We provide healthcare solutions and services for businesses, individuals and families with a product and service portfolio that maximizes customer convenience.

Operating Environment

The Saudi Economy displayed a robust growth in 2022 with a healthy economic expansion supported by Vision 2030.

In 2022, Saudi Arabia was able to successfully navigate the headwinds associated with the COVID-19 pandemic, positioning itself to leverage a period of high oil and gas prices to bolster revenue streams. As a result, Saudi Arabia’s GDP grew at the fastest pace in a decade.

The long-term economic growth story of the Saudi economy remains intact, supported by a favorable policy environment in line with Vision 2030 and its core agenda of economic diversification. The Kingdom projects state expenditure in 2022 SR 1,114 billion, while total public revenues are forecast to remain elevated at SR 1,130 billion, backed by a healthy expansion in the domestic non-oil sector and high international energy prices.

According to General Authority for Statistics (GASTAT) data, the Kingdom recorded a healthy real GDP growth of 8.7% in 2022, aided by higher global oil prices and the expansion of non-oil economic activity amid improved consumer and business confidence. GDP growth has mainly come from Oil sector, which grew by 15.4% compared to 2021, whereas non-oil sector growth was 5.4%.

2023 Economy Outlook

Saudi Arabia has announced a SR 1.114 trillion budget for 2023, with expectations for SR 1.13 trillion in revenues and SR 16.0 billion in surplus, or 0.4% of GDP.

The Saudi economy is projected to record a 3.1% YoY growth in real terms in 2023 (IMF forecast 3.7%), primarily supported by an increase in non-oil activities and driven by private sector investments, which will lead to an increase in jobs in the labor market. Jobs will also be created through a number of initiatives as a part of the “Vision 2030” programs.

The major risk for 2023 is a global recession induced by policy interest rate hikes across major economies in an effort to combat inflationary pressure. Coupled with any resulting supply-demand imbalances in global oil markets, this could alter the projected growth outlook of the Kingdom.

The Insurance Market in Saudi Arabia

Note: 2022 results for the first 9 months are published. Does not contain the Q4 results yet.

The insurance sector in the Kingdom continues to maintain its growth trajectory, recording total Gross Written Premiums (GWP) of SR 40.19 billion by the end of YTD Q3 2022, over the same period last year. Moreover, the health insurance, in which Bupa operates, GWP grew by 25.6% in the first nine months of 2022 (compared with the same period of 2021) reaching SR 23.86 billion.

Notably, demand for digital solutions remained healthy, facilitated by a broader product offering and digitization initiatives across the industry in line with the Saudi Central Bank’s (SAMA) encouragement. Bupa Arabia, being at the forefront of the digitization drive, remains well positioned to benefit from digital-driven market penetration growth.

Below is the YTD-Q3 2022 overview of the insurance industry in KSA.

GWP – Total insurance market

25.1% YoY 

2022 – 9 months: SR 40.2 billion

2021 – 9 months: SR 32.1 billion

GWP – Health insurance market

25.6% YoY  

2022 - 9 months: SR 23.9 billion

2021 - 9 months: SR 18.9 billion

Total insurance penetration


vs 1.20% as of 3Q 2021

Health insurance penetration


vs 0.73% as of 3Q 2021

Loss ratio


vs 81.8% as of 3Q 2021

Industry net profits

19.8% YoY  

2022 – 9 months: SR 559 million

2021 – 9 months: SR 467 million

Market Share Overview 2022

(Note: Overall results from Q4 2022 have not been published yet)

As of end 2022, Bupa holds a 28% share in the overall insurance sector of the Kingdom. This is mainly owing to its market leadership in the health insurance sub-sector which accounted for ~60.0% of the total GWP generated in the Kingdom by the end of 2022. The comparative performance of the Company in relation to its peers in the industry is illustrated below.

Market share and positioning

* Based on 3Q FY22 estimates

Health Insurance Industry 2023 Outlook

We maintain a positive outlook for the industry and are cautiously optimistic. We expect the insurance sector to grow in 2023, albeit at a slower pace compared to 2022. We believe that the strength of the ongoing post-pandemic recovery and favorable market dynamics should augur well for the health insurance market, despite some macroeconomic risk in relation to high inflation.

Below are key factors which will propel the health insurance sector forward:

  • Macroeconomic factors: KSA government has announced a SR 1.114 trillion budget for 2023, which is expected to result in job creation during the year. Moreover, budget spending on the healthcare sector is expected to be ~SR 80 billion in 2023, up 4.0% from 2022.
  • Regulatory factors:
    1. The health insurance insured lives market has shown notable growth, driven by job creation as the Saudi economy managed to create over 1.8 million jobs during 2022.
    2. The enforcement of health insurance for the domestic helpers segment will bring in a new opportunities to the market. While the domestic helper-employer liability insurance has been announced by the Saudi Central Bank; the health insurance cover for domestic helpers is not yet enforced by regulators. This segment represents 3.5 million lives.
    3. Increase in travel and Hajj/Umrah visitors will also have positive impact on insurance GWP growth in 2023.
    4. In July 2022, the Council of Health Insurance (CHI) announced an Essential Benefits Package, aiming to provide better and higher benefits to insured members. It’s implementation through 2023 will result in higher costs to insurance companies, resulting in price increases.
    5. Full impact of NPHIES roll-out will be at a price tag of 2.0% of claims, on top of existing regulatory levies of 1.5% of GWP.
    6. The deletion of Article 117 of CHI bylaws will encourage health insurance companies to explore integrated healthcare model of provision-insurance to improve customer experience and manage claims better.
    7. Full enforcement of CHI mandate on the insurable market. While we have seen improvement during 2022, the pace of job creation is ahead of the enforcement. We believe full enforcement will bring to the market additional 2.5-2.9 million lives.
  • Market behavioral factors:
    1. Higher frequency of utilization/hospital visits was noticed in 2022 and it is likely to continue in 2023 as well.
    2. Medical inflation remains highest at around 10.0% for Saudi Arabia compared to other middle eastern countries, as reported by Willis Tower Waston in its global medical survey report 2022.
    3. Geographical expansion of leading high-end providers that will have an adverse impact on claim costs.
    4. Operational income of Insurance sector has started to shrink. In 2022, the insurance sector recorded notable earnings from investments, compared to earnings from the core operations as a result of higher operational expenses.