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Alpen Capital today announced the publication of its GCC HealthcareIndustry Report whichincludes details on current market trends and challenges faced by the GCC Healthcare sector and the on-going initiatives by GCC authorities to address these issues. The report encompasses profiles of each GCC country and highlights the existing market scenario in the healthcare sector. Finally, the study covers profiles of major publicly-listed and private firms (including details about their performance and market position).
“The GCC region is poised for an unprecedented surge in healthcare consumption driven by robust population growth and rising income levels. Higher income levels and sedentary life styles have led to poor health conditions, a phenomenon that has been witnessed in most developed economies. The governments, which play the predominant role in healthcare services, are taking steps to ensure continuous development of infrastructure through nurturing management skills, increasing the share of private sector and utilizing IT skills to spread the reach and range of healthcare services”, says Sameena Ahmad, Managing Director, Alpen Capital.
“We are bullish on the prospects of the healthcare industry in the region. On the demand side, rising affordability, lifestyle related diseases, the treatment of which is both costlier and lengthier, and increasing insurance penetration will ensure vigorous rise in healthcare spending in the GCC. On the supply side, the government is taking measures to ensure that the infrastructure is equipped to handle the increasing demand. The government is considering PPP models to bring efficiency while reducing financing burden, along with other measures such as e-health and m-health tools. There is dearth of highly qualified medical practitioners in the region and hence influx of foreign practitioners will continue to remain a trend. Private sector has limited presence in the industry at present but will play an important role in the time to come”, saysSanjay Vig, Managing Director, Alpen Capital.
The GCC HealthcareIndustry Outlook
According to Alpen Capital, the GCC healthcare market is projected to grow at an annual rate of 12.0% to US$ 69.4 billion by 2018 from an estimated US$ 39.4 billion in 2013. Outpatient and inpatient markets are expected to account for 79% and 21%, respectively, of the overall market size.
Saudi Arabia will continue to be the largest market, accounting for 58.2% of the total in 2018, followed by the UAE (18.1%). In addition, Qatar and the UAE are expected to be the fastest growing markets in GCC over 2013–18.
The demand for number of hospital beds is expected to be 115,544 in 2018, an addition of 11,241 beds from 2013, which is in line with the expected supply looking at the number of projects in the pipeline.
Key growth drivers
The IMF estimates that the region’s population would cross the 50 million mark by 2020, providing impetus to the consumption of healthcare services.
Rising income levels and sedentary lifestyles have led to a higher prevalence of obesity and diabetes leading to a demand for specialized healthcare services
GCC population in the age group of 65 and above is expected to surge from 1.2 million in 2015 to 14.2 million in 2050, driving demand for healthcare services. Life expectancy in 2011 for the GCC region stood at 76.4 years against 69.8 and 69.0 for the Arab and BRIC regions, respectively. In addition, infant mortality in the GCC improved from 110 per 10,000 live births in 2000 to 78 in 2012
While growth in the region’s insurance premium outpaces the growth in the global market, the insurance penetration remains one of the lowest in the world
The region is building large medical cities and complexes, with billions of dollars of investments lined up, to not only raise the supply of medical infrastructure but also raise the quality of healthcare services in the region
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