Health care in Saudi Arabia is undergoing a period of rapid transformation, driven by demographic shifts and the ambitions of the Saudi Vision 2030 national development strategy. Government spending has risen to modernise infrastructure, diversify services and improve quality, while a comprehensive health care reform programme is expanding access across the country and introducing international standards. The sector is also opening to private investment, creating an increasing number of opportunities for growth as the state seeks to share financial responsibility.
Structure & Oversight
The Basic Law of Saudi Arabia states that “the State shall protect public health and provide health care to every citizen,” enshrining health care as a fundamental right. The Kingdom’s health sector has expanded significantly in recent decades and, following the launch of Vision 2030, is undergoing structural reform. The Ministry of Health (MoH), established in 1949, manages the sector, including the development of health regulations and policies, and oversees a number of other agencies operating across the space. The MoH’s 2010-20 10 year strategic plan drove sectoral change, including the construction of new hospitals and medical centres, greater digitalisation and the expansion of medical services delivered by highly trained staff. In addition to the MoH, independent government organisations deliver almost 20% of health services, while the private sector accounts for more than 20% of health care. The private sector is expected to grow significantly over the coming decade as the government seeks to reduce the financial burden on the government through a greater openness to public-private partnerships (PPPs).
The government’s recent Health Sector Transformation Programme (HSTP) is one of the Vision 2030 realisation programmes and aims to expand and improve health care delivery across the Kingdom. It focuses on expanding e-health services, improving quality of care and ensuring adherence to international standards. The HSTP has also established several agencies, including the Public Health Authority, the Centre for National Health Insurance, the National Health Information Centre, the National Centre for Privatisation and the Saudi Patient Safety Centre.
Other major health sector institutions include the Saudi Food and Drug Authority (SFDA), which regulates and supervises the food and drug industry; the Saudi Commission for Health Specialties (SCFHS), which accredits health care education and training programmes; the Saudi Central Board for Accreditation of Health Care Institutions, which accredits health care facilities and assesses compliance with national and international quality standards; and the Council of Cooperative Health Insurance. Saudi Arabia’s health care agencies report to the Saudi Health Council (SHC), the main governing entity for Saudi Arabia’s health sector. The SHC is chaired by the minister of health, with membership including both government and non-government actors. With a population of over 35m as of mid-2024, Saudi Arabia contributed approximately 60% of both the population and total health expenditure of the GCC countries in 2022.
The Kingdom’s health care market accounted for 6.4% of GDP in 2021, up from 3.7% of GDP in 2010, largely due to increased government spending in the sector and the expansion of private health care. The public sector contributed around $40bn in health care GDP, with $12bn from the private sector, according to a 2024 report. The government earmarked $69bn from the 2025 national budget for health and social development, around 20% of the total budget. Meanwhile, the share of health financing allocated to the MoH has increased in recent years, from 35% of total government spending in 2010 to 41% in 2023.
Biotech
Saudi Arabia launched the National Biotechnology Strategy (NBS) in 2024 as a cornerstone of its health care and economic transformation agenda. Built around four pillars – vaccines, biomanufacturing, genomics and plant optimisation – the strategy is designed to strengthen domestic capabilities while advancing innovation across multiple sectors. It aims to establish end-to-end vaccine production to ensure self-sufficiency and regional export capacity, build a robust biomanufacturing base for biologics and biosimilars, and integrate genomics into everyday health care to improve prevention, diagnosis and treatment. At the same time, plant optimisation initiatives seek to boost food security and agricultural productivity while supporting climate sustainability. By embedding these priorities into Vision 2030, the NBS positions biotechnology as both a driver of improved health outcomes and a catalyst for diversified economic growth. The framework emphasises rapid innovation supported by strong regulation, enabling Saudi Arabia to reduce reliance on imports, lower health care costs and foster a knowledge-based economy. With ambitions to become the leading biotech centre in the MENA region by 2030 and a global leader by 2040, the Kingdom is charting a path linking medical progress, food security and industrial development into a unified vision for the future.
