Sage. SAUDI ARABIA: Building a Global Hub for the Health Tourism Ecosystem & Industry Competitiveness

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In collaboration with: IPSAR 2025 | Council of Health Insurance (CHI) | Better | Medical Tourism Association

Payments network partner: Mastercard SAGE Healthcare Concierge Services | 2025

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CONTENTS

EXECUTIVE SUMMARY

This report provides a comprehensive analysis of Saudi Arabia’s health tourism ecosystem, highlighting its rapid growth & strategic positioning within the global medical tourism market. It explores the Kingdom’s progress under Vision 2030 & the Health Sector Transformation Program, which aim to establish Saudi Arabia as a leading destination for specialized, patient centered care.

While the ecosystem demonstrates strong potential, advancing toward international patient targets requires greater institutionalization & coordination. Key next steps include establishing central coordination offices, expanding high-value services, benchmarking against global pricing models, & aligning ecosystem capabilities. Collectively, these initiatives will help build a robust & integrated framework that sustains growth & strengthens competitiveness.

Finally, the report maps Saudi Arabia’s health tourism ecosystem, outlining its core components & wider enabling environment. By examining the interplay between providers, regulators, investors, & facilitators, it identifies strategic opportunities that can accelerate Saudi Arabia’s rise as a global hub for health tourism.

The analysis examines both macroeconomic & microeconomic forces shaping the health tourism sector, including cultural dynamics, institutional structures, & regulatory frameworks. It evaluates the roles of public agencies, private providers, & investors, & assesses emerging trends in cost-effectiveness, service quality, & value chain integration.

Global shifts in healthcare—driven by technological innovation, patient empowerment, & reduced information asymmetry—are reshaping how patients seek treatment across borders. Saudi Arabia is actively responding by enhancing healthcare infrastructure, raising clinical standards, & attracting private-sector investment. These efforts reinforce the Kingdom’s positioning as a trusted, competitive, & patient-focused health tourism destination.

INTRODUCTION

Global Medical Tourism at a Glance

• Growth at a compounded annual growth rate (CAGR) of 11.59% during the forecast period 2022 to 2032, reflecting market value expansion.
• •Top destinations for medical tourism: Thailand, Mexico, US, Singapore, India, Brazil, Turkey, & Taiwan.
• •Healthcare & tourism are the fastest-growing industries in the world. The key drivers are:

Tourism Statistics in Saudi Arabia

Referring to the 2023 annual report published by the Saudi Ministry of Tourism, the tourism-generated revenue was SAR 255.6B.

The medical tourism-generated revenue in 2023 was USD 0.16B (SAR 600M), making the medical tourism percentage of total tourism 0.23%. This indicates immense opportunities for growth in comparison to the global ratio of 7%.

Environmental Analysis – Saudi Arabia

Saudi Arabia boasts a strategic location, political stability, & government policies that make it an attractive hub for international business. With high-quality infrastructures, advantageous cost structures, & financial stability, Saudi Arabia is well-positioned in the global market.

HEALTHCARE INDUSTRY & MEDICAL TOURISM IN SAUDI ARABIA – OVERVIEW

Saudi Arabia is rapidly emerging as a key destination for medical tourists seeking high-quality care at competitive costs. This growth is driven primarily by the Kingdom’s Vision 2030 initiative, which aims to:

• Enhance healthcare infrastructure,
• Improve service quality,
• & promote private sector investments in the healthcare industry.

Current Status & Trends

Main Drivers of Medical Tourism

The global movement of patients across borders is increasingly shaped by a diverse set of motivations. As healthcare systems evolve & patients become more discerning, the drivers behind health tourism reflect preferences for innovation, efficiency, & value.

Understanding these motivators is essential for countries like Saudi Arabia seeking to strengthen their health tourism ecosystem & attract international clientele.

