The healthcare sector in Saudi Arabia offers investors many attractive opportunities. Although already the Middle East’s largest healthcare market, it is far from mature and will continue to grow at a significant pace.
The healthcare sector is undergoing a profound transformation, moving beyond traditional care models to embrace the future. As global trends shift toward longevity, life enhancement, and personalized medicine, healthcare systems must evolve to meet new demands. The future lies in integrated spaces where advanced medical care merges with wellness, and cutting-edge technologies such as genetic engineering, artificial intelligence (AI), and regenerative medicine redefine patient outcomes.
Saudi Arabia is poised to lead this change. A key focus of its healthcare transformation is longevity technologies, including genetic engineering and regenerative medicine. These innovations are paving the way for life-extension treatments and organ regeneration—building on groundbreaking advancements like the creation of artificial hearts and lungs. This aligns with Saudi Arabia’s Vision 2030, which prioritizes improving life expectancy and overall health outcomes.
AI and smart city technologies will also play a crucial role in enhancing healthcare delivery and operational efficiency. AI will optimize diagnostics, personalize patient care, and streamline administrative processes, while sustainability remains a core principle in developing future healthcare ecosystems.
Vision 2030 and the Healthcare Sector in Saudi Arabia
Saudi Arabia’s Vision 2030 is an ambitious blueprint aimed at diversifying the economy and reducing dependency on oil revenues. A significant component of this vision is the transformation of the healthcare sector, which aims to provide a world-class healthcare system.
Since its launch in 2016, Vision 2030 has been a catalyst for monumental transformation in healthcare. As part of this initiative, the Saudi government is committed to building a ‘Vibrant Society’ by fostering Public-Private Partnerships (PPPs). These partnerships are a cornerstone of the Health Sector Transformation Program, driving innovation, investment, and improved access to high-quality medical services.
With a clear vision and strategic investments, Saudi Arabia is shaping the future of healthcare—not only as a sector of treatment but as a hub for life enhancement and longevity.
The Healthcare Sector Transformation Program
The Healthcare Sector Transformation Program was launched in 2021. The program is reshaping Saudi Arabia’s healthcare system into a more comprehensive, efficient, and integrated model. This enhanced framework prioritizes innovation, financial sustainability, and disease prevention while expanding access to high-quality medical services. A key focus is the adoption of e-health services and digital solutions. This focus is ensuring care meets international standards and improving overall patient outcomes.
The Program’s strong collaboration with government entities enabled Saudi Arabia to respond swiftly and effectively to the COVID-19 pandemic.The Kingdom leveraged mobile applications, streamlined vaccine protocols, and expanded medical services. Thus, the Kingdom set a global benchmark in managing the crisis with precision and efficiency.
Technology continues to drive the transformation of healthcare delivery. From remote surgeries led by top specialists to virtual consultations that seamlessly generate prescriptions, Saudi Arabia is at the forefront of digital health innovation. A prime example is the SEHA Virtual Hospital. The hospital was launched in 2022. It is the world’s largest of its kind. The virtual hospital is connecting over 150 hospitals and offering more than 30 specialized healthcare services.
Beyond treatment, the Program is strengthening public health initiatives and disease prevention efforts. Investing in preventive care not only enhances individual and community well-being but also reduces long-term healthcare costs, making it a key priority for sustainable health development.
The private sector plays a crucial role in supporting these national healthcare goals. Through strategic investments and partnerships, Saudi Arabia is ensuring that high-quality healthcare remains accessible to all. Thus, the Kingdom is reinforcing its position as a global leader in healthcare innovation and transformation.
NEOM & Healthcare
NEOM is transforming healthcare with a data-driven system focused on personalized, predictive, proactive, and preventive care. Digital twins, built on real-time data from genome sequencing, wearables, and AI, enable continuous health monitoring and disease prevention. This approach reduces reliance on traditional healthcare interventions, ensuring high efficiency and accessibility.
Investment opportunities in NEOM’s healthcare sector span infrastructure, AI-driven diagnostics, and precision medicine. The project integrates specialty hospitals, streamlined insurance, and health tourism, creating a strong investment ecosystem. Emerging technologies and longevity-focused initiatives offer investors a chance to shape the future of healthcare.
Investment Opportunities in the Healthcare Sector in Saudi Arabia
Saudi Arabia plans to invest over $65 billion to develop healthcare infrastructure, reorganize health services, and expand e-health solutions. The government aims to privatize 290 hospitals and 2,300 primary health centers, increasing private sector involvement from 40% to 65% by 2030. These reforms create major opportunities for U.S. companies in Saudi Arabia’s evolving healthcare sector.
To improve access and preventive care, the Ministry of Health (MOH) will launch 21 integrated health clusters. Each cluster will serve one million people. Two clusters—Riyadh First and Riyadh Second—are already operational. Other MOH priorities include increasing internationally accredited hospitals and improving preventive and therapeutic healthcare services. The ministry also plans to double primary healthcare visits per capita from two to four.
