Rapid expansion expected in Riyadh's healthcare sector due to population surge
Riyadh, the bustling capital of Saudi Arabia, is witnessing a significant transformation in its healthcare sector. With a population of 7.5 million and growing, the city is grappling with an unprecedented demand for healthcare services, driven by urban expansion and rapid population growth.
The private sector is playing a pivotal role in this transformation, already accounting for 70% of outpatient services and rapidly expanding. The expansion is propelled by mandatory health insurance for expatriates and broader coverage for Saudi nationals, leading to a surge in inpatient and outpatient volumes. By 2030, the private sector's market share is projected to reach 35%.
The government, in line with Vision 2030, is focusing on increasing hospital bed capacity. By 2040, Riyadh aims to add at least 15,300 beds, with immediate demand hotspots in the Western, Eastern, and Southern Zones. Long-term care facilities will require 4,000 new beds and around 15 specialized facilities.
The digital transformation in healthcare is another key driver of growth. A $1.5 billion investment in telemedicine and AI diagnostics is aimed at improving efficiency and patient access. The SAR 698 million Digital Health market in Riyadh is forecast to grow 25% annually. The Seha Virtual Hospital, the largest in the world, is leading this growth.
Public-Private Partnerships (PPPs) are a core strategy for healthcare expansion. Planned projects include maternity hospitals, primary care, dialysis services, and rehabilitation centres. Mega-projects like New Murabba, King Salman Park, and Diriyah, which are attracting millions, are aligning healthcare development with new residential and commercial hubs.
The expansion of the private sector is also fuelling the growth of advanced diagnostics, outpatient centres, and retail clinics embedded in neighbourhoods. For private sector players, the message is clear: the time to enter the Riyadh healthcare market is now.
Efforts are also underway to boost domestic pharmaceutical, biotech, and medtech capabilities in Life Sciences, further strengthening Riyadh's position as a regional healthcare hub. By 2040, Riyadh Province, home to 27% of the Kingdom's population, is projected to have a population of 12.5 million, underscoring the need for continuous investment and growth in the city's healthcare sector.
