Riyadh – Mubasher: Baazeem Trading Company has entered into a cooperative health insurance contract with Bupa Arabia for Cooperative Insurance to provide medical coverage for its workforce.
The agreement, valued at approximately 1.48% of Baazeem’s total revenues for 2025, outlines a one-year term of service aimed at covering company employees and their eligible family members.
While the contract involves a related party transaction due to shared leadership roles, the company confirmed that the deal was conducted under standard commercial terms without preferential treatment.
The contract signing, which took place on 25 June 2026, follows the initial award announcement made on the same date. Under the terms of the agreement, Bupa Arabia will serve as the sole provider of cooperative health insurance services for Baazeem Trading.
The coverage is scheduled to take effect on June 29, 2026 (14-01-1448H), and will remain active for a period of one year.
In terms of financial magnitude, the total value of the contract is linked to Baazeem’s financial performance in the preceding year, specifically calculated as 1.48% of the company’s 2025 annual revenues.
This indexing ensures that the insurance expenditure remains proportionate to the company’s scale of operations. Despite the significance of the contract for employee welfare, Baazeem’s management noted that the financial impact for the 2026 fiscal year is expected to remain consistent with previous years.
The company does not anticipate any extraordinary financial fluctuations or additional costs beyond the historical norms for its insurance obligations.
A notable aspect of the disclosure involves the identification of a related party.
Ali Mohammed Shnaimer serves as a member of the Board of Directors at Baazeem Trading Company while simultaneously holding a senior executive position at Bupa Arabia for Cooperative Insurance.
To ensure corporate governance standards and transparency, Baazeem clarified that Shnaimer did not participate in the decision-making process or the internal deliberations regarding the selection of the insurer.
Furthermore, the company emphasized that the contract was executed within the ordinary course of business. The terms provided by Bupa Arabia align with market standards, and the disclosure explicitly states that no preferential advantages or special concessions were granted during the negotiation or signing of the agreement.
This adherence to regulatory compliance is a standard requirement for Saudi-listed companies when engaging in transactions where board members hold interests in the counterparty.
The selection of Bupa Arabia, one of the Kingdom’s largest specialized health insurance providers, reflects Baazeem’s ongoing commitment to maintaining comprehensive medical benefits for its human capital.
By securing this contract, the company ensures continuity of its operational support systems, providing its staff and their families with access to a broad network of healthcare services throughout the policy's 12-month term.
