Saudi Arabia Accelerates Healthcare Innovation with

Major Investments

Increased investment in Saudi Arabia's healthcare sector is revolutionizing patient care, with cutting-edge digital health solutions setting a new standard for excellence.

The healthcare investment landscape is rapidly evolving in the Kingdom of Saudi Arabia. The era of one-size-fits-all treatment plans and limited access to healthcare specialists is behind us. Today, a wave of digital health solutions, telemedicine advancements, AI-powered tools, and a focus on sustainable practices are reshaping how the country invests in healthcare, promising a future of enhanced patient outcomes and a more efficient healthcare system.

Several reports have highlighted that life expectancy in Saudi Arabia is estimated to grow from 76.4 to 81.8 years by 2050. According to census studies, the population is also set to rise from 34.3 million in 2019 to 39.4 million by 2030. This would, therefore, imply that more investment will pave the way for infrastructure and innovations that will grow the country's healthcare sector.

According to a report in Economy Middle East, investments made over the past 10 years in Saudi Arabia account for 60 percent of the GCC healthcare expenditures. Additionally, in 2022, the country spent over $36 billion on healthcare and social development, which amounted to 14.4 percent of its 2022 budget.

This paradigm shift promises a future in which diagnoses and treatments become personalized and efficient, and isolated communities gain access to vital care, ensuring no one is left behind.

An example of this shift is seen in the recent announcement by TVM Capital Healthcare that has launched the Afiyah Fund, a $250 million initiative designed to enhance Saudi Arabia's healthcare services and infrastructure. The Afiyah Fund will collaborate with healthcare providers, government entities, and innovative startups to strategically allocate resources.

Among the first investments of the fund are Baraya Extended Care, a Riyadh-based chain of long-term, post-acute care and rehabilitation clinics; DEBx Medical, an Amsterdam-based manufacturer of products for the treatment of chronic wounds that is about to enter the Saudi market; and neurocare Group, a Munich-based innovator in personalized mental health services and products, with clinics in the U.S., the Netherlands, and Australia, that is preparing to enter the Saudi and GCC market.

Digital transformation

As highlighted above, Saudi Arabia's population is rapidly growing, and the demand for healthcare services is increasing. To meet this demand and, at the same time, cease dependency on inpatient hospital services, 70 percent of patient activity will be digitized by 2030.

The Saudi Health Ministry recently celebrated significant healthcare achievements, including reducing the average hospital stay and saving 13,000 beds. Furthermore, digital health solutions like mobile apps are no longer a novelty in the country. They are powerful tools that allow patients to monitor their health data, manage chronic conditions, schedule appointments, and connect with healthcare professionals.

Telemedicine advancements are also essential in addressing the persistent challenge of access to quality healthcare. The Saudi Arabia telehealth market was valued at $906.33 million in 2023 and is anticipated to project a Compound Annual Growth Rate (CAGR) of 7.47% through 2029. Virtual consultations allow patients, especially those in remote and underserved areas, to connect with physicians easily. Thanks to these advancements, patients can receive a post-surgical consultation from the comfort of their homes, eliminating the need for travel and long waiting periods.

The rise of AI

Saudi Arabia’s health-tech sector is undergoing a transformation driven by AI. A McKinsey & Co. analysis forecasts that by 2030, AI could potentially unlock $15 to $27 billion in economic value for Saudi Arabia’s healthcare sector.

AI is not just a tool, but a fundamental part of Saudi Arabia's healthcare industry. Early disease detection, tailor-made treatment, robot-assisted surgery, and e-health solutions are revolutionizing healthcare delivery. They are paving the way for a future where medical care is more precise, efficient, and accessible, inspiring a new era of healthcare in the Kingdom.

The Kingdom is actively investing in AI and digital health initiatives as part of its Vision 2030 strategy, which aims to diversify the economy and develop public service sectors. Continued investment and development of AI in the healthcare sector will ensure the country leverages the technology to advance patient care.

Going green

Traditionally, the healthcare sector globally has been a significant contributor to the environmental footprint. However, a new wave of eco-conscious support is changing this narrative. In Saudi Arabia, hospitals and healthcare buildings are now being constructed or renovated with a focus on green building standards. This commitment to sustainability reassures us that the industry is evolving responsibly.

For instance, several hospitals and healthcare buildings in the Kingdom are now being constructed or renovated while focusing on green building standards. This would involve using the best insulation technology, energy-efficient HVAC systems, and smart lighting solutions designed to take in less energy. Further, these buildings have a lot of window space built into them to provide more natural light, ultimately reducing dependence on artificial lighting. This, in turn, promotes comfort among patients and staff.

Looking ahead

Saudi Arabia is expected to invest $66.67 billion in healthcare infrastructure within the next few years. It is reportedly targeting increasing private sector participation to 65 percent by 2030 and privatizing 290 hospitals and 2,300 primary health centers.

Key areas for future investment will revolve around medical devices and pharmaceuticals. The Kingdom is creating an encouraging investment landscape, including allowing foreign pharmaceutical manufacturers to partner with local producers in joint ventures to expand local production.

Therefore, the roadmap for an advanced health system in Saudi Arabia will require multifaceted efforts: significant investments in research and development to unlock the potential of digital health, telemedicine, and artificial intelligence and the creation of a culture of innovation and collaboration between researchers, health providers, and technology developers.

Further, the likely emerging challenges from these developments, including issues of personal data and dealing with the ethics of AI applications, must be addressed. Equally important is ensuring access to such innovations by all members of the public to build a fair and sustainable healthcare ecosystem. In these developments, the Kingdom can adopt a cutting-edge, accessible, and, therefore, sustainable healthcare ecosystem befitting future generations.

The Global Health 2024 edition, taking place from 21 - 23 October at Riyadh Convention & Exhibition Centre, Malham, will feature the Health Investment Zone that will spotlight all the abovementioned developments. This zone will provide a platform where experts will shed light on the latest regulations, government initiatives, and developments shaping the healthcare sector in Saudi Arabia.