RIYADH: º£½ÇÖ±²¥ and the UAE accounted for almost all investment activity in the Gulf’s health care sector over the past four years, underscoring the region’s growing appeal to investors, according to JLL.
The two countries were behind nearly 92 percent of the almost 400 transactions recorded in the Gulf Cooperation Council between 2021 and April 2025, the professional services firm said in its latest report.
The UAE led with 198 deals, followed closely by º£½ÇÖ±²¥ with 170.
JLL said the trend reflects both markets’ push to expand health care infrastructure under national transformation programs, including º£½ÇÖ±²¥â€™s Vision 2030 and the UAE Ministry of Health and Prevention’s 2023–2026 strategy.
In August, consultancy firm Research and Markets projected the GCC health care innovation market to grow from $121.9 billion in 2025 to $170.5 billion by 2030.
“The GCC health care sector presents a dynamic and rapidly evolving investment landscape with exceptional growth potential across the health care value chain,†said Sandeep Sinha, head of health care and life sciences advisory at Middle East and Africa at JLL.
“For investors, this creates multiple entry points for capital, spanning digital health innovations and infrastructure development that ensure sustainable returns while advancing health outcomes,†he added.
Demographics and digitalization
JLL highlighted demographic expansion, government-led initiatives, and a surge in digital health adoption as key drivers of growth. A health-conscious, tech-savvy youth population is driving demand for preventive care, wellness services, and digital health solutions, while an ageing population is increasing demand for geriatric care and chronic disease management.
“By 2030, projections indicate the region’s population will reach 69.92 million, creating unprecedented demand for comprehensive health care services across all specialities,†said JLL.
National transformation programs are also acting as powerful catalysts, actively injecting direct capital and fostering public-private partnerships, the report added.
Under Vision 2030, º£½ÇÖ±²¥ aims to modernize and improve the Kingdom’s health care system by implementing new technologies. The program also seeks to increase private-sector participation to achieve national health goals and ensure everyone has access to high-quality care.
JLL further said that advanced digital infrastructure in º£½ÇÖ±²¥ and the UAE is improving patient access and efficiency, with initiatives such as the UAE’s Riayati platform and º£½ÇÖ±²¥â€™s unified Electronic Health Records system leading to a structural transformation in how health care services are conceived, delivered, and accessed. This provides a strong foundation for both domestic and foreign investors.
“As the market matures, investors are prioritizing strong value propositions, supported by sustained government commitment to develop world-class medical facilities, reinforcing the sector’s position as a strategic investment priority,†said Sinha.
The shift toward patient-centered care models is another growth driver, increasing spending on patient interaction platforms, premium facilities, and advanced diagnostic technologies that promote holistic patient experiences.
According to JLL, the digitalization wave sweeping across the health care ecosystem has accelerated strategic partnerships with global technology leaders, fueling investments in health-tech innovations such as telemedicine and arrtificial intelligence-powered diagnostics.
In June, during the BIO International Convention, º£½ÇÖ±²¥ signed more than a dozen high-impact memoranda of understanding between its leading health institutions and international biotechnology and health care organizations.
During the convention, King Faisal Specialist Hospital and Research Center partnered with US-based Germfree to localize cleanroom and laboratory manufacturing, while King Abdullah International Medical Research Center formalized a collaboration with California-based Illumina in genomics research.
Deal landscape
Early-stage investments concentrated on health-tech and outpatient services across wellness, mental health, beauty and skin care, and home care sectors. Meanwhile, 28 percent of mergers and acquisitions activity focused on hospitals and clinics, reflecting ongoing industry expansion and consolidation.
According to market intelligence firm Tracxn, the GCC health care sector witnessed total funding of more than $1.13 billion, with the largest funding in 2016 at $324 million. In 2024, the sector attracted $255 million, up from $2 million in 2023 and $63.3 million in 2022.
JLL reported 170 early-stage funding rounds and 91 M&A deals between 2021 and April 2025. During this period, major sovereign wealth funds, including Mubadala and ADQ, led strategic acquisitions of companies such as Diabtec, Gulf Inject, and Well Pharma Medical Solutions.
The report added that the initial public offering landscape in the GCC health care sector is also maturing, leveling off following a sharp increase in 2021 and 2022.
“This reflects strong investor interest, with health care providers, medical suppliers, and pharmaceutical companies leading market activity. Market analysts expect more IPOs soon due to impending economic concerns, such as the US tariffs and forecasts of lower oil prices in 2026,†said the report.
The GCC region saw 27 IPOs between 2021 and April 2025. A major health care IPO in 2025 was º£½ÇÖ±²¥â€™s Almoosa Health, which raised $450 million.
Future outlook
The report outlined trends likely to strengthen the GCC health care investment landscape. Investments targeting digital health solutions and telemedicine platforms are expected to grow, with larger funding rounds for established digital health players.
The health-tech sector is projected to mature further, driving increased M&A as larger entities acquire successful startups to integrate innovative solutions. JLL also anticipates accelerated AI and data analytics adoption, with capital directed toward solutions that improve diagnoses, optimize treatment, and enhance operational efficiency.
Investment momentum is also expected to shift toward preventive health care frameworks and personalized medicine, including genetic testing, longevity-focused clinical programs, health monitoring technologies, and smart health coaching platforms.
“The future of health care investment in the GCC region isn’t just about financial returns — it’s about contributing to a fundamental transformation of regional health care delivery that will impact millions of lives for generations to come,†said JLL.
