The value of the healthcare sector in the Gulf Cooperation region is projected to reach $135 billion by 2027, driven by rising investor confidence, according to an analysis.
In its latest report, real estate and investment management firm JLL noted that investors are becoming increasingly optimistic about the healthcare market in the region as Gulf states push for the transformation of the sector in line with their economic diversification plans. The study also pointed out that regional governments are driving increased localization to achieve self-sustainability in the healthcare sector, a crucial factor that elevates investor confidence.
Sector spending forecast, transformation drivers
Moreover, Sandeep Sinha, head of Healthcare Consulting at JLL for the Middle East and Africa, said that sector spending within the GCC alone is poised to reach $124 billion in 2028. “Under their economic diversification agenda, countries in the GCC are driving the transformation of this critical sector with infrastructure development, clinical capabilities, human capital development, digital transformation, and the establishment of healthcare innovation hubs,” said Sinha. He added that this has attracted more private equity companies and witnessed an increase in active deal-making, further positioning the region as a key healthcare player on the global stage.
Read more: Saudi’s health sector contribution to GDP to surge to SAR318 bn by 2030
M&As in the regional landscape
According to the analysis, more regional players in the GCC’s healthcare landscape are acquiring local companies or international brands to build their portfolios and transform their business models.
GCC healthcare market growth projections
In April, an additional report released by Ireland-based firm Impactful Insights revealed that the healthcare market in the GCC region reached $67.9 billion in 2023 and is expected to grow at a compound annual growth rate of 6.4 percent until 2027 to hit $118.6 billion. The report further cited the rising adoption of digital health technologies, the increase in sedentary lifestyles, and the escalating ageing population as factors propelling the market.
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