -- as well as our expansion of our medical oncology services, chemotherapies in particular, has a high direct cost compared to the other specialties. But we are scaling these services with expectations that the patient will pursue the additional high-margin treatment as a part of the continued care. We have also increased marketing investment by AED 5 million to promote our international patient program targeting 18 countries across 11 advanced specialties, and to support our expansion in UAE and KSA. These growth investments are already driving increased footfall and revenue, and we believe they will substantially contribute to boost EBITDA and net profit growth going forward, supporting our medium-term guidance. Now let us briefly review our free cash flow and net profit performance. Q3 net profit before tax grew by 10 percentage year-on-year, in line with EBITDA growth. The growth CapEx focused on the expansions and digital product totaled AED 84 million this quarter, while maintenance CapEx are aligned with our guidance, which is 2.1 percentage and free cash flow conversion improved to 49 percentage, reflecting an effective working capital management. Next, let me say a few words about our financial positions. We remain committed to a conservative financial policies, ensuring a flexibility to pursue the growth opportunities as they arise. As 30th September 2024, we have maintained a robust balance sheet with the group net debt-to-EBITDA stable at 1.2x. Our average financial cost stand at 7.3 percentage and you can see now we have optimized our duration of our debt portfolio. Finally, turning to our O&M projects. Our contract portfolio has expanded to 8 hospitals and medical centers with an average maturity exceeding 5 years with an option for renewal. So these projects contribute a sustainable 6 percentage group net profit in first 9 months of 2024, surpassing our guidance of 5%. Our O&M portfolio drive a strong return on bottom line with the asset-light and the light operational expenditures concept of O&M. As we aim to grow this portfolio, we continue partnering with the UAE government of other major strategic projects across the MENA region. We expect to secure additional sizable contract by year-end, which it will be disclosed in due course. Now I will just move towards the guidance basically. So we have refined our full year 2024 guidance to account for short-term challenges in service mix and accelerated investment in network expansions, as I indicated before, and Super Specialty Care, ultimately resulting in a flat EBITDA year-on-year alongside at least 12% growth in top line. At the same time, we remain confident of achieving our midterm guidance, and we are continuously working towards that achievement. With the strong market demand and limited supplies across the region, we are very much confident of ramping up of our existing growth assets. and achieving our midterm guidance, which will help us improve the top line as well as the bottom line growth. Now I'll hand over to Sergei for Q&A session.

Thank you, Shihab. That concludes our brief introduction. So we're now happy to take questions. I will turn it back to operator.

[Operator Instructions] Our first question comes from Mr. Nikhil Mishra from Al Ramz.

A couple of questions from my side. First of all, the credit losses, they are inching up not just in terms of absolute number, but also as a percentage of revenue. So can you -- and this is much above the guidance, I think you have previously given of 1.7%, 1.8%. So can you just give us some color on how we should look at those going forward? And is that around 2% level going to be maintained? Secondly, on BMC, so can you give us some context of why the margins have not improved in Q3 despite such growth did the -- generally with higher growth, we expect operating leverage to kick up -- kick in, but the margins were mostly flat or even slightly down compared to last year in Q3. So some color on that also, please?

