SAUDI Arabia is best known as the home of Islam's holiest sites but this Middle-Eastern nation is attracting business types as well as pilgrims. For instance, it is now emerging as the next hot spot for health-care services players.
As the economic outlook brightens, Singapore-based firms are looking to seize opportunities for long-term growth in unusual markets such as this.
To help them on their way, trade agency International Enterprise (IE) Singapore led nine companies on an inaugural health-care services mission to Saudi Arabia from last Friday to Tuesday.
Oil-rich Saudi Arabia averted an economic contraction last year with estimated economic growth of 0.15 per cent, according to a study by Kuwait-based Global Investment House.
The country of 29 million people is expected to stage a solid recovery and grow by about 3 per cent this year, said the study.
Last year, Saudi Arabia's total spending on health care was US$16.7 billion (S$23.55 billion), a jump of 26.5 per cent from the year before. The government also earmarked 10 per cent of a US$126.7 billion stimulus budget unveiled last year for health services and social development.
'The large market and emphasis placed on health-care services make Saudi Arabia a potential partner for our health-care services players across the entire value chain,' said IE Singapore assistant chief executive Yew Sung Pei in a statement.
IE Singapore aids enterprises in developing business capabilities, finding overseas partners and entering new markets.
Mr Yew said that the mission would allow companies to 'better understand the health-care sector in Saudi Arabia, including the trends and regulations, manpower issues and needs of the population'.
One of the delegates to Saudi Arabia was ParkwayHealth, which had announced plans in late 2008 to export its hospital management expertise to the Middle East through a management contract for a new hospital in Abu Dhabi.
The Danat Al Emarat Women & Children's Hospital, to be developed by United Eastern Medical Services LLC (UEM), is estimated to cost US$200 million and is due for completion in early 2012.
It marks Parkway's first foray into the Middle-Eastern health-care market, a growth spot that the company is bullish about.
'We believe in the growth potential of the Middle East market... and we will continue to look for more opportunities to extend our presence in the region,' said Dr Lim Cheok Peng, the company's group president and chief executive.