sector focus - Healthcare

The report forecasts that the region is likely to require 12,317 new hospital beds between 2024 and 2029. This translates into an estimated annual average growth of 1.9% since 2024 to reach a collective bed capacity of 140,572. Majority of the new additions are expected to be driven by the private sector as the GCC governments have started focusing on privatization to reduce cost burden and increase standard of care. Saudi Arabia is likely to witness the highest demand for beds in the GCC at over 8,500 new beds, accounting for 69.0% of the region’s total additions during the forecast period.

The report highlights that economic growth, coupled with the governments’ focus on economic diversification, is expected to drive healthcare investments in infrastructure and human capital development. Key demographic trends – such as population growth, increasing life expectancy at birth, and improvements in infant mortality rate– are shaping the regions’ healthcare demand. Notably, the proportion of population over 50 years is projected to increase from 12.7% in 2024 to 13.8% in 2029, further intensifying the demand for specialized healthcare services. Additionally, the expansion of health insurance coverage and the rise in medical tourism are expected to boost the utilization of private hospitals and healthcare services.

Despite these strong growth drivers, the GCC’s healthcare sector faces several challenges. The industry remains highly reliant on foreign healthcare professionals across specialties. There also remains a gap in supply of specialized care units in the tertiary care segment, contributing to rising outbound medical tourism. Moreover, the cost of healthcare services continues to rise due to high prevalence of non-communicable diseases (NCDs), increasing demand for advanced treatments, dependence on imported medical supplies, and a shortage of specialized treatment centers.