15 August 2017
JEDDAH — Privatization will revolutionize the Kingdom’s health-care services with citizens receiving free and quality healthcare supported by more than 200 hospitals and hundreds of health centers. It will also allow the private sector to invest more funds into this vital sector.

“The privatization process will increase the capacity of beds in hospitals from 65,000 to 115,000 by 2020, adding an extra 50,000 beds to the healthcare system,” said a report issued by Asharqia Chamber in the Eastern Province, excerpts of which were published in Makkah Arabic daily.

The report described the privatization as a strategic move by the government in order to improve the quality of healthcare services in the Kingdom. Total private investment in the health sector is expected to reach $100 billion (SR375 billion) by 2020, adding 12,500 new beds every year.

A holding company with 20 to 30 subsidiaries will be established as part of the privatization process to supervise management and operation of 276 hospitals and 2,300 health centers, which will be separated from the Health Ministry and managed by specialized private companies.

The privatization will also create new investment opportunities for the private sector in healthcare related projects across the Kingdom, especially advanced medical equipment and devices such as MRI scanning machine, ultrasound scanning systems and surgical tools.

It is expected that a total of $2.1 billion would be invested in infrastructure projects for health equipment during the next six years with annual spending on such equipment and devices increasing from $180 million to $250 million by the year 2020.

At present only five healthcare companies with a total capital investment of SR3.66 billion are listed on the Kingdom’s stock market.

They have a market value of SR26 billion while their total profit amounted to SR967 million by the end of last year, the report said.

The privatization move was aimed at increasing private sector participation in the healthcare sector from 25 to 35 percent in line with the requirements of Vision 2030, which seeks to provide free and quality healthcare to 20 million Saudi citizens, Makkah daily said.

“Insurance companies will be the biggest beneficiaries of the new healthcare system as they will get an opportunity to provide insurance coverage to millions of Saudis and expatriate workers, making an annual revenue of SR50 billion with a per capita premium of SR2,500,” the report said.

© The Saudi Gazette 2017