Healthy returns in an ailing society

Despite billions of petrodollars spent on healthcare in Saudi Arabia, the kingdom’s targets for healthcare service have not been met in recent years. With the government’s push to include more private investment in the field, and Saudi Arabia’s burgeoning demand for medical services in a country that has high rates of diabetes and other ‘lifestyle’ diseases, the kingdom may have the potential to offer the highest returns in the Gulf Cooperation Council to those who can build and operate cost-effective hospitals and medical networks. Thus, models are now emerging in this market — traditionally seen as almost impenetrable — that many are suggesting will offer substantial returns for investors without skimping on quality healthcare. “Any successful [private healthcare] project which is looking to expand across the GCC should consider a joint venture approach with an experienced partner on the ground,” wrote Mohammed al-Qahtany, chief executive officer, Al Aman Investment of