Jeddah’s healthcare sector is entering a phase of expansion as demand for medical services has begun to outpace existing infrastructure, according to analysis from Knight Frank in its publication Healthcare in Saudi Arabia: Opportunities in Jeddah.
The report identifies that infrastructure development has not kept pace with the city’s urban growth, creating opportunities for private sector investment in hospitals, day-surgery centres and long-term care facilities.
The scale of the gap is evident in the figures. Jeddah currently has 1.8 hospital beds per 1,000 residents, excluding beds in quasi-government facilities.
Jeddah’s healthcare expansion creates investment opportunities amid infrastructure gap
This falls below the national average of 1.9 beds per 1,000 residents and sits well below the global average of 2.9 beds per 1,000 residents. To reach international standards, the city will require approximately 4,100 additional beds by 2030.
The capacity gap is not uniform across the city. The imbalance is most pronounced in the east, where residents depend on primary care clinics for healthcare services.
The north is expected to see an oversupply of beds, with an additional 620 beds projected by 2030. However, leading facilities in the north continue to operate at around 75 per cent occupancy, underscoring the sustained demand for healthcare despite capacity growth.
“Jeddah is experiencing not just growth in numbers but a real shift in how people access and experience healthcare. The city is moving beyond the traditional hospital model. There is rising demand for neighbourhood-based services, for long-term and specialist care, and for facilities that blend technology and human connection. For investors, this changing landscape represents an opportunity to create new capacity and improve patient outcomes in Jeddahโs communities,” Shehzad Jamal, Partner โ Real Estate Consultancy, MENA said.
Private operators drive expansion across service models
Private healthcare operators are at the forefront of Jeddah’s development phase, driving growth across hospitals, specialist centres and community-based care.
Major hospitals operate at around 70 per cent occupancy whilst long-term facilities operate at over 90 per cent, sustained demand that is reinforcing investor confidence and spurring continued investment from the private sector.
Several leading providers are planning capacity increases in northern Jeddah, where most premium multi-specialty hospitals already run at high occupancy rates.
Mid-market operators are targeting the underserved eastern districts, reflecting growing investor confidence and increasing diversification of service models across the city.
Knight Frank’s analysis of Al Salama Hospital illustrates how Jeddah healthcare providers are redefining the patient experience. Following its 2024 relaunch centred on ‘humanising patient care’, the hospital transformed its patient journey through new digital systems and a renewed focus on empathy and clinical excellence.
The shift has strengthened its performance: Al Salama now operates 204 beds and achieved the highest inpatient experience score in Saudi Arabia in an independent survey of more than 400,000 patients.
The case demonstrates that investment in human-centered care can deliver both patient and commercial value, opening the door to further expansion of services.
Jeddah’s population is expanding at pace. Currently home to 3.8 million residents, the city’s population is forecast to reach nearly 5 million by 2040, driven by urbanisation, new housing supply and economic growth.
The composition of the population is changing as well. The 65+ age group is expected to grow by around 2.3 times by 2040, and the 40-64 segment is set to rise by about 50 per cent over the same period.
“This demographic transition is already reshaping healthcare demand. As lifestyle-related and chronic conditions such as cardiovascular disease and diabetes drive most hospital admissions, we expect to see healthcare providers moving away from acute care models and investing in preventative, rehabilitative and community-based services to meet the cityโs long-term needs,” Dr. Gireesh Kumar, Associate Partner โ Healthcare Advisory, MENA added.
As Jeddah’s population ages and chronic disease becomes prevalent, the need for long-term and rehabilitative care has become one of the city’s most pressing healthcare priorities.
According to Knight Frank, to meet projected demand by 2040, Jeddah will require an additional 2,400 long-term care beds, equivalent to approximately 14 new dedicated facilities.
Investor appetite for long-term and post-acute care is strengthening. Operators are exploring specialised rehabilitation centres, home-based recovery models, and integrated care campuses that can bridge gaps between primary and tertiary care.
These models are expected to ease pressure on hospitals and improve accessibility and quality of care.
Healthcare investment expected to continue growth
Large-scale urban regeneration is reshaping how and where healthcare services are delivered. More than $134 billion has been invested in the city’s real estate and infrastructure since 2016, creating new communities and commercial hubs that redefine healthcare accessibility.
Projects such as Jeddah Central, Marafy, Al Arous and the National Housing Company’s residential developments are expected to collectively deliver 119,000 homes, 1.5 million square metres each of office and retail space, and nearly 4,700 hotel keys by 2030.
The upcoming Jeddah Metro and expansion of Jeddah Islamic Port will enhance connectivity across the metropolitan area, enabling new healthcare catchments in currently underserved locations.
“Jeddahโs urban transformation is creating entirely new healthcare catchments. These large-scale developments are creating opportunities for integrated community healthcare that places hospitals, clinics and wellness facilities at the heart of well-connected neighbourhoods. Aligning healthcare delivery with urban development will be key to ensuring Jeddahโs long-term, sustainable growth,” Dr. Kumar said.
As Jeddah’s population grows, healthcare investment is set to remain one of the city’s sectors. The combined effects of demographic change, private investment and urban development are driving a shift in how care is delivered, accessed and experienced.
“Jeddahโs healthcare landscape is shifting from traditional hospital-based systems to a more diversified network of specialised facilities. This will require new investment models and closer integration between healthcare and the built environment. The next decade will be defined by how well providers respond to changing demographics. There is a big opportunity to create infrastructure that not only meets demand but sets new standards for wellbeing and sustainability,” Jamal concluded.
