Arab Health, the largest exhibition for healthcare and trade professionals in the MENA region, has revealed Saudi Arabia’s healthcare spending has grown at a Compound Annual Growth Rate (CAGR) of 12.1% in the last nine years to $45.9 billion, and is expected to increase to $160 billion by 2030.
The report by Colliers International, titled: “Saudi Arabia Healthcare Sector – Country in Transformation”, which forms part of the Arab Health Market Series, highlighted population growth at a CAGR of 2.5% to 45 million by 2030 as one of the key factors fuelling the demand for healthcare services. The research also outlined an increase in healthcare spending between 2011 to 2019 of $18.4 billion, at CAGR of 12.1%.
Ross Williams, Exhibition Director of Arab Health, which takes place January 27-30, 2020, said: “As a pioneer and innovator of the healthcare industry, Arab Health has an integral role in developing the industry across the GCC and internationally. We provide the perfect platform for representatives from the region to explore the latest technologies and innovations in the sector, to keep pace from a global perspective, while also showcasing the many opportunities for investing in the Kingdom and the rest of the GCC.”
Population growth, in addition to a rise in life expectancy, urbanization and a growing prevalence of chronic/lifestyle diseases including diabetes, coronary problems and other obesity-related illnesses, are driving demand for healthcare services in the Kingdom even further.
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, gynecology and pediatrics.
Meanwhile, population growth in the 20 to 39-year demographic is expected to increase to 13.8 million by 2030. With one of the highest prevalence of lifestyle diseases in the world almost 18% of the population over 20 years with diabesity, 35% with obesity, and over 23% suffering hypertension so, a great deal of focus will be on preventing lifestyle diseases.
The largest increase will be felt in the over 60 categories 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.
Colliers International’s Mansoor Ahmed, Director (MENA Region) Valuation & Advisory – Healthcare and speaker at the Arab Health Healthcare Investment Forum, 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 specialized Centres of Excellence (CoE) instead of clinics and general hospitals, providing further opportunities for operators and investors.”
With the introduction of several legal and economic incentives, including 100% foreign ownership, the healthcare sector is amongst the most attractive sectors in the Kingdom.
In line with the growth of the Saudi Arabian healthcare industry, Arab Health witnessed a 20% increase in visitors form the Kingdom during the 2019 edition while exhibitors are forecasted to increase by 20% in 2020 with Saudi General Investment Authority, Dr Sulaiman Al Habib Medical Group, Lean Business Services, and Balsam United confirmed.
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 (NTPs) to expand the role of the private sector in the healthcare industry and create additional capacity for their growing markets.
During the four days of Arab Health 2020, a total of 15 Continuing Medical Education (CME) conferences will take place, welcoming more than 5,000 delegates to popular returning tracks including Obs & Gyne, Diabetes and Total Radiology, as well as eight new conferences that include; Midwifery, Patient Experience, Physical Medicine, Rehabilitation & Sports Medicine, and a Healthcare Investment Forum, amongst others.
Organized 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.
© Copyright 2020 The Saudi Gazette. All Rights Reserved.