Saudi Arabia is currently going through fundamental structural changes in all economic sectors, including healthcare, in light of its set Vision 2030, Colliers International said.
Population in Saudi Arabia is expected to reach 45 million by 2030 based on the Saudi Arabian General Investment Authority’s (SAGIA) projections; this forms a key factor for the growth of the healthcare sector, Colliers’ director of healthcare, education and public-private partnerships (PPP) Mansoor Ahmed highlighted.
“The healthcare sector in the Kingdom continues to evolve alongside the global advancements in technology, research and development,” Mansoor Ahmed commented.
He further stressed the need to embrace, develop, and adopt new technologies and innovations along with the successful growth achieved in the kingdom’s healthcare sector.
“Based on Colliers analysis, utilising global beds per population, by 2030, KSA will require 29,000 to 47,000 additional beds in turn, requiring an additional investment of $16.2 billion to $26.3 billion,” he highlighted.
The increasing population and the changing age profile will result in creating a demand for a number of specialisms such as; paediatrics, lifestyle diseases, long-term care, rehabilitation, home care and rejuvenation services, Mansoor Ahmed added.
“We expect most of the investment to come from the private sector, privatisation through public-private partnership (PPP) and the creation of more REIT funds. Based on Colliers estimate, REIT funds in the kingdom can unlock between $5.7 billion to $7.1 billion from property values in the private sector with potentially a further $16.9 billion to $21.1 billion from the public sector,” Mansoor concluded.