THE LAW FIRM OF HAZIM AL MADANI ATTORNEYS AND LEGAL CONSULTANTS
Investors’ Health licenses In Saudi Arabia
The start of the health march in Saudi Arabia:
The organized health march and disease control in Saudi Arabia started as one of the most important priorities and concerns of the Saudi government, the reason for the start of this march is King Abdul Aziz – God bless him – which led to a focus on the public health and work to develop it and the prosperity of the health system in its entirety. The Public Health Authority was established in 1343 H / 1925 AD and is based in Makkah Al-Mukarramah, provided that there will be other branches in various areas. Soon after, specifically in 1344 H / 1925 AD, the Directorate of Public Health and Ambulance was established to take care of health and environmental affairs to ensure the practice of Medicine and Pharmacy in all parts of Saudi Arabia.
What are the new organized horizons that have now been taken in Saudi Arabia towards health?
One of the most important organized health steps taken at this time was to increase the volume of cooperation with international organizations and to use highly qualified foreign expertise to obtain the most important global developments in the field of health, make all efforts to keep pace with and implement them in a proper manner, through the localization of competencies, and initiate an integrated health sector including – hereafter – all the vast regions of Saudi Arabia.
As the medical progress and development in Saudi Arabia, the provision of health care at all levels, the promotion of public health, the prevention of diseases, the development of laws and regulations governing the public and private health sector, and the monitoring of its performance, investors were encouraged to establish small and medium enterprises and generally invest in the health sector.
What is the strategic importance of investing in the health sector?
Strategic investment in the field of health not only provides better health and improves individual well-being, but also enhances economies, creates job opportunities and enhances personal productivity. In other words, investment in the health sector is a vital economic and societal incentive.
Why should you invest in the healthcare industry?
Because currently, the healthcare industry is rapidly moving from curative to preventive, with increasing per capita income and rising levels of awareness in rural and urban areas, investment opportunities in the healthcare sector have become highly profitable.
Is it permissible for a foreign investor to invest in the field of health in Saudi Arabia?
Yes, a foreign investor may invest in the field of health. The foreign investor is also entitled to apply for temporary licenses for government projects bids to compete with them, as well as to obtain temporary licenses to execute governmental or semi-governmental contracts.
When is the approval issued to the foreign investor?
The initial approval is issued to the investor immediately, except in private hospitals, one-day surgery centers, addiction centers, telemedicine centers and independent home medical services centers.
What is the authority responsible for granting licenses to open hospitals, treatment and rehabilitation centers for addicts and independent fertility centers?
The Auxiliary agency for the Development of Health Investment, provided that the directorates of health affairs in the regions and governorates shall issue and renew all health licenses.
We can talk about the Health Holding Company, which is the Saudi government company that was established by a cabinet decision on June 2 under the Ministry of Health. It aims to provide integrated healthcare services to beneficiaries in all regions of Saudi Arabia.
What will the health holding company develop?
The management of all public and private hospitals in Saudi Arabia will be transferred under the supervision and organization of the company.
What are the most important goals of the new health holding company?
The new Health Holding Company is characterized by the many efforts exerted to raise the level of health completely within Saudi Arabia. We can state the most important goals sought by the Health Holding Company, including:
- • Follow the latest and best means in order to develop health services provided to citizens and residents in Saudi Arabia.
- • Promoting community health, prevention and early detection of diseases and health risks.
- • Working to achieve ambitious goals in accordance with Saudi Arabia's future vision for healthcare in 2030.
- • Increasing the effectiveness of the health system performance.
- • Providing the latest equipment to treat many chronic diseases such as cancer care or kidney failure, as well as developing specialized care services.
- • Implementation of the transformation strategy in the Ministry of Health.
- • The company is also keen to provide a health service to citizens with the best quality.
- • Providing targeted programs that provide primary health care, such as (a medical program for every family - a chronic disease care program).
Health licenses in a broad sense In Saudi Arabia
What is the health licensing service?
It is a unified and comprehensive service for all health licenses, which is characterized by direct technical integration with all relevant government agencies.
What are the types of health licensing services:
Initial approval for establishments: This service enables investors to obtain initial approval from the Ministry of Health to start any health project automatically.
Professional licenses for practitioners: This service enables health facilities in Saudi Arabia to automatically issue, renew and cancel professional licenses for health practitioners within only 30 seconds.
Assignment of the health practitioner: This service enables the job approval of the health practitioner in a facility other than his facility automatically.
