Saudi Arabia will require an investment of $16.2 billion to $26.3 billion to add between 29,000 and 47,500 hospital beds by 2030, according to a report by Colliers.
The assumptions are based on the Kingdom and world average of 2.3 and 2.7 beds per 1,000 person, respectively.
Though one of the key challenges faced while establishing quality hospitals is the high funding requirement, the consultancy said that creating more REIT funds will help bridge the funding gap.
REIT funds in the Kingdom can unlock between $5.7 billion to $7.1 billion from property values in the private sector with potentially a further $16.9 billion to $21.1 billion from the public sector, the report noted.
Saudi Arabia’s expenditure on health and social development has increased to SAR 172 billion in 2019, from SAR 69 billion in 2011, given the government’s priority to healthcare and education sectors.
As population will grow by five million to almost 40 million, of which almost 70 percent will be under the age of 44, this demographic change will likely impact lifestyles, preferences and spending habits.
“One of the key factors for the growth of the Kingdom’s healthcare sector is the increasing population and more specifically, the changing age profile of the population, which is expected to reach 45 million by 2030 based on SAGIA projections. The increase in population is expected to fuel the demand for healthcare services in the Kingdom,” said Mansoor Ahmed, director of healthcare, education and Public Private Partnerships (PPP).
However, the change in the composition of population, which dictates future healthcare requirements, will create demand for a number of specialisms; pediatrics, lifestyle diseases, long-term care, rehabilitation, home care and rejuvenation services, he added.
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