New regulations governing private health institutions will allow non-Saudis to own hospitals in the Kingdom. However, a foreign investor's application to set up a health establishment should be cleared first by the Saudi Arabia General Investment Authority (SAGIA), Aleqtesadiah daily reported.

A committee of medical and economic experts set up by the Ministry of Health is the competent authority to approve a new establishment, and will review all applications made by foreigners wishing to open such institutions.

While the application fee to open a 50-bed hospital is SR5,000, the fee for a hospital with 51 to 100 beds is SR10,000, and SR15,000 for more 100 beds. A general and specialist medical and laboratory complex with a single-day surgery facility will have to pay an application fee of SR2,000.

This new system will come into effect in three months. Authorities will make sure that these private health institutions comply with regulations to combat infections, especially the disposal of their medical waste in the appropriate manner.

The private health sector is also likely to be permitted to open rehabilitation clinics with specially trained and qualified doctors and staff.

Those who violate the new regulations by opening a private health institution without the required license may face criminal charges as well as the closure of the facility and the denial of license for a period of not less than six months. In addition, authorities will fine offenders with up to SR30,000 in the case of support health service centers, SR100,000 for laboratories, scanning centers, ambulance service centers and SR150,000 for clinics and medical complexes with single day surgery. The fine for operating an unlicensed hospital with all departments will be SR300,000.