The Healthcare Sector in the GCC Region Set to Reach $135 Billion by 2027
Investor confidence in the healthcare sector in the Gulf Cooperation Council (GCC) region is on the rise, with the value projected to reach $135 billion by 2027, according to a recent analysis by real estate and investment management firm JLL.
Optimism and Transformation in the Healthcare Market
JLL’s report highlighted the increasing optimism among investors in the region as Gulf states push for the transformation of the healthcare sector to align with their economic diversification plans. Regional governments are also focusing on increased localization to achieve self-sustainability in healthcare, boosting investor confidence.
Key Factors Driving Growth
Sandeep Sinha, head of Healthcare Consulting at JLL for the Middle East and Africa, projected that sector spending in the GCC alone will reach $124 billion by 2028. He emphasized the importance of infrastructure development, clinical capabilities, human capital development, digital transformation, and the establishment of healthcare innovation hubs in driving growth in the sector.
Acquisitions and Transformations
The analysis also revealed that more regional players in the GCC healthcare landscape are acquiring local companies or international brands to enhance their portfolios and evolve their business models. This trend is further positioning the region as a key player in the global healthcare market.
Future Growth and Trends
According to Impactful Insights, the healthcare market in the GCC region is expected to grow at a compound annual growth rate of 6.4 percent until 2023, reaching $118.6 billion. Factors such as the rising adoption of digital health technologies, sedentary lifestyles, and an aging population are driving this growth.
Lessons from Saudi Arabia’s Healthcare Reforms
Adeel Kheiri, a partner at Oliver Wyman’s health and life sciences practice, highlighted Saudi Arabia’s bold healthcare reforms as a valuable learning opportunity for the region and beyond. The Kingdom’s focus on prioritizing the health and well-being of its citizens is setting a strong foundation for progress.
Impact of Advanced Technologies
Experts at the GREAT Futures Conference in Riyadh emphasized the role of advanced technologies like artificial intelligence in reshaping Saudi Arabia’s healthcare sector. The adoption of these technologies is expected to drive further innovation and efficiency in the industry.