Healthcare Industry Update Q2 2015
A booming population and better healthcare has led to an ageing population. The addition of massive healthcare expenditure, the demand for more hospitals in the gulf and in-turn, employees, has increased dramatically.
In 2015, expenditure is expected to grow at a compound rate of 11.4% by 2015.
With a boom in the healthcare sector expected and numerous infrastructures being built, the healthcare industry is one that is likely to be the most buoyant in terms of hiring outlook and economic growth.
Due to the falling oil price posing less of a threat to government and economical stability (compared to the other nations within the GCC) Qatar’s spending in the healthcare sectors is likely to remain elevated.
Following the second phase of the GCC drug price unification process, access to medicines will be easier for nurses, physicians and the public in Q2 and commercial opportunities will persist.
The forecast is similar to that predicted in 2015 with expenditure predictions likely to reach QAR 20.19bn by 2015 end.
In the medical devices field, the market continues to be an attractive market despite its small population size. Per capita expenditure is high (second in the region) and the medical devices sector is likely to benefit from government expansion plans as part of the Qatar National Vision 2030.
There will be likely numerous opportunities in the medical device landscape in multinationals and Qatar aims to provide universal healthcare including access to the latest medical advancements.
With a huge expat population and an ageing national population, the healthcare industry has come under the spotlight in recent years in the UAE.
The need to develop better infrastructure has not fallen on deaf ears as the UAE continue to invest heavily in adequate infrastructure and resources are accessible when needed.
With the increase in hospitals come job opportunities as the demand for nurses and physicians is beginning to heat up. An example of this is the opening of the Cleveland Clinic Abu Dhabi, a new hospital, which will gradually open from March and be fully functional by the end of May.
Once fully operational, the hospital will place 175 physicians and 1,500 nurses as part of an overall staff of around 3,000 people.
Other projects planned for 2015 and beyond include two major hospital facilities from Aster DM Healthcare (included the one that has just opened in Dubai), Al Noor Hospitals group committing to two new projects and NMC healthcare likely to open three new hospitals including one in Dubai, Abu Dhabi and Al Ain (Source).
The UAE is becoming a regional hub for medical device multinationals. Among the top 40 largest medical device markets in the world, regionally, it ranks 4th and the investment in healthcare infrastructure from the government, an expanding health insurance and increasing expenditure are contributing factors contributing to its growth, helping offset the effects felt from the low oil prices.
A continued investment in the healthcare sector and increase in spending in the infrastructure will provide further jobs in Q2 2015. With an overspend in 2014, forecasts suggest Saudi will overspend on the allocated budget in 2015 which is a representation of the faith and need for an adequate healthcare system.
Because of this, it reaffirms BMIs view that it is the most affluent and attractive pharmaceutical and healthcare markets in the MENA region with a predicted USD 30.4bn expenditure in 2015.
Saudi Arabia’s medical device industry has experience a volatile but overwhelmingly positive growth according to BMI. Since declining sales in 2009 when the economy turned, it has seen a steady increase in growth. Despite a large amount of the healthcare funds being allocated towards infrastructure, the medical device industry is likely to see an increase in investment also.
Kuwait’s healthcare industry is well equipped to deal with the falling oil prices the region is facing. Drug makers and workers can expect a rising underlying demand for branded prescriptions to be sustained.
The only negative that poses a threat to the growth and job outlook for the healthcare industry in Kuwait is the lack of direction from the Kuwaiti government due to the number of consistent resignations in cabinet. This has prevented the establishment of clear budgets and expenditure for the industry impacting the stability of the market.
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