Saudi minister foresees multibillion-dollar health sector investments

Saudi Health Minister Fahad Al-Jalajel has predicted multibillion-dollar investment opportunities in the Kingdom’s health sector.

And he noted that the value of biotechnology and vaccines business was set to grow to $35 billion by 2040.

The minister’s forecast came as the three-day Global Health Exhibition, themed “Invest in Health,” opened on Sunday with Saudi priorities including health manufacturing, research, medical tourism, and digital health.

The event will offer 30 dialogue sessions led by 100 experts. The Healthcare Leaders Conference within the exhibition will cover various aspects of Saudi healthcare strategy, including consumables, imaging technology, and health IT solutions.

Al-Jalajel highlighted progress in Saudi Arabia, with the average lifespan now at 77.6 years, up from 74 in 2016. There had been a 39 percent reduction in road accident deaths, with the current rate standing at 13 per 100,000 residents.

He said health service accessibility had improved to 94 percent coverage from 81 percent, and chronic condition-related deaths had dropped to 500 per 100,000 residents, from 600.

He pointed out that the private sector’s share of the market was expected to rise to SR145 billion ($38.6 billion) by 2030, almost doubling its SR72 billion contribution in 2020, adding that investors globally were being encouraged to tap into the Saudi health sector, anticipated to be worth SR330 billion by 2030.

Saudi Investment Minister Khalid Al-Falih said the government had allocated 15 percent of the national budget to healthcare.

Highlighting the sector’s achievements, he noted that Vision 2030 aimed for a significant shift from the current 11 percent private sector contribution to a target of 65 percent, indicating substantial growth potential. Health insurance was projected to triple its growth over the next decade.

Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef also highlighted industry achievements, particularly in pharmaceuticals, and pointed out the establishment of a high-level committee, involving ministers and industry stakeholders, to enhance collaboration and achieve healthcare goals.