Better Wellbeing for the world to see

After the growing private and public investments in the healthcare sector over the past few years, the Middle East and North Africa region is witnessing a remarkable improvement on the level of life quality and expectancy. Petroleum exporting nations in the region are bene?ting from higher oil prices, thereby boosting their import purchasing power. Market imports from the world are expected to reach US $351 billion by the end of 2006, and US $359 billion by the end of 2007.

The UAE is one of the wealthiest countries in the region, with a GDP of US $120.0 billion, equal to US $24,000 per capita in 2006. A wide range of public health facilities are run by the Ministry of Health, including hospitals, Primary Healthcare Centers, School Health and Maternity & Child Health Units. The UAE is committed to improving its health sector and as such is investing a significant amount in the construction and renovation of health facilities. A large number of projects, from the construction of hospitals and health centers to the purchasing of new equipment, are currently underway.

The Saudi economy relies heavily on the price of oil. Under the Sixth Development Plan, the healthcare sector expanded rapidly and the government hopes to sustain that growth by investing in construction and other projects. In 2005 alone, US $448 million has been allocated to the construction and renovation of health facilities. The development plans are generally aimed at improving primary healthcare provision. Imports account for the vast majority of the market. Saudi Arabia imports medical equipment and supplies from Germany, the US, the UK, France and the Netherlands.

Bahrain’s healthcare system is organized and administered by the Ministry of Health in conjunction with other ministries, the private sector and its communities. It is estimated that health expenditure in Bahrain will stand at US $513 million by the end 2006, equal to 3.6% GDP; the private sector accounts for nearly a quarter of total spending. Kuwait is one of the more politically liberal states in the gulf region and has strong ties with the West. The country has a well-developed hospital sector; hospital renovation is ongoing although primary care provision is still lacking. Expatriate workers tend to be highly-skilled, bringing modern, Western techniques to the Kuwaiti healthcare system, therefore enhancing its development. There is a very low level of domestic production in Kuwait; the market is therefore heavily reliant on imports. Qatar has incorporated the most advanced medical equipment and training into the country’s healthcare sector. In Qatar, there are four government hospitals, 23 primary healthcare centers, and at least 12 private medical and dental facilities. Oman has a growing healthcare sector that is constantly being improved and modernized, also benefiting from the many construction projects announced in recent years. Total health expenditure is estimated at US $800 million, the vast majority of it provided by the public sector. There is very little domestic production in Oman, and the market is heavily reliant on imports.

Lebanon has many investment-enabling strengths which include a free market, a highly dollarized economy, the absence of controls on the movement of capital and foreign exchange, a highly educated labor force, good quality of life, and limited restrictions on investors. The country is the leading importer of pharmaceutical drugs in the Levant area with over 50 pharmaceutical importers. International medical equipment companies are expected to gain a greater market share in 2007. Levels of health expenditure in Syria are relatively low in comparison to most of its neighbors. Due to very limited domestic production, the market is almost totally reliant on imports, particularly from Japan, the US, Germany, China and the UK. In Jordan Both the government and private sector are committed to upgrading and modernizing healthcare provision. New public and private hospitals have been expanding and upgrading in recent years, providing good opportunities for companies in the provision of medical equipment.

Egypt’s imports of medical devices have fluctuated in recent years, but followed a general upward trend. The healthcare system has been in a transitory period for some time, and the delay has allegedly caused standards to slip in the public sector. Morocco has enjoyed six years of consecutive economic growth since 2000, and the government has embarked on a major overhaul of the health sector. The local medical device manufacturing industry remains at an embryonic stage, leaving most sectors of the market reliant on foreign imports. Tunisia is a small and politically stable country and has the most diversified economy in the North African region. With a population of only 10 million, it has one of the highest standards of living on the entire continent. In Algeria large oil and natural gas reserves, and an economy growing at a rapid rate have created a large consumer market that is beneficial to exporters.

Turkey was the first country whose Ministry of Health concentrated on preventative measures, resulting in falling morbidity and mortality rates and improving demographic indicators. Various projects are in place to assure that healthcare provision is more easily accessible and of a better quality. Although Turkey has a higher level of domestic production than other regional markets, it still relies heavily on imported medical equipment and supplies. Despite the large population, the Iranian market for medical devices is relatively small, especially in per capita terms. The market is expected to rise steadily over the next few years, due to both continued investment in the healthcare system and low levels of domestic production resulting in reliance on imported goods.

The MENA region’s once emerging market has reached considerable heights now, the receptive nature of this environment has made of the healthcare sector a national priority in every country attracting investors from around the globe.

Source:
US Commercial Service, www.buyusa.gov
Piribo, www.piribo.com