Healthcare Industry Update – Q1, 2015

Healthcare Industry Update – Q1, 2015

The ageing population of the entire MENA region is the main factor expected to drive growth within the MENA region over the next decade. Specifically, the MENA region is likely to witness the quickest growth of the ageing population (those people above 65) of 4.1% per annum.

This rise indicates more business for healthcare providers with the need for more medical care and more expensive health profiles than ever before.

With strong correlation between economic prosperity and health going hand in hand, the MENA region sees a significant deficiency in the investment in their infrastructure with only 4.0% of their GDP on healthcare, compared to 14.3% in the americas and 9.3% in Europe. Although healthcare allocation remains high in countries such as Jordan, Tunisia, Bahrain and the UAE, there has been little improvement and progress apart from the UAE.

The region has realised this and looks likely to make a concerted effort to invest in their healthcare infrastructure, with it hopefully helping boost their economy even more.

Old Age

The ageing population is one of the main factors driving growth.

The increased investment will drive the healthcare market value upward, analysts forecasting its value to be around 144 USD Billion by 2020 with the government/public sector continuing to be the dominant force holding 58% of the market share.

However, there still lies a problem in the MENA region with the availability of doctors and healthcare professionals still well below that of the more developed nations. This could pose a potential crisis, particularly with the ageing population.

According to Al Masah Capital, they estimate the region is currently short of nearly 128,000 physicians, 294,000 dentists and 1.6 million nurses these numbers are only expected to increase by 2020.

The demand for skilled workers is high with countries looking to bring experienced practitioners from the western world to lead development of health programs at the regions newest hospitals.

Saudi Arabia

Aligned with the current trends of the region and the need to diversify away from the hydrocarbons sector, expect to see heavy investment in the healthcare sector in 2015.

Multinational companies are expected to continue their market strength despite more regulatory laws.

In the pharmaceutical industry there has been a forecasted upgrade to 14.2% due to availability of new pharmaceutical trade data.

(Details from Saudi Arabia was the only report accessible at time of publication.)

To receive the latest job postings, upload your CV to our database now and receive a free CV appraisal
Login and upload your CV now