Effects on Destination Economies

Deterrents of Medical Tourism

Customer Types

HEALTHCARE INDUSTRY & MEDICAL TOURISM – VALUE CHAIN & FLOW ACROSS THE GLOBE

Modes of Accessing Foreign Healthcare Providers

Saudi Arabia is emerging as a prominent destination for medical tourists, attracting patients seeking advanced medical treatments from across the globe. Medical tourists are connected to healthcare providers through various channels, including direct arrangements, intermediaries such as insurance companies, & specialized medical tourism facilitators.

Medical Travelers by Point of Origin

Medical tourists in Saudi Arabia primarily come from neighboring countries & regions lacking advanced medical infrastructure. The main driving factors include access to higher quality care, advanced medical technology, & cost-effective treatments.

HEALTHCARE INDUSTRY & MEDICAL TOURISM IN SAUDI ARABIA – OVERVIEW & PERFORMANCE

Medical tourism in Saudi Arabia receives strong institutional support & is increasingly positioned to serve both regional & international patient markets. Over the past decade, the number of physicians has grown significantly, driven by national initiatives that focus on enhancing local talent.

Key efforts include structured scholarship programs & pathways for Saudi physicians to earn internationally recognized certifications—such as the American & Canadian Boards—thereby reinforcing healthcare quality & competitiveness across the broader global health tourism ecosystem.

Saudi Arabia’s Health Tourism Sector: Strategic Integration & Global Positioning

The health tourism sector in Saudi Arabia is a recognized component of the national healthcare system, increasingly integrated through strategic planning & development.

The Kingdom is advancing its position as a global destination for elective medical & wellness treatments by implementing comprehensive policies, regulations, & investment-friendly initiatives that elevate service quality & system readiness.

As part of this vision, the sector aims to attract medical tourists across regional & international markets—many of whom have traditionally sought treatment elsewhere—by offering competitive, high-value healthcare experiences within the Kingdom.

PROMINENT INSTITUTIONS WITHIN SAUDI ARABIA’S HEALTHCARE & HEALTH TOURISM ECOSYSTEM

Saudi Arabia’s evolving healthcare ecosystem is supported by a range of world-class institutions that serve both clinical excellence & strategic development goals. At the forefront is King Faisal Specialist Hospital & Research Centre (KFSHRC), a pivotal public institution that functions as a key anchor in the ecosystem. It fosters collaboration among medical professionals, promotes knowledge exchange, & draws international investment, particularly in high-complexity care & specialized treatments.

Complementing KFSHRC on the private sector front is Almoosa Hospital, a leading rehabilitation center that contributes to Saudi Arabia’s health tourism offerings through its focus on recovery, long-term care, & therapeutic services. Its patient-centric model & integrative approach exemplify how private hospitals are shaping differentiated value propositions within the Kingdom’s ecosystem.

Together, these institutions highlight how both public & private healthcare providers play a critical role in enhancing Saudi Arabia’s competitiveness in health tourism & strengthening its capacity to serve regional & international patient needs.

Four Lenses Model – KFSHR

King Faisal Specialist Hospital & Research Centre (KFSHRC)

KFSHRC stands out as a world-renowned medical institution & research hub, playing a foundational role in Saudi Arabia’s evolving health tourism ecosystem.

It delivers a full spectrum of services across the healthcare value chain—including advanced clinical care, medical education, professional training, translational research, & wellness programs—positioning itself as a benchmark of excellence both regionally & globally.

Notably, the expansion into Madinah reinforces KFSHRC’s strategic vision to decentralize high-quality care & support the broader health tourism infrastructure across the Kingdom.

The Madinah branch is set to enhance patient accessibility, facilitate specialized services in one of Saudi Arabia’s most visited cities, & attract international patients seeking both medical expertise & spiritual healing experiences.

Global Healthcare Hub

Saudi Arabia seeks to position King Faisal Specialist Hospital & Research Centre (KFSHRC) as one of the Kingdom’s premier medical destinations, renowned for attracting international patients seeking advanced treatments often unavailable in their home countries. This strategic emphasis on elevating KFSHRC reflects a broader commitment to excellence across the national healthcare landscape.

