SAUDI ARABIA. Saudi Arabia plans to privatise large parts of its healthcare sector in a bid to meet surging demand, the FT reported Wednesday quoting a senior government official.
Dr Manar Al-Moneef of the Saudi Arabian General Investment Authority said the Saudi authorities planned to privatise or outsource the management of the 218 government-owned hospitals.
The government finances more than three-quarters of the healthcare industry, which was “unsustainable given population growth projections, as well as spiralling healthcare costs,” he said.
He said the government was planning "a massive overhaul with many opportunities to build a leading competitive sector".
"Authorities throughout the Gulf were gradually moving towards being a regulator of medical services rather than a provider", said Khaled Jaouni of Dubai based Ithmar Capital.
“Within the next five years, the healthcare sector will grow exponentially in the Gulf,” said Mr Jaouni, whose group plans to invest up to AED3 billion (US$817 million) in the industry.
McKinsey has estimated a fivefold increase in healthcare costs in the Gulf to almost US$60 billion, led by costs of cardiovascular diseases.
