Infinium Global Research Reveals Insights on Healthcare Markets across Saudi Arabia

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Dec 04, 2023, 06:00 ET

PUNE, India, Dec. 4, 2023 /PRNewswire/ -- The healthcare industry in Saudi Arabia has gained significant importance due to its expansive population of over 36 million people, making it the largest nation in the Middle East. The government has made substantial investments in healthcare infrastructure, resulting in improved accessibility to healthcare services nationwide and driving significant advancements in the sector. Saudi Arabia boasts a well-established healthcare system that offers complimentary healthcare services to all its citizens and residents, with the government being the primary financial supporter of these services. The Ministry of Health (MOH) in Saudi Arabia is responsible for coordinating and delivering healthcare services across the country. The healthcare system in Saudi Arabia is organized into three distinct tiers: primary, secondary, and tertiary healthcare services. Primary healthcare centers (PHCs) are responsible for providing essential healthcare services at the primary level, including preventive care, health education, and screening. Hospitals and specialized facilities provide secondary healthcare services, offering advanced services such as diagnostics, surgical procedures, and emergency care. Tertiary healthcare services are provided through specialized hospitals, well-known for their expertise in areas such as organ transplants and cancer treatment.

In alignment with the Vision 2030 initiative in Saudi Arabia, the healthcare sector has placed a strong focus on its development by integrating privatization and embracing Public-Private Partnerships (PPPs). Vision 2030 aims to tackle critical issues and implement strategic measures to transform the healthcare system.

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Budget Healthcare

Saudi Arabia leads healthcare spending among Gulf Cooperation Council (GCC) nations, contributing 60% of the total. The government prioritizes healthcare, with a reduced budget of $50.4 billion (SAR 189 billion) in fiscal year 2023, representing a 4.5% reduction. Three hospitals with a total of 900 beds and four specialized elderly care hospitals, which offer services like in-home dialysis and palliative care, are set to open. The Ministry of Health (MOH) aims to enhance primary care with a "doctor-for-every-family" approach, with the goal of serving over 20 million beneficiaries. This dynamic healthcare sector presents promising opportunities for innovative U.S. firms in digital health, medical devices, pharmaceuticals, biosciences, specialist clinics, ambulatory care, training, and education, among others.

Market Trends:

Aging Population: The elderly population in Saudi Arabia is on the rise, expected to nearly double from 1.96 million in 2018 to 4.63 million in 2030 due to improved healthcare, awareness campaigns, and government initiatives.
Non-Communicable Diseases (NCDs): The prevalence of NCDs, such as diabetes and hypertension, is increasing, driven by rising obesity rates, projected to exceed 45% by 2025, according to the World Health Organization (WHO).
Road Traffic Accidents: Despite government efforts to reduce accidents, road traffic injuries remain a significant factor, making healthcare services essential.

Opportunities:

Government Initiatives: Aligned with the 2030 Saudi Vision, the government is investing over $65 billion in healthcare infrastructure and aims to increase private sector involvement from 40% to 65% by 2030. This includes the privatization of 290 hospitals and 2,300 primary health centers.
Foreign Investment: Foreign investors have the opportunity to have full ownership in various sectors, including healthcare, supported by the Saudi Arabia General Investment Authority (SAGIA).
Healthcare Expansion: The Ministry of Health (MOH) plans to establish health clusters, each serving around one million people, to enhance preventive and integrated care. Other priorities include increasing internationally accredited hospitals, doubling primary healthcare visits per capita, reducing smoking and obesity rates, and fostering digital healthcare innovation. These initiatives create promising business prospects in the Saudi healthcare sector.

Saudi Healthcare Reform Highlights:

Comprehensive Investment: Saudi Arabia is committed to a $65 billion investment in healthcare infrastructure, professional training, service reorganization, and the expansion of e-health services as part of Vision 2030.
Private Sector Engagement: The primary objective is to increase private sector participation in healthcare from 20% to 35% by 2030, achieved through the privatization of 290 hospitals and 2,300 primary health centers.
Sovereign Wealth Fund Involvement: The Public Investment Fund (PIF) seeks to promote the localization of the pharmaceutical sector.
Public-Private Partnerships (PPPs): PPPs are a key strategy to share the financial burden and encourage private investment in healthcare infrastructure and services, aligning with Vision 2030.
Strategic Objectives: These include privatizing medical cities, increasing the private sector's role in healthcare spending, expanding various healthcare services, and preparing the King Faisal Specialist Hospital & Research Centre for privatization to enhance its leadership.

