Industry insights

Healthcare In Saudi Arabia: Opportunities In The Sector – A Knight Frank Report

Investing in alternative real estate asset classes such as healthcare is a growing trend among global and local investors seeking diversification benefits as well as long term stability given the defensive nature of the underlying income stream. In Saudi Arabia, rising demand for healthcare and government initiatives favouring an increased participation from the private sector look set to drive expansion in the sector and open new doors for investors.

KSA Hospital Projects Overview

According to latest figures from US-based consultancy Aon Hewitt, the healthcare sector in the Kingdom of Saudi Arabia (KSA) is expected to grow at a compound annual growth (CAGR) rate of 12.3% by 2020.  To discover more, read through our KSA Hospital Projects report.

KSA Healthcare Industry Report

Whether you are looking to enter the healthcare market of the Kingdom of Saudi Arabia or you already are a key player in the industry, the door is open for you to be part of the economical growth driven by the Saudi Vision 2030. To discover the latest trends and market expansion within the Kingdom's healthcare sector, read through our Industry Overview report

Why Saudi

The healthcare sector in the Kingdom has witnessed collaborative progress over the years and, as a result, industry experts foresee a significant upward trend for the industry in the next three to four years.

According to analysis by Colliers International, the following opportunities exist in the KSA healthcare sector:

  • DEMAND FOR PRIVATE HEALTHCARE – Year-on-year, the volume and share of the private sector, has been increasing
  • INCREASED DEMAND FOR HEALTHCARE QUALITY - KSA’s healthcare facilities in general, and Riyadh and Jeddah, in particular, are accredited by international healthcare accreditation bodies such as JCI and ACHSI
  • LONG TERM CARE/ REHABILITATION - With the changing age profile, KSA requires a large number of LTC facilities
  • DAYCARE SURGICAL CENTRES - Due to advancements in healthcare technology and the increase in the prevalence of lifestyle diseases, there is a higher demand for day-care surgery centres
  • DEMAND FOR MATERNITY AND PAEDIATRICS - Private health facilities in KSA are focusing on maternity and paediatrics owing to high demand for these specialties
  • INCREASED DEMAND FOR SPECIALISED SERVICES - Centres of excellence focusing on certain specialties are expected to grow further, especially in Riyadh and Jeddah
  • LABORATORY AND DIAGNOSTIC CENTER - Standalone laboratory and diagnostic centres are required in KSA to support the increasing volume of outpatient facilities
  • PRIMARY CARE - Owing to the large population in the KSA and high occupancy rates of the hospitals, the country requires more primary care clinics and medical centres to meet the demand of the rising population
  • RELIGIOUS TRAVEL – The country plans to welcome 30 million pilgrims by 2030, and there are 25 hospitals and 158 health clinics across the holy cities