Saudi arabia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in saudi arabia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Healthcare
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Overview

Saudi Arabia accounts for 60 percent of the Gulf Cooperation Council (GCC) countries’ healthcare expenditure, and the sector is a top priority for the Saudi government. Healthcare is one of the focus areas of Saudi Arabia’s Vision 2030 economic diversification initiative; with a planned US$13.8 billion investment in medical facilities by 2030, Saudi Arabia is prioritizing healthcare reform as a key driver of economic diversification. In 2024, the Saudi government allocated SAR 214 billion (~US$57.1 billion) to the healthcare sector, representing approximately 17 percent of its total budget.

Saudi Arabia is also targeting the healthcare sector for increased privatization and investment, aiming to attract foreign investment. The Saudi Arabian Government aims to raise the private sector contribution from 25 percent to 35 percent by 2030. While public sector spending is projected to increase from US$45 billion in 2022 to US$69 billion by 2035, private sector spending should keep pace, with a forecasted increase from US$16 billion in 2022 to approximately US$33 billion by 2035. The total market size is expected to reach approximately US$102 billion by 2035.

Key Saudi Arabia Healthcare Players

  • The Ministry of Health: The Ministry is the regulator for all healthcare-related activities and services within the country. It has transitioned away from its previous role as healthcare provider.
  • National Unified Company for Medical Supplies (NUPCO): NUPCO is responsible for centralized government procurement of pharmaceuticals, medical equipment and supplies in support of all public healthcare facilities.
  • Saudi Food and Drug Authority (SFDA): SFDA monitors and controls imports and distribution of medical devices, pharmaceuticals, and food products.
  • Cooperative Council of Health Insurance (CCHI): The CCHI is an independent regulatory body for Saudi Arabia’s health insurance sector. 
  • National Center for Privatization (NCP):  NCP is responsible for enabling the privatization of certain government assets and services across industry sectors.
  • Saudi Authority for Intellectual Property (SAIP): SAIP aims to regulate, enhance, and protect the Kingdom’s intellectual property landscape in accordance with international best practices.
  • Health Holding Company (HHC): The Health Holding Company has taken over as provider of healthcare services in Saudi Arabia, delivering day-to-day healthcare administration and primary healthcare development programs, including expanded digital health and virtual care.
  • Center for National Health Insurance (CNHI): The CNHI will provide payment for health services given by the Health Holding Company and its subsidiaries. This entity, financed by the Ministry of Finance, will strategically procure services and engage in contractual partnerships with health clusters to deliver free, high-quality care tailored to individual needs.

Doing Business in the Saudi Healthcare Sector

Although U.S. exporters are not required to appoint a local Saudi agent or distributor to sell to Saudi companies, it is strongly recommended that companies consider partnering with a local company for the purposes of monitoring business opportunities, navigating import and standard testing regulations, and identifying public sector sales and contract opportunities. 

While Saudi Arabia is pursuing privatization initiatives, currently government spending accounts for over 60 percent of the country’s healthcare expenditure. NUPCO is responsible for the centralized procurement of pharmaceutical and medical supplies and the administration of the supply chain and logistics for all public healthcare providers. To build its inventory of products and services for public healthcare providers, NUPCO collects requirements from all government agencies in the healthcare sector and then issues tenders to meet those demands. Tenders are often only announced for a short period, making the need for exporters to have a strong local connection even more vital.  NUPCO’s aim is to provide a robust catalog or clearinghouse of inventory from which the public healthcare providers can choose. Only prequalified companies are invited to submit bids. To become prequalified, foreign companies must register their company with NUPCO in addition to registering their medical products – both pharmaceuticals and medical devices – with the SFDA. 
For private companies and those Saudi entities targeted by the Saudi Arabian Government for privatization, U.S. companies may find procurement opportunities posted on the NCP website.

Opportunities 

Under Vision 2030, the Saudi Arabian Government plans to invest over $65 billion to develop the country’s healthcare infrastructure, reorganize and privatize health services and insurance, launch 21 “health clusters” across the country, and expand the provision of e-health services. Additionally, it aims to increase private sector contribution from 40 percent to 65 percent by 2030, targeting privatization of 290 hospitals and 2,300 primary health centers, creating significant commercial opportunities for U.S. companies in Saudi Arabia’s developing healthcare market.