General Health Indicators
The health sector has evolved to meet the demands of Saudi Arabia’s shifting demographic profile. The Kingdom is adapting services to address the needs of an ageing population and the rapid urbanisation seen in recent decades. Despite the challenges posed by these changes, significant improvements in health indicators have been achieved, driven by comprehensive health reform and increased investment in the sector. According to a 2024 report, Saudi Arabia has over 2060 primary health care centres and 499 public and private hospitals. The average number of beds in government hospitals rose from 168 in 2016 to 177 in 2023. However, a gap remains between supply and demand, with 2.3 hospital beds per 1000 people, below the G20 emerging economy average of 2.9 beds per 1000. An additional 27,000 beds will be required by 2030 to meet the growing demand.
Life expectancy has improved markedly, rising from 73 years in 2000 to 79 years in 2023. Vision 2030 sets a target of 80 years by 2030. Around 97.4% of populated areas, including peripheral areas, are covered by health services, surpassing the government’s target of 88% coverage by 2023. Emergency services have improved, with ambulance coverage expanding and the average response time reduced by 20% between 2023 and 2024.
Maternal mortality has declined significantly, standing at seven deaths per 100,000 live births in 2023, compared to 14 per 100,000 in 2010, marking a 50% reduction. This improvement reflects an increase in births attended by skilled health personnel, which rose from 88% in 1990 to 95% in 2019. The infant mortality rate has fallen from 10 per 1000 live births in 2010 to five per 1000 in 2023. Immunisation expanded substantially over the past 50 years, with the proportion of children aged 12 to 23 months vaccinated against measles increasing from 8% in 1980 to 96% in 2024. Outpatient services have also become more efficient. The average waiting time for appointments dropped from 35 days in 2017 to 13 days in 2021, as new facilities opened and operational efficiency improved. Meanwhile, the proportion of patients successfully discharged from emergency rooms rose from 85% in 2017 to 92% in 2021. Meanwhile, road safety has benefited from new government policies and improved post-crash response, with traffic-related mortalities falling from 28.4 per 100,000 of the population in 2016 to 12.1 per 100,000 in 2024. Public satisfaction with health services has also increased, with 83.4% of the respondents of a national poll on health services expressing satisfaction in 2024, up from 80.9% in 2023.
Disease Burden
The prevalence of communicable diseases in Saudi Arabia has declined as access to health care has expanded and both prevention and treatment have improved. Deaths caused by communicable diseases, as well as maternal, prenatal and nutrition-related conditions, fell from 15% of total deaths in 2000 to 7% in 2019. Tuberculosis has seen a notable reduction, with cases dropping from 23 per 100,000 people in 2000 to eight per 100,000 in 2023.
While much progress has been made against communicable diseases, the health system faces growing pressure from non-communicable diseases (NCDs), now the leading cause of death in the Kingdom. Deaths from NCDs rose from 70% of total deaths in 2000 to 73% in 2019, with the prevalence of adult diabetes increasing from 19.6% in 2011 to 23.1% in 2024. Cardiovascular disease is the leading cause of death, accounting for 46% of all fatalities with a mortality rate of 46%. Modern lifestyle changes have contributed significantly to this growth in NCDs. The three principal behavioural risk factors are tobacco use, unhealthy diets and lack of physical activity. Although undernourishment has fallen from 5% of the population in 2001 to 3% in 2023, overweight rates have steadily increased. Among children under five, the prevalence of overweight (weight-for-height) increased from 1.2% in 1994 to 11.6% in 2020.
To combat NCDs, the government launched multiple awareness campaigns as part of Vision 2030, such as the Quality of Life Programme, encouraging physical fitness and healthy eating. Saudi Arabia has introduced taxes on sugary drinks and tobacco products, while the SFDA banned trans fats and mandated that restaurants display the calorie content of meals. In partnership with Danish pharmaceutical firm Novo Nordisk, the SFDA launched a diabetes awareness campaign, also part of Vision 2030, to promote early detection and encourage lifestyle changes. Recent health care infrastructure developments target the prevention and management of NCDs, such as the Saudi Diabetes Centre in Jeddah and the Chronic Diseases Medical Centre in Riyadh. Broader screening programmes could improve detection of borderline and undiagnosed diabetes, hypertension and early-stage high cholesterol.