While KFSHRC plays a leading role in public sector innovation & global outreach, Saudi Arabia’s private healthcare providers are also shaping the health tourism ecosystem. With state-of-the-art facilities, patient-centric service models, & expanding international partnerships, private institutions contribute significantly to diversifying the country’s healthcare offerings & enhancing its competitiveness on the global stage.

Complementing KFSHRC’s leadership in public-sector innovation, institutions like Almoosa Specialist Hospital exemplify the private sector’s dynamic role in elevating Saudi Arabia’s health tourism capabilities—creating a balanced, multi-pillar system that advances national & international patient care.

Almoosa Specialist Hospital plays a pivotal role in Saudi Arabia’s health tourism ecosystem as a leading private-sector institution. Its contributions span clinical excellence, academic training, & ecosystem integration—making it a cornerstone of healthcare development in the Eastern Province.

Four Lenses Model – Almoosa Specialist Hospital

Almoosa Specialist Hospital

Almoosa stands out as a premier healthcare facility, significantly contributing to Saudi Arabia’s travel & health sector. It offers comprehensive services across the healthcare value chain, including clinical care, education, training, research, & wellness.

State-of-the-Art Rehabilitation Center

Almoosa’s rehabilitation hospital is a cutting-edge facility spanning 100,000 m², designed to provide advanced inpatient & outpatient rehabilitation programs. It integrates world-class medical care with a healing environment, prioritizing patient comfort & recovery.

Key Specialized Treatments at Almoosa Rehabilitation Center

With its LEED Platinum-certified infrastructure & 300-bed capacity, Almoosa Rehabilitation Hospital stands as a pioneering facility within Saudi Arabia’s health tourism ecosystem, reinforcing the Kingdom’s commitment to medical excellence & global healthcare accessibility.

HISTORICAL EVOLUTION OF SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM

Saudi Arabia has undertaken decades of strategic investment to position itself as a regional & global hub for health tourism. The evolution of the Kingdom’s healthcare ecosystem reflects a deliberate effort to enhance service quality, expand infrastructure, & integrate health tourism into broader national development goals.

A recent milestone in this journey is the 2025 Brand Finance global ranking, where seven Saudi hospitals were recognized among the Top 250 hospitals worldwide. Leading the national & regional representation, King Faisal Specialist Hospital & Research Centre (KFSHRC) ranked 15th globally, affirming its role as a flagship institution. Other top-performing hospitals include:

• King Fahad Medical City
• King Khalid University Hospital
• King Saud Medical City
• King Abdullah Medical City
• National Guard Health Affairs
• King Fahad University Hospital

This international recognition underscores the Kingdom’s growing competitiveness & commitment to excellence in healthcare delivery. In parallel, the Ministry of Health (MOH) has implemented a structured national framework, categorizing hospitals into 20 regional healthcare ecosystems that encompass general & specialized hospitals, medical cities, & hundreds of primary care centers.

These integrated systems serve millions of beneficiaries nationwide, enhancing coordination, optimizing resource allocation, & supporting the growth of Saudi Arabia’s health tourism offerings.

Together, these developments reflect the Kingdom’s sustained momentum toward establishing a globally recognized, patient-centered health tourism ecosystem—anchored in clinical quality, institutional innovation, & seamless care delivery.

Evolution of Saudi Arabia’s Health Tourism Ecosystem

Saudi Arabia’s journey toward establishing a globally competitive health tourism ecosystem has unfolded through distinct strategic phases, each characterized by operational maturity, ecosystem integration, & performance outcomes.

SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM – NETWORK DYNAMICS

Today, Saudi Arabia’s health tourism ecosystem is shaped by a dense & diverse network of institutional players & ecosystem enablers.

This dynamic configuration includes public healthcare authorities, private providers, specialized hospitals, wellness centers, insurers, investors, & digital health innovators—all interconnected through formal & informal collaboration mechanisms.

The synergy among these stakeholders fosters a fertile environment for medical innovation, accelerates the adoption of advanced technologies, & supports continuous improvement across the care continuum.

