KSA Healthcare Market Outlook to 2030

KSA Healthcare Market Overview

• The KSA Healthcare Market has experienced notable growth, this can be observed by per capita healthcare expenditure reaching USD 2,011 in 2023. This growth is driven by the Kingdom's robust healthcare reforms and increasing healthcare expenditure, reflecting a commitment to improving healthcare infrastructure and services.
• The key players in the KSA healthcare market include Saudi German Hospital Group, King Faisal Specialist Hospital & Research Centre, Mouwasat Medical Services, Dallah Healthcare, and Al Hammadi Company for Development and Investment. These players are pivotal in providing comprehensive healthcare services across the region, ranging from specialized treatments to advanced diagnostic services.
• In 2023, the Saudi Ministry of Health announced the launch of an initiative to enhance digital healthcare infrastructure, focusing on telemedicine and electronic health records (EHRs). This initiative aims to improve healthcare accessibility and efficiency, particularly in remote areas.
• Riyadh and Jeddah are the dominant cities in the KSA healthcare market due to their high population density and concentration of healthcare facilities. Riyadh, as the capital city, hosts the majority of the Kingdom’s healthcare institutions, including major hospitals and research centers. Jeddah, being a key commercial hub, also sees significant healthcare investments and developments.

KSA Healthcare Market Segmentation

• By Service Type: The KSA healthcare market is segmented into hospital services, outpatient services, and diagnostic services. In 2023, hospital services hold the largest market share due to the extensive range of medical treatments and specialized care provided. Major hospitals in Riyadh and Jeddah offer advanced medical technologies and comprehensive services, reinforcing their dominant position in the market.

• By Facility Type: The market is further divided into public hospitals, private hospitals, and specialty clinics. In 2023, Private hospitals have a significant market share due to their superior quality of care and shorter waiting times. These facilities, often located in urban areas, cater to a higher-income demographic seeking personalized medical services.

• By Region: Regionally, the KSA healthcare market is segmented into North, South, East, and West regions. In 2023, the Central region, encompassing Riyadh, dominates the market due to its concentration of healthcare infrastructure and investment. The North region also shows growth due to increasing investments in healthcare facilities and services.

KSA Healthcare Market Competitive Landscape

• The Saudi German Hospital Group (SGH): One of the largest and most renowned healthcare providers in the Kingdom of Saudi Arabia. The group is known for its state-of-the-art infrastructure, advanced medical technologies, and a wide range of specialized healthcare services. In 2024, the group introduced a state-of-the-art robotic surgery system.
• King Faisal Specialist Hospital & Research Centre (KFSH&RC): In 2023, King Faisal Specialist hospital launched its integrated electronic health record (EHR) system, which has streamlined patient data management and improved the coordination of care. In 2024, KFSH&RC is accredited by the Joint Commission International (JCI) for its excellence in healthcare standards.
• Dallah Healthcare: Dallah Healthcare operates a network of hospitals and medical centers, providing a wide range of medical and surgical specialties. In 2024, Dallah Healthcare Company entered into a memorandum of understanding with Ayyan Company Investment to acquire 97.4% of Al Ahsa Medical Services Company and 100% of Al Salam Medical Services Company, marking a milestone in the company's strategic expansion efforts

KSA Healthcare Market Industry Analysis

KSA Healthcare Market Growth Drivers

• Long-Term Care and Rehabilitation Services: With an aging population and increasing life expectancy, there is a growing demand for long-term care (LTC) and rehabilitation services. KSA will require an additional 21,300 to 40,200 LTC and rehabilitation beds by 2035, necessitating an investment of approximately $11.6 billion to $22.5 billion
• Adoption of Advanced Medical Technologies: The integration of advanced medical technologies such as AI, telemedicine, and electronic health records (EHRs) is revolutionizing the healthcare landscape in Saudi Arabia. EHR systems are streamlining patient data management, enhancing care coordination, and reducing administrative burdens.
• Digital Health Transformation: Investment in healthcare IT and digital transformation is a key focus, with a target to increase the percentage of patients with digital health records. The market for medical devices is also expanding, with a value of $2 billion. The acceleration of telemedicine services has facilitated virtual consultations and remote monitoring, proving especially advantageous for the management of chronic diseases.

KSA Healthcare Market Challenges

• Shortage of Skilled Healthcare Professionals: According to the World Health Organization (WHO), as of 2024, Saudi Arabia has 30.8 doctors per 10,000 people. This figure indicates a gradual increase in the healthcare workforce, yet the country faces a significant shortage of medical professionals, particularly in specialized fields such as oncology, neurology, and cardiology.
• Funding and Investment: Securing sufficient funding for healthcare projects in Saudi Arabia is a significant challenge. While banks and financial institutions show interest in the sector, they typically limit their investments to established market players. New entrants, especially international operators, often find it difficult to obtain financing due to the long-term nature of healthcare investments.

KSA Healthcare Market Government Initiatives

• Saudi Vision 2030: Saudi Arabia's Vision 2030, an ambitious economic diversification plan, has placed a strong emphasis on transforming the country's healthcare sector. As part of this initiative, the Saudi government plans to invest over $65.5 billion to develop the nation's healthcare infrastructure, reorganize and privatize health services and insurance, and expand the provision of e-health services.
• Mandatory Health Insurance for Expatriates: The Saudi government is actively promoting healthcare coverage expansion through various initiatives. The health insurance segment, which has seen a 22.01% increase in gross written premiums in the first 9 months of 2023. This growth is attributed to factors like mandatory medical coverage, rising medical inflation, and government initiatives to expand healthcare coverage.

KSA Healthcare Market Future Outlook

By 2028, the KSA healthcare market is expected to grow substantially, driven by continuous government investments, technological advancements, and increasing private sector participation.

Future Market Trends

• Digital Health Solutions: The focus is on the adoption of telemedicine and virtual consultations as part of the country's healthcare transformation under Vision 2030. Additionally, the use of electronic health records (EHRs) is becoming more prevalent in public and private hospitals.
• Privatization of Healthcare Services: The Saudi government's push towards privatization is encouraging more private investments in the healthcare sector. Saudi government is targeting the privatization of 290 hospitals and 2,300 primary health centers by 2030, as part of its Vision 2030 program.
• Focus on Preventive Care:  The Ministry plans to transform the healthcare system, including conducting early periodic examinations for all and collaborating with other entities to create a healthier community environment with the launch of transformative programs aimed at enhancing community health and prevention.