Sector briefing

Healthcare Opportunities
in Saudi Arabia

Why Saudi Arabia?

The Kingdom of Saudi Arabia is a market
where good opportunities exist and where UK
companies can succeed. The Kingdom is the
UK's 23rd largest export market worth 1.6
billion (1=SR6.17 approx). It is one of the
UK's largest trading partners in the Middle East
and our largest export market in the region.
The UK is Saudi Arabia's 2nd largest joint
investor overall.
Healthcare in Saudi Arabia continues to be a
thriving sector as the government continues to
finance health services for a rapidly growing
population of 28 million, which is growing by
more than 3 percent per annum. It is the
largest market for medical equipment and
healthcare products in the Gulf and Middle
East.
Find general information on Saudi Arabian
market conditions on UKTIs website. The
Doing Business Guide for Saudi Arabia gives an
overview of Saudi Arabias economy, business
culture,
potential
opportunities
and
an
introduction to other relevant issues.

Healthcare in Saudi Arabia

continues to be a thriving
sector as the government
seeks to finance health
services for a rapidly
growing population of 28
million. It is the largest
market for medical
equipment and healthcare
products in the Gulf and
Middle East

UK Trade & Investment Sector briefing: Healthcare opportunities in Saudi Arabia

Opportunities
Saudi healthcare market is classified into three
broad segments i.e. Ministry of Health, nonMOH (military, National Guard, security forces,
university hospitals etc) and private. Each of
these segments bears their own distinctive
characteristics.
Healthcare Infrastructure
The Saudi government continues to invest
heavily in health infrastructure development.
In the 2011 budget an amount of SR68.7
billion (11.8 billion) has been earmarked for
its healthcare and social welfare services, an
increase of 12 per cent over last year (from
SR61 billion (10.5 billion) to SR 68.7 billion
(11.8 billion). As part of a social spending
package, in March 2011 an additional SR 16
billion (2.64 billion) was allocated to
healthcare bringing the total allocation to SR
84.7 billion (14.4 billion).
New projects will include the building of 12 new
hospitals, expanding existing facilities and the
continuation of building new primary care
centres throughout the Kingdom.
The Higher Education Ministry has also
announced plans to establish medical colleges
and hospitals at all of the Kingdoms 24
government universities. They have already
started work on some of the university
hospitals and contracts will be awarded soon to
implement the rest of the university hospital
projects. These educational hospitals will also
provide health services to people in their
respective provinces.
Special Needs
Saudi Arabia has also established an efficient
network of facilities to treat and rehabilitate
the mentally and physically handicapped. The
Ministry of Health and the Ministry of Labour
and Social Affairs have established a network
of rehabilitation centres for the handicapped.
These facilities fall into two categories. The first
offers services for medical, physical and mental
treatment and rehabilitation of patients and is
operated or supervised by the Ministry of
Health. There are currently 18 such centres.
The second group of centres focuses on the
social rehabilitation of the handicapped and is
run by the Ministry of Labour and Social
Affairs. There are presently 14 centres
throughout the country that teach the mentally
and physically impaired social, educational and
vocational skills designed to help them enter

society as independent, productive individuals.

There are also 24 special education institutes
for the blind and the deaf in Saudi Arabia and
three centres for handicapped children. The
special needs (handicapped) market is a
largely untapped market and offers great
potential to those overseas suppliers who are
willing to invest in providing training on their
products. UKTI Inward Missions representing
Saudi companies to events such as NAIDEX has
managed to introduce a number of UK
suppliers to this largely untapped and growing
market.
Medical Training
The Kingdom has been spending generously in
the field of medical training and plans to
further improve medical education to ensure
medical students are kept abreast of the latest
developments. According to the latest available
figures, there are now almost 5100 male and
female students attending the Kingdom's
medical colleges and a further 2300 students
are studying medicine abroad.
The government and some private hospitals
have announced plans for opening new medical
colleges and universities. The ones to be
established by the private sector will require
Government approval.
Dentistry
There are more than 107 dental facilities at
Government hospitals including specialised
dental hospitals and around 320 private dental
clinics. The private dental clinics are increasing
with the growing awareness of oral hygiene. In
addition to some others the British Centres for
Excellence in Dentistry, London has set up a
specialised clinic in Riyadh in collaboration with
the Saudi British Hospital. These and other
dental clinics are creating opportunities for
suppliers of cosmetics, consumables, tools and
dental equipment.
Health Insurance
The government is working on expanding the
health insurance sector, which in 2009, was
valued at around SR5 billion ( 0.9 billion).
This is expected to increase to SR7 billion (1.2
billion) in the short term with new regulations
introduced in January 2009 to expand the
insurance scheme to Saudi nationals working in
small and medium enterprises in the private
sector. The large private sector companies
already provide health insurance for their
employers.

