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- MENA Health Market

Expanding Towards Better Wellbeing

The Middle East and North Africa is an emerging market cradling large investments in the healthcare segment year after year. With rapid expansion in the private sector and with many countries in the region adopting mandatory health insurance policies, there is a new awareness of the importance of quality in healthcare and a concerted move to raise the level of medical care provided in the region.

The large boom in petroleum revenues, the increased commitment to healthcare demonstrated in national development plans, and the rising public health needs and expectations have converged to cause a rapid expansion in the medical services and technology transfers in the Middle East in the past decade. Saudi Arabia, for example, is one of the world’s largest importers of medical equipment and hospital management services. The Saudi health sector is facing new challenges to keep up with rapid demand as its rapidly rising population of 22.7 million is growing by 3.5%.

Currently the region’s health market is mounting with an annual rate of 16% and is estimated at around USD 76 billion, which makes it one of the world’s most attractive markets for hospital equipment and services companies. The total market for pharmaceuticals in the MENA nowadays exceeds USD 6 billion per year, it has been going through some fundamental changes ever since the early ‘80s.

The United Arab Emirates (UAE) is a small but wealthy collection of oil- rich states in the Middle East. The provision of healthcare is of a very high standard, with an extensive system of hospitals and clinics. This progress is clearly reflectedin the positive changes in health statistics which indicate that the UAE have taken their place among the developed nations of the world. Given the relatively recent nature of the UAE’s wealth, capital projects are still continuing, making the country an expanding market for the whole range of medical equipment and supplies.

The Levant region was for a short time affected by the middle east political conflicts but was soon enough able to establish new robust foundations for its health sector. In Jordan the medical device market is estimated to be worth USD 68 million in 2006, equal to USD 13 per capita. The Syrian Arab Republic is known as a self- contained country in terms of the different economy’s industries. National medical factories, which have recently increased to the number of 59 compared with 24 factories in 1990, manage to cover 90% of the local market’s need. 44 medicine factories are now exporting their production to 41 Arab and foreign states. Lebanon has the best hospitals and physicians in the region; when the war ended in 1991, the health sector in Lebanon was facing several problems but was able in a very short time to climb up and restore all its resources to reposition in the leadership of the domain. The ratio of private doctors per capita in Lebanon is among the highest in the MENA region with growing emphasis for newly developed medical projects like the BGUH (Beirut Governmental University Hospital) and the Gefinor Health Center.

Egypt is one of the largest medical device markets in the Middle East (along with Turkey and Saudi Arabia), worth an estimated USD 230 million in 2005. Per capita consumption, however, of USD 3.50 is one of the lowest in the region. The rest of North Africa benefits from the advantages of being close to the European market, the health sector there varies between countries, the most distinctive between these countries is Tunisia where the significance granted to health as a component of development has continually increased throughout the past decade and the total expenditures on health have increased from USD 1,512.91 million ( 1995) to USD 2,127.85 million ( 2005).

As the MENA’s healthcare facilities continue to develop, including ambitious developments such as Dubai Healthcare City and International Medical Center (IMC) in Saudi Arabia, an increasing number of international companies are looking to partner with local organizations to increase their penetration into the region and investors are spotting tremendous opportunities due to the changing trends in the health industry and the increased awareness for healthy life styles in the region.


Source: World Health Organization – WHO EMRO – The Regional Office and its Partners.

 
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