These interactions are instrumental not only in enhancing healthcare delivery, but also in reinforcing the Kingdom’s competitive positioning as a regional & global health tourism destination.

Diamond Model: Enabling Saudi Arabia’s Health Tourism Ecosystem

Saudi Arabia’s microeconomic environment provides fertile ground for the development of a globally competitive health tourism ecosystem. The Diamond Model, developed by Michael Porter, offers a strategic lens to understand how national conditions contribute to industry success. Applied to Saudi Arabia’s healthcare & health tourism sector, the model highlights four key drivers:

FIRM STRATEGY & FACTOR CONDITIONS IN SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM

Saudi Arabia’s healthcare sector has seen a significant shift towards involving private competitors, both local & foreign.

The introduction of various policies has enhanced the quality of care, & competitive strategies focus primarily on product differentiation through comprehensive service packages.

Events & Impacts

Firm Strategy, Structure & Rivalry

Factor Conditions

DEMAND DYNAMICS IN SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM

The demand for healthcare services in Saudi Arabia is rising, particularly in emerging markets & for certain types of diseases. Patients often prefer regional locations over long-distance travel, which presents an opportunity for Saudi Arabia to target regional patients & prioritize their needs.

Events & Impacts

HEALTH TOURISM ECOSYSTEM & MEDICAL TOURISM IN SAUDI ARABIA – RELATED & SUPPORTING INDUSTRIES

Related industries and the national infrastructure system play a central role in advancing Saudi Arabia’s health tourism ecosystem. Companies operating within this ecosystem are well-positioned to leverage the supportive environment to strengthen their offerings & expand their appeal to international medical tourists.

Events & Impacts

GOVERNMENT ROLE IN SHAPING SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM

Saudi Arabia’s health tourism ecosystem is strategically planned & institutionally developed, with government-led initiatives playing a central role. Targeted policies aim to enhance global competitiveness, attract foreign direct investment (FDI), & facilitate cross-border patient movement to support the Kingdom’s position as a leading medical destination.

Events & Impacts

Government Initiatives

ECOSYSTEM DYNAMISM: APPLYING THE 7 GAPS MODEL TO SAUDI ARABIA’S HEALTH TOURISM SECTOR

Interactions among stakeholders in Saudi Arabia’s health tourism ecosystem—ranging from public institutions and private providers to regulators, investors, and technology enablers—are central to its evolution. To assess the maturity and performance of this ecosystem, the 7 Gaps Model offers a strategic framework that identifies key disconnects that may hinder optimal service delivery and integration.

COMPETING HEALTH TOURISM ECOSYSTEMS: GLOBAL MARKET SEGMENTATION

The global medical tourism market is segmented by type and quality of treatment. Western countries focus on high-quality treatments, while Eastern countries often emphasize low-cost medical tourism.

Comparing Medical Tourism Destinations

Competitors

Medical Tourism Index (MTI)

According to the MTI, the most attractive destinations for medical tourism include:

• Canada
• United Kingdom
• UAE

POLICY RECOMMENDATION: THE RAILWAY MODEL FOR SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM

Given the practical challenges in establishing a profitable medical tourism business model—especially in competing with well-established global destinations—Saudi Arabia may benefit from a strategic pivot. Rather than focusing exclusively on attracting foreign patients, the Kingdom should prioritize clinical excellence, system integration, & regional relevance as foundational pillars of its health tourism strategy.

The Railway Model offers a compelling framework: just as a railway system requires strong infrastructure, coordinated stations, & reliable service to attract passengers, Saudi Arabia’s health tourism ecosystem must build a high-quality, interconnected care network that naturally draws patients through trust, outcomes, & experience.

Current Challenges

Despite substantial efforts by the Saudi government to position the country as a prominent health tourism destination, the number of international patients remains modest. The health tourism ecosystem does not specialize in any niche treatments, limiting its appeal to medical tourists seeking specialized care.

