Middle Eastern hospital stocks outperformed European counterparts in 2022
In this week’s infographic we compare the stocks of the five largest (in terms of revenue) listed hospital groups in the Middle East with the five largest listed hospital groups operating in Europe.
Whilst three of the five largest listed Middle Eastern groups saw their share prices rise this year, only two of the top five European groups did. Saudi German Hospitals Group, which has a presence in Saudi Arabia, Yemen, Egypt and the UAE, saw a fall of 19%, and Al Hammadi Development and Investment Co saw an even bigger drop of 32%, whilst Al Mouwasat Medical Services, Aster DM and Dallah Health all saw rises, with Aster DM rising by a third and Saudi group Dallah Health more than doubling.
Meanwhile, Europe’s two multinational hospital giants, Ramsay and Fresenius, both saw significant drops in their share prices. Fresenius saw a particularly large fall of 25%, although this was likely due to particular issues with the conglomerate rather than general market conditions.
The most obvious explanation for the difference in performance between the two regions is the energy crisis, which is benefitting the economies of oil rich Middle Eastern and (oil cartel) OPEC members at the direct expense of European countries for whom higher fossil fuel prices are pushing up production costs and consumer prices, causing a cost of living crisis.
Whilst hospital groups’ top lines have not suffered from consumer spending cut backs in European economies, they have suffered from rising costs in inputs, particularly energy and wage costs.
We would welcome your thoughts on this story. Email your views to Martin De Benito Gellner or call 0207 183 3779.
