The GCC healthcare sector is set for increased IPO activity, with more companies, particularly those in Saudi Arabia, exploring public listings as the industry seeks substantial capital for capacity expansion, acquisitions, and technology investments.

Market participants say the IPO pipeline is likely to be driven by larger, established healthcare operators with proven profitability, scalable business models and strong market positions.

“As the sector continues to mature and consolidate, we expect public markets to play an increasingly important role alongside private equity, strategic investors and debt financing in supporting the next phase of growth across the GCC healthcare industry,” said Amjad Al Omari, Senior Director, at advisory firm Alpen Capital.

Advisers also point to a growing pipeline of potential issuers. “The pipeline is active with strategic groups as well as financial and private equity sponsors seeking to list their healthcare operations,” said Krishna D Dhanak, Managing Director & CIO, at Dubai-based Gutmann Capital.

Investor confidence in the sector remains strong. A clear example is Saudi Arabia’s Fakeeh Care Group, whose $763 million IPO in 2024 generated overwhelming demand, attracting $91 billion in orders.

Despite the potential, GCC’s healthcare sector remains underpenetrated, with key operating metrics such as the ratio of hospital beds, nursing staff and doctors to population still below levels seen in developed markets.

Under Vision 2030, Saudi Arabia aims to raise private sector participation in healthcare to 65% by 2030 from 40% in 2025.

Both in Saudi Arabia and the UAE, demand for healthcare is expected to stay strong due to steady population growth, an ageing population (particularly in the kingdom), and the expansion of medical insurance.

Consolidation in the region, especially in Saudi Arabia, is expected to continue. While recent years have seen activity across segments such as healthcare services, hospitals, diagnostics and pharma retail, the next phase will be more quality-driven and supported by PPP initiatives, said Dhanak. 

“Whilst market depth will allow newer players to mushroom, the demand for increased operating scale and geographic coverage on account of change in regulations and shift of patient load to the private sector with health insurance expansion, will give rise to inorganic expansion,” he added.

Walid Majdalani, Head of Emerging Markets Private Equity at Investcorp, acknowledged the opportunities in healthcare. "As a group, we've invested in healthcare before and are familiar with the sector. It is certainly one area we are focusing on going forward," he told Zawya.

Robust M&A scene

Chiradeep Gosh, Group Head of Research at the Bahrain-based SICO, expects to see more mergers than public offerings.

 “A large number of standalone hospitals remain within the Kingdom, and we believe these facilities are likely to increasingly merge with larger players, benefiting from enhanced pricing power and stronger negotiating leverage with health insurers,” Gosh said.

According to Alpen Capital, the GCC healthcare sector recorded around 41 M&A transactions between 2022 and 2024, with Saudi Arabia accounting for roughly 25% of deal activity. After slowing in 2024 amid macroeconomic and geopolitical pressures, activity rebounded in 2025 with 15 deals completed, and the recovery has continued into 2026, with five GCC transactions closed by mid-year.

Strategic appetite remains strong, with large regional operators seeking consolidation opportunities and exploring acquisitions internationally.

“Exits are likely to see fruition, a case in point being Reem Hospital’s acquisition by Arada from Investcorp. However, valuations will be challenged and will need to be realistic.”

While there has been cross-border activity in the region--with UAE operators buying into KSA and Kuwaiti groups expanding into the UAE—pan-GCC healthcare companies are a few as the differences in the regulatory and operating environments restrict cross border M&A.

Capital supply

Regional family offices and private equity firms, many with a strong record in healthcare investing, are expected to continue deploying capital. International private equity is also selectively re-engaging, with firms such as General Atlantic and Brookfield identifying GCC healthcare as a key investment theme.

As the sector expands, funding which has traditionally been via a mixture of debt and equity capital, will continue. “Banks have [now] become comfortable with hard assets as well as asset-light models (management contracts, operating leases on medical equipment),” said Dhanak.

SICO expects strong capex deployment across the sector to support expansion plans.

“Given that most operators currently maintain low leverage and generate strong cash flows, growth is likely to be primarily funded through debt issuance. While equity issuance remains a possibility, it is expected to play a secondary role,” said Ghosh.

(Reporting by Brinda Darasha; editing by Seban Scaria)

(brinda.darasha@lseg.com)