Saudi healthcare set to grow at 7% CAGR in 4 years, says Arbah Cap

Saudi Arabia’s healthcare sector is forecast to see a compound annual growth rate (CAGR) of 7 percent in the next four years to reach $62 billion by 2020, Arbah Capital said in its first coverage of the sector.

There is good potential for growth within the sector driven by the demand-supply gap, the firm added.

The Saudi government move to make healthcare insurance mandatory will also accelerate the sector’s growth. However, it faces some obstacles such as higher receivables and liabilities which could slow down growth rates and delay planned business expansions, the brokerage added.