https://arab.news/bghrr
RIYADH: The value of the healthcare sector in the Gulf Cooperation region is projected to reach $135 billion by 2027 driven by rising investor confidence, an analysis showed.
In its latest report, real estate and investment management firm JLL noted that investors are increasingly becoming more optimistic about the healthcare market in the region as Gulf states push for the transformation of the sector in line with their economic diversification plans.
The study also pointed out that regional governments are pushing for increased localization to attain self-sustainability in the healthcare sector, a crucial factor that elevates investor confidence.
Sandeep Sinha, head of Healthcare Consulting at JLL for the Middle East and Africa, said that sector spending within GCC alone is poised to reach $124 billion in 2028.
“Under their economic diversification agenda, countries in the GCC are driving the transformation of this critical sector with infrastructure development, clinical capabilities, human capital development, digital transformation, and establishment of healthcare innovation hubs,” said Sinha.
He added: “This has attracted more private equity companies and witnessed an increase in active deal-making, further positioning the region as a key healthcare player on the global stage.”
According to the analysis, more regional players in the GCC’s healthcare landscape are acquiring local companies or international brands to build their portfolios and transform their business models.
In April, an additional report released by Ireland-based firm Impactful Insights revealed that the healthcare market in the GCC region reached $67.9 billion in 2023 and is expected to grow at a compound annual growth rate of 6.4 percent until 2023 to hit $118.6 billion.
According to that release, the rising adoption of digital health technologies, the increase in sedentary lifestyles, and the escalating aging population are factors propelling the market.
Earlier in May, Adeel Kheiri, a partner in Oliver Wyman’s India, Middle East, and Africa health and life sciences practice, told Arab News that Saudi Arabia’s bold healthcare reforms promise valuable lessons for the region and beyond.
He added that the Kingdom has embarked on a journey to prioritize the health and well-being of its citizens, laying a robust foundation for progress.
“Saudi Arabia’s ambitious healthcare reforms stand out for their scale, complexity, and rapid timeframe. This unique approach will undoubtedly offer valuable lessons learned for the IMEA region and beyond,” said Kheiri.
Moreover, in May, at the GREAT Futures Conference in Riyadh, experts from Saudi Arabia and the UK said that implementing advanced technologies like artificial intelligence will reshape the Kingdom’s healthcare sector.