Analysis
Health

Digital health innovators expand in Saudi Arabia

May 6, 2025, 7:41 AM

A doctor examines a sick child. Healthcare spending in Saudi Arabia will rise by nearly 9% a year up to 2029, according to Alpen Capital

Attractive market for providers
Healthcare spend rising quickly
‘Proactive attitude to digital health’

A fast-growing population with high rates of lifestyle diseases is making Saudi Arabia an attractive market for healthcare providers. The median age is steadily increasing while the prevalence of hypertension and diabetes remains high.

“All these conditions necessitate medical intervention,” says Tara Rampal, founder of Quest Prehab, a London-based company that provides “prehabilitation” services through a mobile app. Hers is one of a growing number of healthtech companies looking to expand in Saudi Arabia.

As part of its Vision 2030 goals, Saudi Arabia has made healthcare investment a priority. It wants to add 30,000 hospital beds before 2030 – it currently has just over 80,000 – and is driving its citizens to take out health insurance. Riyadh also wants to raise the proportion of the population that has a formal medical record, which stood at less than a third in 2019.

Much of this work is being carried out by the private sector. Hospital groups such as Almoosa and Specialized Medical Company are expanding and healthtech in particular is attracting attention from investors.

Quest Prehab, which is designed to prepare patients before undergoing surgery or cancer treatment, made its first inroads into Saudi Arabia in February after signing with e-commerce company Zension Technologies to provide services for its employees.

It is now looking to gain a stronger foothold in the country, which Rampal attributes not only to the large gap between supply and demand for healthcare services but also to the willingness on the part of consumers and companies to adopt tech solutions.

“There is a very proactive attitude towards digital health,” she says. In other markets, “sometimes there is a degree of hesitancy, but we did not find that attitude at all in our early discussions with people in Saudi.”

Healthcare expenditure in the GCC is forecast to reach $159 billion a year by 2029, a compound annual growth rate of nearly 8 percent from 2024, according to a report by Alpen Capital. In Saudi Arabia, the projected growth is even faster at close to 9 percent a year.

This week Specialized Medical Company, which operates two hospitals in Riyadh and plans to open three more, issued a prospectus for an initial public offering.

Since its founding in 1999, “a turning point was the use of technology”, says CEO Bassam Chahine.

The company launched an app in 2019 to allow patients to access services and book appointments. “This helped a lot in having very efficient operational efficiency and patient experience,” he says.

More than two-thirds of SMC’s patients now book appointments through the mobile app.

“It’s normal when you live here,” he says. “Everything is going digital, from governmental transactions to banking to healthcare.”

Saudi Arabia aims to digitise government services and encourage the private sector to do the same as part of its Vision 2030 plans. Its efforts look to be working. In the UN’s E-Participation Index, which ranks countries based on citizens’ ability to access vital services online, Saudi Arabia has climbed from 66th place in 2020 to 7th in 2024.

A number of homegrown healthtech startups have emerged in Saudi Arabia in that period. Telehealth company Cura raised $15 million from local investors in 2021. It connects patients to doctors and other healthcare services through its app and has previously mooted an international expansion.

Thakaa Med, which secured an undisclosed investment from Falak Angels in September after a seed funding round, offers AI services to assist in medical diagnoses.

Olivier Tricou, managing director of Alpen Capital, says healthcare has attracted a lot of investor interest in the GCC, particularly digital companies. “The scaleability is unlimited,” he says.

Tricou expects the interest to continue in anticipation of new products arriving. Tech innovations have already driven down healthcare costs in nearby markets such as Dubai, but increased efficiency in service has meant providers can charge more.

As technological developments continue, the costs of providing healthcare services should come down further. “AI will solve a lot of problems we currently face,” says Tricou. “And it will reduce the need to bring in a lot of doctors.”