Riyadh’s healthcare sector poised for rapid growth amid population boom

Riyadh eyes healthcare boom with 15,000 beds, digital health growth, private sector rise

Last updated: August 12, 2025 | 20:29

2 MIN READ

Saudi medical staff leave the emergency department at a hospital in Riyadh.

AFP

Dubai: Riyadh is positioning itself as Saudi Arabia’s healthcare powerhouse, driven by rapid population growth, economic diversification, and ambitious government reforms under Vision 2030.

According to a new report from Knight Frank, Riyadh Province — home to 27% of the Kingdom’s population — will see its population rise from 9 million in 2023 to 12.5 million by 2040. This surge, coupled with urban expansion and rising lifestyle-related diseases, is expected to fuel unprecedented demand for healthcare services.

Significant infrastructure gaps

Bed density in Riyadh currently stands at 1.7 per 1,000 people — below both the national (1.9) and global average (2.9) — indicating a need for at least 15,300 additional beds by 2040. Immediate demand hotspots include:

Western Zone: 1,500–2,000 beds by 2030
Eastern & Southern Zones: 1,000–1,500 beds each by 2030
Long-Term Care: 4,000 new beds, requiring around 15 specialised facilities

Private sector momentum

The private sector already accounts for 70% of Riyadh’s outpatient services and is expanding rapidly, with inpatient and outpatient volumes growing more than double those in the public sector between 2015 and 2023. This is being driven by mandatory health insurance for expatriates and rising coverage among Saudi nationals.

Emerging growth areas

Beyond hospitals, Riyadh is investing heavily in:

Digital Health: The SAR 698 million market is forecast to grow 25% annually, led by initiatives such as the Seha Virtual Hospital — the largest in the world.
Life Sciences: Efforts are underway to boost domestic pharmaceutical, biotech, and medtech capabilities to strengthen healthcare resilience.

Government-led opportunities

Public-Private Partnerships (PPPs) are a core strategy for healthcare expansion, with planned projects in maternity hospitals, primary care, dialysis services, and rehabilitation centres.

With mega-projects like New Murabba, King Salman Park, and Diriyah attracting millions, Riyadh is aligning healthcare development with new residential and commercial hubs. This creates openings for advanced diagnostics, outpatient centres, and retail clinics embedded in neighbourhoods.

Bottom Line? Riyadh’s healthcare transformation is not just about meeting demand — it’s about redefining service delivery with innovation, accessibility, and investor-led growth. For private sector players, the message is clear: the time to enter this market is now.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.