Private sector poised to reshape Jeddah’s healthcare landscape amid rising demand and demographic shifts
- 4,000 sddiitional hospital beds required by 2030 to meet global benchmarks
- Private operators manage 63% of Jeddah’s inpatient capacity – the highest in Saudi Arabia
- 65+ population set to grow 2.3 times by 2040, driving demand for long-term and specialist care
Jeddah, Saudi Arabia | 17 November 2025: Rising demand for healthcare in Jeddah is driving the next phase of the city’s medical sector expansion, according to Knight Frank’s latest publication, Healthcare in Saudi Arabia: Opportunities in Jeddah.
The white paper reveals that infrastructure development has not matched the scale or speed of the city’s urban growth, creating significant opportunities for private sector investment in hospitals, day-surgery centres and long-term care facilities.
With 1.8 hospital beds per 1,000 residents, excluding beds in quasi government facilities, Jeddah’s capacity stands below both national (1.9) and global (2.9) averages. To meet international standards, the city will require approximately 4,100 additional beds by 2030.
The imbalance is most pronounced in the east, where residents depend on primary care clinics, while 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% occupancy, underscoring the sustained demand despite capacity growth.
Shehzad Jamal, Partner – Real Estate Consultancy, MENA, said: “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 Jeddah’s communities.”
PRIVATE SECTOR LEADING EXPANSION
Private healthcare operators are at the forefront of Jeddah’s next phase of development, driving growth across hospitals, specialist centres and community-based care. With major hospitals operating at around 70% occupancy and long-term facilities at over 90%, sustained demand 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.
Knight Frank’s analysis of Al Salama Hospital highlights 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 commercial 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. Investment in human-centred care can deliver both patient and commercial value, opening the door to further expansion of services.
Meanwhile, mid-market operators are targeting the underserved eastern districts, reflecting expands-portfolio-in-dubai-land-residence-complex-to-strengthen-its-presence-in-dubais-growing-residential-corridor/”>growing investor confidence and increasing diversification of service models across the city.
DEMOGRAPHIC SHIFTS TRANSFORMING HEALTHCARE DEMAND
Jeddah’s population is expanding rapidly. 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 also changing, with the 65+ age group expected to grow by around 2.3 times by 2040, and the 40-64 segment rising by about 50% over the same period.
Dr. Gireesh Kumar, Associate Partner – Healthcare Advisory, MENA, said: “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 city’s long-term needs.”
LONG-TERM CARE – A CRITICAL GAP AND OPPORTUNITY
As Jeddah’s population ages and chronic disease becomes more prevalent, the need for long-term and rehabilitative care is becoming one of the city’s most urgent 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 will ease pressure on hospitals and improve accessibility and quality of care.
URBAN MEGAPROJECTS CREATE NEW HEALTHCARE CATCHMENT AREAS
Large-scale urban regeneration is another factor reshaping how and where healthcare services are delivered. More than US $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 sqm each of office and retail space, and nearly 4,700 hotel keys by 2030. Additionally, 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.
“Jeddah’s urban transformation is creating entirely new healthcare catchments,” said Dr. Kumar. “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 Jeddah’s long-term, sustainable growth.”
As Jeddah’s population grows, healthcare investment will remain one of the city’s most dynamic and resilient sectors. The combined effects of demographic change, private investment and urban development are driving a fundamental shift in how care is delivered, accessed and experienced.
Jamal concluded:“Jeddah’s 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.”