Pushed by the federal government’s Imaginative and prescient 2030 programme, Saudi Arabia is present process a far-reaching financial transformation, with $1.3tn of actual property and infrastructure initiatives introduced and $196bn in contracts awarded since 2016.
Over the subsequent 5 to 10 years alone, Knight Frank estimates that multiple million new properties and over 7.9 million sq m of workplace house could possibly be accomplished.
Regardless of this scale of growth, healthcare output accounted for simply 4.8 per cent of Saudi Arabia’s GDP in 2023, in contrast with a world common starting from 5 per cent to 12.5 per cent.
Whereas this has traditionally mirrored the Kingdom’s comparatively younger inhabitants, Knight Frank mentioned demographic ageing over the subsequent 20 years will expose a big infrastructure shortfall.
In Riyadh, the consultancy has recognized a capability hole of virtually 15,300 hospital beds by 2040, based mostly on international benchmarks.
Saudi healthcare funding
Dr Gireesh Kumar, Affiliate Associate – Healthcare Consultancy, MENA, mentioned: “Saudi Arabia’s rising life expectancy—reaching 78.8 years in 2024—and a projected 2.4-fold improve within the aged inhabitants by 2040 are putting healthcare on the centre of the Kingdom’s long-term growth agenda.
“Though important strides have been made in increasing healthcare capability nationwide, the system nonetheless faces a structural hole in hospital mattress availability. Present mattress density stands at 2.0 beds per 1,000 folks (excluding beds from different authorities sectors), beneath the worldwide common of two.9 beds per 1,000.
“Regional disparities additionally persist: Riyadh province and Jeddah metropolis every have 1.8 beds per 1,000 folks, whereas the Japanese Province performs barely higher at 2.2 beds per 1,000.”
Knight Frank’s evaluation reveals that 15–20 per cent of acute care beds are at the moment occupied by long-term care (LTC) sufferers, underscoring unmet demand on this section. The Kingdom’s Ministry of Funding has recognized LTC as a nationwide funding precedence, whereas the Well being Holding Firm has introduced plans to allocate devoted LTC beds by changing lower-capacity hospitals into specialised services.
Kumar mentioned: “The funding potential for the long-term care (LTC) sector is critical: demand is predicted to achieve 12,000 LTC beds by 2030 and 24,400 by 2040. And with present occupancy already exceeding 90%, there’s each an pressing must increase LTC capability and a rising alternative for main native healthcare suppliers and worldwide healthcare operators to enter Saudi Arabia.”
Traditionally, many Saudis have travelled overseas for medical therapy, pushed by perceptions of upper requirements of care abroad. Knight Frank’s analysis reveals that 31 per cent of Saudi nationals and 24 per cent of Saudi-based expats have travelled overseas for therapy, rising to 49 per cent amongst Saudi nationals incomes SR50,000–70,000 ($13,300-$18,700) per 30 days.
Faisal Durrani, Associate – Head of Analysis, MENA, mentioned: “Given the seemingly well-entrenched notion that the standard of medical services, medical practitioners, in addition to the usual of therapy is best overseas, there’s a clear alternative to recapture a few of this demand by bringing extra internationally recognised branded healthcare operators to the Kingdom.
“With our analysis exhibiting that nearly half of Saudi nationals on incomes of over SR50,000 ($13,300) a month would readily journey internationally for elective or important medical procedures, there’s a sturdy potential for premium, specialist-driven healthcare developments in Saudi Arabia, particularly in Riyadh and Jeddah, the place prosperous nationals and expats present excessive engagement with worldwide medical companies.
“Increasing entry to top-tier specialty care, wellness services, and superior diagnostics domestically might assist retain high-spending sufferers and curb outbound medical journey, significantly amongst insured and high-income teams.
“This could possibly be achieved via partnering with internally famend medical manufacturers and services”.
