Saudi Alhokair sees light at end of pandemic tunnel as other retailers are recovering

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Updated 20 November 2021
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Saudi Alhokair sees light at end of pandemic tunnel as other retailers are recovering

  • Point-of-sale transactions showed sales of food, beverages surged by 68 percent in 2020

After listed companies on the Saudi Stock Exchange, Tadawul, posted earnings, Arab News studied the income statements of three food retailers and one fashion chain. Only Alhokair, predominantly a clothing chain, boosted profits.

Rising sales at Alhokair saw annual profits jump 75 percent to SR1,311 million. A fall in depreciation and amortization was also a factor due to store closures. Finance costs fell by over 25 percent as the company continued its policy of closing non-profitable outlets. The group also runs a much smaller food business. 

“The pandemic helped make quick decisions to get rid of stores, and during the last seven fiscal quarters, about 600 unprofitable stores were closed. At the same time, 300 new stores were opened,” the company’s CFO, Ahmed Belbesy, told Al Arabiya in a recent interview.

He explained that during the first six months of the year, from the beginning of April, the firm opened 11 food branches. As for clothing brands, the company continued to dispose of branches that do not generate sufficient sales.

On the other hand, Savola Group, Fawaz Al-Othaim and BinDawood Holding, all predominantly food retailers, saw their net profit over the first nine months of this year fall by over-35 percent.

Fawaz Al-Othaim and BinDawood Holding both cited slowing sales following record 2020 numbers. Both companies said that growth in operating costs was a factor in the slowdown in their profits.

This is a turnaround from last year, when during the height of the health crisis food retailers posted robust income statements.

At this time, last year’s rising pandemic was almost a disaster for Alhokair. The company was hit by a loss of SR1.7 billion, the worst in its history. 

Sales at the chain plunged by more than half, from a pre-pandemic level of SR1.29 billion in the quarter ending in December 2019, to SR565 million in the quarter ending in June 2020.

Over the same period, big Saudi food retailers saw revenues jump in the second, and even in the first quarter of last year, usually a weaker season for sales.

One of these retailers is Savola Group, a holding company with assets in food production and food retail. It controls 28 percent of the Saudi retail market due to its 98.8 percent-owned grocery chain, Panda Retail, and its 49 percent-owned Herfy Food Services Co. Herfy is a restaurant, industrial bakery and meat processing business.

Savola Group’s sales came in at SR6.12 billion in the first quarter of 2020, its largest first-quarter sales on record. Net income for the year surged to SR1 billion from SR657 million in 2019.

Sales at Abdullah Al-Othaim Markets Co., a Saudi food wholesale and food retail business, hit record levels in each of the first three quarters of 2020, with annual net profit surging 72 percent to SR600 million from 2019.

Another Saudi retailer Arab News looked at was the supermarket and hypermarket chain owner, BinDawood Holding Company. Its main activity is selling food and household goods, as well as running bakeries and restaurants. 

Both sales and profits grew by 13 percent in 2020 compared to results in 2018.

The reason was a hike in food and hygiene products in 2020, due to panic buying from consumers in the face of the pandemic. 

By contrast, Alhokair’s food business is a secondary unit, so it did not benefit from strong profits enjoyed by grocery-heavy rivals last year. In the second quarter of 2021, its food and beverages business, mostly cafeterias in food courts at the company's stores, accounted for just 10 percent of the group’s overall revenues, according to company filings.

The value of the Kingdom’s point-of-sale transactions, a key Saudi retail market indicator, showed that sales of food and beverages surged by 68 percent in 2020 to SR62.4 billion, from the previous year. Also, transactions more than doubled to 794 million from 388 million.

By contrast, the value of transactions in the clothing and footwear segment lifted by just 9 percent to SR30.5 billion, while the volume of transactions fell by 7 percent to 138 million.

It is clear the turnaround at Alhokair came this year, after surviving the ravages of the pandemic leaving it able to grow profits.


AI’s shift toward proactive healthcare

Updated 05 February 2026
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AI’s shift toward proactive healthcare

  • Experts reveal how AI is reducing burnout and streamlining workflows

JEDDAH: Artificial intelligence is increasingly moving from the margins of healthcare innovation into its operational core. Rather than replacing clinicians, AI is being deployed to address persistent challenges across health systems, from administrative overload and staff burnout to fragmented data and inefficient patient flow.

Speaking to Arab News, Abbes Seqqat, chief executive officer of Rain Stella Technologies, and Eric Turkington, chief product officer, discussed how AI is already transforming healthcare delivery — and why its impact is most meaningful when embedded directly into clinical workflows rather than treated as a standalone tool.

Seqqat describes AI’s role as accelerating a structural shift in healthcare delivery. “AI is accelerating the shift in healthcare from reactive to proactive care, because AI fundamentally helps detect, analyze and predict,” he said, noting that many health systems lack the resources to perform these tasks at scale.