Health facility licenses: This service enables investors and existing health sector facilities to automatically issue, renew, cancel, transfer ownership and modify data for health facility licenses.
Professional licenses for practitioners: This service enables health facilities in Saudi Arabia to automatically issue, renew and cancel professional licenses for health practitioners within only 30 seconds.
Assignment of the health practitioner: This service enables the job approval of the health practitioner in a facility other than his facility automatically.
Health facility licenses: This service enables investors and existing health sector facilities to automatically issue, renew, cancel, transfer ownership and modify data for health facility licenses.
Does the service of issuing health licenses require documents?
The health licensing service does not need any documents.
What are the entities related to the issuance of medical licenses?
- ● National Information Center
- ● The Ministry of Commerce and the Ministry of Investment
- ● The Saudi Commission for Health Specialties
- ● Ministry of Labor
- ● Social Insurance
- ● Ajeer System
Saudi Arabia is a fertile and attractive land for foreign investment. foreign investors have the right to establish their investments in all parts of Saudi Arabia, the Ministry of Investment enables investors to access investment opportunities by facilitating the Foreign Investment Terms and Procedures in Saudi Arabia, as well as adding some benefits and incentives that attract foreign investors to invest in Saudi Arabia, so that foreign capital flows into the Kingdom, which increases the number of economic projects. One of the most important economic projects that concern foreign investors is the field of health because of its importance and achieving the greatest return from the returns of other investment fields.
Hence, we can state the procedures for granting health licenses to foreign investors in all health sectors in their various forms:
Procedures for licensing a private health institution for local and foreign investors
In Saudi Arabia
(Opening a private hospital)
(Opening a private hospital)
The first step:
- ● The investor submits a request to open a private hospital by registering on the Seha platform, choosing the hospital’s specialty, number of beds, and location, together with:
- ● A copy of the property title deed or a copy of the property lease contract for a term of no less than 15 years.
- ● Commercial registration number issued by the Ministry of Commerce.
- ● A copy of the Ministry of Investment license if the investor is a non-Saudi.
- ● Initial engineering drawings approved by an engineering office approved by the General Administration of Engineering Services at the Ministry of Health or any other engineering office specialized in designing health facilities, provided that the plans are sent to the General Department for Engineering Services at the Ministry of Health for approval.
- ● The approval of the Ministry of Municipal and Rural Affairs and Housing on the site.
Second Step: Issuing licenses and approvals from the relevant government agencies:
- ● Submitting approvals for health professionals from the Ministry of Health.
- ● Submitting the final engineering drawings to the Ministry of Health for final approval before construction.
Third step: Issuing the hospital’s final license:
Upon completion of the hospital construction project, the investor submits a request to open and operate with the following attachments:
- ● The license of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for health professionals issued by the Saudi Commission for Health Specialties.
- ● A copy of a security guard contract.
Second, Procedures for licensing a public medical complex, especially for local or foreign investors In Saudi Arabia
The first step:
The investor submits a request to open a public medical complex by registering on the Seha platform, choosing the type, specialization and location of the health institution, and attaching the following:
- ● Number Of Commercial registration issued by the Ministry of Commerce.
- ● Copies of the license of the Ministry of Investment in case the investor is a non-Saudi.
- ● The approval of the Ministry of Municipal and Rural Affairs and Housing on the site.
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for obtaining the final license for a public medical complex:
After completing all the medical and administrative equipment and providing clinics for at least three medical specialties, one of the basic specialties (surgery, internal medicine, obstetrics and gynecology, pediatrics, family medicine) in addition to providing an emergency department in the complex, the investor submits an application for obtaining the final license, attaching the following:
- ● The license of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.
- ● A copy of an investment from an ambulance, provided that its model is no less than five years from the year of manufacture or the signing of an agreement with a governmental or private ambulance service center.
Third: Procedures for licensing the specialized medical complex for foreign and Saudi investors
The first step:
The investor submits a request to open a public medical complex by registering on the Seha platform, choosing the type, specialization and location of the health institution, and attaching the following:
- ● Commercial registration number issued by the Ministry of Commerce.
- ● Copies of the license of the Ministry of Investment in case the investor is a non-Saudi.
- ● The approval of the Ministry of Municipal and Rural Affairs and Housing on the site.
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for obtaining the final license for a specialized medical complex:
After completing all the medical and administrative equipment and providing a minimum of two clinics in the complex, the investor shall apply for obtaining the final license, attaching the following:
- ● License of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.
