The Gulf Cooperation Council’s (GCC) healthcare sector is undergoing a transformation, driven by cutting-edge technologies, strategic investments, and innovative partnerships. These developments are not only enhancing the quality of care within the region but also positioning the GCC as an emerging global leader in healthcare innovation.
A Growing Financial Commitment
Healthcare expenditure in the GCC is projected to reach US$135.5 billion by 2027, according to the World Economic Forum (WEF). This significant financial commitment underscores the region’s strategic focus on innovation, efficiency, and preventative care, aiming to modernize healthcare systems and prioritize outcomes over volume.
At the heart of this transformation is the adoption of advanced technologies. Artificial intelligence (AI), robotics, genomic medicine, and upgraded healthcare infrastructure are revolutionizing healthcare delivery and improving patient outcomes.
The Role of Technology in Healthcare Growth
Technology is a critical driver of the GCC’s healthcare growth. PwC forecasts that AI could contribute US$320 billion to Middle Eastern economies by 2030, with healthcare predicted to see some of the largest gains relative to its current size.
Saudi Arabia exemplifies this technological shift through its National AI Strategy 2031, which integrates AI into healthcare and other sectors. The Saudi Data and AI Authority has issued ethical guidelines to ensure AI and machine learning applications align with safety and ethical standards. Additionally, the Saudi Food and Drug Authority has established regulations to guarantee the safety and reliability of AI-based medical devices, setting the stage for their wider adoption.
The UAE is also making remarkable strides in leveraging AI in healthcare. The Abu Dhabi Department of Health was the first to develop an AI Policy for the healthcare sector. Meanwhile, the Ministry of Health and Prevention (MoHAP) launched the region’s first Center of Excellence for AI in Healthcare in 2023.
In April 2024, the Thumbay Institute of AI in Healthcare hosted the region’s inaugural international conference focused on AI training and upskilling for healthcare professionals. Complementing these efforts are projects such as the Dubai Health Authority’s EJADA AI System, which has demonstrated remarkable success in disease prevention, and M42’s Med42 Clinical Large Language Model, which provides high-quality medical insights and supports decision-making.
Robotics Revolutionizing Healthcare
Beyond AI, robotics is making significant inroads in the GCC’s healthcare sector, offering opportunities to enhance precision, improve workplace safety, and reduce human-to-human disease transmission.
Robots are being tested in elderly care and anxiety reduction for patients, thanks to collaborative efforts between universities in the Middle East and Europe.
Saudi Arabia has witnessed a rapid increase in robotics companies, with the number rising from 1,537 in 2022 to 2,344 in the second quarter of 2023, according to the Saudi Ministry of Commerce. In Bahrain, robots have already been deployed in healthcare settings, with the country becoming the first in the GCC to use robots to minimize COVID-19 exposure during the pandemic in 2020.
Partnerships with the Private Sector
Public-private partnerships (PPPs) are becoming a cornerstone of healthcare transformation in the GCC. These collaborations diversify economies, increase private sector involvement, and expand access to quality care.
The Saudi Arabian Fakeeh Care Group recently announced plans for an initial public offering (IPO) to sell a 21.47% stake. This move aligns with Saudi Arabia’s broader strategy to increase the private sector’s contribution to the healthcare system from 25% to 35% by 2030.
Colliers International estimates that Saudi Arabia will need an additional 29,000 to 47,000 hospital beds by 2030, requiring $16.2 billion to $26.3 billion in private-sector investments.
Expanding Healthcare Infrastructure
In addition to technological advancements and partnerships, significant investments in healthcare infrastructure are addressing the region’s growing demand for high-quality care.
The GCC is home to more than 742 hospitals, with over 106,693 beds supported by numerous primary healthcare centers and clinics. According to Alpen Capital, 161 healthcare projects valued at a combined US$53.2 billion are currently underway across the region.
Saudi Arabia leads in this area, accounting for 19.2 percent of these projects, followed by Kuwait (12.9 percent), the UAE (10.3 percent), and Oman (2.1 percent). These investments are not only improving patient access and care quality but also creating opportunities for businesses in healthcare construction and services, spurring economic growth across sectors.
Global Implications of GCC Healthcare Advancements
The GCC’s healthcare advancements have the potential to influence global health practices. By adopting innovative care models and advanced technologies, the region is setting a benchmark for other countries seeking to modernize their healthcare systems. Strategic investments and partnerships in the GCC could lead to breakthroughs that benefit global health outcomes.
Conclusion
The GCC stands at the forefront of healthcare transformation, characterized by technological innovation, infrastructure development, and strategic economic initiatives. These efforts aim to enhance health outcomes within the region while positioning the GCC as a pivotal contributor to global healthcare advancements. As the region continues to lead in this space, it is poised to make a lasting impact on both regional and international healthcare landscapes.