Mental health remains an area of concern, as stigma around mental health conditions means many cases go undiagnosed. The MoH is addressing this challenge through initiatives such as the launch of the 937 telephone helpline, which allows individuals to consult with health professionals and be referred to relevant services. The government has also invested in awareness campaigns to educate the public on the symptoms of common mental illnesses, reduce stigma and facilitate timely access to appropriate care.
Public Health Sector
Rising government spending on health care has significantly improved both coverage and quality of care. The MoH operates 290 of the 499 hospitals in Saudi Arabia, while other government entities ran 59 hospitals, according to a 2024 report. Overall, government-owned hospitals accounted for 70% of all hospitals in the Kingdom.
Under the HSTP, health clusters have been established to create geographically defined primary, secondary and tertiary services, each serving approximately 1m residents. These clusters are expected to greatly reduce waiting times and improve overall patient outcomes. The HSTP sets out several sectoral targets aligned with Vision 2030, including the creation of a digital medical record covering the entire population, increasing readiness of health areas to effectively respond to health risks to 90% and reducing deaths from road accidents to five per 100,000 people by 2030. The launch of the National Health Insurance System guarantees full coverage of the health care needs of citizens through centralised financing mechanisms. Infrastructure expansion has accelerated under the HSTP to meet Vision 2030 goals. Five major medical cities have been established, including King Fahad Medical City in Riyadh, King Abdullah Medical City in Makkah, King Khalid Medical City in Dammam, King Faisal Medical City for the southern regions and Prince Mohammed Bin Abdulaziz Medical City for the northern regions. University medical centres have also received substantial investment. In addition, telemedicine and mobile clinics have been expanded to further enhance rural access to health services, although challenges including disparities between urban and rural regions persist.
The Covid-19 pandemic highlighted the importance of remote access and digitalisation. As part of Vision 2030, the government allocated $1.5bn for health care IT and digital transformation initiatives. The MoH’s e-health strategy focuses on telemedicine, particularly in remote areas, resulting in a telehealth adoption rate of around 70%. Unified electronic health records and the integration of artificial intelligence (AI) in diagnostics and treatment have further enhanced health care provision. Approximately 30% of physicians now use AI in diagnoses. The MoH has partnered with international health tech firm Proximie to provide a virtual operating room platform, enabling surgeons to consult in real-time during surgeries in Saudi clinics. The Sehhaty mobile application provides virtual consultations, prescription services and access to medical records, improving access in remote areas. By 2024, the app had recorded 51m appointments and instant virtual consultations. “Saudi Arabia’s health care landscape is rapidly embracing digital health and smart hospital models as core drivers of efficiency and quality, consistent with the Kingdom’s digital health strategy and Vision 2030 objectives,” Haitham Al Falah, CEO of Medtown Hospital, told OBG. “Hospitals that integrate advanced digital infrastructure into clinical pathways will improve patient outcomes and contribute to a more resilient and interoperable health system.”
The MoH aims to digitalise more areas of the health system to strengthen international competitiveness. Several new hospitals and medical centres are equipped with advanced technologies to deliver specialist treatments. “Digital transformation is redefining the patient journey,” Mutasim Alireza, CEO of Magrabi Health, told OBG. “When data, expertise and technology come together, we can deliver safer, more efficient and more accessible care across all our communities.” AI is being deployed widely across the sector, including technologies such as AI-powered early detection for diabetic retinopathy, improving patient care.