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Challenges in Saudi Healthcare:

Healthcare Workforce Shortage: Saudi Arabia grapples with a shortage of healthcare professionals, notably in rural areas where most healthcare workers are concentrated in urban regions. A report by the Saudi Arabian General Investment Authority (SAGIA) reveals a shortfall of around 15,000 doctors and 20,000 nurses, resulting in extended wait times and limited rural healthcare access. Emphasis on Curative Care: Historically, the Saudi healthcare system has prioritized curative care over preventive measures, contributing to a surge in non-communicable diseases (NCDs) like diabetes, cardiovascular conditions, and obesity. NCDs now lead as the primary causes of mortality, demanding enhanced efforts for reducing NCD prevalence and bolstering overall public health.
Limited Private Health Insurance: Private health insurance in Saudi Arabia is primarily offered through employer-based schemes, where employees and their dependents are included as part of their employment benefits. These schemes represented only 67% of all private health insurance policies in 2020, leaving gaps in private coverage.
Restricted Healthcare Financing: The Saudi healthcare system relies heavily on government funding, necessitating the exploration of alternative financing mechanisms to ensure its long-term sustainability.

Business Expansion in the Healthcare Industry

The Saudi government is actively promoting privatization within the healthcare sector. While U.S. exporters are not obligated to have a local Saudi agent or distributor, it is highly advisable for companies to explore partnerships with local entities. These collaborations facilitate improved access to business opportunities, assist in navigating import regulations, ensure compliance with testing standards, and identify potential sales and contract prospects within the public sector. Presently, over 60% of healthcare spending in Saudi Arabia is funded by the government. A critical player in this landscape is the National Unified Procurement Company (NUPCO), which centrally manages the procurement of pharmaceuticals and medical supplies and oversees the supply chain and logistics for public healthcare providers. NUPCO gathers requirements from all government healthcare entities and issues tenders to meet those needs. It's crucial to note that these tenders have tight timelines, underscoring the significance of robust local connections for exporters. Only companies that have been prequalified are invited to submit bids, and foreign companies aiming for prequalification must meet specific criteria.

Key Healthcare Players:

The Saudi healthcare sector is influenced by five major stakeholders that play pivotal roles in advancing the industry:

Ministry of Health (MOH): As the overarching regulator of healthcare activities and services throughout Saudi Arabia, MOH is a primary provider of healthcare services.
National Unified Company for Medical Supplies (NUPCO): NUPCO takes on the critical responsibility of centralizing government procurement for pharmaceuticals, medical equipment, and supplies, supporting public healthcare facilities.
Saudi Food and Drug Authority (SFDA): SFDA holds the mandate for overseeing and regulating the import and distribution of medical devices, pharmaceuticals, and food products.
Cooperative Council of Health Insurance (CCHI): As an independent governmental entity, CCHI is entrusted with the oversight and regulation of the health insurance sector within Saudi Arabia.
National Center for Privatization (NCP): NCP is the driving force behind the privatization of specific government assets and services across various industry sectors.

Prominent Manufacturers:

GE Healthcare
Philips
Abbott
Bupa
King Faisal Specialist Hospital and Research Centre (KFSHRC)
King Fahad Medical City (KFMS)
Northside Hospitals
Pfizer
Sanofi

About Us:

Infinium Global Research, a leading provider of market research, has recently released comprehensive reports on several markets across Saudi Arabia. These reports present a detailed analysis of various segments and sub-segments within the Saudi Arabian markets. It also sheds light on the impact of drivers, restraints, and macro indicators on both short-term and long-term market dynamics. The reports provide a comprehensive outlook on trends, forecasts, and dollar values of the markets.

Infinium has published reports across healthcare domains operating for Clients in Saudi Arabia for such As Single Cell Protein Market, Orthopaedic Device Market, Prefilled Syringes Market, Blood Collection Market, Smart Healthcare Products Market, Ophthalmic Surgical Technologies Market, Digital Health Market, Diabetes Injection Pens Market, Cellular Health Screening Market, AI in Drug Discovery Market, AI in Healthcare Market, Etc.

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SOURCE Infinium Global Research