Authorities reforms
Knight Frank added that authorities reforms are more and more targeted on attracting trusted international healthcare manufacturers to function regionally and inspiring sufferers to stay within the Kingdom for therapy.
Inside Saudi Arabia, non-public hospitals are the popular possibility for elective procedures, chosen by 47 per cent of Saudi nationals and Saudi-based expats. Amongst Saudi nationals incomes greater than SR70,000 ($18,700) per 30 days, choice for personal hospitals exceeds 60 per cent, reflecting widespread household insurance coverage protection.
Total, 83 per cent of Saudi nationals and expats are lined by medical insurance, break up between 50 per cent on household plans and 33 per cent on single plans. Amongst Saudi nationals, insurance coverage protection rises with earnings, with these incomes SR70,000 ($18,700) or extra per 30 days exhibiting the best penetration.
Location additionally performs a key position in healthcare selection. Most respondents want services inside 5–10km (38 per cent) or inside 5km (25 per cent), with 59 per cent of Saudi nationals incomes SR70,000–80,000 ($18,700-21,300) per 30 days anticipating appropriate services inside 5km of their properties.
Kumar mentioned: “The mixture of excessive insurance coverage penetration, a transparent choice for personal healthcare amongst prosperous households and journey distance expectations creates distinct funding alternatives.
“For prime-income and expatriate-heavy neighbourhoods, there’s scope to develop premium hospitals, day surgical procedure centres and specialist clinics. For middle-income Saudi communities, there stays a spot in sufficient provide of mid market healthcare services.
“Finding new healthcare developments inside 5-10km of main residential and business clusters will deal with each accessibility and utilisation concerns.”
Knight Frank additionally highlighted the rising significance of senior residing, a sector nonetheless in its early phases in Saudi Arabia and the broader area. As life expectancy rises, demand is predicted to develop for lifestyle-led communities that combine healthcare entry, wellness and social engagement.
Durrani mentioned: “Conventional care properties have but to be broadly embraced culturally, however our analysis reveals growing curiosity – significantly amongst prosperous households – in different care fashions. These embody built-in care programs fairly than standard “daycare”, the place aged residents will be cared for through the day, obtain medical supervision and drugs, and stay socially related.
“Households anticipate such services to be embedded inside residential communities, permitting households to go to simply and keep intently concerned of their kin’ each day care”.
High quality of life
This development aligns with the Kingdom’s High quality of Life Programme 2023, which prioritises wellness and aged care infrastructure inside new city developments. Residence-care companies, already utilized by 43 per cent of households, are additionally gaining traction as a part of a broader shift towards decentralised, patient-centred care.
Help for built-in senior residing services is strongest amongst Saudi nationals (85 per cent) and households incomes greater than SR80,000 ($21,300) per 30 days (100 per cent). Notably, 75 per cent of Saudi-based expats additionally help this strategy.
Amar Hussain, Affiliate Associate – Analysis, MENA, mentioned: “Whereas nonetheless a comparatively nascent section of the healthcare panorama within the Kingdom, we anticipate demand for senior residing and related medical services to develop quickly because the inhabitants begins to age.
“Certainly, we forecast that the variety of Saudi nationals aged 65 and over will greater than double by 2040 to 2.15 million, from 984,000 in 2024.
“There’s already sturdy recognition of the necessary position senior residing will play within the Kingdom’s future, with 84 per cent of Saudis agreeing that devoted senior residing services should be built-in within the nation’s actual property growth plans.
“There’s clear potential for sturdy uptake in premium, well-located senior residing developments catering to higher-income households. Our evaluation means that dwelling care is a valued healthcare supply mannequin in Saudi Arabia, with prosperous and higher-need households demonstrating the best willingness to undertake it.
“As demand skews in direction of specialised rehabilitative and diagnostic companies, there is a chance for healthcare suppliers and buyers to increase premium, on-demand home-care options that cater to each comfort and sophisticated medical necessities.”
