Riyadh’s healthcare expansion could open the door for new investors

As Riyadh city expands, new neighbourhoods are emerging, with homes, schools, and business centres being built at a rapid pace. As people move into these areas, demand for essential services, especially healthcare, is rising quickly. According to our Healthcare in Saudi Arabia – Opportunities in Riyadh Province report, this demand is not spread evenly across the city, it is concentrated in specific districts where the shortfall can already be measured and addressed. This gives investors and operators a clear opportunity to act now, targeting the location based on positioning and specialty mix, where facilities will have the greatest impact and return.

Riyadh’s population is expanding due to both natural growth and inward migration. Over the past three decades, life expectancy has risen steadily, and with it, the prevalence of chronic conditions such as diabetes, heart disease, and dementia. These trends are driving sustained demand for specialist care and long-term facilities, creating both pressure on existing infrastructure and opportunities for investment.

Where demand will be highest

The western districts, including Al Diriyah and MISK City, are forecast to experience the steepest rise in healthcare needs. MISK City combines residential, educational, cultural, and commercial spaces, attracting large numbers of new residents. By 2030, West Riyadh will require around 2,000 additional inpatient beds. The eastern and southern districts together will need about 1,500 inpatient beds in each zone, while long-term care demand will grow even faster, with an extra 4,000 beds needed for residents aged 65 and over.

These needs are focused in specific districts, where the types and positioning of facilities required are well-defined. This gives investors a well-defined roadmap for where to build and which specialisations are likely to deliver the greatest returns, varying by income profile, nationality, and gender mix in each zone. Facilities with the highest potential include:

• Specialist centres for chronic diseases to reduce unnecessary hospital stays.
• Purpose-built long-term care and rehabilitation centres to meet the needs of older residents.
• Ambulatory and primary care facilities to manage routine and preventative healthcare closer to communities.

Each model represents a targeted investment opportunity in a market set to be worth billions of riyals in the years ahead.

Investment potential in new facilities

Our analysis shows that Riyadh’s private healthcare sector is expanding faster than the public system. Between 2015 and 2023, private inpatient volumes nearly doubled, while outpatient visits rose by 40%. In 2023, private inpatient growth was more than three times that of the public sector, and outpatient growth was more than double.

Broader insurance coverage, now reaching more than half of the adult population, is helping more people access private care. Private operators can also move quickly to establish facilities in high-growth areas. Public–private partnerships offer another route to deliver capacity at speed, with our research mapping both the locations and types of facilities needed.

The projected shortfall is measurable and predictable, making it one of the clearest investment opportunities in Riyadh’s healthcare market today. Those who act early can help meet essential public needs while securing a strong position in a sector set for sustained growth.

The full findings are available in our Healthcare in Saudi Arabia – Opportunities in Riyadh Province report.