DUBAI, May 29: The healthcare sector in the Gulf Cooperation Council (GCC) region is anticipated to reach a value of $135 billion by 2027, driven by rising investor confidence, according to a recent analysis by JLL. The real estate and investment management firm highlighted growing optimism among investors as Gulf states pursue the transformation of the healthcare sector in line with their economic diversification plans.

"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. "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."

JLL's report noted that regional governments are prioritizing increased localization to achieve self-sustainability in the healthcare sector, a key factor boosting investor confidence. Sandeep Sinha, head of Healthcare Consulting at JLL for the Middle East and Africa, stated that healthcare sector spending within the GCC is projected to hit $124 billion by 2028.

The analysis also highlighted that more regional players in the GCC's healthcare landscape are acquiring local companies or international brands to expand their portfolios and transform their business models.

In April, a report by Ireland-based firm Impactful Insights revealed that the healthcare market in the GCC reached $67.9 billion in 2023 and is expected to grow at a compound annual growth rate of 6.4 percent until 2023, reaching $118.6 billion. The report cited the rising adoption of digital health technologies, an increase in sedentary lifestyles, and an aging population as factors driving market growth.

Adeel Kheiri, a partner in Oliver Wyman's India, Middle East, and Africa health and life sciences practice, emphasized the significance of Saudi Arabia's healthcare reforms. Speaking to Arab News in May, Kheiri noted that Saudi Arabia's ambitious healthcare initiatives promise valuable lessons for the region and beyond.

"Saudi Arabia's ambitious healthcare reforms stand out for their scale, complexity, and rapid timeframe. This unique approach will undoubtedly offer valuable lessons learned for the IMEA region and beyond," said Kheiri.

Furthermore, at the GREAT Futures Conference in Riyadh, experts from Saudi Arabia and the UK discussed how implementing advanced technologies like artificial intelligence will reshape the Kingdom's healthcare sector.