Al Hammadi Company for Development and Investment (4007.SE) is planning on participating in the government’s privatisation plans, as well as investing in other healthcare activities, including pharmaceutical and medical equipment production and pharmacies, according to the company’s CEO speaking to Argaam. Al Hammadi is expecting the government to commence purchasing medical services from private sector hospitals after Ramadan, where the government would pay for the patients’ services, adding that enforcing insurance for some government and semi-government entities could double demand on private sector services. The company’s CEO is expecting Al Nozha hospital (scheduled to start operations in 2H17) to contribute to 35% of the company’s total revenue once it is fully operational, while expecting to see margin pressure during trial operations. Al Hammadi had accumulated SAR370mn receivables from the government up until 1Q17, which he expects to start receiving in 2H17.