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Public Private Partnerships (PPP) essential to grow KSA’s healthcare sector

Healthcare Infrastructure
Healthcare remains a top priority for KSA as it explores private sector participation in healthcare infrastructure growth

Healthcare remains a top priority for the government of Saudi Arabia as it explores private sector participation in healthcare infrastructure growth, according to a recent report by Colliers International.

“Public-private partnership (PPP) and privatisation is one of the cornerstone policies of Vision 2030, the Saudi government’s strategy for transforming and growing the economy. In line with the government’s Vision 2030 and the National Transformation Program (NTP), the Ministry of Healthcare is expected to spend close to USD 71 billion over five-years ending in 2020.

By incorporating Public Private Participation models for healthcare, the government is aiming to unlock value in the health system and fast-tracking the change of healthcare with plans to lift the overall private sector contribution in total healthcare spending to 35% by 2020,” reads the report.  

According to the Director of Healthcare, Education and Public Private Partnerships (PPP), Mansoor Ahmed: “KSA needs 20,000 to 30,000 long-term care beds by 2030, this will create lot of healthcare real estate demand. If translated into real estate demand, the demand will be 6 million sqm to 9 million sqm new construction or USD 10 billion to USD 15 billion investment in next 10 years.”

For now, says Colliers International, innovation remains a centre factor in overhauling the KSA healthcare market in the coming years with information technology playing a vital role in offering solutions related to cost, quality, access and resources.

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