Amro Bakhaidar_Dalia Nammari

Linklaters: Saudi German Health Launches US$400m Sukuk 

Global law firm, Linklaters has recently provided legal advisory services to Middle East Healthcare Company, commonly known as Saudi German Health, in establishing a SAR 1.5 billion (approximately US$400 million) public sukuk issuance program. The sukuk, which will be listed on the Saudi Exchange (Tadawul), represents a notable development as it marks the first public sukuk program by a Saudi non-industrial corporate under Saudi Arabia’s new public offer regulations. 

Under this program, the initial tranche totalling SAR 1 billion (approximately US$266 million) has already been completed, with full subscription from investors. This successful transaction underscores the robust demand for Sharia-compliant financial instruments in the region and reflects the growing interest of investors in such offerings. 

One key aspect of this sukuk issuance program is its adherence to rigorous disclosure requirements for public offers, enabling broader investor participation and access to the Saudi retail investor market. The program utilizes a hybrid mudaraba-murabaha structure, wherein a portion of the sukuk proceeds will be allocated to profit-generating murabaha agreements, while the remaining funds will be invested in the issuer’s business under a mudaraba agreement. 

The Linklaters team was led by partners Dalia Nammari (pictured right) and Amro Bakhaidar (pictured left), supported by a cross-jurisdictional team that included managing associates Vladislav Spirin and Mohammad Almania

Linklaters’ Dubai-based capital markets partner Dalia Nammari commented: 

“This transaction paves the way for future public issuances by Saudi institutions, leveraging the expanding Saudi retail investor market to access a wider investor base.”