UK Trade & Investment Sector briefing: Healthcare opportunities in Saudi Arabia

Medical Products
In 2007, the Saudi government established the
National Company for Unified Purchase of
Medicines and Medical Appliances, to act as the
sole supplier of medicines and medical
appliances to government health institutions.
The company was set up to bring down the
prices of medical devices and pharmaceuticals
by preventing overcharging. The company is in
its early phase and developing coordination
with other stake holders like SGH executive
Board and hospitals.
The Saudi Food & Drug Authority (SFDA) have
been given the task of developing and
enforcing a regulatory system for medical
devices. This will include establishing licensing
procedures for manufacturers and suppliers. In
what is a first step in developing a regulatory
framework for medical devices, the SFDA in
2007 started the Medical Devices National
Registry (MDNR), which will become a
mandatory web-based project involving the
registration of manufacturers, agents and
suppliers in the country. From July 2009 all
regulatory responsibilities were handed over to
SFDA for pharmaceuticals, medical devices and
food.
It is now mandatory for local distributors /
agents to register and obtain MDEL (Medical
Device Establishment License) and all overseas
suppliers to register their company and
products with the SFDA. US FDA, Canadian,
European, Japanese and Australian certification
are acceptable for product registration under
MDNR. Manufacturers can register themselves
and their products either directly or through
their local agent/distributors. Full details of
SFDA requirements can be viewed at
http://www.sfda.gov.sa
(please
look
for
Implementing Rules IR).
Pharmaceuticals
According to market sources, imported
pharmaceuticals account for around 82 percent
of the market with little manufacturing being
undertaken locally. Generic medicines make up
approx 5.8 percent of the market share. With
the Saudi pharmaceutical market worth
approx. 2.6 billion in 2009, market analysts
forecast that import of medicines will continue
to keep climbing in Saudi Arabia as it is the
largest consuming market in the GCC.
The pharmaceuticals manufacturing industry
continues to expand moderately with seven
local manufacturers producing a range of

generic pharmaceuticals and co-marketing with

multi-national companies. They supply around
10 percent of the total medicines market. The
balance is imported from the US and Europe
but for the last few years generic brands are
being imported from the neighbouring Gulf
countries, Egypt and Jordan. The MOH remains
the single largest customer for pharmaceuticals
in the Kingdom with annual purchases of
approximately 150 million with the balance
being purchased by GCC tenders, non-MOH
government hospitals, private hospitals and
pharmacies.
Accreditation
The rapidly increasing demand for health
services has created renewed concerns for the
government. So as to lessen the burden on
their budget, some MOH & non-MOH
government hospitals have started business
centres, where private patients, irrespective of
their entitlements can get treatment by paying
for such services. With the expansion of
healthcare insurance coverage the government
is looking at the possibility of leasing out
government hospitals to private sector in the
future, as almost all the population by that
time will be covered by insurance.
The Government is considering plans to ask
Saudi hospitals to adhere to quality standards
by implementing quality improvement at
hospitals and some Canadian and US
companies are working with the Saudi MOH on
implementation and training of evaluators for
inspecting
the
hospitals
and
providing
accreditation.
Medical Equipment & Supplies
Market sources valued the medical equipment
and supplies market in the Kingdom at 250
million in 2006, predominantly supplied
through imports. Of this figure 69% accounted
for medical equipment. This is expected to
grow to 400 million by 2015. German, US and
Japanese companies lead in the export of large
medical equipment to the Kingdom whilst the
small to medium size equipment is supplied
mostly by the US, Germany, UK, Japan and
other European suppliers.
On the medical disposable market, in spite of
local production imports dominate the market
and there is an increasing market. Most
common medical disposable items are sourced
from the Far East due to cheaper prices and
there is a general feeling in the market that
locally manufactured disposable items are of

UK Trade & Investment Sector briefing: Healthcare opportunities in Saudi Arabia

inferior quality. In view of an ever-increasing

market for such items, there is potential for a
new manufacturer that can tie up with a strong
foreign partner with technical expertise of
manufacturing niche disposable products.
Diabetes, cardiac and genetic issues are the
prime concern for the Saudi health officials and
the government is putting considerable
resources into this.
Opportunities for UK
companies are in the fields of medical
training/teaching, medical equipment, niche
medical disposable, dental equipment, surgical
implants
e.g.
orthopaedics,
spine,
neurosurgery, rehab/special needs, geriatrics
/home care,
infection control (equipment,
consultancy),
diagnostic
laboratories
(equipment and complete service), stem cell,
genetics,
pharmaceuticals
and
biopharmaceuticals.

clinical
and
clinical
research
facilities,
manufacture of insulin & blood products, and
others.
If you have any questions on the opportunities
above, contact the UKTI contacts named in this
report.
Business
opportunities
aimed
specifically at UK companies are added daily to
UKTIs website. These leads are sourced by our
staff overseas in British Embassies, High
Commissions and Consulates, across all sectors
and in over 100 markets.
You can be alerted to business opportunities on
a regular basis by registering on the UKTI
website. Find out more on UKTIs business
opportunities service on the UKTI website.

