By Sam Bridge
Colliers International research says growth will be driven by rising population and life expectancy and a growing prevalence of lifestyle diseases
Saudi Arabia’s healthcare spending has grown at a compound annual growth rate (CAGR) of 12.1 percent in the last nine years to $45.9 billion, and is expected to increase to $160 billion by 2030.
According to new research ahead of Arab Health, the largest exhibition for healthcare and trade professionals in the MENA region to be held in January, growth is being driven by a rising population and life expectancy and a growing prevalence of chronic/lifestyle diseases.
The report by Colliers International highlighted population growth at a CAGR of 2.5 percent to 45 million by 2030.
The research also outlined an increase in healthcare spending between 2011 to 2019 of $18.4 billion.
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, driving a focus 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.
Mansoor Ahmed, director (MENA Region) Valuation & Advisory – Healthcare, Colliers International, said: “With the changing population composition alongside advancements in treatment technology, the provision of healthcare services in Saudi Arabia will undoubtedly change considerably. We anticipate, in line with many other developed nations, a realignment of treatment through the establishment of specialised Centres of Excellence instead of clinics and general hospitals, providing further opportunities for operators and investors.”
Across the GCC, healthcare spending has increased in line with government strategies to diversify their economies. In addition to Saudi Arabia, the UAE, Bahrain, Oman and Kuwait have all adopted national transformation plans to expand the role of the private sector in the healthcare industry and create additional capacity for their growing markets.
Organised by Informa Markets, an anticipated 4,250 exhibitors from more than 64 countries and 55,000 visitors are expected to attend the 2020 edition of the show at the Dubai World Trade Centre and Conrad Dubai Hotel.For all the latest health tips & news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.