Funding information The Research Council Present study examine the effect of public healthcare expenditure on health outcome in Arab Golf region by using World Bank world development indicators data. This study found that health expenditure had a significant effect in improving health outcome in this region. The effects of health expenditures on infant mortality rate, child mortality rate and maternal mortality rate are negative and statistically significant implying that the public health expenditures is essential for improving population's health. However, the present study shows that public health expenditure has no significant effect in reducing death due to non-communicable diseases. The study also found that per capita GDP had significant positive effects in increasing life expectancy rate and reducing infant mortality rate in this region. Availability of safe drinking water also played a significant positive role in increasing life expectancy and decreasing infant and child mortality rate.