Saudi Arabia is seeking foreign investment in its healthcare industry as it plans to turn hundreds of government-owned hospitals and thousands of primary care centres into better-run corporations, Health Minister Tawfig Al-Rabiah said.

The kingdom wants US companies to invest in various health care and pharmaceutical services, he said. “Whether they want to invest 100 percent directly or with local partners, it’s encouraged.”

Saudi Arabia is moving to privatize entire industries as part of a plan to overhaul its economy, shrink its budget deficit and wean itself off oil, which accounts for more than 70 percent of government revenue.

 

Nearly 80 percent of health care in Saudi Arabia is provided by the government, but the kingdom “is trying to move the private sector to invest more,”

 

In an interview broadcast last week on Saudi television, Prince Mohammed hinted that could happen in the future.

“In successful countries worldwide, you find that the health-care sector is privatized,” he said. “In the United States, the government doesn’t own hospitals. All hospitals are owned either by the private sector or by the non-profit sector.”

 

So far, plans for the health care sector are more conservative. Starting next year, authorities intend to create multiple corporations to manage 279 hospitals and 2,300 primary care centres. The process will separate regulation from operations, but the government will retain ownership.

Saudi’s healthcare system is comprised of three service providers – the Ministry of Health (MoH) hospitals, government hospitals and private hospitals. However, gaps are evident in the services offered to the people.

The kingdom is projected to require 15,888 beds in 2018, accounting for almost 50 per cent of total requirements in the Gulf Cooperation Council. The health ministry has commissioned few projects to bridge the gap in healthcare infrastructure, so given the increase in demand it is vital that private players’ participation is encouraged – otherwise health infrastructure might lag behind.

 

Another segment in healthcare where there is immense opportunity is drug manufacturing. There are approximately 200 pharmaceutical companies (mainly retailers) in Saudi Arabia, registered with the Ministry of Health. European suppliers largely dominate the market.

Healthcare services has always been a priority sector of the Kingdom of Saudi Arabia, there are new opportunities for UAE traders in healthcare sector during the upcoming period to penetrate the KSA market.

The UAE businesses have a strong chance to entry in the Saudi market.

 

The sources: Okaz - Saudigazette - Riyadh