ABOUT EVENT / Overview
As the population dynamics of the Kingdom of Saudi Arabia has been forecasted to shift between the ages of 40 and 59 increasing by 1.5 times and population over the age of 60 increasing more than 3 times from 2017 to 2035, it will eventually lead to the high demand of advance and modern healthcare facilities. Saudi Arabia’s Vision 2030 understands the need of time and focuses on transformation of healthcare through technology. It is also a key initiative under the National Transformation Plan (NTP).
According to the Saudi Arabian General Investment Authority (SAGIA), 40 investment opportunities totaling SR41 billion are predicted to come up in the healthcare sector from 2016 – 2021 and King Abdullah Bin Abdulaziz project in Saudi Arabia, which is estimated at USD 6.8 billion is the largest healthcare project in the GCC for the development of Security Forces Medical Complexes.
It is significant to have a sustainable and practical development in healthcare sector which matches the global standards. To achieve this objective, there is a huge investment requirement, which opens the door for the private sector to invest as privatization is a key focus area in all the sectors in the Vision 2030. In April 2018, privatization plan was announced which includes 14 PPP investments to be completed across 10 sectors including healthcare by 2020.
A target of Vision 2030 is greater participation of the private sector within the economy and this is especially so of healthcare. There is a definite move towards privatization with a stated objective in the NTP of increasing private healthcare expenditure from the current 25 per cent to 35 per cent of total expenditure by 2020. This represents a projected increase in revenue generated from 3 Billion SAR to 4 Billion SAR. In addition to this, the Ministry of Health plans to spend over 23 Billion SAR on new initiatives over the next 5 years.
This plan will mostly target on updating and expanding primary care across Saudi Arabia, establishment of additional medical cities, improved laboratory and radiology services across the country in partnership with the private sector.
Demand for healthcare in Saudi Arabia is set to continue growing triggered by a demographic shift and an increase in health insurance coverage. Based on the global average of bed density, Saudi Arabia was faced with a gap of 14,000 beds in 2016 and this gap is expected to widen to 40,000 beds by 2035. The Cooperative Council of Health Insurance (CCHI) expanded the coverage of the unified health insurance policy to include additional benefits that shall apply to new and renewed policies starting July 2018. 27 insurance companies are operating in Saudi Arabia with more than 11 million beneficiaries including Saudi nationals and expatriates.
(Source: Knight Frank Research)
Bricsa Consulting understands the need of technology implementation in Healthcare sector in Saudi Arabia and hence developed an agenda which focuses on the immense opportunities in the region while keeping in mind the opening it will provide to the private sectors in order to enter the market. Middle East Healthcare and Technology 2018 is a two-day closed-door conference that will bring together key decision-makers from both public and private sectors across the world. We look forward to welcoming the the key decision makers to enable this programme to be a successful inaugural effort towards a sustainable future.