Thank you, Nikhil. I'll cover your first question, basically regarding the provisions basically. So you are right, basically, you may be noticed that our receivables being increased, but what we analyze that basically our growth in receivables is the number of repositions. Most of the -- like what we noticed that on some of the program government program like the [indiscernible] and the ABM based, government-based funding programs had a delay in paying, but which we -- even practiced before as well, but that is not the [indiscernible] delay or assets basically. This is a short-term circumstances we can call. So we are continuously touching with the Daman and the respective regulatory to clear of this outstanding basically. So based on this, we are not changing any of our guidance on our provisions, basically. But obviously, we will review the trend going forward. And if necessary, we will do the necessary changes, but it will be informed all of you in advance. But as of now, we don't feel that like there is a need of increasing the provisions basically. As you may notice that like we have a very much clear-cut policy on our provisions, which is disclosed in our financials were about 300 days, whatever the dues we are now taking 100% provision as well. So I strongly believe that like this financial policy is enough to cover our -- this particular situations basically. So there is no any such a situation where actually we are pushing our provisions basically. We are quite confident on our collections basically. And even we noticed that the following to the closure, basically, there is a subsequent collections are getting improved. So which give more confidence on a collections. And on the -- specific on the government program, this all we feel that is a temporary situation only. It is not the regular or as such basically. When it comes to the BMC question basically, as you rightly maybe noticed in our presentation, BMC is growing basically. And in terms of the OP volumes, BMC has grown 30%, which is aligned to our the guidance. But when it comes to the realization, basically, there are different components to that. One, the product mix. So what we noticed, as indicated earlier also, basically, there is a product mix variations compared to what we expected. The outpatient volume is getting grown basically. I would say it was a 53 percentage. Now it is around 59 percentage. So there is a growth in outpatient volumes than the in-patient volumes basically. So that mix is bringing down the overall yield of BMC. But one thing you have to note that basically. So the volume growth, what we are achieving in a BMC that itself is a confidence of a patient on our offerings. That is a great achievement. So once the patient is enrolled within our network and especially BMC like quaternary care facilities, basically, these patients majorly going to be converted into the surgical specialties or any other required specialties going forward. So getting -- so as all of us know, the market is not growing at this level of growth, right? Market is growing at 4 percentage or 5 percentage maximum, where -- our outpatient growth is, especially in the BMC is 30%, itself is a good sign. Then it's all about the conversions basically. So we hope that in the coming months, this all will be positively going to be contributed to my yield. So if you compare the Q-to-Q or in the particular period, maybe we are [indiscernible] with the yield. But the OP volume growth is actually giving us more confidence about our product acceptability in the community.

Just if I can ask another -- just another follow-up question. So based on how you're seeing the market right now, especially given your guidance, what are the trends you are seeing in the first month of this fourth quarter? So just some color on how we should look at the fourth quarter especially given the fact that last year, the fourth quarter was quite strong. So can you just give us some color on the fourth quarter [indiscernible]?

Yes. So the fourth quarter beginning month was very good, basically, and especially BMC. It reached all time, I would say, record revenue in the BMC level for sure, basically. So this is what I indicated, right? Like getting outpatient into the Burjeel campus is a high task. As soon as they come obviously like somebody is coming to a quaternary care facilities, he will have his own complexities when they reach there, right? So this all is a way of treatment. So initially, the consultant will be treating with their protocols basically as outpatient treatment diagnosed then come to the surgical or any other diagnostic procedures. So health care, right, obviously, so it is a process. So the indication is what it is coming to us is a good trend. And even October also is very much reflected in our outcome as well. So we are quite confident about our product in the market.

We'll be moving to Mr. Asjad Hussain from International Securities.

So my first question is with respect to the EBITDA margins. So as we see that in this quarter, absolute value of the EBITDA has increased by 5.1%, but we see overall dilution on the EBITDA margin front. So one of the reasons stated by company is that there are a few new assets and excluding those assets, EBITDA margin was around 22%. So my question is pertaining to these new assets. How long on average does it usually take for these assets to come at par with the overall mature assets of the group, if you can give some color on that?