Strategic Shifts

To overcome current challenges & unlock the full potential of Saudi Arabia’s health tourism ecosystem, a series of strategic shifts should be prioritized:

1. Promoting Clinical Standards: Promote & enforce international clinical standards & accreditation across providers, supported by training & partnerships with leading institutions. This will position Saudi Arabia as a trusted destination for consistently high-quality healthcare services.
2. Cost Competitiveness Initiatives: Strengthen Saudi Arabia’s position as a cost-competitive health tourism destination by adopting Value-Based Healthcare (VBHC) models, improvingefficiency, & aligning pricing with international benchmarks. The focus is on delivering greater value, not reducing costs.
3. Promoting Insurance Integration: Promote the integration & acceptance of international insurance plans. Expanding insurance-linked services will improve affordability, broaden patient access, & strengthen Saudi Arabia’s competitiveness.
4. Medical Tourism Accreditation: Promote international accreditation specifically for medical tourism providers. Ensuring facilities meet global standards builds trust, safety, & reliability for international patients.
5. Investing in Promotion of Niche Specializations: Invest in the promotion of high-demand specialties (cardiology, oncology, orthopedics, rehabilitation) to attract patients seeking advanced, specialized care.
6. Geographical Coverage: Distribution of Centers of Excellence to cover the niche specialties in multiple locations.
7. Strengthening Trust Through Regulations: Promote the currently implemented regulations to reinforce transparency, safety, & accountability within the health tourism ecosystem.
8. Capacity Building to Further Level Up: Capacity building to further level up local capabilities, including healthcare & logistics services.

STRATEGIC POLICY RECOMMENDATIONS FOR SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM

Strategy, Structure & Rivalry

Factor Conditions

Demand Conditions

Ecosystem Enablers (formerly Related & Supporting Industries)

POLICY RECOMMENDATIONS FOR SAUDI ARABIA’S HEALTH TOURISM ECOSYSTEM – APPLYING THE DIAMOND MODEL

These broad & specific policies reinforce the four dimensions of the Diamond Model: Strategy, Structure & Rivalry, Factor Conditions, & Demand Conditions. Together, these interconnected elements drive the advancement of Saudi Arabia’s health tourism ecosystem & elevate its global competitiveness.

Strategy, Structure & Rivalry

Demand Conditions

Factor Conditions

REFERENCES

This report draws extensively on publicly available data & insights from interviews with healthcare professionals & business operators in Saudi Arabia.

Government & Institutional Reports

• Saudi Arabian Ministry of Health. (2024). Healthcare transformation in Saudi Arabia: Vision 2030 progress report. Retrieved from https://www.moh.gov.sa/en/Ministry/MediaCenter/Pages/default.aspx
• Saudi Health Council. (2022). Health workforce & infrastructure development report. Available at http://www.shc.gov.sa/en/Pages/pubs.aspx
• World Bank. (2023). Saudi Arabia’s economic update: Healthcare sector investment. Retrieved from https://www.worldbank.org/en/country/saudiarabia/overview
• Saudi Vision 2030. (2022). National healthcare strategy. Available from https://vision2030.gov.sa/en/sectors/healthcare
• World Health Organization. (2020). Health system profile – Saudi Arabia. Retrieved from https://apps.who.int/medicinedocs/documents/s17313e/s17313e.pdf
• MISA. (2024). Healthcare and life sciences. Retrieved from https://misa.gov.sa/app/uploads/2024/03/healthcare-brochure-005.pdf
• Vision 2030. (2024). Health sector transformation program. Retrieved from https://www.vision2030.gov.sa/en/explore/programs/health-sector-transformation-program
• Saudi Ministry of Tourism. (2023). Annual report. Riyadh, Saudi Arabia. Retrieved from https://www.sauditourism.com.sa/en/annual-report/