To promote preventive and integrated care, and to improve access to the health service, the MOH plans to launch 20+ health clusters across Saudi Arabia, fundamentally changing the delivery of beneficiary care in the Kingdom. Each cluster will be an integrated network of health care providers – including primary care, general hospitals, and specialists – serving approximately one million people. To date, the MOH has launched two clusters – the Riyadh First Health Cluster and the Riyadh Second Health Cluster. Other MOH priorities include increasing the number of internationally accredited hospitals, doubling the number of primary healthcare visits per capita from two to four, decreasing the rates of smoking and obesity, improving the quality of preventive and therapeutic healthcare services, and expanding digital healthcare innovation.

Non-communicable diseases account for 68 percent of all deaths in Saudi Arabia. Almost 18 percent of the adult population has diabetes, and more than 40 percent are obese. Saudi Arabia will continue to increase its spending to prevent and treat diabetes and lifestyle disorders. During 2021, Saudi Arabia spent 25 to 35 percent of the total healthcare budget on diabetes, obesity, and cardiovascular diseases. As Saudi Arabia emphasizes preventative care screenings to manage chronic diseases, the number of primary healthcare center visits per capita is expected to double.   

Another key Vision 2030 goal is to localize the country’s pharmaceutical sector. Saudi Arabia was placed on the U.S. Trade Representative Special 301 Priority Watch List in 2018 in part for failing to provide IP protection for pharmaceuticals, In April 2022, USTR removed Saudi Arabia from its Priority Watch List, the result of major improvements to the Kingdom’s IP protections and enforcement procedures. 

The HHC plans to introduce private sector participation and has identified nine priority areas for public-private partnerships (PPP): primary care, hospitals, medical cities, laboratories, radiology, pharmacies, rehabilitation, long-term care, and home care.  The Ministry of Health expects that in the next five years there will be more than 100 PPP projects in health services with $12.8 billion in private sector investment. Nineteen PPP projects are currently underway, with total investment of $2.9 billion.   

The 2019 Private Health Institutions Law permits foreign investors to own, operate, and manage hospitals and health centers in Saudi Arabia through PPP and build-operate-transfer (BOT) models. The Saudi healthcare sector is now open to wholly foreign-owned businesses, and incentives will be offered to multinationals interested in establishing headquarters in the Kingdom. 

Investors are offered incentives, including tax rebates, to establish regional headquarters in Saudi Arabia. Foreign ownership of up to 100 percent of a general clinic, hospital, or telemedicine or telehealth facility is permitted under current laws. The Saudi Food and Drug Authority (SFDA) has also granted foreign ownership in certain pharmaceutical establishments.

Leading Sub-sectors

Dental Services: The dental care service sector is anticipated to grow due to an increase in dental care spending, growing penetration by insurance coverage, and increase in the per capita income. There is a strong demand for dental treatment and improved access to preventive and cosmetic dental care. Opportunities exist for companies that provide advanced treatments, solutions, and equipment in the areas of Endodontics, Prosthodontics, Implantology, Orthodontics, Dental Cosmetics/Restoration Services, and Periodontics.
 

  • Digital Health: Saudi Arabia is one of the fastest-growing digital health markets in the GCC region. The government has allocated $1.5 billion for healthcare IT and digital transformation programs. The MOH established an e-Health strategy to utilize telemedicine to improve the accessibility and quality of care in remote areas. Saudi Arabia’s telehealth adoption rate is approximately 70 percent, and almost 34 percent of the young physicians use AI to facilitate diagnoses. In March 2022, Saudi Arabia launched Seha Virtual Hospital, the largest e-health provider of its kind in the world and the first in the Middle East.  Seha remotely supports 130 hospitals around the country and provides more than 30 specialized services.  
     
