Saudi Arabia Healthcare Transformation 2025 – Vision 2030, Investments & Trends

Saudi Arabia’s healthcare sector is undergoing significant transformation as part of Vision 2030, focusing on privatization, digital health advancements, and regulatory reforms. The government aims to privatize over 290 hospitals and 2,300 health institutions, increasing private sector involvement from 25% to 35% by 2030.

Key Trends & Investments

• Digital Health Growth: Over $1.5 billion has been invested in technologies like telemedicine and electronic health records (EHR).
• Population Growth & Demand: Saudi Arabia's population is expected to reach 45 million by 2030, with an aging demographic driving demand for specialized care.
• Public Health Insurance Expansion: Comprehensive public health insurance is set to cover all citizens by 2026, increasing the need for private healthcare services.
• Pharmaceutical Market Growth: Expected to reach $7.04 billion by 2028, with a CAGR of 6.08%.
• Medical Devices Market: Projected to reach $3.1 billion by 2028.

Regulatory & Employment Landscape

• Localization (Saudization): New policies will increase the employment of Saudi nationals in healthcare, effective April 17, 2025.
• Private Sector Participation Law (2021): Strengthens investor confidence through better contract enforcement.
• Job Creation: Vision 2030 is expected to generate 200,000+ new jobs in the sector.
• Workforce Stats: The sector currently employs 325,000 nurses, 153,000 physicians, and 59,000 pharmacists.

Challenges & Reforms

• Hospital Bed Shortage: The country needs 84,000 new hospital beds by 2030 to meet demand.
• Digital Transformation: Investments in AI, telemedicine, and remote healthcare aim to improve efficiency and accessibility.
• Regulatory Reforms: Streamlining regulations to attract private investments and improve healthcare service quality.

Healthcare Sector Global Standing

• Ranked 26th globally by the WHO.
• The 2023 budget allocated $66.6 billion for healthcare and social development.

Market Developments

• IPO Activity: Almoosa Health plans a $450 million IPO, the second-largest in Saudi Arabia this year.
   

Download your Copy