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The Middle East continues to be a high potential, rapidly growing market for healthcare with increasing amounts of public and private sector investments, all for the sole purpose of improving healthcare delivery. The UAE and Saudi governments, for example, sponsor up to 75 percent of all health sector investment in their countries, while Lebanon allocates over 10 percent of GDP to expenditure in the sector, according to 2007 figures. In the GCC, private healthcare is a growth industry mainly for two reasons. The first is a trend towards excluding expatriate workers from public healthcare schemes, forcing them to rely on the private sector. The second, is the emergence of a sizeable medical tourism sector with many patients now seeking treatment in high class hospitals in the GCC rather than in the US or Europe. Dubai is one of the leading regional business centers selected by major organizations, with transparent rules and regulations facilitating an open business environment. A number of challenges face the healthcare sector in the UAE; rapid population growth, a large number of foreign workers, poor immunization rates, and a rise in infectious diseases. The government is always investing in the construction and renovation of health facilities; new hospitals, clinics, laboratories, cardiac centers and nursing schools are planned for Dubai and the Northern Emirates at an estimated total cost of $545 million. The size of the medical equipment market in Saudi Arabia has reached a yearly average of $3 billion over the last few years including all kinds of medical devices, spare parts, and maintenance works. The Public sector is the largest player and represents 75% of this market. The Kingdom has today 114 private hospitals and 338 public ones.The country is the largest market in the Middle East for pharmaceuticals. Demand for healthcare services is growing rapidly and it is estimated that an additional 23,000 new physicians will be required by 2020.

Developing health services tops the priorities of Bahrainis who are looking forward to high standard health infrastructure including high tech equipment and qualified staff. After last year’s elections, they are optimistic to see short and long term plans set to confront diseases and needed medicines provided at affordable prices. Kuwait has a very advanced and modern healthcare system, as well as a comprehensive social service system. Major international health conferences are regularly held in the country, through which significant developments in medical treatment and associated new technologies are reviewed. This, coupled with the unparalleled quality of training for all who work in the healthcare sector, ensures that Kuwait remains in the forefront of providing its citizens with an exemplary health service. In Qatar there’s a given that medical care be available for all residents; citizens and expatriates. Healthcare in the State of Qatar is comprehensive, diversified and efficient in terms of equipment and human resources. Healthcare establishments, cadres, curative and preventive medical services, and equipment have undergone substantial upgrading and improvements. Oman has a very efficient healthcare system and its drug market is growing rapidly, at some 10% per year. This performance is being driven predominately by a rapid increase in population and the growing contribution of the private sector.

Yemen’s Ministry of Public Health is currently failing to cope with the increasing demand for modern health services. It is therefore constantly encouraging the private sector to establish hospitals and clinics. More than 90 private companies are importing and trading in medical instruments, supplies, and pharmaceuticals.

Lebanon has many investment enabling strengths that have encouraged foreign companies to set up offices in recent years. These strengths 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. Syria has both a public and a private healthcare system. The government is working to ensure services are available in both urban and rural areas. Although most villages in Syria have a government clinic or health center, rural areas have fewer doctors and clinics. Jordan’s total expenditure on health, based on the latest available statistics, is estimated at $325 million, around 9% of total GDP. $168 million of this constitutes government expenditure on public health. The average per capita spending is around $1,657 per year. USAID and WHO are major players, among other donors, in funding upgrades in healthcare services and supporting reforms to Jordan’s health care system.

The Egyptian healthcare industry is going through a period of considerable change, centering on a growing trend towards privatization. While the government still retains a great degree of control, the private sector now plays an increasingly important role in healthcare provision, emerging largely as a result of the declining standard of public sector care. There are more than 200 private hospitals in Egypt, operating nearly 15% of all beds. The motto of the Libyan health policy is «health for all by all». The goal of this policy is to create a society in which every member can play an active role, both socially and economically, and in which services are equally distributed among the whole population. Tunisia has a developed healthcare system. All public and private healthcare institutions are very strictly monitored by the Ministry of Health and the medical standards are equivalent to anywhere in Europe. Seeking to diversify and modernize the Algerian economy, the Algerian government has embarked on an aggressive liberalization program to attract foreign direct investment. Foreign participation in joint ventures, however, varies depending on the sector. Although relatively small, the Moroccan medical market offers considerable potential for further expansion, particularly now that the long awaited introduction of a universal health insurance scheme finally appears to be getting off the ground.
Turkey, having a population surpassing 70 million, is a growing market for the medical products and services sectors. In fiscal year 2007, $4.7 million were allocated to the Turkish Ministry of Health by the Government. The Ministry’s budget for 2007 showed a 12% decrease compared to that of the previous year.

Despite the very 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 Middle East & North Africa’s market for healthcare is so diversified nowadays that it sometimes becomes difficult to draw a unified business scheme for the whole territory. International investment in the region depends heavily on the political and economical statuses of the target country; still, foreign companies are rushing in to what they now see as one of the most promising area for business in the world, and competition is growing fierce.

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