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April 2014

Alpen Capital’s GCC Healthcare Industry Report includes 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 utilising IT skills to spread the reach and range of healthcare services.

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.

The GCC Healthcare Industry 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.

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.

For more details please click here to access the complete version of the GCC Healthcare Industry Report.