PROJECTS: Private providers drive Riyadh’s rapid healthcare expansion ahead of 2030

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SA KaderSaudi Arabia’s capital Riyadh is rapidly emerging as the Gulf’s most attractive healthcare investment hub as a combination of population growth, insurance expansion, and digital reforms reshapes the city’s healthcare landscape.With resident population projected to reach 12.5 million by 2040, developers, investors, and healthcare providers are racing to meet rising demand, particularly in outpatient and inpatient facilities, long-term care, and specialised services.According to Knight Frank’s Healthcare in Saudi Arabia: Opportunities in Riyadh Province report, Riyadh will face a shortfall of nearly 7,500 inpatient and long-term care beds by 2030. It highlights the need for 2,000 new beds in the western zone, 1,500 in the east and south, and approximately 4,000 in long-term care facilities to support an ageing population and sustained population growth.“The population growth will result in demand for outpatient and inpatient facilities alike,” said Dr. Gireesh Kumar, Associate Partner – Healthcare Advisory, MENA at Knight Frank. “However, with the current and planned investment in the sector, investment opportunities need to be carefully evaluated, with the catchment area becoming increasingly important.”He added that investors are actively monitoring “outpatient and ambulatory care facilities, long-term care and post-acute care facilities, centres of excellence – Ophthalmology, Dental and Aesthetics – and inpatient facilities in the mid and value segments.”Private sector leads expansionPrivate healthcare providers have been rapidly scaling to meet demand. Currently, private providers deliver 70 percent of outpatient services in Riyadh, up sharply in recent years, driven by growing insurance coverage that now exceeds half the city’s population.Kumar explained, “Broader insurance coverage, greater accessibility, specialised care, and more efficient service delivery have shifted patient demand to the private sector. Outpatient and inpatient volumes grew by 2.5X and 3.1X, respectively, in 2023 compared to the public sector.”While Riyadh remains a major investment hub, Saudi Arabia’s Eastern Province is also experiencing rapid healthcare expansion. Almoosa Health Company, an integrated healthcare provider, has been actively investing in the region to meet rising demand.“Given the strong outlook and growing demand for quality healthcare in Saudi Arabia, ...

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