Doing Business in Saudi Arabia - International Franchise Association

Affluence has also affected lifestyle of Saudis bringing with it diseases such as obesity, diabetes
and coronary diseases. A large and growing population of smokers — compounded by desert
climatic conditions — has led to a rise of pulmonary and breathing diseases, as well as lung and
throat cancers. Other major diseases of concern include breast cancer and kidney diseases.
For example:
• 50% of the Saudi population above the age of 45 is diabetic and $1.1 billion is spent
annually on the treatment of diabetes;
• 22 % of the population are regular smokers (a major cause of respiratory diseases);
• high prevalence of hepatitis C and B (around 30% of the population is afflicted);
• heart diseases are increasing at an average 5.3% annually and expected to consume up
to 24% of total health-care expenditures;
• over 11,000 Saudis a year experience some form of kidney failure, and 40 % of these
are in urgent need of kidney transplantation.
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The Saudi private sector was the largest contributor to growth in the number of hospital beds
over the past 10 years, in line with the government restructuring strategy, which will convert
government hospitals into private entities in the form of a public-private partnership to maximize
system efficiencies and raise the overall standard of care.
In addition to the Ministry of Health’s annual requirement for equipment and instruments, the
Arabian Gulf countries also present excellent opportunities for U.S. companies to participate in a
six-country annual bid for various items, including:
• Medicines
• Vaccines
• Chemicals
• Insecticides
• Radiopharmaceuticals
• Renal dialysis equipment and supplies
• Dental supplies
• Laboratory instruments and disposables
• Orthopedic and spinal rehabilitation equipment, and
• Cardiovascular treatment and rehabilitation equipment.
The above tenders are offered annually and the Secretariat General of the six-nation Health
Ministries will usually communicate directly with foreign vendors.
To cope with an increasing number of healthcare providers and patients, the MOH is envisaging
the establishment of a national electronic records system for healthcare, which will create
enormous opportunities for health systems integrators and specialists in this field.
A major regulatory development was enacted to allow foreign companies to invest in 150-bed
Saudi hospitals, which may open the door for American companies to gain a toehold in the
market, and take advantage of opportunities and growth prospects in this sector.
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