Deal helps Chinese investors go global

Saudi Arabia has deepened ties with China-linked investors in healthcare, signing a major pact with Ewpartners to expand dialysis, rehabilitation, fertility and diagnostics services as the kingdom steps up private-sector participation to remedy persistent capacity gaps.

The Middle East nation's Ministry of Health and Ministry of Investment signed a strategic cooperation agreement in October at the 2025 Saudi International Medical and Health Expo with Ewpartners and four industry partners.

The deal, worth about 1.5 billion yuan ($214 million), targets four areas with the most urgent demand — hemodialysis, rehabilitation medicine, assisted reproduction and health diagnostics.

Officials cast the accord as part of the Health Sector Transformation Program under Vision 2030, which aims to lift private-sector participation in healthcare from roughly 40 percent to 65 percent while channeling more than $6.5 billion into infrastructure and digital upgrades. The program was designed to shift healthcare from predominantly public expenditure to a policy and capital-driven growth engine.

Saudi Minister of Health Fahad Al-Jalajel said recent reforms were already delivering results and that this year's forum would showcase new commitments.

He said agreements and investments exceeding roughly $33 billion would be signed, marking what he described as a new stage for Saudi Arabia's healthcare sector.

Al-Jalajel also framed healthcare as both a public priority and a diversification lever, citing demographics, rising noncommunicable diseases and a policy push for quality and efficiency as key drivers of private investment.

Market figures underscore the momentum in digital-enabled services. IMARC Group estimates Saudi Arabia's digital health market reached $4.4 billion in 2024 and could rise to $15.3 billion by 2033, implying a compound annual growth rate above 13 percent.

Under the framework, the Ministry of Health will provide policy and regulatory support, while the Ministry of Investment will facilitate capital deployment and cross-agency coordination, according to a joint statement.

Focused on cross-border industrial partnerships, Ewpartners will introduce technologies and global operators and develop sustainable investment and operating models adapted to local conditions.

Executives involved said the initiative is expected to add external capacity in the near term while building a pathway for localization in services and supply chains. The model pairs international technologies with Saudi operators to accelerate deployment and reduce per-patient costs.

The four areas of focus reflect measurable shortfalls. Hemodialysis demand has climbed with chronic kidney disease prevalence, while regional imbalances and limited site capacity have strained scheduling and access, keeping costs elevated. Rehabilitation medicine faces staffing deficits, with about 0.73 qualified therapists per 10,000 people, industry estimates show. Assisted reproduction services are growing at an estimated 5 percent to 6 percent annually but remain under-supplied. High-end diagnostics — including molecular testing, genetic assays and companion diagnostics — lag in regional penetration, equipment upgrades and workforce training.

Consultants said execution will require navigating high market barriers. The Saudi Food and Drug Authority's rigorous registration and quality requirements can extend time-to-market. Established US and European brands compete on quality and reliability, complicating entry for newcomers.

Access to centralized purchasing platforms such as the National Unified Procurement Co is essential to scale but difficult for foreign entrants. Building localized service networks adds cost and complexity, including clinician training, supply logistics and after-sales maintenance.

According to Ewpartners, such a tie-up could give Chinese and other international companies a route to scale with local sponsorship. Participants expect to translate operating playbooks in standardization, cost control and industrialized service delivery into Saudi settings, while committing to workforce development and technology transfers to meet localization thresholds.

Jessica Wong, founder and managing partner of Ewpartners, said long-term execution would be decisive given the complexity of healthcare. The firm aims to translate the experience of Chinese healthcare companies in scale-up, standardization and cost control into replicable international capabilities.

renqi@chinadaily.com.cn