  • Health Insurance: Key growth drivers for this sector include an increase in the insured population, the gradual application of mandatory health insurance measures, (e.g., medical insurance is now a requirement to renew residency for expats, for all Saudis working in the private sector, and for tourist visa applications. Public hospitals are available to all. The Cooperative Health Insurance Law requires non-Saudis working in Saudi Arabia be provided with health insurance, which can be used for private hospitals and health facilities. Stricter government enforcement measures are expected to increase medical insurance coverage across the business community. For more information, access the Saudi Central Bank’s 2021 Saudi Insurance Market Report on the SAMA website. In 2023, Cigna Worldwide Insurance Co. became the first foreign health insurance company to receive a license to operate as a health insurer in Saudi Arabia.
     
  • Medical Devices:  The Saudi market for medical equipment has an estimated value of $2 billion and is growing annually at approximately 10 percent. Both a greater concern for healthcare among the Saudi populace and increased consumption of healthcare services sustain a strong market for medical equipment. Saudi Arabia is seeking to reposition itself in this market from a manufacturer of low-value commodities, such as bandages, gloves, and syringes, to a manufacturer of high-value medical products by offering financial incentives to encourage local manufacturing. Best prospects include PPE, patient monitoring devices, ultrasound imaging devices, emergency room equipment, rehabilitation equipment, diagnostic equipment, electro-medical equipment, orthopedics, dental appliances and prosthesis, glucometers, implants, syringe pumps/consumables, and advanced wound management.  U.S. FDA, EU, and Japanese approvals are recognized in Saudi Arabia, allowing international manufacturers to apply already established technical documentation to new operations in the Saudi market. 
     
  • Pharma and Biosciences:  Saudi Arabia accounts for nearly 60 percent of pharmaceutical purchases in the GCC.  According to Fitch Solutions, Saudi Arabia’s pharmaceutical market was valued at 11.72 billion USD (SR44 billion) in 2022 and is expected to reach 15.09 billion USD (SR56.6 billion) by 2027 with a compound annual growth rate of 5.2 percent. The transition to an increasingly privatized and comprehensive healthcare system will drive demand for both patented and generic medicine. Best prospects include antibiotics and treatments for cancer, cardiovascular disease, and diabetes. Under Vision 2030, Saudi Arabia is prioritizing local production, technology transfer, local clinical trials, and training for the Saudi labor force. Saudi policies encourage companies to invest in the Kingdom rather than exporting to it. In June, The Public Investment Fund (PIF) announced the establishment of the Pharmaceutical Investment Company (Lifera), a commercial-scale contract development and manufacturing organization designed to accelerate growth of the local biopharmaceutical industry, strengthen national resilience, and position Saudi Arabia as a global pharmaceutical manufacturing destination. 
     
  • Specialty Clinics and Ambulatory Care Centers:  Critical to Saudi Arabia’s privatization goals, there is currently a lack of facilities across specialty areas including gynecology, oncology, and cosmetology.  It is expected that the government will use public-private partnership (PPP) models to build capacity in these areas. The government’s focus on wellness and preventive care will drive investment toward non-hospital settings. 
     
  • Healthcare during Hajj: The Saudi Ministry of Health provides free and integrated health services to pilgrims during Hajj and various seasons through a network of hospitals and health centers established for this purpose. This is in addition to normal hospitals and centers operating throughout the year. The Ministry also provides a range of different treatment services, minor and critic]al surgeries, inpatient services, and pharmacological vaccines. 

The healthcare market in Riyadh is poised for significant growth, driven by major projects such as King Salman Park, the Sports Boulevard, Qiddiya, New Murabba, and others. These developments aim to elevate healthcare services, particularly in primary, secondary and specialized care, including medical tourism.

Resources

  • Ministry of Health
  • Saudi Food and Drug Administration
  • Saudi Commission for Health Specialties
  • Saudi Health Council
  • Cooperative Council of Health Insurance
  • National Unified Company for Medical Supplies
  • Saudi Central Bank’s 2021 Saudi Insurance Market Report
     

Events

  • Global Health Exhibition, Riyadh, Saudi Arabia
  • Saudi International Pharma Expo, Riyadh, Saudi Arabia
  • The Saudi International Dental Conference, Riyadh, Saudi Arabia
  • Global Healthspan Summit 

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