Saudi Health Minister Fahad AlJalajel has forecasted that investment opportunities in the sector will amount to SAR330 billion ($87.96 billion) by 2030. This announcement was made during the launch of the Global Health Exhibition, themed “Invest in Health,” in Riyadh on Sunday.
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The Minister further projected that the health sector’s contribution to GDP would increase from SAR199 billion to SAR318 billion by 2030, with the private sector accounting for nearly half of that amount.
Galagel stated that the Saudi health sector transformation program aims to raise the private sector’s contribution to 50 percent. However, Saudi Investment Minister Khalid Al-Falih highlighted that currently, the private sector’s share in the Saudi health industry and related areas is merely 11 percent, with the remaining portion being covered by government spending and investment.
Reshaping the health sector
In addition, Galagel highlighted that the average coverage of health services in the various regions of the Kingdom has increased from 81 percent to 94 percent. The Minister also mentioned the establishment of three companies specializing in areas that contribute to the reshaping of the health sector in the country, including Nupco, which is currently in discussions with the Public Investment Fund (PIF) regarding its potential initial public offering (IPO).
According to sources familiar with the matter, Bloomberg reported last week that Saudi’s sovereign fund is considering the possibility of listing Nupco, the Kingdom’s largest medical procurement company, as early as next year.
SAR145 billion by 2030
Dr. Ibrahim Al-Omar, the undersecretary of the Ministry of Health for the Development of Health Investment, emphasized that the Kingdom’s focus is on investing in preventive measures rather than treatment.
Saudi has set a goal to elevate private sector involvement in the health sector to SAR145 billion by 2030. Dr. Al-Omar highlighted that the investment size of the market is the primary driving force in the Saudi market, with a focus on enhancing the infrastructure of hospitals, health centers, primary care facilities, and mental health hospitals.
Crucial sector
As part of Vision 2030, healthcare is identified as a crucial sector for development in Saudi Arabia, with a particular emphasis on advancing the pharmaceutical industry and expanding various health services. In line with this, PIF established a new entity in June, aimed at attracting investment from pharmaceutical and biotechnology companies to foster the development of essential medical products such as insulin, vaccines, and plasma treatments.
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