Strategic healthcare site selection in KSA and MENA

The healthcare sector in the Middle East and North Africa (MENA) region, especially in the Kingdom of Saudi Arabia (KSA), is undergoing significant transformation driven by ambitious initiatives like KSA's Vision 2030. As a result, strategic site selection has become critical for healthcare providers looking to capitalize on this growth. Choosing the right location ensures optimal patient care, operational efficiency, and long-term sustainability. However, this decision-making process is complex and influenced by various factors.

Key Considerations for Strategic Site Selection

1. Population demographics

Understanding the demographics of a specific region is crucial for effective healthcare site selection. This includes factors such as age, gender, income levels, education, and household composition. A younger population may require a greater emphasis on preventive care and family medicine, while an aging population may demand specialized geriatric care. Many MENA countries, particularly the Gulf states, have significant expatriate populations with diverse healthcare needs, making it essential to consider their cultural sensitivities and preferences when designing healthcare facilities and services.

2. Accessibility and infrastructure

A hospital's success depends on its accessibility. Patients must be able to reach healthcare facilities quickly, especially in emergencies. Good transportation options are vital, particularly for those relying on public transport. Hospitals should be conveniently located near major roads, airports, and public transportation hubs. In rapidly growing cities like Riyadh and Jeddah, it’s important to consider future development plans. Adequate parking is also essential, given the high rate of car ownership in the Gulf region.

3. Regulatory Environment

The healthcare sector in KSA and MENA is heavily regulated. Adhering to local regulations and obtaining necessary licenses is crucial to avoid costly delays and legal issues. Engaging with local authorities and healthcare regulators can streamline this process. Staying updated on government policies and initiatives, such as the KSA Ministry of Health's healthcare transformation program, can align expansion strategies with national healthcare goals. Ultimately, regulatory adherence ensures patient safety and quality care.

4. Economic Factors and Insurance Coverage

Understanding the economic health of a region is necessary for assessing potential patient demand and healthcare spending. As countries like KSA implement mandatory health insurance and similar trends emerge across the Gulf, regions with high employment rates and a strong corporate presence are increasingly attractive for healthcare investments. Consequently, healthcare facilities need to evaluate the penetration of private health insurance and the potential impact of government-funded healthcare programs to assess financial viability.

5. Competitive Landscape

A comprehensive analysis of the existing healthcare landscape is essential. This involves assessing the distribution of public and private healthcare facilities and identifying gaps in specialized services. For private healthcare organizations, aligning with regional health priorities and the provider's specific value proposition is crucial. This could involve opportunities in primary care, secondary care, specialized clinics, dental centers, eye care facilities, or other niche areas. Public healthcare entities should focus on complementing existing services and addressing unmet community needs in line with government healthcare strategies.

6. Future Development Plans

KSA and many MENA countries are experiencing rapid development. Future city plans, economic zones, and mega-projects are reshaping urban landscapes, potentially shifting population centers and creating new demand for healthcare services. By anticipating these developments, healthcare providers can position themselves to meet the evolving needs of growing communities.

Navigating Challenges

Major cities in KSA and MENA face unique challenges that impact healthcare service delivery. Urbanization and population growth strain existing infrastructure, leading to housing shortages, traffic congestion, and increased demand for healthcare services. Careful site selection is necessary to ensure optimal accessibility for patients, especially in densely populated areas.

Moreover, the unequal distribution of healthcare resources poses a significant challenge. Urban areas often have better access to specialized facilities, advanced technology, and skilled professionals than rural areas. When selecting a site, healthcare providers must balance urban and rural healthcare needs, potentially investing in satellite clinics or telemedicine solutions to bridge the gap.

What’s Next?

Whether you're a private healthcare provider aiming to expand your market share or a public entity focused on improving healthcare access, a comprehensive approach is essential for successful healthcare expansion. By carefully addressing the challenges and opportunities, healthcare providers can significantly impact the health and well-being of their communities. This thoughtful approach to site selection is key to enhancing patient experience, improving health outcomes, and contributing to the Kingdom’s Vision 2030 healthcare goals and the broader health and wellness objectives of the MENA region.

JLL Healthcare offers a full range of real estate and facilities solutions for hospitals, physicians, and other care providers, as well as real estate investors operating medical and senior housing properties. We help our healthcare clients plan, find, finance, buy, lease, sell, construct, optimize, manage, and maintain facilities for all property types along the continuum of care. Our professionals possess deep technical expertise and market knowledge, armed with the industry’s most innovative, data-driven analytics and business intelligence.

Visit https://www.jll-mena.com/en/industries/healthcare to learn more.