How Vision 2030 is driving growth in the Saudi Arabia IVD market

How Vision 2030 is driving growth in Saudi Arabia’s IVD market

Saudi Arabia will be the world’s fastest-growing major economy in 2022, outperforming other countries in the Middle East and other major emerging economies. The kingdom has implemented a wide range of reforms under the Vision 2030 strategy, improving the business environment and sectors including healthcare. 

Vision 2030 impact on the IVD market   

Saudi Arabia spent an estimated of 6.6% of its GDP on healthcare in 2021, up from just 3.7% a decade ago. The kingdom’s healthcare spending is now markedly higher than that of its regional peers such as the United Arab Emirates (UAE). Healthcare spending is expected to increase an annual average of 3% from 2022 to 2025 to meet Vision 2030 goals. The larger budget will realise the Saudi Vision 2030 plans to increase the number of public hospitals, clinical laboratories and upgraded facilities across the kingdom. 

Public and private investment in healthcare is expected to boost IVD testing, particularly in areas such as infectious disease testing and cancer testing. The decentralisation of healthcare will also shift test volume from tertiary care to lower levels of care.

What is the size of Saudi Arabia’s IVD market? 

Saudi Arabia’s IVD market in 2022 is estimated at US$678.6m.

Essential 2023-2026 insights on the Saudi Arabia IVD market:

  • Like in other Middle East IVD markets, the period of 2023 to 2024 is expected to be a critical period of post-pandemic recovery with the Saudi Arabia IVD market projected to decline in 2023 after a slowdown since the covid-19 pandemic in 2020, before climbing back onto its growth trajectory from 2024 onwards.
  • Saudi Arabia’s centralised diagnostic (CEDx) market is set to grow faster than in other major Middle East economies. 
  • Point-of-care testing (POCT) is growing at around 4% on an annual average..
  • Molecular diagnostics (MDx) is expected to contract by almost 6% annually on average from 2023 to 2026. . 
  • The tissue diagnostics (TDx) market is set to grow by more than 10% annually on average in the same period. Digital pathology will be the fastest growth segment within TDx and across the kingdom’s IVD market.
  • The next-generation sequencing (NGS) market is also expected to grow by more than 10% annually on average in the same period.

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