Private Health Sector
The private sector operated approximately 150 hospitals in Saudi Arabia as of 2024, and its role in the Kingdom’s health care provision is expected to expand significantly in the coming years. The regulatory framework set out under Vision 2030 encourages greater private sector participation. To support this shift, the government is prioritising PPPs, to improve efficiency, expand capacity and ultimately reduce the burden of health spending on the central government. Under these plans, the private sector’s share of health care provision is expected to increase from 25% to 35% of service provision by 2030. “The privatisation drive has been a key driver of private sector growth,” Fouziyah Aljarallah, Group CEO of Hayat National Hospitals Group, told OBG. “By enabling closer public-private collaboration, it creates the conditions to optimise operations at scale. Through these partnerships, we’ve implemented advanced digital health tools, streamlined processes, and reinforced patient-centered care, an operating approach that allows providers to expand rapidly while maintaining high standards of health care services”, he added.
The National Centre for Privatisation oversees PPPs in the health sector, including hospital privatisations, service outsourcing and partnerships with private health providers to operate facilities. Private sector growth has also been driven by rising demand for specialised services, including cosmetic surgery, fertility treatments and medical tourism. Saudi Arabia is emerging as a regional medical tourism destination, supported by its strategic location and advanced medical infrastructure. The development of several new specialised hospitals equipped with cutting-edge technologies has helped attract growing numbers of international patients, with the market expected to triple between 2024 and 2030.
Each year, around 5m Muslims travel to Saudi Arabia for pilgrimage, creating opportunities to expand medical tourism alongside religious tourism. Demand for luxury health services is also increasing, supported by a favourable regulatory environment that allows international health care providers to partner with local firms to offer tailored medical packages. As a result, Saudi Arabia’s medical tourism market is projected to grow at a compound annual growth rate (CAGR) of 22.5% between 2024 and 2030.
Insurance
Foreign residents employed in the private sector have been covered by a compulsory, employer-based health insurance scheme since its introduction in 2018. Saudis working in the private sector may also access the scheme, while continuing to receive free public health care. The Saudi Council of Health Insurance (CHI) is an independent governmental regulatory body that oversees the implementation of the Cooperative Health Insurance System, which covers around 29 insurance companies. Some of Saudi Arabia’s best-known insurance companies include Al-Rajhi Company, Aljazira Takaful Company and SABB Takaful. CHI operates the Saudi Health Insurance Bus, a centralised network that facilitates insurance provision, and the National Platform for Health and Insurance Exchange Services, which connects health care providers with insurance companies. The council’s 2025-27 strategy is structured around five strategic pillars and includes 47 initiatives across nine strategic programmes. Health insurance services are delivered through a nationwide network of private hospitals. As of 2024, there were approximately 13.2m health insurance subscribers and around 5800 service providers in the Kingdom. The private health insurance market is expected to contribute around 2% of GDP by 2030.
Medical Staff
Saudi Arabia had 545,574 registered medical staff in 2023, with total employment in the health sector growing at a CAGR of 4.4% between 2016 and 2023. Government health services accounted for 67% of sector employment, comprising 255,975 Saudi nationals and 107,894 non-Saudis. The high proportion of non-nationals working in the health sector prompted the introduction of the government’s Saudiisation initiative. As a result, the share of Saudi physicians working in MoH facilities increased from 29% in 2016 to 51% in 2023, with government medical facilities employing around 59% Saudi medical staff, according to a 2024 report. The supply of health professionals has increased markedly in recent years. The number of physicians rose from 1.9 per 1000 people in 2010 to 3.2 per 1000 in 2022, while the number of nurses and midwives increased from 4.4 to 5.5 per 1000 over the same period. Demand for medical staff is expected to increase by 16% between 2025 and 2035, in line with population growth and demographic change.
Despite these gains, disparities between urban and rural areas remain a challenge. A study covering the 2019-23 period found significant variation in nurse-to-population ratios, ranging from 3.1 to 9.9 per 1000 people. The disparity was even more pronounced in the private sector, underscoring the need for national policies to address workforce distribution. Structural challenges persist, however, including imbalances in skills mix and uneven geographic distribution of the health care workers between urban and rural regions. High turnover among non-Saudi medical staff also has the potential to threaten long-term stability. According to the SCFHS, nearly 20% of physicians and 7% of nurses are expected to retire within the next decade, adding further pressure to workforce planning. Health policies aligned with Vision 2030 also support improvements in medical education and training. As of a 2024 report, over 30,000 graduates had completed programmes under the HSTP, while enrolment capacity has increased 71% since 2021. The MoH has introduced a range of training initiatives to prepare practitioners for the labour market, including clinical research, ear surgery and stroke telemedicine programmes. In 2023, the ministry signed 17 agreements in collaboration with the Ministry of Education to support offshore training.
