Dubai, UAE — Investment banking advisory firm Alpen Capital’s latest healthcare industry report for the GCC projects the current healthcare expenditure (CHE) in the region to reach $135.5 billion in 2027, implying an annualized growth rate of 5.4 percent from $104.1 billion in 2022.
In the last few years, Saudi Arabia’s healthcare has seen tremendous growth and it continues to be one of the few sectors that have not been affected by economic fluctuations, according to a study last year by Collier’s, a Canada-based diversified professional services and investment management company.
Opening the economy to foreign investors and operators has completely changed the landscape of the market, with several newcomers, like the King’s College from London, which opened its branch in Jeddah, or Mediclinic, opening in Riyadh.
The kingdom wants also to reduce its spending on medical care abroad. Currently, a large number of Saudis travel to the US, Europe to South East Asia, due to the lack of good quality healthcare services inside the country, spending between $2 to $3 billion on treatment. The kingdom will need 19,000 to 20,000 additional hospital beds by 2030, which calls for an investment of $33.8 billion to $35.6 billion.
The Arab world’s largest economy is home to seven of the 10 biggest healthcare companies. TRENDS takes a look at GCC region’s biggest healthcare stocks.