RIYADH: The value of the healthcare sector in the Gulf Cooperation region is projected to reach $135 billion by 2027 driven by rising investor confidence, an analysis showed. 

In its latest report, real estate and investment management firm JLL noted that investors are increasingly becoming more optimistic about the healthcare market in the region as Gulf states push for the transformation of the sector in line with their economic diversification plans. 

The study also pointed out that regional governments are pushing for increased localization to attain self-sustainability in the healthcare sector, a crucial factor that elevates investor confidence. 

Sandeep Sinha, head of Healthcare Consulting at JLL for the Middle East and Africa, said that sector spending within GCC alone is poised to reach $124 billion in 2028. 

“Under their economic diversification agenda, countries in the GCC are driving the transformation of this critical sector with infrastructure development, clinical capabilities, human capital development, digital transformation, and establishment of healthcare innovation hubs,” said Sinha. 

He added: “This has attracted more private equity companies and witnessed an increase in active deal-making, further positioning the region as a key healthcare player on the global stage.” 

According to the analysis, more regional players in the GCC’s healthcare landscape are acquiring local companies or international brands to build their portfolios and transform their business models. 

In April, an additional report released by Ireland-based firm Impactful Insights revealed that the healthcare market in the GCC region reached $67.9 billion in 2023 and is expected to grow at a compound annual growth rate of 6.4 percent until 2023 to hit $118.6 billion. 

According to that release, the rising adoption of digital health technologies, the increase in sedentary lifestyles, and the escalating aging population are factors propelling the market. 

Earlier in May, Adeel Kheiri, a partner in Oliver Wyman’s India, Middle East, and Africa health and life sciences practice, told Arab News that Saudi Arabia’s bold healthcare reforms promise valuable lessons for the region and beyond. 

He added that the Kingdom has embarked on a journey to prioritize the health and well-being of its citizens, laying a robust foundation for progress.

“Saudi Arabia’s ambitious healthcare reforms stand out for their scale, complexity, and rapid timeframe. This unique approach will undoubtedly offer valuable lessons learned for the IMEA region and beyond,” said Kheiri. 

Moreover, in May, at the GREAT Futures Conference in Riyadh, experts from Saudi Arabia and the UK said that implementing advanced technologies like artificial intelligence will reshape the Kingdom’s healthcare sector. 

RIYADH: Saudi tech firm Al-Moammar Information Systems Co. plans to invest $1 million in a controlling stake in Elon Musk’s artificial intelligence company, xAI Corp., according to Al-Ekhbairya. 

The Saudi company clarified that this investment constitutes a portion of xAI’s Series B funding round, with a pre-money valuation of $18 billion. 

As per its website, Musk’s xAI is focused on developing AI to accelerate human scientific discovery. 

“We are guided by our mission to advance our collective understanding of the universe,” it says. 

Al-Ekhbariya reported that in January, MIS’s board of directors approved the allocation of SR40 million ($10.6 million) to establish an investment portfolio through self-financing in global AI companies, aiming to capitalize on growth opportunities in this promising sector. 

Additionally, MIS has achieved the Cisco Master Security Specialization in Saudi Arabia, showcasing its capacity to deliver advanced, value-added Cisco solutions through its comprehensive sales expertise, technical skills, and service offerings. 

In recognition of this achievement, the company is set to be listed as a holder of the Cisco Master Security Specialization in the Cisco Partner Locator. 

Under the title “Understand the Universe,” Musk, CEO of Tesla and SpaceX, aims to advance the sector following the introduction of major initiatives such as AlphaStar, AlphaCode and Inception as well as Minerva, GPT-3.5, and GPT-4. 

The tech firm, launched in July 2023 to rival existing AI models, works closely with X Corp to deliver its technology to over 500 million users of the X app, formerly Twitter. 

Saudi Arabia continues to invest in the tech sector, aiming for sustainable global development by playing a pivotal role in AI. 

At the third G7 finance ministers’ meeting under the Italian presidency in Stresa, Italy, Saudi Finance Minister Mohammed Al-Jadaan highlighted the Kingdom’s dedication to advancing AI technology for inclusive growth. 

This effort aligns with Saudi Arabia’s National Strategy for Data and AI, which seeks to establish the Kingdom as a global tech leader by 2030. 

Moreover, the minister took part in a session titled “Addressing Financing Needs of Vulnerable Countries,” emphasizing the potential of a proposed multidimensional approach to managing debt vulnerabilities.