Saudi health ministry to set up holding firm, 5 subsidiaries

Saudi Arabia’s Ministry of Health will set up five medical complexes, five companies, and a holding firm before the end of 2018, as part of its plan to convert public hospitals and medical centers into state-owned companies, Almadina newspaper has reported.

The companies will operate the five medical units, which will comprise 15 hospitals and more than 100 healthcare centers.

The step will help the ministry focus on a supervisory and organizational role, as it will no longer provide medical services.

The move comes after the Saudi cabinet approved in July the establishment of a state-run holding company with five subsidiaries owned by ministry of health, data compiled by Argaam showed.

Healthcare is among several industry sectors being targeted for privatization in Saudi Arabia under the Kingdom’s Vision 2030 reform plan, which aims to diversify the economy and reduce oil dependence.