RIYADH, 19 January 2005 — Both private and foreign investment are the prescription to keep the Kingdom’s growing health care system healthy, and the government hopes streamlining regulations will be like a shot in the arm for the plan.
The Kingdom has set up a panel to identify problems faced by local investors and to ease health sector investment following a meeting of health officials and local businessmen on Monday night in Riyadh. The meeting was chaired by Minister of Health Dr. Hamad Al-Manie, who announced the formation of the committee.
“The meeting reviewed the problems faced by those in the field of medical services and how to overcome the obstacles that impede investment in this sector,” said Al-Manie.
The Kingdom’s health care sector is 80 percent funded by the government. This effort on the part of the ministry will ensure more incentives to both local investors and doctors, who are willing to set up health facilities in the country.
The plan to facilitate private investment, especially by Saudi investors, also will ease pressure on the 189 government hospitals across the country. In addition, there are more than 1,800 government-owned primary health care centers, 25 health institutions, 130 private hospitals and more than 4,000 clinics owned and operated both by Saudis and foreigners, according to a ministry report.
New rules and regulations issued by the Saudi Arabian General Investment Authority (SAGIA) also allow for foreign investments of capital and technology in health projects.
Referring to ministry efforts to promote private investment in health care, Al-Manie said “the Kingdom is capable of implementing projects of integrated medical cities in line with international standards.”
The government provides loans, which can be 50 percent of the total cost of the health project when a Saudi investor presents a plan, which would be in addition to an appropriate plot of land being made available, he said.
The meeting covered more than investment. “We reviewed issues pertaining to the cooperative insurance document and integration of the medical services that are extended by the government and private hospitals,” Al-Manie said.
At the moment, there are more than 75 medical insurance companies doing business in the Kingdom. An effort is also under way to streamline the operations of these companies.
