Saudi Arabia’s largest pharmacy chain operator Nahdi Medical Company, which made a strong market debut last month on the Saudi Stock Exchange (Tadawul) with its initial public offering (IPO), is also looking to expand its footprint in the UAE.

The company, which is 50 per cent owned by Sedco Holding, operates 1,151 pharmacies in Saudi Arabia and holds a 31 per cent market share of total pharmacy revenue in the kingdom. In 2019, the company expanded its GCC footprint with the opening of one outlet in Dubai.

In its statement announcing the launch of its IPO, Nahdi said that part of its strategy is to “accelerate expansion in the UAE”, which is considered one of the growing markets in the Gulf Cooperation Council (GCC) region, with online pharmacy sales forecast to post a 5.8 per cent CAGR growth rate between 2020 and 2026.

The company, which also operates express clinics, as well as an online platform with more than two million users and approximately 200,000 deliveries per month, is optimistic about the wider GCC region, which it said has “strong demographic tailwinds,” including high population growth, disposable income, and healthcare expenditures. The company’s plans include driving its omnichannel and e-commerce offerings via “click and collect”, delivery and guest care services. It is looking to add 43 more express clinics and two pilot lab satellites in the current quarter.

Nahdi is supported by two prominent shareholders, Al Nahdi Holding Company and Sedco Holding.

Nahdi’s pharmacies cater to over 100 million customers annually and operate across the largest brick & mortar network in Saudi Arabia serving 97 per cent of the population across 144 cities and towns. Products include medicine, beauty products, mother and baby care products, and a wide range of wellness and consumer products.

Yasser Joharji, Chief Executive Officer of Nahdi, said:  “Despite our market leadership, we go above and beyond retail pharmacy by putting our Guests at the centre of all our activities and initiatives. We want our Guests to feel that there is one partner who is always thinking about bringing them the full health and wellness ecosystem to their fingertips and doorsteps.”