On December 5th 2022, NMC Healthcare (NMC) made a stunning announcement: its Board of Directors had appointed David Hadley to the position of Chief Executive Officer (CEO) of the group, with a planned commencement date in early 2023. David Hadley is the current and long standing CEO of Mediclinic Middle East, a subsidiary of Mediclinic South Africa, which has developed a strong reputation in the UAE for clinical excellence in the provision of medical services.

NMC and Mediclinic are very different organisations; the latter is a model of financial probity and sound management, the former has a history of financial fraud and collapse and has just recently emerged out of administration, leaving its former creditors with substantial losses.  NMC Health aims to restore its reputation as one of the UAE's leading and most recognised brands. This is its new beginning.

What is NMC Health (NMC)?

NMC Healthcare is a business headquartered in Abu Dhabi, the capital of the United Arab Emirates (UAE). It has two service divisions: private personal healthcare services and pharmaceutical and medical equipment distribution (NMC Trading) It has branch offices in Dubai, Ajman, Al Ain and Northern Emirates and is the largest integrated private healthcare platform in the UAE and the third largest in Oman.

NMC employs over 12,000 people and accommodates over 5.5 million patient interactions annually through its large network of 11 hospitals, 54 community clinics and specialty care centres and 1,400 in-patient hospital beds. It provides primary and secondary medical care, selected tertiary care and fertility services.

NMC Trading has distribution rights for major companies such as, Nestlé, Pfizer, Siemens, Samsung, Sanofi and Henkel.

Awards

NMC has won a series of prestigious awards and was considered to be one of the UAE's major brands before its dramatic collapse.

2015

• NMC Health was recognised as one of the UAE's strongest brands by the Superbrands Council 
• Frost & Sullivan Middle East Integrated Healthcare Company of the Year Award
• Sheikh Khalifa excellence award

2016

• NMC recognised for best practices in corporate social responsibility by the Dubai Chamber of Commerce and Industry
• NMC Health received Stevie Awards in the Company of the Year in the Health Products and Services and Pharmaceuticals category and people's choice for favorite companies.

2017

• NMC Specialty Hospital and NMC Trading both received Mohammed bin Rashid Al Maktoum Business Excellence Awards.

NMC History: A rapid rise and spectacular fall

1974: New Medical Centre Abu Dhabi

NMC Healthcare was founded by Indian pharmacist and entrepreneur B. R. Shetty in 1974 as the New Medical Centre in Abu Dhabi. Starting with a small polyclinic, its mission was to provide healthcare to the Indian expatriate community in Abu Dhabi.

1981: NMC Trading Founded

The business grew quickly and in 1981 a new marketing and distribution division, NMC Trading was launched. This distributed medicines to pharmacies in the UAE and later expanded into the distribution of fast-moving consumer goods, medical equipment and supplies and educational products.

1996: UAE Expansion

NMC began expanding to other emirates, setting up the following hospitals which were awarded the JCIA accreditation in 2009.

• NMC Clinic in Sharjah (1996)
• NMC Hospital, Deira, Dubai (1999)
• NMC Specialty Hospital, Dubai (2004)
• NMC Specialty Hospital in Al Ain (2008)

2012: NMC LSE Listing and Expansion

This was a significant year in terms of further service expansion in the UAE and the listing on the London Stock Exchange.

• April 2012, NMC listed on the London Stock Exchange.
• NMC began managing operations at the Shiekh Khalifa General Hospital in Umm Al Quwain
• NMC acquired the BR Medical Suites in Dubai Healthcare City
• NMC opened the Royal Hospital in Khalifa City and operations in Al Ain's industrial area.

2013-2018: Expansion and Acquisitions in UAE, Spain and Saudi Arabia

• 2013 NMC opened  day-surgery centre in Mohammed Bin Zayed City in Abu Dhabi.
• 2014 NMC Health opened the NMC Hospital in Dubai Investments Park, NMC Brightpoint Royal Women's Hospital, and the NMC Medical Centre in Al Ain
• 2015 NMC Health acquired the Spain-based Clínica Eugin allowing the company to become the leading integrated women's health provider from fertility through obstetrics and paediatrics in the UAE.
• 2015 NMC acquired UAE based medical groups, Dr. Sunny Healthcare Group (leading set of medical clinics in Sharjah and Northern Emirates), Provita and Americare Group, Abu Dhabi (focused on long-term care and rehabilitation)^[and a 51% stake in Fakih IVF, another leading fertility clinic in UAE.
• 2016 NMC expanded its operations into Saudi Arabia when it acquired a 70 percent stake in As Salama Hospital in Al Khobar; NMC Health also invested in a project to build a 120-bed care centre in Jeddah that will be managed by its subsidiary Provita. NMC Health announced the acquisition of Al Zahra Hospital, one of the largest private hospitals in the UAE.
• 2017 Emirates Healthcare, owned by Abu Dhabi investment group KBBO, announced the signing of an operating and management contract with NMC Health for the management of their Emirates Healthcare assets.
• 2018 NMC Health bought Aspen Healthcare for £10 million.

