A healthier population creates a more productive workforce, which is crucial to a nation’s economic success. Saudi Arabia’s “Vision 2030” economic diversification roadmap prioritises healthcare reform to honour this essential partnership. The Ministry of Economy and Planning’s March 2024 review of the General Authority for Statistics found that Saudi Arabia’s non-oil activity made up a record 50% of its real GDP in 2023. Programmes financed by the state have always been important. Healthcare is a key part of their diversification strategy since it generates revenue, jobs, and innovation.
Saudi Arabia uses public-private partnerships (PPPs), medical tourism infrastructure, and digital health to fulfil its ambitious goals. These activities aim to boost healthcare’s economy and public health.
Infrastructure And Medical Tourism
Saudi Arabia is developing medical cities to become a healthcare leader. Located in Riyadh and Makkah, King Fahad Medical City and King Abdullah Medical City showcase the Kingdom’s infrastructural developments and provide advanced medical services.
These medical cities serve Saudis and foreigners. During Hajj, King Abdullah Medical City (KAMC) provided life-saving cardiovascular treatments to pilgrims from Russia, Syria, India, and China. The Medical City’s flawless collaboration helped all cardiac situations. Coordination across the Makkah Health Cluster ensured fast transfers and patient acceptance.
The Red Crescent Air Ambulance Service directly carried severely ill Hajj pilgrims from Al-Mashaer to the King Abdullah Medical City (KAMC), avoiding crowding and delays.KAMC performed 12 open-heart operations on travellers during Hajj 2012.
This figure shows KAMC’s early Hajj lifesaving efforts. KAMC performed 136 open-heart procedures during the 2023 Hajj, 52 for pilgrims and 84 for non-pilgrims. This sharp increase shows KAMC’s increasing skill and experience in treating complicated cardiac therapies amid mass migration.
Saudi Arabia also wants to dominate the Middle East’s USD 100-billion medical tourism market. Two approaches drive this big ambition. First, the luxurious Clinique La Prairie resort, which offers novel treatments, shows that the government is investing heavily in high-quality healthcare. Second, Saudi Arabia pioneered religious tourism programmes like Knowledge Economic City.
This project efficiently mixes cutting-edge healthcare with culture and history tours for faith-based pilgrims who need medical treatment. Industry observers expect this strategy change to boost the economy. Saudi Deputy Minister of Investment Transactions Saleh Al-Khabti expects the healthcare sector to contribute USD 66.6 billion to the GDP by 2030 and create over 245,000 jobs.
The Role Of PPPs
In Saudi Arabia, PPPs are crucial to improving healthcare services, infrastructure, and quality. To encourage private sector participation, the MOH and other government agencies are building strong PPP frameworks.
PPP involves public-private partnerships where private partners supply funding, design, building, and operating expertise. The government can build healthcare facilities without shouldering the full cost.
Altakassusi Alliance Medical received a PPP from the MOH in June 2024 to improve radiology and imaging services at seven hospitals, benefiting over one million people. The MOH plans to privatise 290 hospitals and 2,300 health institutions, increasing private sector participation from 40% to 65%.
This project will also establish the nation’s first hospital worker collaborative network, boosting rural treatment quality. Partnerships assist the local healthcare workforce by exchanging information and skills through training programmes.
PPPs benefit the government in healthcare development. First, they minimise costs by accepting private funding for hospital and clinic improvements. Second, private sector design and construction speed up new facility completion, improving healthcare access. Finally, private partners’ operation and management practices can improve healthcare resource allocation, saving the government money over time.
The National Transformation Programme (NTP) highlights planning and execution difficulties that healthcare automation systems solve. PPP success and private sector engagement require a comprehensive regulatory framework that addresses price, quality, dispute resolution, and risk sharing.
Maintaining affordability and accessibility requires continuous monitoring to ensure equal treatment. Meeting evolving healthcare needs requires adaptable PPPs, and increased private sector participation and technology-driven initiatives promise to improve Saudi healthcare delivery.
Digital Health Changes
Digital health reforms and telemedicine promotion are other healthcare policy pillars. The Ministry of Health strongly promoted telemedicine, resulting in 10 teleradiology companies. The government spends 60% of the GCC’s healthcare expenditure.
Vision 2030 proposes investing US$1.5 billion in health IT and telemedicine and privatising hospitals to increase private sector participation from 40% to 65%. Saudi Arabia aspires to create a sustainable, efficient healthcare system for its growing population with this digital effort.
Telemedicine, smartphone apps, and remote sensors are increasing in Saudi Arabia’s digital health sector. The Ministry of Health (MOH) prioritised telehealth for COVID-19 treatments. Investments were USD 39 billion in 2018, USD 36.8 billion in 2022, and USD 65 billion by 2030.
Despite poor public awareness, Seha, a 2018 digital health app, enabled 1,877,440 online consultations by early 2020. Smartphone use and the necessity to serve rural populations are driving this digital revolution. The WHO rates Saudi Arabia’s healthcare system 26th, ahead of several wealthy nations. The government’s 2023 budget budgeted nearly USD 66.6 billion for healthcare and social development, confirming its commitment to digital health infrastructure.
In addition to government investment, Saudi Arabian telemedicine confronts financial, legal, cultural, and infrastructure concerns. Independent healthcare facilities have different strategies, adding complexity. WHO lists these impediments including knowledge, competence, standards, and priorities restrictions. Despite these advances, 52% of citizens have not utilised the Seha app, often due to trust difficulties and unfamiliarity with digital health solutions.
Vision 2030’s massive healthcare spending has hurt Saudi Arabia’s economy. Recently, the Annual Expenditure for Health and Social Development has increased. The spending climbed from USD 46.6 billion in 2018 to USD 68.2 billion in 2023, showing a commitment to enhancing social welfare and healthcare.
These healthcare services and infrastructure investments have improved public health, making the Kingdom a regional powerhouse. Healthcare reform has increased economic production, employment creation, and GDP contribution. Saudi Arabia’s focus on prevention, human capital development, and AI integration shows its commitment to healthcare reform. Thus, these investments increase Saudis’ quality of life and boost the Kingdom’s economic diversification and long-term development, meeting Vision 2030’s major goals.