PureHealth Delivers Strong 2.4% Growth with AED 1.03 Billion in Half-Year Profits

PureHealth Delivers Steady Growth Despite Global Tax Headwinds in First Half 2025

Abu Dhabi's PureHealth Holding has posted a modest 2.4% increase in net profit to AED 1.03 billion for the first half of 2025, demonstrating resilience in the UAE's expanding healthcare sector despite facing new international tax pressures. The healthcare giant's performance reflects both the strength of regional medical demand and the growing impact of global tax harmonization efforts on multinational corporations.

Revenue Growth Outpaces Profit Gains

While net profit growth remained subdued, PureHealth's consolidated revenues surged 8.6% year-on-year to AED 13.6 billion, highlighting robust underlying business momentum. This revenue acceleration was primarily driven by strong performance in the insurance segment, coupled with increased patient volumes and expanded capacity across the company's hospital and clinic network.

The disparity between revenue growth and profit expansion signals a healthcare sector grappling with rising operational costs and regulatory pressures, even as demand continues to climb across the Gulf region.

Global Minimum Tax Takes Its Toll

PureHealth's net income margin compressed by 0.45 percentage points to 7.6%, a decline the company attributed directly to the implementation of the global minimum tax under Pillar Two regulations. This represents one of the first tangible examples of how the OECD's landmark tax reform is affecting major regional corporations.

The global minimum tax, designed to ensure multinational companies pay at least 15% tax regardless of where they operate, has been gradually rolling out across jurisdictions since 2024. For UAE-based companies like PureHealth, which have historically benefited from the Emirates' favorable tax environment, this represents a structural shift in their cost base.

Operational Metrics Show Underlying Strength

Despite margin pressure, PureHealth's operational performance remained solid. EBITDA climbed 7.6% year-on-year to AED 2.3 billion, while the EBITDA margin held steady at 17.1%. This stability suggests the company is successfully managing cost inflation and operational challenges while maintaining pricing power in its core markets.

The insurance segment's standout performance particularly underscores the growing integration between healthcare provision and financing in the UAE market, a trend that positions PureHealth advantageously as regional governments expand mandatory health coverage.

Regional Healthcare Consolidation Continues

PureHealth's results arrive amid broader consolidation in the Gulf healthcare sector, where government-backed entities are expanding rapidly to serve growing populations and reduce reliance on medical tourism to Western markets. The company's patient volume growth and capacity expansion reflect this regional trend toward healthcare self-sufficiency.

For investors, PureHealth's performance demonstrates the defensive characteristics of healthcare investments, even as global tax reforms create new headwinds. The company's ability to grow revenues significantly faster than costs, despite tax pressures, suggests strong underlying demand dynamics that should support continued expansion in the region's evolving healthcare landscape.