NMC Financial Collapse 2020

The events leading to the sudden collapse of NMC into administration were triggered by a simple announcement from USA based short seller company Muddy Waters Research in December 2019. Muddy Waters Research, which claims to do the work Wall Street will not do, questioned the company's statement of accounts, concerned that NMC had "manipulated its balance sheet to understate debt" and contained statements which were "hallmarks of significant fraud".

The NMC share price promptly collapsed and in February 2020, NMC Executive Vice Chairman Khalifa Butti Omeir Bin Yousef resigned. The company announced a legal review into the concerns raised by Muddy Waters. Private equity groups Kohlberg Kravis Roberts and GK investment withdrew their interest in buying NMC.

On 24 March 2020 the total debt was then estimated at $6.6 billion. Many employees were not paid at that time. The London Stock Exchange suspended NMC shares. The Financial Conduct Authority announced an investigation

On 8 April 2020, NMC was placed into administration by a UK High Court judge Sebastian Prentis due to the insolvency of the company caused by alleged frauds committed by the founder and then-chairman of the board B. R. Shetty

On 15 April 2020, Abu Dhabi Commercial Bank filed a criminal complaint against NMC Health with the Attorney General's Office of UAE.

A New Beginning for NMC Health

On March 22nd 2022 NMC came out of administration, ending two years of uncertainty which had threatened to destroy the company. The scandal  left creditors with large outstanding debts.

A new NMC group, NMC OpCo Ltd, has been formed from 34 of the 36 companies that were subject to the administration proceedings under the courts of Abu Dhabi’s international financial centre, allowing the healthcare operations to continue to trade normally.

The group is now planning to expand its hospitals and clinics, build new revenue streams and find cost efficiencies. In 2021, NMC recorded gross revenue of 4.51bn UAE dirhams ($1.23bn) and ebitda of Dh755mn, with a strong performance from its cosmetic surgery and fertility hospitals.

The UK’s NMC Healthcare PLC and UAE-registered NMC Healthcare Ltd will remain in administration, allowing Alvarez & Marsal to continue its investigation and pursue potential avenues to recover funds for creditors. BR Shetty has launched legal proceedings in the US against the former management, auditor EY and two banks, claiming they participated in a complex $5bn fraud. EY denies any wrongdoing.

NMC’s lenders have been provided with a new $2.25bn facility under the restructuring to settle their previous debt claims. They have selected seven new directors, most of whom represent companies that provided new capital to help keep the business afloat and enable it to launch a three-year growth plan, including divestments. The company said its new board would help “embed a robust governance framework”.

The new chair, Kevin Taylor, group treasurer of Abu Dhabi Commercial Bank, is one of three directors appointed by ADCB, which had an exposure of around $1bn and placed NMC into administration in April 2020. NMC sold its stake in a Saudi joint venture to refocus on its core markets, UAE and Oman.

David Hadley the newly appointed CEO joins NMC from Mediclinic Middle East, where he has been CEO for the past 13 years. David has 30 years’ experience within healthcare in South Africa and the UAE. He is a recognized leader within the healthcare industry, known for crafting ambitious strategic vision to achieve business goals. Following Mediclinic’s entry into the UAE market in 2006, David led the South Africa-based company into one of the country’s leading private healthcare organizations and was instrumental in the successful amalgamation of Al Noor Hospitals Group into Mediclinic following its acquisition in 2016.

Kevin Taylor, Chairman of NMC’s Board has praised David as a seasoned leader with significant healthcare experience and a CEO with a strong track record of delivering value to shareholders.

David Hadley commented, “Whilst I am sad to leave Mediclinic after a very happy and fulfilling 30 years, I am very excited to join NMC as it enters a new phase following a challenging few years. NMC is a remarkable world-class company with deep commitment toward our communities, partners, and regulators. It is my intention to ensure that NMC’s patients continue to receive the high quality care that sets us apart from others. I look forward to working with NMC management, staff, and shareholders to deliver on this.”

Further information about the medical sector in the UAE

The medical sector in the UAE has developed considerably over the last few decades with distinct public and private spheres, the former providing primary to tertiary and emergency care and the latter largely focused on secondary care with limited tertiary care. Further information about medicine in the UAE can be read in our country page which has links to further relevant information.

Candidates interested in medical jobs in the UAE are invited to register a CV and contact us to discuss opportunities. Advertised jobs can be viewed on our website and applications made by submitting a recent CV.