Market Overview
Oman’s healthcare sector is transitioning from a predominantly government-funded model toward a mixed public-private system. Total healthcare expenditure reached OMR 2.8 billion in 2024, representing approximately 5.6% of GDP. The Ministry of Health operates 85 hospitals and over 200 health centres, while the private sector has grown to 12 hospitals and 1,400 clinics.
Demographic pressures including a young population bulge, rising non-communicable disease burden, and increasing life expectancy are driving demand for expanded capacity and specialised services.
Opportunity Assessment
The privatisation of government hospitals presents the largest single opportunity, with three facilities earmarked for PPP conversion by 2027. Pharmaceutical manufacturing remains underdeveloped, with over 85% of medicines imported. Medical tourism from neighbouring countries offers additional revenue streams for specialised facilities.
| Metric | Value |
|---|---|
| Healthcare expenditure | OMR 2.8 billion |
| Private sector share | 28% |
| Hospital bed ratio | 1.6 per 1,000 |
| Pharmaceutical imports | 85% of consumption |
| Annual sector growth | 8-10% |
| PPP projects pipeline | 3 hospitals by 2027 |
Risk Factors
Regulatory complexity around healthcare licensing, price controls on pharmaceuticals, and the dominance of government insurance schemes present challenges. Workforce Omanisation requirements may constrain staffing flexibility for specialised medical roles.
Entry Strategy
PPP tenders for hospital management offer the most structured entry path. Investors with pharmaceutical manufacturing expertise can access incentives through the Madayn industrial estates. Telemedicine platforms benefit from lighter regulatory requirements.
Vision 2040 Alignment
Healthcare investment supports Vision 2040 Pillar 2 (Well-being and Social Protection). The national health strategy targets 40% private sector participation by 2030, creating a clear policy runway for investment growth.