Arcapita and Mumtalakat acquire NAS United Healthcare Services

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Manama, Kingdom of Bahrain– Arcapita, the global alternative investment firm, and Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of Kingdom of Bahrain, have partnered to acquire approximately 90% stake in NAS United Healthcare Services (NAS), a leading GCC provider of outsourced health insurance processing services.

Established in 2002 in Abu Dhabi, NAS is a regional leader in providing third-party administrator (TPA) services to more than 40 health insurance and takaful companies in GCC region. NAS provides its customers a network of more than 7,200 healthcare providers across the GCC region, the Middle East and India, as well as a complete suite of outsourcing and state-of-the art IT solutions in healthcare benefits administration.  NAS services a pool of more than 500,000 insured members and processes over 3 million medical claims per year.  The market for outsourced medical claims management in GCC region is expected to grow significantly as more countries are expected to introduce compulsory health insurance for their expatriate populations as well as higher healthcare spending resulting from general improvement in the quality of healthcare treatments available in the region.

Atif A Abdulmalik, Chief Executive Officer, Arcapita commented, “The global wellness and healthcare sectors are core focus areas for us; Arcapitas has made a number of successful investments in these sectors in the past.  NAS is a regional market leader. The company is well-positioned to take advantage of growth in the market for outsourced medical claims management in the GCC region.   The demand for quality services such as those provided by NAS is expected to grow in line with growth of healthcare insurance market in the GCC region. We are pleased to collaborate with Mumtalakat and look forward to growing NAS together.”

Mahmood Hashem Alkooheji, Chief Executive Officer, Mumtalakat added, “Global population trends indicate importance of increased healthcare solutions and by extension, health insurance services. In fact, between 2015 and 2050, the proportion of world’s population aged over 60 years will nearly double from 12% to 22% and global annual healthcare spending is projected to rise at a rate of 6% per year, reaching $10trillion by 2020.  As a result, majority of GCC governments have either implemented mandatory healthcare insurance coverage or plan to launch initiatives in coming years.  We believe NAS has significant potential to expand into regional countries and secure large contracts and we are delighted to partner with Arcapita to invest in NAS.”

With a growing global demand for healthcare services, rising health insurance penetration and an ageing global population, this acquisition represents an important investment designed to support a reduction in personal healthcare costs and support universal health coverage, both of which are in line with the United Nations’ Global Development Agenda.

Joseph Boulos, Chief Executive Officer of NAS, said, “We are excited to partner with Arcapita and Mumtalakat and believe their investment expertise, extensive network, and strategic oversight will help guide the company through its next phase of growth.”

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