Saudi Arabia’s listed healthcare companies delivered robust financial performance in 2024, reporting a combined net profit of SAR4.86 billion ($1.3 billion), according to data from the Saudi Stock Exchange (Tadawul). The figure marks a 13.65% increase from SAR3.95 billion ($1.1 billion) in 2023, driven by higher revenues, operational transformation, and improved efficiencies across the sector.
Total revenues for the year also rose significantly, reaching SAR33.87 billion ($9 billion), up 16.7% from SAR29.02 billion ($7.7 billion) the previous year. Industry analysts attribute this growth to a surge in outpatient visits, pharmacy sales, and a continued push for digital transformation.
The sector comprises 11 publicly listed companies, including Dr. Sulaiman Al Habib Medical Group, Mouwasat Medical Services, Dallah Healthcare, Al Hammadi, Care, Saudi Chemical Company (AJA Pharma), Saudi German Health, Fakeeh Care, Al Moosa Health, Dar Al Dawa, and Ayyan Investment.
According to data from the Ministry of Investment, the private sector currently provides 24% of healthcare services in the Kingdom, while government institutions account for 60%. The remaining 16% is covered by other public entities. As part of Vision 2030, Saudi Arabia has launched wide-ranging reforms aimed at increasing private sector involvement and shifting healthcare financing toward an insurance-based model.
The Ministry of Health is transitioning from its traditional role as a healthcare provider to that of the sole regulator. The National Transformation Program aims to raise the private sector’s contribution to total healthcare spending from 25% to 35%. These reforms have created fertile ground for new investment, with more than SAR50 billion ($13.3 billion) in healthcare commitments announced during the Global Health Exhibition in Riyadh last October.
Top Performers in 2024
Sulaiman Al Habib Medical Group led the sector with SAR2.31 billion in net profit—accounting for 47.6% of total industry earnings. The group’s profits rose 13.16% year-on-year, supported by a 17.8% increase in revenue, which reached SAR11.2 billion in 2024. The company attributed the growth to higher patient volumes in its hospital network and a corresponding rise in pharmacy sales.
Mouwasat Medical Services ranked second, reporting SAR645.76 million in profits. Despite a slight 1.81% decline from 2023, the company grew its revenue by 6.4% to SAR2.87 billion. Mouwasat cited an increase in outpatient visits and higher occupancy rates in inpatient wards as key drivers, alongside improved operational efficiency.
Dallah Healthcare secured third place with SAR471.2 million in profit, reflecting a strong 30.84% year-on-year increase. Revenues rose 8.93% to SAR3.2 billion. The company attributed its success to improved gross margins, increased efficiency, and better performance from affiliated firms.
Other notable performances included Saudi German Health, which reported a staggering 1,555% surge in profits, and Saudi Chemical Company’s healthcare division (AJA Pharma), which posted a 59.21% increase in earnings.
Analysts: A Standout Year for the Sector
Commenting on the sector’s performance, Dr. Sulaiman Al-Humaid Al-Khaldi, a financial analyst and member of the Saudi Economic Association, described 2024 as an exceptional year for Saudi healthcare. “The results reflect the success of strategic health reforms under Vision 2030,” he said, noting government support, rising demand, and digital transformation as key contributors.
He highlighted several growth factors, including increased public health spending, the rollout of digital health and preventive care initiatives, rising life expectancy, and growing public awareness of health services. “Demand for comprehensive and specialized care is increasing, and the sector is rising to meet it,” Al-Khaldi said.
He also emphasized the government’s commitment to digital healthcare, pointing to investments in telemedicine, unified health records, and artificial intelligence in diagnostics and treatment.
Outlook and Challenges
Mohammed Hamdi Omar, CEO of consulting firm G-World, expects the sector’s momentum to continue. He forecasts profit growth between 12% and 14% in Q2 and Q3 of 2025, rising to 14%–16% by Q4 2025 and early 2026. He pointed to ongoing privatization efforts, increased insurance coverage, and further investment in digital health tools as primary drivers.
“The sector is benefiting from operational efficiency and an expansion of specialized services,” Omar said. He added that government support—estimated at SAR51.75 billion ($13.8 billion)—has improved the investment environment and extended insurance coverage.
However, both analysts cautioned about potential risks, including shortages in qualified medical professionals, rising costs, and regulatory changes. They emphasized the importance of aligning with Vision 2030 by investing in innovation, digital transformation, and specialized services.
“Healthcare is no longer just a public service,” Omar said. “It’s becoming a strategic pillar of Saudi Arabia’s economic development and a gateway for medical tourism and global competitiveness.”
