RIYADH: As Saudi Arabia develops new cities, tourism destinations and mixed-use communities under Vision 2030, industry leaders are increasingly viewing healthcare as a factor that shapes where people choose to live, work and visit.

The shift comes as the Kingdom expands investment in healthcare, with the sector’s contribution to GDP projected to rise from SR199 billion ($53 billion) in 2020 to SR318 billion by 2030, while private-sector participation is expected to reach SR145 billion.

"Healthcare is no longer viewed solely as essential social infrastructure; it is becoming an important component of destination competitiveness, supporting residents, employees and visitors while creating opportunities in wellness and medical tourism,” said Vikas Kharbanda, partner and healthcare and life sciences practice lead at the management consulting firm Arthur D. Little Middle East.

Industry experts say the trend reflects a broader shift in healthcare delivery.

“The biggest change is the format of healthcare itself,” said Elif Koc, partner at Bain & Co consulting. "In many of Saudi Arabia’s new destinations, healthcare will increasingly be integrated into residential, retail, fitness and leisure environments rather than concentrated exclusively in traditional hospitals.”

At the same time, investors are showing growing interest in technology-driven healthcare solutions.

“The biggest shift we’re seeing is toward practical healthcare solutions that can demonstrate where they fit into real-world healthcare delivery,” said Rachel Sturgess, executive vice president at live events and exhibitions company Tahaluf, pointing to strong demand for AI-enabled diagnostics, connected care, clinical workflow tools and patient-engagement technologies.

Sturgess cited forecasts projecting Saudi Arabia’s digital health market to reach $11.07 billion by 2033.

Interest was also expanding into cybersecurity, health information systems, robotics, wearable devices and smart-hospital technologies, she said.

For international healthcare companies entering the Kingdom, understanding local needs and building the right partnerships are becoming increasingly important.

"Funding matters, but it doesn’t give a healthcare company a route into a new market on its own,” Sturgess said.

More than 1,000 investors are expected to attend the Global Health Exhibition 2026 in Riyadh, according to the event's organizers.

Experts said the growing overlap between healthcare, wellness, hospitality and tourism was creating new opportunities for developers and healthcare providers alike.

“For developers, healthcare can strengthen the overall proposition of a mixed-use community,” Kharbanda said. “Access to high-quality healthcare can enhance residential attractiveness, support hotel and tourism operations, improve employee recruitment and retention, and provide greater confidence to international residents and visitors.”

He added that medical tourism could provide another growth avenue by combining specialist treatment, recovery services and hospitality offerings.

However, analysts caution that success will depend on careful planning. Kharbanda said healthcare investments must be aligned with population growth, visitor demand and local market needs, while Koc argued that many destinations would benefit from starting with primary, outpatient and emergency care before expanding into specialist services.

“High-quality healthcare helps turn a destination from somewhere people visit into somewhere they are willing to live and work,” Koc said.