Opinion

Saudi Arabia healthcare evolution: Balancing challenges and breakthroughs

May 28, 2024

By Prof. Awad Al Omari

The escalating financial burdens in the global healthcare sector are stark, with spending hitting an unprecedented $9.8 trillion in 2021—equivalent to $1,535 per capita and accounting for 10.3% of global GDP. These figures highlight the critical impact of healthcare costs on the economy and the pressing need for innovative solutions.

In 2023, Saudi Arabia allocated $50.4 billion to healthcare and social development, making up 16.96% of its total budget and ranking as the second highest expenditure after education. Projections indicate that healthcare spending in the country could rise to $77 billion by 2027.

The increase in healthcare expenses is partly due to an aging population that requires specialized care for chronic conditions. In Saudi Arabia, the life expectancy rose from 74 years in 2016 to 77.6 years in 2023. Although adults over 65 currently make up only 3.6% of the population, they are projected to represent about 20% by 2050, significantly intensifying the financial strain from age-related chronic diseases.

Saudi Arabia faces a substantial economic burden with an estimated 23.9% of adults suffering from diabetes—one of the highest rates globally—coupled with increasing obesity rates. In comparison, the U.S. incurred approximately $412.9 billion in diabetes-related medical costs in 2022.

While advancements in medical technology have improved healthcare outcomes worldwide, they have also contributed to rising costs. In the U.S., medical technology expenses account for up to 40% of the growth in healthcare expenditure. Despite these costs, Saudi Arabia has made notable advancements by promoting healthcare technology through government initiatives and controlling escalating pharmaceutical costs through price regulations enforced by the Saudi Food and Drug Authority (SFDA).

Innovations like telemedicine, digital health, and artificial intelligence are revolutionizing the strained healthcare sector. Emphasizing value-based care models, policies that foster innovation, ensure equal access, and promote preventive strategies are vital. Health professionals must adopt these technologies, focusing on patient-centered care to improve outcomes. Saudi Arabia’s Vision 2030 represents a significant opportunity for healthcare transformation, aiming to tackle current challenges and herald a new era of healthcare excellence.


May 28, 2024
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