Riyadh, KSA:– Colliers International, The Global Commercial Real Estate Leader, released its latest white paper on the healthcare sector in the Kingdom of Saudi Arabia, the 12th edition in the Pulse series of research papers on healthcare in the MENA region. The paper focuses on the key factors impacting the Saudi healthcare market; outlook, opportunities and challenges for operators, investors and policy makers.
With Vision 2030, the Kingdom is going through fundamental structural changes in all economic sectors including healthcare.
Mansoor Ahmed, Director of Healthcare, Education and Public Private Partnerships (PPP), highlighted that “The healthcare sector in the Kingdom continues to evolve alongside the global advancements in technology, research and development. However, the successful growth of the healthcare sector will be dependent on embracing, developing and adopting new technologies and innovations founded on global research and development (R&D) producing data-driven, patient-centric and result oriented healthcare.”
He adds “One of the key factors for the growth of the KSA Healthcare is the increasing population and more specifically changing age profile of the population, which is expected to reach 45 million by 2030 based on SAGIA projections. The increase in population is expected to fuel the demand for healthcare services in the Kingdom. However, the change in the composition of population, which dictates future healthcare requirements, will create demand for a number of specialisms; paediatrics, lifestyle diseases, long-term care, rehabilitation, home care and rejuvenation services. With the increase in requirements combined with the Governments Saudization programme, we anticipate a significant requirement for Saudi national doctors and nurses which in turn will drive demand for medical education facilities”.
“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 US$ 16.2 to UD$ 26.3 billion. 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 US$ 5.7 billion to US$ 7.1 billion from property values in the private sector with potentially a further US$ 16.9 billion to US$ 21.1 billion from the public sector.” Mansoor concludes.
Inci Gecekusu, Marketing & Communications Manager +971 55 763 3737 Inci.Gecekusu@colliers.com
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© Press Release 2019