Yes. Asjad with regards to the EBITDA margin, basically, if you may analyze, if you may notice that cost block basically, 2, 3 items are got impacted. One is our direct cost. So as we justified earlier, also basically when the medical specialties get grown and especially oncology basically, where we have a huge impact from the direct cost. Like I can easily say that around 65% to 70% of the medical oncology revenue is eaten up by the direct cost. So it is a combination of medicines, nothing but right. So that is one of the major reasons where actually our EBITDA margin is got impacted. And secondly, in a group level, basically, we hired 159 doctors basically during this period. So these doctors basically is not even really ramped up basically, but we are bearing the cost, basically, which we easily -- all of us can understand like it is -- this is a cost for the future. So when these doctors get ramped up, basically, when my manpower costs get normalized, so my EBITDA margin will improve for sure. So that is one of the point. And third is that like the new facilities which we are bringing, obviously, this take a minimum period of -- to get it normalized. So when it comes to day surgery, we are expecting this will be an EBITDA breakeven within 24 months. And when it comes to a medical center, super specialty medical center, which will take around 12 to 16 months' time to be breakeven. So during this period, obviously, we will have an impact on the bottom line. But this all is like a part of our network, right? We can't eliminate or we can avoid this kind of an improvement or increase in the footprint. So this all initially as a temporary will give the return to my bottom line margin percentage. But going forward, this is -- the growth which is going to happen will be substantial. And secondly, like, if you may know that like we introduced the IVF as well basically, it's called trust IVF. So we started in 1st October, but in order to start the 1st of October, we are onboarding our doctors with 2 months before, 3 months before, putting a system in place. So these all costs are already absorbed in the system. And as we speak, basically, the IVF not yet start billing the patients, right? So, so far, I'm [ incurring ] the cost, which is going to happen in the coming days. So this all will -- when it starts invoicing basically, these all -- there is no additional cost being incurred. It's already absorbed. So this is all going to be improved my EBITDA margin as well.

Okay. Clear. Just my second question is on the BMC front. So basically, we see that group has revised the FY '24 guidance for BMC. And previously, BMC revenue was -- were expected to grow by like above 30% and now it's expected to be above 20%. But if you see on the operational front, footfalls and occupancies have increased significantly, and that reflects that revenue momentum should continue. So just wanted to understand like if this revision or moderation and the growth with respect to BMC is particularly coming from a decrease in yields or there is something else or other element to it basically?

No. Yes, it's a very valid question basically. So with regards to the BMC, if you may notice, our volume has grown at 30%, which is in align with our guidance, basically. So the revenue is the combination of the volume as well as yield. So in terms of the volumes, obviously, we achieved our guidance. But in terms of the yield, as I replied to Nikhil, is a combination of the various elements. One of the point is that like in a service mix basically. So what we noticed that like during this period, our medical specialty is getting grown. And as oncology -- medical oncology has grown at 40% year-on-year. It's never been the case, right? So -- but I think as a first step basically, we will be feeling a stress on the yield, basically. But going forward, this all is my base to build around. So when it comes to conversions, basically, there should be an OP volume, there should be a chemo to get it converted into radiation and as well as surgical. So now I'm not worried because BMC's product as a product is getting penetrated across the region basically. So I'm getting my OP volumes, the yield is -- will be improved as we go basically. So that much we are very much confident because we know the level of services BMC provide compared to the market, compared to the region. So in that sense, basically, we are not worried about our yield basically. The yield is going to come. We are very much happy that the way the BMC is progressing basically, the resulted with a 30-percentage outpatient volume growth is a great achievement. So then it comes to the conversions, it is happening. It is getting grown. Even the radiation oncology department also is getting grown. If you compare the Q-to-Q, we've grown around 16% basically. So it is an indication that basically our yield is getting improved as we go.

Sure. Just one last question if I may. This CapEx guidance, which was previously also shared, especially on the midterm guidance. So it has been revised upward to AED 650 million from -- until 2027. Previously, it was AED 450 million. So can you please specify what this increase in CapEx is pertaining to?

So with regards to the CapEx, basically, the overall guidance remains the same basically, but it's all about like the year shift. So we were expecting that like we will be spending around AED 400 million this year, but that got postponed to the next year. That is why in like -- the bucket got changed, but the remaining overall CapEx has remained the same, Asjad.

Our next question comes from Mr. [ Saket Mujumdar ] from HSBC.

