Tapping the immense potential of Saudi health sector

Tapping the immense potential of Saudi health sector

Tapping the immense potential of Saudi health sector
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From the outbreak of the coronavirus disease (COVID-19) pandemic and the resultant lockdowns throughout most of last year, to the present vaccination phase, everyone has witnessed the superior healthcare system we have in Saudi Arabia and the high degree of coordination evident between the Ministry of Health and all other related government agencies.

During the peak of the global pandemic in May 2020, Saudi Arabia had the lowest mortality rate as a percentage of confirmed cases, while the UK had the highest.

According to the World Health Organization, a well-functioning healthcare system requires a steady financing mechanism, a properly trained and adequately paid workforce, well-maintained facilities and access to reliable information to base decisions on.

In this year’s ranking for the best healthcare in the world, Saudi Arabia stood in 26th place, which puts it at the top of the Arab League. It is interesting to observe that the US trailed behind at 37.

Saudi Arabia has one of the fastest-growing populations in the region, meaning there will be high demand for healthcare facilities in the future. Vision 2030 is aiming to optimize and better use the capacity of hospitals and healthcare centers and enhance the quality of preventive and therapeutic healthcare services.

The Saudi vision is pushing for greater participation of the private sector in healthcare. The National Transformation Program (NTP) is one of the programs to achieve that vision. Furthermore, the Health Sector Transformation Program was recently established to ensure the continued development of healthcare services in the Kingdom and focus efforts in this vital sector.

One obvious way to increase private sector participation is the privatization of public hospitals and the consolidation of privately owned healthcare operators, hospitals and polyclinics.

The current healthcare system in the country presents a unique opportunity for the development of private healthcare. As part of the government’s support for the healthcare sector, the Ministry of Finance, through its SR20 billion ($5.33 billion) Projects Support Fund (PSF), aims to support private sector projects in vital areas.

We at BMG Financial Group have been involved in different healthcare advisory transactions, such as raising funds for new specialized hospitals or identifying targets for potential consolidation of family-owned polyclinics, to take them public and list them on Tadawul. In my opinion, during the next 10 years, the healthcare sector in Saudi Arabia is worth watching with promising high-yield opportunities for local and international investors.

• Basil M.K. Al-Ghalayini is the chairman and CEO of BMG Financial Group.

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view