The investment in the healthcare market has taken a new shape after the incidence of the Coronavirus pandemic, a lot of investors are hesitant in their investment decisions due to the economic impact of pandemic globally.
Healthcare market is one of the most important markets that was affected by the pandemic in the last 2 years, it was like a warning alarm for a lot of countries which didn’t give the proper interest to the healthcare sector.
Covid-19 pandemic contributed to enhancing the interest in healthcare and raising the level of preventive measures and precautions, with focusing on providing better healthcare services and improving access to care to all citizens.
The pandemic challenges prompted some governments to work to establish additional hospitals and health centers to accommodate the increasing cases of infection rate with the emerging Covid 19 virus, and work on Strengthening its current healthcare systems, raising their capacity, and strengthening their infrastructure.
Saudi Arabia is considered the largest healthcare market in MENA region based on the following facts:
- Saudi Arabia has the largest share of pharmaceutical sector at the value of SAR 33 billion, which represents 80% of the GCC market.
- Saudi Arabia has the largest share of medical devices market, about 50% of the MENA region medical devices market, and estimated at a value of SAR 7.5 billion at a CAGR of 10%.
- The governmental expenditure is almost 16.4 % of the total country’s budget.
- Saudi Arabia has increased its budget for healthcare by 50% by the incidence of Covid-19 pandemic.
- The increasing demand for healthcare infrastructure and building new hospitals which represents almost 19% of the total healthcare sector budget.
- The Saudi population is the largest population in GCC with 35.2 million people.
Saudi Arabia gives great attention to the healthcare sector and focuses on three basic elements for its development and improvement, which are the health of citizens, improving the quality of healthcare services provided to them, and directing more investments towards the healthcare sector, in addition to establishing healthcare cities such as NEOM, which will focus on the healthcare aspect.
The Coronavirus pandemic posed a great threat to the global health situation, which made the World Health Organization urges investors to invest more in the healthcare sector at the international and the local levels.
There are many indicators and reports that indicate the opportunities available in the Saudi Arabia healthcare sector, whose growth is confirmed by many factors, including population growth and the need for cities to more healthcare facilities and clinical beds, and the Kingdom’s Vision 2030 is keen to stimulate private sector participation in local medical investments, privatize government services, and compulsory medical insurance.
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- Healthcare Spending in the GCC countries is Expected to Reach about $89 Billion by 2022
Saudi Arabia provides unlimited support to the private sector and investors in the healthcare sector, whether locally or internationally.
With the new fact of the pandemic, the level of awareness and interest in healthcare has increased, also individual’s interest in health aspects such as healthy eating, sports, remote health consultations, and other aspects related to human health which in reality constitute great investment opportunities.
To wrap up what we discussed in this article, Saudi Arabia is one of the largest healthcare markets in the region and is full of investment opportunities on multiple levels.
Investment opportunities include the healthcare infrastructure, pharmaceutical sector, telehealth, medical devices and digital transformation.
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