This is [ Saket Mujumdar ] from HSBC. Congratulations on the results. So I have 2 questions. First one is, if you can just give me a split of the AED 16 million losses in -- that you mentioned in the ramp-up assets like in the PhysioTherabia or in the UAE medical centers or in complex specialties that you launched? And the second question is, if you can give me a bit of more color on the Olaya physiotherapy center because that is the first flagship center, and you reached a decent up to 40%. And have you onboarded Bupa as the insurance provider? So these are my questions.

Yes. So -- yes. So with regards to AED 16 million, the cost, what we incurred out of that, like the loss what we incurred is PhysioTherabia is contributing AED 1.5 million. UAE medical centers are ED 2.5 million and day surgery centers are contributing AED 12 million. This is a split of AED 16 million, the amount which you mentioned basically. With regards to the Olaya, basically, we are very close to the EBITDA breakeven. We are expecting basically before end of this -- before end of Q1 2025, our Olaya center will be positive basically or EBITDA breakeven or positive. We are expecting a positive outcome, the way which the physio unit is taken care basically like beyond our expectations. So that level, basically, we are expecting that the ramp-up will be much faster. The product is getting accepted in the market basically. So as all of you know that we already opened the 22 centers, we are now in the pipeline of opening 12 more. So we are going as we guided basically. And as of now, basically, the people are ready to even pay to the cash. So in revenue mix, basically, as of now, what I am seeing, the 90 percentage is paid by cash, 10% only is insurance. So if the insurance volume is really picked up, then my EBITDA breakeven will be much, much faster. With regards to the Bupa basically, the Bupa, we are in discussion. So we are not a hurry of closing as insurance product. We literally want to sell this product in Saudi market as a cash product basically. That is what we are aiming for because what we noticed in our current unit is that people were desperate about the product. They are ready to pay the services. There is no a dedicated specialized rehab unit in Saudi. So why we should be hurry and lock as an insurance product. Rather, we are very much keen to expand this base and increase our cash presence than the insurance product. So we are not hurry to close the Bupa or any other insurance basically. Tawuniya, we already closed, but even we are not encouraging the insurance patient. We are encouraging the cash patient. We are selling a lot of packages basically. So we are not very much keen or hurry to close the -- conclude on a Bupa contract basically, which is going on. We put our price so that this is a price. If they are very keen, they will come. Otherwise, we will promote our product as a cash product, and we will be achieving our numbers.

[Operator Instructions] Our next question comes from Mr. Naveed Ahmed from SICO.

I have 2 questions. My first question is related to the guidance. So one of the previous participants highlighted on some of the changes in terms of the BMC revenue as well as the overall CapEx guidance for the midterm. Can you kindly clarify what other changes have been made to your 2024 and midterm guidance?

Yes. First of all, our midterm guidance, we are not changing basically. As we indicated, our midterm guidance are continuing as what we indicated. In terms of the 2024, basically, as a short term, some changes in our service mix and product mix, plus some of the new assets are not picked up as we expected basically. What we are seeing a slight stress on our EBITDA margin. So that is what we indicated basically EBITDA margin will be flat for 2024. But the midterm guidance, we are not expecting any change from what we guided so far.

Okay. My second question is related to the Board remuneration expenses that was booked in the previous quarter. Can you kindly explain and elaborate in terms of how this has been dealt and whether we can expect something like this in the future?

No. See, like this is I clarified in the last 2 calls as well basically. So obviously, if you may notice our Board base, 70 percentage of the Board members are the independent Board members. And if you check the profile of the 2 people are the kind of ministers, Excellency Thani Zeyoud, Excellency [ Ahmed Jasim ], these are the well-reputed personnels in the country, basically, bringing them to the Board is not that easy what they expect. So we should be encouraging the reputed person to be the Board, and we want to project this Burjeel Holding as on an interest level. So we should be encouraging these well-qualified adequate members coming to the Board and guiding us and involving and supporting our growth. And as we guided basically, there is a major growth expected to come in the coming years. So the contribution has to be from the Board, management and all of us together, right? So we should be encouraging and incentivizing the Board as well to contribute towards that. So that is the whole reason basically we paid our incentive last time. But I would say it is not a mistake basically, but it is the -- I would say like it was -- came as unexpected kind of a thing. It was not indicated to the stakeholders properly or in advance. That is only the gap what we felt basically, which we are going to be rectified in the coming period. we appointed a [ Mercer ] to do a proper study about the structure as a short term, as a long-term incentive structure. So which we are in discussions basically. We will discuss the proposal with NRC and Board. And whatever the outcome is coming, we will come to all of you, and we will explain before we implement. So this is how we take it forward.