Academic & Industry Reports

• Nakajima, L. (2023, January 12). Saudi Arabia’s medical tourism expansion. International Medical Travel Journal. Available at https://www.imtj.com/news/saudi-arabia-medical-tourism-expansion
• Ehrbeck, T., Guevara, C., & Mango, P. D. (2008). Mapping the market for medical travel. The McKinsey Quarterly. Retrieved from http://www.heal-wheel-india.com/white-pappers/McKinsey-Report-Medical-Travel.pdf
• Bookman, M. Z., & Bookman, K. R. (2007). Medical tourism in developing countries. New York, NY: Palgrave MacMillan.
• Cooper, T., & Allen, S. (2017). 2018 global healthcare outlook. Deloitte. Retrieved from https://www2.deloitte.com/global/en/pages/life-sciences-and-healthcare/articles/global-health-care-sector-outlook.html
• Taibah University Medical Sciences. (2014). Kingdom of Saudi Arabia: A potential destination for medical tourism. Retrieved from https://applications.emro.who.int/imemrf/J_Taibah_Univ_Med_Sci/J_Taibah_Univ_Med_Sci_2014_9_4_257_262.pdf
• Alharethi, T., & Kabil, M. (2024). Charting the sustainable course: Navigating the Saudi Arabia medical and wellness tourism roadmap with business model canvas (BMC). Sustainability, 16(9), 3856. https://doi.org/10.3390/su16093856

Industry & Market Research

• Grand View Research. (n.d.). Medical tourism market size & share report, 2030. Retrieved July 26, 2025, from https://www.grandviewresearch.com/industry-analysis/medical-tourism-market
• World Council for Medical Tourism. (n.d.). World Council for Medical Tourism. Retrieved July 26, 2025, from https://worldcouncilformedicaltourism.org/
• BlueWeave Consulting. (2022). Saudi Arabia medical tourism market. Retrieved from https://www.blueweaveconsulting.com/report/saudi-arabia-medical-tourism-market
• IMARC Group. (2024). Saudi Arabia medical tourism market size and report. Retrieved from https://www.imarcgroup.com/saudi-arabia-medical-tourism-market
• The Business Research Company. (2022). Medical tourism market 2022. Retrieved from https://www.thebusinessresearchcompany.com/press-release/medical-tourism-market-2022
• GlobeNewswire. (2023, February 14). Medical tourism market size will become USD 346.1 Bn by 2032. Retrieved from https://www.globenewswire.com/news-release/2023/02/14/2607319/0/en/Medical-Tourism-Market-size-will-become-USD-346-1-Bn-by-2032.html
• Healthcare Asia Magazine. (n.d.). Saudi Arabia’s medical tourism market to reach USD 0.54B by 2029. Retrieved from https://healthcareasiamagazine.com/healthcare/news/saudi-arabias-medical-tourism-market-reach-054b-2029

Digital Health & Technological Innovations

• AGSIW. (2024). Revolutionizing health care: Saudi Arabia’s digital health transformation. Retrieved from https://agsiw.org/revolutionizing-health-care-saudi-arabias-digital-health-transformation/
• Omnia Health Insights. (2023). Embracing the future: Saudi Arabia’s digital healthcare revolution. Retrieved from https://insights.omnia-health.com/technology/embracing-future-saudi-arabias-digital-healthcare-revolution

Hospital References

• Almoosa Health Group. (n.d.). Almoosa Specialist Hospital. Retrieved May 29, 2025, from https://almoosahealthgroup.org/specialized-hospital/
• SA International. (n.d.). Al Moosa Specialist Hospital overview. Retrieved May 29, 2025, from https://www.sainternational.us/al-moosa-specialist-hospital/
• Vaidam. (n.d.). Al Moosa Hospital services and accreditations. Retrieved May 29, 2025, from https://www.vaidam.com/hospitals/al-moosa-hospital
• Brand Finance. (2025, February 5). Seven Saudi hospitals rank among Brand Finance World’s Top 250. Saudi Press Agency. https://www.spa.gov.sa/en/N2256235
• Ministry of Health. (2025). Governmental hospitals directory. Kingdom of Saudi Arabia Ministry of Health. https://www.moh.gov.sa/en/eServices/Directory/Pages/Hospitals.aspx