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Saudi healthcare spending expected to increase to $160 billion by 2030

Saudi Arabia’s healthcare spending has grown at a Compound Annual Growth Rate of 12.1% in the last nine years

Healthcare to play vital role in diversification of the Kingdom’s economy from hydrocarbons as part of the country’s Vision 2030 Successful growth of the healthcare sector will be dependent upon embracing, developing and adopting new technologies and innovations Saudi participation is expected to grow by 20% for the 2020 edition of Arab Health

Arab Health, the largest exhibition for healthcare and trade professionals in the MENA region, has revealed Saudi Arabia’s healthcare spending has grown at a Compound Annual Growth Rate of 12.1% in the last nine years to $45.9 billion, and is expected to increase to $160 billion by 2030. 

The report by Colliers International, titled: “Saudi Arabia Healthcare Sector – Country in Transformation”, which forms part of the Arab Health Market Series, highlighted population growth at a CAGR of 2.5% to 45 million by 2030 as one of the key factors fuelling the demand for healthcare services. The research also outlined an increase in healthcare spending between 2011 to 2019 of $18.4 billion, at CAGR of 12.1%.

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Ross Williams, Exhibition Director of Arab Health, which takes place from 27 – 30 January 2020, said: “As a pioneer and innovator of the healthcare industry, Arab Health has an integral role in developing the industry across the GCC and internationally. We provide the perfect platform for representatives from the region to explore the latest technologies and innovations in the sector, to keep pace from a global perspective, while also showcasing the many opportunities for investing in the Kingdom and the rest of the GCC.”

Population growth, in addition to a rise in life expectancy, urbanisation and a growing prevalence of chronic/lifestyle diseases including diabetes, coronary problems and other obesity-related illnesses, are driving demand for healthcare services in the Kingdom even further.

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The report also outlined the impact the composition of the population is having on future healthcare requirements. The age group new-born to 19 is expected to increase to 13.7 million by 2030, creating demand for facilities and services relating to mother and childcare such as obstetrics, gynaecology and paediatrics.

Meanwhile, population growth in the 20 to 39-year demographic is expected to increase to 13.8 million by 2030. With one of the highest prevalence of lifestyle diseases in the world almost 18% of the population over 20 years with diabesity, 35% with obesity, and over 23% suffering hypertension so, a great deal of focus will be on preventing lifestyle diseases.

The largest increase will be felt in the over 60 category which is expected to grow from 1.8 million in 2018 to five million in 2030, driving demand for geriatric services such as long-term care, rehabilitation and home care.

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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.

Arab Health is the largest healthcare event in the Middle East and is organised by Informa Markets.