Biotechnology
With the rapid growth of industries in Saudi
Arabia, the use of biotechnology in the fields of
food
and
agriculture,
medicine,
and
environment has become inevitable. In Saudi
Arabia, biotechnology is being used both for
research and commercial applications. The
biotechnology market in the kingdom is still in
its infancy but is indeed a challenging and
growing one. The market, however, is
dominated by medical products like Insulin,
Vaccines, Interferon, and Heparins from
multinational companies. Locally, there are
now efforts in the direction of developing
biotech products. A "Bio City" is planned in
Jeddah city to serve this purpose. In the
Kingdom, many ministries, scientific research
institutes, and hospitals are involved in
biotechnology research and its application.
KACST, King Saud University, King Abdulaziz
University, King Khalid Hospital, Ministry of
Agriculture and King Fahad Medical City are a
few of the many to mention.
Saudi Arabia has recently established a
biotechnology incubator to help start-up
biotech
companies
for
commercial
and
technological success. King Abdulaziz City for
Science & Technology (KACST) has established
the biotech incubator in cooperation with King
Fahad Medical City, to be followed by a series
of incubators to be set up in different
disciplines. King Abdullah University and a
biotechnology park in Jeddah have also been
established. The biotechnology park in Jeddah
is meant to be the largest scientific, medical,
manufacturing, and economic centre in the
Middle East. Projects include biogenetics, pre-

UK Trade & Investment Sector briefing: Healthcare opportunities in Saudi Arabia

Major events and activities

UKTI contacts

Arab Health Show, Dubai

www.arabhealthonline.com
Contact: Robert Kipps
Life Sciences Sector Team, London
Email: Robert.Kipps@ukti.gsi.gov.uk
Time: Jan 2012

Syed Zaman
Senior Trade & Investment Adviser
British Embassy Riyadh, Saudi Arabia
Tel: +966 1 488 0077
Email: Syed.Zaman@fco.gov.uk
http://ukinsaudiarabia.fco.gov.uk/en/

Saudi Medicare Show, Riyadh

www.saudi-medicare.com
Contact: Syed Zaman
Email: Syed.Zaman@fco.gov.uk
Time: April 2012

Abdul Muqtadar
Trade & Investment Officer
British Consulate General, Jeddah
Tel: +966 2 622 5550
Email: Abdul.Muqtadar@fco.gov.uk
http://ukinsaudiarabia.fco.gov.uk/en/

New export events are added daily to the site

and you can register to be alerted to them on a
daily, weekly or monthly basis
UKTIs Tradeshow Access Programme (TAP)
provides grant support for eligible Small &
Medium Sized Enterprises (SME's) to attend
trade shows overseas. Find out more about
UKTI support for attendance at overseas
events

Mumtaz Abdulla
Senior Trade & Investment Officer
British Trade Office, Al Khobar
Tel: +966 3 882 5300
Email: Mumtaz.Abdulla@fco.gov.uk
http://ukinsaudiarabia.fco.gov.uk/en/
Robert Kipps
Life Sciences Sector Team, London
Tel: +44 207 215 4805
Email: Robert.Kipps@ukti.gsi.gov.uk

UK Trade & Investment Sector briefing: Healthcare opportunities in Saudi Arabia

Next steps How UKTI can help

British companies wishing to develop their
business in the Saudi market are advised to
undertake as much market research and
planning as possible in the UK. UKTIs team in
Saudi Arabia with its wide local knowledge and
experience can provide a range of services to
British-based companies wishing to grow their
business in global markets.
Arranging appointments
Organise seminars or other events for
you to meet contacts and promote your
company in the Saudi market

This includes:

Market reports
Validated lists of agents/distributors
Key market players or potential
customers in the Saudi market
Establishment of interest of such
contacts in working with you

This work is available via our Overseas Market

Introduction Service (OMIS) a chargeable
service which assists British-based companies
wishing to enter or expand their business in
overseas markets.
To find out more about commissioning this
work, or accessing other UKTI services and
specialist advice, please visit the UKTI website
to find contact details for your local UKTI
office.

Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK
Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign &
Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given
or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.
Published 2011 by UK Trade & Investment.
Crown Copyright
You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms
of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the
Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk
This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000.

UK Trade & Investment Sector briefing: Healthcare opportunities in Saudi Arabia