Sure. That's very clear.

[Operator Instructions] In the meantime, I'll read a question that came in from Mr. [ Khalid Al-Mansouri ] What is the rationale for Burjeel for the partnership with ADSCC? What is the key rationale for ADSCC?

With reference to the bone marrow transplant, we are looking into having Abu Dhabi as the hub for bone marrow transplant and looking into medical tourism together. So we have partnered with Abu Dhabi stem cells working together to make this as Abu Dhabi as a hub and utilizing the stem cell lab, which they have rather than investing into the stem cell lab separately. So from a bone marrow transplant perspective, Burjeel Medical City has its own patient base, but we partner with Abu Dhabi stem cells for utilizing the stem cell lab.

We see that there is a follow-up question from [ Saket Mujumdar ] from HSBC.

So just a follow-up on the point on medical tourism. I just wanted to ask that which countries are actually targeting on medical tourism? And are you actually seeing any patient growth from those countries? And what is actually your value proposition, how you compete with respect to other countries like, for example, Thailand or Turkey, where the cost is much cheaper than UAE.

Okay. See, what our main USP is our key partnerships that we have and that too into complex care. If you look into, for example, [ Paley's ] Institute. [ Paley's ] Institute, we are the only institute which looks into children's deformity. That is in GCC. I get patients from Iran, Israel, Russia, Ukraine and different places. This is because of the complexity that we do and no one else is a competition in this field. And that's why we are not looking into competition from a perspective of country or in a pricing perspective. We are looking into competing into areas, which are complex and where there are no competitors. We are not looking into pricing game at all. We are looking into complexities. Next is Kypros, Kypros Nicolaides, for example, spina bifida or these complexities within the fetal surgeries. Everyone doesn't do this, and there are a very handful of surgeons in the world, which does these things. And that's why we are coordinating with international tourism. We are coordinating with the IPCs, so that one is the medical tourism doesn't go outside and there is inpatient medical tourism coming inside. And our main focus is the complexity care that we put in and the international physicians that we have, the international partnerships that we have, which add value to us. And this is the main differentiator that we are looking into. Another one is bone marrow transplant. Bone marrow transplant, definitely, we have an edge into many countries because these facilities are not available in these countries. And we are having a very great step ahead into this medical tourism from a complexity point of view.

[Operator Instructions] We received the text question from Mariam Hakim from Arqaam Capital. Could you please provide any update on the Ras El Hekma project in Egypt?

Yes. Yes. So Ras El Hekma project is the UAE initiative, UAE's project basically, where we got invited from the UAE government to be part of the project as a health care provider. So as we indicated earlier also, like we are working with the UAE government for the strategic project. So currently, we are managing around 8 health care assets abroad basically. These all are -- these all are like -- supported by the UAE government on the strategic initiative. So Ras El Hekma also, the next project, which they are building there, we are providing the health care support. So where we will be operating the health care assets, infrastructure wise, it will be invested by the UAE government. So we will be a health care operator. Health care well-being will be managed by Burjeel Holdings.

Okay. Thank you very much. I will now pass the line back to the team for the concluding remarks. There are no further questions.

Thank you all for joining today's call. For any follow-up questions, please find Investor Relations contact details at the end of this presentation and on burjeelholdings.com. Thank you.

Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you, and goodbye.