Fourth: Procedures for licensing a radiology center for foreign and Saudi investors
First step:
The investor submits a request to open a radiology center by registering on the Seha platform, choosing the type and location of the health institution, and attaching the following:
- ● Commercial registration number issued by the Ministry of Commerce.
- ● A copy of the license of the Ministry of Investment in case the investor is a non-Saudi
- ● Approval of the Ministry of Municipal and Rural Affairs and Housing on the site
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for obtaining the final license for the radiology center:
After completing all the medical and administrative equipment and providing the radiology center, the investor shall apply for obtaining the final license, attaching the following:
- ● License of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.
Fifth: Procedures for licensing a medical laboratory for foreign and Saudi investors
The first step:
The investor submits a request to open a general or specialized medical laboratory by registering on the Seha platform, choosing the type and specialization of the health institution and its location, and attaching the following:
- ● Commercial registration number issued by the Ministry of Commerce.
- ● A copy of the license of the Ministry of Investment in case the investor is a non-Saudi
- ● Approval of the Ministry of Municipal and Rural Affairs and Housing on the site
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for obtaining the final license for the medical laboratory
After completing all the medical and administrative equipment for a general or specialized medical laboratory, the investor shall apply for obtaining the final license, attaching the following:
- ● License of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.
Sixth: Procedures for licensing a one-day surgery center For foreign and Saudi investors
The first step:
The investor submits a request to open a one-day surgery center by registering on the Seha platform, choosing the type, specialization, and location of the health institution, and attaching the following:
- ● Commercial registration number issued by the Ministry of Commerce.
- ● A copy of the license of the Ministry of Investment in case the investor is a non-Saudi
- ● Approval of the Ministry of Municipal and Rural Affairs and Housing on the site
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for Obtaining the Final License for one-day surgery center:
After completing all the medical and administrative equipment for the center, the investor shall apply for obtaining the final license, attaching the following:
- ● License of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.
- ● A valid agreement with a private or government hospital to accept emergency cases that require transfer to the hospital at any time.
- ● An acknowledgment that the patient is not allowed to stay in the hospital overnight.
- ● An acknowledgment from the doctor to be licensed that he bears full responsibility for any negligence that occurs to the patient.
- ● An acknowledgment from the center's supervisor not to allow the patient to stay in the center for an overnight stay.
Seventh: Procedures for licensing a clinic for foreign and Saudi investors
The first step:
The investor submits a request to open a clinic by registering on the Seha platform, choosing the type and specialty of the health institution and its location, and attaching the following:
- ● Commercial registration number issued by the Ministry of Commerce.
- ● A copy of the license of the Ministry of Investment in case the investor is a non-Saudi
- ● Approval of the Ministry of Municipal and Rural Affairs and Housing on the site
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for obtaining the final license for the clinic
After completing all the medical and administrative equipment for the clinic, the investor shall apply for obtaining the final license, enclosing the following:
- ● License of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.
Eighth: Procedures for licensing support health services centers For foreign and Saudi investors
The first step:
The investor submits a letter requesting the opening of a support services center by registering on the Seha platform, choosing the type and specialization of the health institution and its location, and attaching the following:
- ● Commercial registration number issued by the Ministry of Commerce.
- ● A copy of the license of the Ministry of Investment in case the investor is a non-Saudi
- ● Approval of the Ministry of Municipal and Rural Affairs and Housing on the site
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for Obtaining the Final License:
After completing all the medical and administrative equipment for the clinic, the investor shall apply for obtaining the final license, attaching the following:
- ● License of the Ministry of Municipal and Rural Affairs and Housing.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.
Ninth: Procedures for licensing ambulance services centers For foreign and Saudi investors
The investor submits a letter requesting the opening of a support services center by registering on the Seha platform, choosing the type and specialization of the health institution and its location, and attaching the following:
- ● Commercial registration number issued by the Ministry of Commerce.
- ● A copy of the license of the Ministry of Investment in case the investor is a non-Saudi
- ● Approval of the Ministry of Municipal and Rural Affairs and Housing on the site
Second step: Issuing licenses and approvals from the relevant government agencies
- ● Requesting for approvals for health professionals
Third Step: Requirements for Obtaining the Final License:
After completing all the medical and administrative equipment for the clinic, the investor shall apply for obtaining the final license, attaching the following:
- ● License of the Ministry of Municipal and Rural Affairs.
- ● Registration and classification number for all health professionals issued by the Saudi Commission for Health Specialties.