Public-Private Partnerships
Non-communicable diseases cause 68% of deaths in Saudi Arabia. Nearly 18% of adults have diabetes, and over 40% are obese. The government will continue investing in prevention and treatment. In 2021, 25-35% of Saudi Arabia’s healthcare budget went to diabetes, obesity, and cardiovascular diseases. Screening and early intervention will drive more visits to primary healthcare centers.
Saudi Arabia is prioritizing pharmaceutical localization under Vision 2030. The country improved intellectual property (IP) protections, leading to its removal from the U.S. Trade Representative’s Priority Watch List in 2022.
The Health Holding Company (HHC) plans to expand private sector participation (PSP) through public-private partnerships (PPP). Nine priority areas include primary care, hospitals, medical cities, labs, radiology, pharmacies, rehabilitation, long-term care, and home care. Over the next five years, Saudi Arabia expects 100+ PPP projects, attracting $12.8 billion in private investment. Currently, 19 PPP projects are in progress, totaling $2.9 billion.
Moreover, a 2019 law allows foreign investors to own and manage hospitals and health centers in Saudi Arabia. The healthcare sector is open to fully foreign-owned businesses. Multinational companies establishing headquarters in Saudi Arabia can receive government incentives.
Leading Sub-Sectors
Dental Services
The dental sector is growing due to higher healthcare spending, insurance expansion, and rising incomes. Demand exists for advanced treatments, cosmetic procedures, and specialized equipment in prosthodontics, implantology, orthodontics, and periodontics.
Digital Health
Saudi Arabia is one of the fastest-growing digital health markets in the GCC. The government allocated $1.5 billion for healthcare IT and digital transformation. The MOH launched an e-health strategy to expand telemedicine and remote healthcare. Saudi Arabia’s telehealth adoption rate is 70%, and 34% of young physicians use AI for diagnoses. Seha Virtual Hospital, the largest in the Middle East, remotely supports 130 hospitals and offers 30+ specialized services.
Health Insurance
The insured population is growing due to mandatory coverage for expatriates, private sector workers, and tourists. Also, the government is enforcing stricter compliance to expand coverage. In 2023, Cigna Worldwide Insurance Co. became the first foreign insurer licensed in Saudi Arabia.
Medical Devices
Saudi Arabia’s medical equipment market is valued at $2 billion and grows at 10% annually. Increased healthcare consumption is driving demand for high-value medical products. The country is transitioning from manufacturing low-cost items to producing advanced medical technologies. Best opportunities include patient monitoring devices, diagnostic equipment, implants, prosthetics, and emergency room tools. Saudi Arabia recognizes U.S. FDA, EU, and Japanese certifications, streamlining international market entry.
Pharma and Biosciences
Saudi Arabia holds 60% of pharmaceutical purchases in the GCC. The market was valued at $11.72 billion in 2022 and is expected to reach $15.09 billion by 2027. Demand for patented and generic drugs is rising due to healthcare expansion. High-potential segments include antibiotics and treatments for cancer, cardiovascular disease, and diabetes. The government is prioritizing local production, technology transfer, and clinical trials. In June 2023, the Public Investment Fund (PIF) launched Lifera, a pharmaceutical company accelerating Saudi Arabia’s biotech sector.
Specialty Clinics and Ambulatory Care Centers
Saudi Arabia lacks specialty clinics in gynecology, oncology, and cosmetology. Furthermore, The government will use PPP models to expand capacity in these areas. Increased focus on wellness and preventive care will boost demand for non-hospital healthcare facilities.
Doing Business in the Saudi Healthcare Sector
Partnering with a local company is highly recommended. A local partner can monitor business opportunities, navigate import regulations, and identify public sector contracts.
Although Saudi Arabia is advancing privatization, the government still funds over 60% of healthcare expenditures. NUPCO manages centralized procurement for public healthcare providers. It collects sector-wide requirements and issues tenders to meet demand. These tenders often have short deadlines, making strong local partnerships essential.
NUPCO aims to create a comprehensive inventory of medical products for public providers. Only prequalified companies can submit bids. To prequalify, foreign firms must register with NUPCO and the Saudi Food and Drug Authority (SFDA). Registration covers both pharmaceuticals and medical devices.
Saudi Arabia Market Entry
Injaz Company offers full-service support for investors entering Saudi Arabia. We help businesses establish operations, navigate regulations, and expand investments.
Through tailored advisory services, we simplify market entry and business setup. Our team assists with licensing, compliance, and strategic planning. We ensure investors can focus on growth while we handle local complexities.
At Injaz Company, we are committed to making your business journey seamless. With deep market expertise, we connect investors to key opportunities in Saudi Arabia’s healthcare sector. Our goal is to provide exceptional support so you can thrive in this dynamic market.
