Relationship between Economic Growth and Healthcare Policies in Saudi Arabia

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RELATIONSHIP BETWEEN ECONOMIC GROWTH AND
HEALTHCARE POLICIES IN SAUDI ARABIA

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Table of Contents
Introduction 3
Vision 2030 3
Economic Growth in Saudi Arabia 4
Quality Healthcare Policies 4
Conclusion 5
References 6

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Introduction
The relationship between healthcare planning and socioeconomic growth is an assumed causal
one though not empirically proven. Advocates of this positive link project that sustained
spending for healthcare enhances the productivity of the country’s population as better health
status of workers will ultimately promote economic growth. The though there is no compelling
empirical evidence in literature to support this view, the evidence that is present is mixed. But
country specific study is scarce (Celaya, Mueller & Hernandez, 2018). For a country like Saudi
Arabia with its oil-resource-based economy any threats and vulnerabilities towards the revenue
will result in a massive decrease for healthcare spending. It is well documented that countries
whose economies are based on oil resources have a very undiversified and weak economic base
and are highly vulnerable to cycles of boom-and-bust cycles and thus in order to sustain he
healthcare system the policy makers need to formulate long term policies that will de link and
insulate there healthcare spending from its current oil revenue dependent economy.
Vision 2030
Vision 2030 is a plan developed by the Saudi administration in 2016 that will help reduce the
countries dependency on oil and diversify the country's economy by developing the public
service sectors like health, infrastructure, education, tourism and recreation (Alhawassi, et al.
2018). The plan includes goals like reinforcing investment and economic activities, increasing
the trade of non oil industries between countries by focusing on increasing the production of
consumer goods and increasing military expenditure by the government and manufacturing
ammunition and equipment. Crown prince Mohammed bin Salman announced the primary
details of the plan on 26th April, 2016 (Alshuwaikhat & Mohammed, 2017). The council of
economic and development affairs were tasked by the council of ministers to identify and
monitor the various mechanisms and measures that will be crucial for the implementation of
Vision 2030. One of the primary focus of Saudi Arabia's vision 2030 is healthcare. Vision 2030
targets greater inclusion of the private sector inside the national economy and particularly in the
field of healthcare. A Stated objective in the NTP shows a definite move towards privatising the
healthcare industry with the increase in private healthcare expenditure from its current 25% to
35% of the gross expenses by 2020. This plan identified a projected revenue increase of about 1
billion SAR . In addition the health minister plans on spending around 23 billion SAR o new
ventures and initiatives over the course of next 5 years.