Abbes Seqqat, chief executive officer of Rain Stella Technologies. (RST photo)

While AI use cases in healthcare are broad, Seqqat emphasized that the most effective applications today focus on operational and clinical fundamentals, including reducing administrative burden, identifying patient risks earlier, and capturing clinical data more reliably and in real time.

RST’s portfolio reflects this approach, spanning surgical data capture and workflow automation, cloud-based electronic medical records, and health information exchange. Across these systems, the common goal is improving data quality and usability so clinicians can spend less time managing information and more time delivering care.

According to Turkington, RST’s systems rely on a mix of established and emerging AI technologies.

RST's Equinox offers a streamlined workflow, minimizing redundant data entry, and also allows for seamless integration with other systems. (RST images)

“Across the portfolio, we are using a wide range of AI and predictive technologies, from voice technology to reliably capture clinician inputs, to large language models that analyze and act on collected data,” he said.

A key focus has been adapting AI to regional and clinical realities. Voice models, for example, have been trained on UAE and GCC accents and grounded in medical terminology to improve accuracy in real-world settings. RST also uses retrieval-augmented generation and multi-agent AI architectures, allowing different AI components to perform specialized tasks such as classifying surgical notes, identifying unusual events, or assisting with billing and coding, Turkington explained.

DID YOU KNOW?

• AI can detect, analyze, and predict patient risks faster than traditional methods.

• Systems like Equinox use voice input and predictive analytics to actively support clinical decisions.

• AI assistants provide real-time updates, automate documentation, and improve coordination in operating theaters.

One of the central concerns around AI adoption is whether it adds complexity to already demanding clinical roles. Seqqat argues the opposite should be the goal.
“For nurses and frontline staff, AI’s greatest contribution is removing the invisible administrative friction that leads to burnout,” Seqqat said.

In operating theaters, AI systems can replace manual coordination methods such as phone calls and whiteboards by providing real-time situational awareness. By automating updates, anticipating delays, and serving as an on-demand clinical notepad, AI reduces cognitive load and allows staff to remain focused on patient care, he explained.

RST’s voice-enabled assistant, Orva, is designed specifically for perioperative environments.

Orva captures live updates through voice input, enabling it to surface delays, flag bottlenecks, and prompt coordination between departments. (RST photo)

Turkington said it enables hands-free documentation and coordination, helping surgical teams manage schedules and resources more effectively.

By capturing live updates through voice input, Orva can surface delays, flag bottlenecks, and prompt coordination between departments. It also assists with documentation and coding, reducing errors and supporting more accurate reimbursement— an area where incomplete records often create downstream challenges.

Electronic medical records remain central to healthcare delivery, but Turkington noted that AI can move them beyond passive data repositories.

Eric Turkington, chief product officer of Rain Stella Technologies. (RST photo)

“We designed Equinox as an EMR that enables you to spend less time with the software and more time with patients,” Turkington said.

Through voice input, automated documentation from visual annotations, and AI-generated pre-visit summaries, the system can actively support clinicians rather than slow them down. Predictive analytics, such as identifying no-show risks or highlighting care gaps, further shift EMRs toward decision-support tools rather than administrative obligations.

Both executives stressed that AI’s effectiveness depends heavily on data access and quality. Seqqat pointed to interoperability as a prerequisite rather than an afterthought.
“AI is only as powerful as the data it can access,” he said, adding that fragmented records limit both clinical insight and system-wide learning.

Health information exchanges, such as RST’s Constellation platform, enable patient data to be viewed longitudinally across providers. AI can then assist with patient identity matching and population-level analysis, allowing trends and risks to be identified across large datasets.

Turkington shared an example from an operating theatre where AI helped prevent cascading delays. When a surgical case ran late, a nurse verbally updated Orva that the patient was ready to exit. The system alerted the recovery unit, analyzed schedule conflicts, and prompted management to reassign staff before delays affected subsequent procedures.

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By tagging the cause of the delay and feeding that data into predictive models, the system helped prevent similar issues in the future — without additional manual coordination.

According to Seqqat, the primary returns from AI adoption come from combining efficiency with financial accuracy. Streamlined workflows allow providers to treat more patients without compromising care, while improved documentation reduces revenue leakage.

Looking ahead, Seqqat sees AI becoming central to Saudi Arabia’s healthcare transformation. He described its role as advancing smart hospitals, predictive patient flow, and precision medicine aligned with Vision 2030 goals.
“The role of AI in Saudi Arabia’s healthcare sector is evolving from a supporting technology to a foundational pillar of the Kingdom’s Vision 2030 transformation. Over the next few years, we expect to see AI move into the realm of smart hospitals, where predictive analytics optimize patient flow and AI-driven precision medicine leverages the Saudi Genome Program to provide hyper-personalized care. By unifying national health data and automating complex administrative workflows, AI will enable a more proactive, value-based healthcare model that improves patient outcomes and operational efficiency across the country.”