The SCFHS is the independent professional entity responsible for overseeing medical workforce development and setting standards in line with evolving sector needs. It provides postgraduate training programmes across a wide range of medical disciplines. A 2024 report by the World Health Organisation (WHO) supported the integration of patient safety courses across all levels of health education in Saudi Arabia, including undergraduate, postgraduate and continuing professional development programmes. The WHO recommended innovative learning methods to strengthen practical skills, alongside leadership programmes focused on patient safety. It also highlighted the need for policy development, robust safety incident reporting systems and dedicated research centres to assess the impact of interventions and advance evidence-based practice.
Pharmaceuticals
Saudi Arabia has one of the largest pharmaceutical markets in the GCC, accounting for over 46% of total market value and more than 30% of the MENA market. The Kingdom’s pharmaceutical market is projected to reach a value of SR56.6bn ($15.1bn) in 2027, growing at an annual rate of 5.2%. Demand for locally manufactured medicines has increased, supported by government efforts to expand domestic production and reduce the reliance on imports. “Building local manufacturing capacity in pharmaceuticals and medical devices is essential to strengthening Saudi Arabia’s health care resilience,” Fayad Al Dandashi, CEO of Tamer Group, told OBG. “The ability to produce critical medical products domestically ensures continuity of care and supports national health security.”
Some 20% of the health sector budget was allocated to pharmaceuticals and health technology, according to a 2025 report. The national localisation strategy incentivises foreign pharmaceuticals to establish manufacturing facilities in Saudi Arabia. Multinational firms such as Pfizer, Novartis, Sanofi, Merck and GlaxoSmithKline have already established operations in the Kingdom. Significant opportunities exist across biopharmaceuticals, generics and vaccines, in government policies promoting self-reliance. Saudi Arabia’s advanced infrastructure, strategic location and favourable regulatory environment are helping to attract investors seeking to develop operations serving both the domestic and wider GCC markets. In 2022, the Local Content and Government Procurement Authority (LCGPA) signed seven agreements to support pharmaceutical localisation and knowledge transfer, in collaboration with companies such as Tabuk Pharmaceuticals and the Saudi Pharmaceutical Industries and Medical Appliances Corporation. The LCGPA offers a range of incentives, such as the inclusion on the mandatory list of national products.
Digital initiatives are also reshaping pharmaceutical service delivery. The national Yusur Service enables users to request prescriptions via an integrated platform linking health care providers with express delivery companies. In addition, the launch of the Medical Mail Services, a partnership between the General Directorate for Health Services in the Ministry of Defence, has supported wider service expansion.
Medical Devices
The Saudi medical device market is expanding alongside pharmaceuticals, with an estimated value of $6bn in 2024 and a projected CAGR of 5.1% from 2024-32. The introduction of the Medical Device Interim Regulations requires the SFDA to authorise the supply of medical devices, improving oversight and encouraging international manufacturers and service providers to establish local operations. Alongside stronger market regulation, Saudi Arabia has introduced a framework for point-of-care medical device manufacturing. This allows hospitals to develop in-house devices for immediate clinical use. By enabling rapid solutions, such as 3D printed prosthetics, while maintaining oversight, the Kingdom is fostering innovation in line with Vision 2030’s objective of building a knowledge-based health economy.
Outlook
Health care in Saudi Arabia has advanced substantially in recent years, driven by a variety of reforms aligned with the Vision 2030 national development strategy. Health indicators continue to improve as a result of stronger preventive care and diagnosis with the help of technological advancements, while access to specialist services is also expanding. However, an aging population and the rising prevalence of NCDs are expected to remain among the most significant challenges facing the Kingdom’s health care sector in the years ahead. The Saudi government continues to focus on finding solutions to these critical challenges.
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