Healthcare among most attractive investment sectors in Saudi

Saudi driving structural changes in the sector
Healthcare among most attractive investment sectors in Saudi
Nurse taking care of a patient. (Image credit: Kalerkantho)

Saudi Arabia is driving fundamental structural changes across the Kingdom’s economy, including the healthcare sector, according to a new report released by professional services and investment management company Colliers. With the introduction of several legal and economic incentives, including 100% foreign ownership, the healthcare sector is amongst the most attractive sectors in the Kingdom offering numerous opportunities for private sector operators and investors, the report says.

Mansoor Ahmed, Executive Director – Healthcare, Education, Development Solutions & PPP at Colliers, MENA, highlighted, “based on Colliers’ estimation, KSA will require approximately 19,000 – 20,000 additional beds by 2030, however, two of the biggest factors hindering the growth of KSA’s healthcare sector is the high cost of land and limited funds available for capital expenditure, especially for the construction of hospitals. The opportunity lies in exploring existing prospects within the sector by supporting expansion programs or source alternative funding for new developments.”

He further highlighted, “unlocking the real estate assets through capital markets / REIT funds or through sales and leaseback in Saudi can potentially unlock $59 to $63.4 billion only from property values against the required investment of approximately $33.8 to $35.6 billion to establish approximately 19,500 additional beds by 2030 within both the public and private sectors, leaving $26.4 – $29.4 billion unutilized, which can then be used towards upgrading the existing hospitals.”

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