Health care in GCC
NMC Group, UAE
Healthcare in GCC – An Overview
Overview – Healthcare Sector
Healthcare market size GCC Countries and growth in the sector

Figures for the year 2007 indicate the total healthcare expenditure as US $ 18 Billion for the GCC
Countries

As per a report published by McKinsey & Company, the healthcare spending in the GCC, will
increase five folds to US $ 60 Billion by 2025

Considering the past growth pattern in the healthcare sector the healthcare expenditure is
speculated to reach US $ 25-28 Billion by 2018, though reports from other firms speculate a higher
growth, a PE Investment firm (ALPEN Capital) the healthcare sector outlook is estimated to reach a
market value of US $ 47-55 Billion by the year 2020, while the GCG speculates a healthcare
expenditure of US $ 24 Billion by the year 2015

The CAGR sums to a range of around 3-8%, as per the various reports
3
Overview – Healthcare Sector
Within the GCC Countries, Saudi Arabia and UAE constitute the major portion around
70-75%
Saudi Arabia and UAE constitute a major portion of the healthcare market of the GCC countries, around 70-75%
4
Overview – Healthcare Sector
Hospital bed requirements in the GCC Countries :-
5

As per the GCG report their is a need of around 22,000 additional beds to be
added in the GCC Countries by the year 2015, current beds 83,644 expected need
107,665

As per McKinsey & Company, by the year 2025, GCC countries will need a total of
around a 160,000 beds

As per the ALPEN CAPITAL report the additional requirment could reach 25,000
beds by 2020

As per 2007 updated figures the current bed strength for GCC countries stands at around
75,000 beds to 84,000 beds as per various reports


As per the ALPEN CAPITAL report 75 hospitals are announced
As per the HOSPITAL BUILD 132 hospitals are announced
Overview – Healthcare Sector
The announced construction value of hospital projects make Saudi
Arabia, UAE and Qatar to highly attractive markets
As per the Hospital Build Update a total ot 132 hospitals are in pipeline with a total value of US $ 17,917 Million
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Overview – Healthcare Sector
Key drivers and restraints for the healthcare industry GCC Countries
DRIVERS
•
Demographic advantage, higher population
growth, ageing population.
•
High risk factors, life style advantage, high
prevalence of diabetes, obesity and cardiovascular diseases.
•
Compulsory
health
insurance
for
expatriates and nationals, direction of most
of the GCC Countries
•
Inadequacy of public healthcare delivery
systems, governments are actively looking
for private sector participation.
•
A high per capita income and comparable
to developed economies
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RESTRAINTS
•
Acute shortage of human resources in the
medical arena, governments have taken
initiatives
•
Lower penetration of the private sector in
most of the GCC Countries.
•
High capital intensive with lower rate of
returns compared to other industries and
sectors
•
Unstructured regulatory
foreign investments.
•
Lack of trust in the local system.UAE
spends around $ 2billion per annum for
medical treatment abroad.
landscape
for
Overview – Healthcare Sector
Comparing health indicators of GCC Countries to developed economies
A lower allocation for healthcare expenditure as a percentage of the GDP in the GCC Countries speculates
probability and need to increase expenditure by the governments
Health-care services are mostly offer by the public sector, inadequacy of these services indicates a
potential increase of private participation in the healthcare sector
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GCC Market Potential Study
GCC countries have per capita GDP similar to those of North American and European
countries
70,000
59,920
60,000
USD
50,000
40,000
30,801
30,388
30,214
30,000
18,488
20,000
10,000
0
Top 10
North
America
European
Union
Regions
Source: IMF
GCC
East Asia
Overview – Healthcare Sector
Comparing per capita healthcare expenditure GCC Countries to developed economies (In US $)
The average per capita expenditure in the GCC healthcare increases (2007) to US $ 709, but is still far
lower compared to the other regions and the international average of around US $ 2,256
Per capita expenditure on healthcare in Qatar (US $ 3.416,
2007) is nearly 5 times more than the GCC average of US $ 709
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Overview – Healthcare Sector
Favorable demographic profile:- The GCC population growth has averaged 3% per
annum over the past five years, among the highest growth rates in the world - This
will generate significant healthcare demand
Acc. to re-insurer Swiss Re, GCC per capita insurance stood at US$ 129 in 2007, significantly
lower than the global average of US$ 519. And only 10% of the GCC population is covered
under a health insurance.
UAE ranks second highest in the world for diabetes. And, the obesity rate for
GCC nationals stands at 40%, one of the highest in the world.